RE HAU PO MAN STANLEY

RE HAU PO MAN STANLEY

The court found the trustees established the essential conditions and a prima facie case for a section 29 private examination and ordered targeted discovery and examinations limited to documents relevant to Novel Gain and specified transactional matters, rejecting the res judicata bar because the respondents were not parties to the earlier preference proceedings; the court exercised discretion to allow the S29 application in part but refused investigation into certain broader pre-bankruptcy financial matters; on section 30A the court found failure to cooperate and unsatisfactory conduct that would prejudice administration and suspended automatic discharge for three years.

Citation
RE HAU PO MAN STANLEY
Parties
Bankrupt: Hau Po Man Stanley; Trustee: Joint and Several Trustees of the estate; Respondent (spouse): Lucita O Hau; Respondent (daughter): Michelle Lynn O Hau
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 June 2007
Case Number
HCB924/2002
Procedural Posture
Bankruptcy Proceedings (section 29 Examination and Section 30 a Suspension) / Chambers Hearing and Decision on S29 and S30 a Applications (decision Dated 26 June 2007)
Outcome
S29 application allowed in part; S30A application granted in part and automatic discharge suspended for three years
Legal Topics
Private Examination Under Section 29, Suspension of Automatic Discharge Under Section 30 a, Unfair Preference, Disclosure and Discovery, Res Judicata, Gambling and Insolvency Conduct
Source Language
EN
Bankruptcy Insolvency Company Law Civil Procedure Private Examination Under Section 29 Suspension of Automatic Discharge Under Section 30 a Unfair Preference Disclosure and Discovery +2 more

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Parties

Hau Po Man Stanley

Bankrupt

Joint and Several Trustees of the estate

Trustee

Lucita O Hau

Respondent (spouse)

Michelle Lynn O Hau

Respondent (daughter)

Procedural Posture

Bankruptcy Proceedings (section 29 Examination and Section 30 a Suspension) / Chambers Hearing and Decision on S29 and S30 a Applications (decision Dated 26 June 2007)

Legal Issues

  1. 1 Whether trustees satisfied essential conditions for a section 29 private examination and production of specified documents
  2. 2 Whether res judicata from prior Preference Application (Lam J decision) bars re-opening Novel Gain matters
  3. 3 Whether automatic discharge under section 30A should be suspended on grounds of likely significant contribution, prejudice to administration, failure to cooperate, unsatisfactory conduct and alleged offences

Ratio Decidendi

The court found the trustees established the essential conditions and a prima facie case for a section 29 private examination and ordered targeted discovery and examinations limited to documents relevant to Novel Gain and specified transactional matters, rejecting the res judicata bar because the respondents were not parties to the earlier preference proceedings; the court exercised discretion to allow the S29 application in part but refused investigation into certain broader pre-bankruptcy financial matters; on section 30A the court found failure to cooperate and unsatisfactory conduct that would prejudice administration and suspended automatic discharge for three years.

Court Disposition

S29 application allowed in part; S30A application granted in part and automatic discharge suspended for three years

Orders

  • Stanley, Lucita and Michelle to each make discovery of items 1-4 and 6-9 in the Schedule to the S29 Summons by affirmation within 21 days
  • Stanley to make discovery of items 11 and 16 in the Schedule to the S29 Summons by affirmation within 21 days