RE LAU KWOK FAI, BERNARD

RE LAU KWOK FAI, BERNARD

Statutory demand was not complied with, the charged property when valued on a forced sale basis is insufficient to cover the petitioning debt, and the debtor has no cash or readily realisable assets; pending judicial review/appeal and speculative future recovery of emoluments do not demonstrate present ability to pay or justify adjourning the petition; accordingly a bankruptcy order should be made and costs ordered out of the debtor's assets.

Citation
RE LAU KWOK FAI, BERNARD
Parties
Petitioner/creditor: Secretary for Justice; Respondent/debtor: Lau Kwok Fai, Bernard
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 September 2005
Case Number
HCB11144/2004
Procedural Posture
Bankruptcy Petition / Final Judgment Bankruptcy Order Made
Outcome
bankruptcy order made against the debtor
Legal Topics
Statutory Demand, Charging Order, Bankruptcy Order, Ability to Pay Test, Judicial Review, Natural Justice, Forfeiture of Emoluments, Adjournment
Source Language
EN
Bankruptcy Administrative Law Civil Procedure Property Law Statutory Demand Charging Order Bankruptcy Order Ability to Pay Test +4 more

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Parties

Secretary for Justice

Petitioner/creditor

Lau Kwok Fai, Bernard

Respondent/debtor

Procedural Posture

Bankruptcy Petition / Final Judgment Bankruptcy Order Made

Legal Issues

  1. 1 whether debtor is unable to pay the petitioning debt
  2. 2 whether secured property provides sufficient security for the petitioning debt
  3. 3 whether pending judicial review/appeal prevents making a bankruptcy order or warrants adjournment

Ratio Decidendi

Statutory demand was not complied with, the charged property when valued on a forced sale basis is insufficient to cover the petitioning debt, and the debtor has no cash or readily realisable assets; pending judicial review/appeal and speculative future recovery of emoluments do not demonstrate present ability to pay or justify adjourning the petition; accordingly a bankruptcy order should be made and costs ordered out of the debtor's assets.

Court Disposition

bankruptcy order made against the debtor

Orders

  • Make a bankruptcy order against Lau Kwok Fai, Bernard
  • Petitioner's costs to be paid out of Mr Lau's assets