RE CHOW SHUN YUNG

RE CHOW SHUN YUNG

The court held that although a general stay pending appeal may affect post-bankruptcy consequences such that leave under section 12(1) need not strictly be sought while the stay is in force, the court would grant leave to the petitioners to proceed with the taxation hearings as a precaution. Leave was granted subject to conditions preventing enforcement without further leave and preventing costs claims against the Official Receiver personally or the trustee, and costs were ordered in the cause with the Official Receiver's costs assessed at HKD 16,000.

Citation
RE CHOW SHUN YUNG
Parties
Petitioning Creditor: Wei Pih Stella; Petitioning Creditor: Ethel Lew; Debtor / Respondent: Chow Shun Yung; Official Receiver / Trustee in Bankruptcy: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 June 2005
Case Number
HCB5334/2004
Procedural Posture
Bankruptcy / Application for Leave to Proceed Under Section 12(1) (hearing in Chambers)
Outcome
Leave granted to petitioners to proceed with taxation proceedings (first and second items) subject to conditions
Legal Topics
Leave to Proceed Under Section 12(1), Stay Pending Appeal, Taxation of Costs, Official Receiver Locus
Source Language
EN
Bankruptcy Insolvency Civil Procedure Costs Leave to Proceed Under Section 12(1) Stay Pending Appeal Taxation of Costs Official Receiver Locus

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Parties

Wei Pih Stella

Petitioning Creditor

Ethel Lew

Petitioning Creditor

Chow Shun Yung

Debtor / Respondent

Official Receiver

Official Receiver / Trustee in Bankruptcy

Procedural Posture

Bankruptcy / Application for Leave to Proceed Under Section 12(1) (hearing in Chambers)

Legal Issues

  1. 1 Whether leave under section 12(1) is required to proceed with taxation proceedings while a stay of the bankruptcy order pending appeal is in force
  2. 2 Whether costs orders made before the bankruptcy order are debts provable in bankruptcy
  3. 3 Whether the Official Receiver has locus to attend or object while the stay is in force

Ratio Decidendi

The court held that although a general stay pending appeal may affect post-bankruptcy consequences such that leave under section 12(1) need not strictly be sought while the stay is in force, the court would grant leave to the petitioners to proceed with the taxation hearings as a precaution. Leave was granted subject to conditions preventing enforcement without further leave and preventing costs claims against the Official Receiver personally or the trustee, and costs were ordered in the cause with the Official Receiver's costs assessed at HKD 16,000.

Court Disposition

Leave granted to petitioners to proceed with taxation proceedings (first and second items) subject to conditions

Orders

  • Leave granted to proceed with taxation of costs relating to bill No.4 and bills No.1 and 3 in HCCA No.780 of 1998
  • No judgment or order obtained in the taxation proceedings shall be enforced against Mr Chow without leave of the court