RE SNG ALLAN, also known as SNG HOCK SENG

RE SNG ALLAN, also known as SNG HOCK SENG

There was no contractual term or admissible evidence of a trade custom imposing an obligation on the petitioner to sell the margin shares at any particular time; the petitioner was properly bound by the nil valuation in the petition and the statutory demand, the respondent produced no evidence to show earlier sale would have covered the debt, expert evidence was unnecessary, and therefore the bankruptcy petition succeeded.

Citation
[2018] HKCFI 2016
Parties
Petitioner: ORIENT SECURITIES (HONG KONG) LIMITED; Debtor: SNG ALLAN also known as SNG HOCK SENG; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 August 2018
Case Number
HCB3651/2018
Procedural Posture
Bankruptcy Petition / Judgment/reasons for Judgment
Outcome
Bankruptcy petition granted; usual bankruptcy order made
Legal Topics
Realisation of Security, Mitigation, Statutory Demand, Valuation of Security, Industry Practice/trade Custom, Bankruptcy Procedure
Source Language
EN
Bankruptcy Insolvency Securities Contract Realisation of Security Mitigation Statutory Demand Valuation of Security +2 more

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Parties

ORIENT SECURITIES (HONG KONG) LIMITED

Petitioner

SNG ALLAN also known as SNG HOCK SENG

Debtor

Official Receiver

Official Receiver

Procedural Posture

Bankruptcy Petition / Judgment/reasons for Judgment

Legal Issues

  1. 1 Whether petitioner owed a duty to realise shares held as margin security at any particular time
  2. 2 Whether an industry trade custom or implied term required realisation of security on default
  3. 3 Whether expert evidence on industry practice and valuation was necessary or admissible

Ratio Decidendi

There was no contractual term or admissible evidence of a trade custom imposing an obligation on the petitioner to sell the margin shares at any particular time; the petitioner was properly bound by the nil valuation in the petition and the statutory demand, the respondent produced no evidence to show earlier sale would have covered the debt, expert evidence was unnecessary, and therefore the bankruptcy petition succeeded.

Court Disposition

Bankruptcy petition granted; usual bankruptcy order made

Orders

  • Bankruptcy order made
  • Respondent's application to adduce expert evidence dismissed