RE SO TSZ MAN

RE SO TSZ MAN

A self-petition filed by a debtor who does not genuinely intend to seek a bankruptcy order but uses the petition to obtain a moratorium or to negotiate with creditors is an abuse of process; such petitions will be dismissed and the Official Receiver's costs may be deducted from the deposit paid by the debtor.

Citation
[2021] HKCFI 3732
Parties
Debtor: So Tsz Man; Debtor: Lee Wing; Debtor: Tam Wai Yiu; Debtor: Qiu Wenjun; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 December 2021
Case Number
HCB7033/2020
Procedural Posture
Bankruptcy Proceedings / Reasons for Judgment Dismissal of Petitions
Outcome
Each debtor's petition dismissed as an abuse of process.
Legal Topics
Self Petition, Abuse of Process, Adjournment, Costs of Official Receiver, Moratorium
Source Language
EN
Bankruptcy Civil Procedure Court Practice Self Petition Abuse of Process Adjournment Costs of Official Receiver Moratorium

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Parties

So Tsz Man

Debtor

Lee Wing

Debtor

Tam Wai Yiu

Debtor

Qiu Wenjun

Debtor

Official Receiver

Official Receiver

Procedural Posture

Bankruptcy Proceedings / Reasons for Judgment Dismissal of Petitions

Legal Issues

  1. 1 Whether a debtor who presents a self-petition but does not intend to seek a bankruptcy order and uses the petition to obtain a moratorium on repayment commits an abuse of process
  2. 2 Whether the Court should dismiss or stay self-petitions where debtors fail to attend hearings or seek adjournments solely to negotiate with creditors
  3. 3 Whether costs of the Official Receiver are recoverable from the deposit paid by the debtor

Ratio Decidendi

A self-petition filed by a debtor who does not genuinely intend to seek a bankruptcy order but uses the petition to obtain a moratorium or to negotiate with creditors is an abuse of process; such petitions will be dismissed and the Official Receiver's costs may be deducted from the deposit paid by the debtor.

Court Disposition

Each debtor's petition dismissed as an abuse of process.

Orders

  • Dismissal of petitions HCB 7033/2020, HCB 7299/2020, HCB 7569/2020 and HCB 3930/2021 as abuse of process.
  • Costs of the Official Receiver in the amount of $5,300 to be deducted from the deposit paid by each debtor.