RE CHEUNG KWOK LUN ALAN

RE CHEUNG KWOK LUN ALAN

Court accepted authenticity of the May 1998 internal rules document and witness evidence that the Internal Replacement Rule was in force and explained to the debtor; administrative delay in implementing deductions did not negate the rule; petitioner therefore proved the disputed debt and a bankruptcy order was appropriate, but the order was suspended for a 7-day period to allow the debtor to pay HK$80,114.87 to avoid the order taking effect.

Citation
RE CHEUNG KWOK LUN ALAN
Parties
Petitioner / Judgment Creditor: Pacific Century Insurance Company Limited (formerly Top Glory Insurance Company (Bermuda) Limited); Debtor: Cheung Kwok Lun Alan; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 March 2003
Case Number
HCB10968/2001
Procedural Posture
Bankruptcy Petition / Judgment (court of First Instance, 6 March 2003)
Outcome
Bankruptcy order made but suspended for 7 days; if HK$80,114.87 is paid to the petitioner within 7 days the order is rescinded; if not, the bankruptcy order takes effect on 14 March 2003.
Legal Topics
Statutory Demand, Internal Replacement Rule, Deduction of Commissions and Bonuses, Bona Fide Dispute of Debt, Incorporation of Rules Into Contracts
Source Language
EN
Bankruptcy Contract Insurance Law Employment Law Evidence Statutory Demand Internal Replacement Rule Deduction of Commissions and Bonuses +2 more

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Parties

Pacific Century Insurance Company Limited (formerly Top Glory Insurance Company (Bermuda) Limited)

Petitioner / Judgment Creditor

Cheung Kwok Lun Alan

Debtor

Official Receiver

Official Receiver

Procedural Posture

Bankruptcy Petition / Judgment (court of First Instance, 6 March 2003)

Legal Issues

  1. 1 Whether the Internal Replacement Rule was in force and binding on the debtor at the material time
  2. 2 Whether the petitioner proved the petitioning debt such that a bankruptcy order should be made
  3. 3 Whether deductions for Reduced First Year Commission, Monthly Bonus and Expense Allowance were validly recoverable from the debtor

Ratio Decidendi

Court accepted authenticity of the May 1998 internal rules document and witness evidence that the Internal Replacement Rule was in force and explained to the debtor; administrative delay in implementing deductions did not negate the rule; petitioner therefore proved the disputed debt and a bankruptcy order was appropriate, but the order was suspended for a 7-day period to allow the debtor to pay HK$80,114.87 to avoid the order taking effect.

Court Disposition

Bankruptcy order made but suspended for 7 days; if HK$80,114.87 is paid to the petitioner within 7 days the order is rescinded; if not, the bankruptcy order takes effect on 14 March 2003.

Orders

  • A bankruptcy order is made against the debtor; the order is to lie in the court file and is not to come into effect until after 7 days from today; if HK$80,114.87 is paid by the debtor to the petitioner within 7 days from today the bankruptcy order is rescinded; if no payment is made within this period the...
  • Amounts paid into court by the debtor in the sums of HK$242,412.04 and HK$23,443.50 with interest are to be paid out after 7 days from today as follows: (i) where the bankruptcy order is rescinded, paid out to the petitioner's solicitors; (ii) where the bankruptcy order takes effect on 14 March 2003, paid out to the...