RE LI XIAOMING

RE LI XIAOMING

The Debtor failed to prove he signed under duress or to raise a bona fide dispute on substantial grounds; the evidence established he agreed to repay US$77,948,800 and signed the documents voluntarily, so the Settlement Agreement and related Memorandum were valid and the petitioning debt stands.

Citation
[2019] HKCFI 2782
Parties
Petitioner: Diligent Myria Limited; Debtor: Li Xiaoming; Related Company (100% Owned by Debtor): Prosper Huge Limited; Creditors: LT Wang, Li Bing and Niu
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 November 2019
Case Number
HCB6083/2018
Procedural Posture
Bankruptcy / Hearing on Petition Resisting Adjudication (dispute as to Petitioning Debt)
Outcome
Bankruptcy petition not dismissed; petitioning creditor may proceed with petition
Legal Topics
Duress, Settlement Agreement, Personal Guarantee, Bona Fide Dispute on Substantial Grounds, Summary Procedure
Source Language
EN
Insolvency and Bankruptcy Contract Law Civil Procedure Duress Settlement Agreement Personal Guarantee Bona Fide Dispute on Substantial Grounds Summary Procedure

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Diligent Myria Limited

Petitioner

Li Xiaoming

Debtor

Prosper Huge Limited

Related Company (100% Owned by Debtor)

LT Wang, Li Bing and Niu

Creditors

Procedural Posture

Bankruptcy / Hearing on Petition Resisting Adjudication (dispute as to Petitioning Debt)

Legal Issues

  1. 1 Whether the Debtor signed the Settlement Agreement under duress rendering it voidable
  2. 2 Whether there is a bona fide dispute on substantial grounds to defeat the bankruptcy petition
  3. 3 Whether the Debtor incurred personal liability as guarantor despite signing as representative of Prosper Huge Limited

Ratio Decidendi

The Debtor failed to prove he signed under duress or to raise a bona fide dispute on substantial grounds; the evidence established he agreed to repay US$77,948,800 and signed the documents voluntarily, so the Settlement Agreement and related Memorandum were valid and the petitioning debt stands.

Court Disposition

Bankruptcy petition not dismissed; petitioning creditor may proceed with petition

Orders

  • Bankruptcy petition No.6083 of 2018 shall proceed; petition not struck out or dismissed