RE FOOK HAU TRADING COMPANY (a firm)

RE FOOK HAU TRADING COMPANY (a firm)

The debtor failed to establish an estoppel because it did not comply with the alleged considerations (notably it did not vacate all five properties within the required short time and actively participated in sale of the fifth property), and its account is contradicted by contemporaneous documents and conduct (facility letters, demand letters, statutory demands, surrender letters and correspondence). Therefore there is no bona fide dispute on substantial grounds and the bankruptcy petition must succeed.

Citation
[2018] HKCFI 165
Parties
Debtor: Fook Hau Trading Company; Petitioner/creditor: Standard Chartered Bank (Hong Kong) Limited; Partner: Chang Hoi Kau; Partner: Tsang Poa Kau; Partner: Tsang Moon Kau; Partner: Chang In Seong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 January 2018
Case Number
HCB6222/2016
Procedural Posture
Bankruptcy Petition / Hearing/decision on Petition
Outcome
Petition allowed; bankruptcy order to be made against Fook Hau Trading Company (debtor)
Legal Topics
Bona Fide Dispute, Waiver by Estoppel, Statutory Demand, Dissolution of Partnership, Summary Determination
Source Language
EN
Bankruptcy Contract Equity Partnership Law Civil Procedure Bona Fide Dispute Waiver by Estoppel Statutory Demand +2 more

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Parties

Fook Hau Trading Company

Debtor

Standard Chartered Bank (Hong Kong) Limited

Petitioner/creditor

Chang Hoi Kau

Partner

Tsang Poa Kau

Partner

Tsang Moon Kau

Partner

Chang In Seong

Partner

Procedural Posture

Bankruptcy Petition / Hearing/decision on Petition

Legal Issues

  1. 1 Whether the debtor established a bona fide dispute on substantial grounds to resist the bankruptcy petition
  2. 2 Whether an estoppel/waiver arose from an alleged promise by the bank to discharge the debt upon certain considerations
  3. 3 Whether the alleged considerations were performed by the debtor

Ratio Decidendi

The debtor failed to establish an estoppel because it did not comply with the alleged considerations (notably it did not vacate all five properties within the required short time and actively participated in sale of the fifth property), and its account is contradicted by contemporaneous documents and conduct (facility letters, demand letters, statutory demands, surrender letters and correspondence). Therefore there is no bona fide dispute on substantial grounds and the bankruptcy petition must succeed.

Court Disposition

Petition allowed; bankruptcy order to be made against Fook Hau Trading Company (debtor)

Orders

  • Bankruptcy order to be made against Fook Hau Trading Company; petition allowed