RE LUU HUNG VEIT DERRICK

RE LUU HUNG VEIT DERRICK

The court found that on the material before it the trustees' continued treatment of Toggenburger as a creditor (based on an asserted assignment and documents) did not amount to misconduct or an inability to act impartially and was not a proper basis for removal under s96(2). The trustees' conduct in relation to the appeal and funding did not impugn their office; major creditors supported the trustees. Accordingly no statutory ground for removal was established and the application was dismissed.

Citation
RE LUU HUNG VEIT DERRICK
Parties
Bankrupt: Luu Hung Veit Derrick; Trustee in Bankruptcy: Wong Tak Man Stephen; Trustee in Bankruptcy: Osman Mohammed Arab; Named Trustee Company (not Actual Office‑holders): RSM Nelson Wheeler Corporate Advisory Limited; Creditor and Creditors' Committee Member: Christian Emil Toggenburger; Petitioner/creditor: Zhang Liyuan; Creditor and Creditors' Committee Member: Lam Ching Kui; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 September 2013
Case Number
HCB4776/2011
Procedural Posture
Bankruptcy Proceedings / Chambers Hearing and Decision on Summons to Remove Trustees and to Direct Official Receiver Re Creditors' Committee Member
Outcome
Summons dismissed in full
Legal Topics
Removal of Trustee, Creditors' Committee Membership, Standing (locus Standi), Misconduct of Trustees, Assignment of Debt, Trustee Duties and Impartiality, Costs
Source Language
EN
Bankruptcy Insolvency Civil Procedure Removal of Trustee Creditors' Committee Membership Standing (locus Standi) Misconduct of Trustees Assignment of Debt +2 more

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 5 Authorities cited 16 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Luu Hung Veit Derrick

Bankrupt

Wong Tak Man Stephen

Trustee in Bankruptcy

Osman Mohammed Arab

Trustee in Bankruptcy

RSM Nelson Wheeler Corporate Advisory Limited

Named Trustee Company (not Actual Office‑holders)

Christian Emil Toggenburger

Creditor and Creditors' Committee Member

Zhang Liyuan

Petitioner/creditor

Lam Ching Kui

Creditor and Creditors' Committee Member

Official Receiver

Official Receiver

Procedural Posture

Bankruptcy Proceedings / Chambers Hearing and Decision on Summons to Remove Trustees and to Direct Official Receiver Re Creditors' Committee Member

Legal Issues

  1. 1 Whether trustees guilty of misconduct under s96(2)(a) of the Bankruptcy Ordinance
  2. 2 Whether trustees' connection or relation to a creditor made them unable to act impartially under s96(2)(d)
  3. 3 Whether the interests of creditors required removal under s96(2)(e)

Ratio Decidendi

The court found that on the material before it the trustees' continued treatment of Toggenburger as a creditor (based on an asserted assignment and documents) did not amount to misconduct or an inability to act impartially and was not a proper basis for removal under s96(2). The trustees' conduct in relation to the appeal and funding did not impugn their office; major creditors supported the trustees. Accordingly no statutory ground for removal was established and the application was dismissed.

Court Disposition

Summons dismissed in full

Orders

  • Application to remove Mr Wong Tak Man Stephen and Mr Osman Mohammed Arab as trustees dismissed
  • Application to direct Official Receiver to remove Mr Christian Emil Toggenburger from the creditors' committee dismissed