RE SIU KONG FAI

RE SIU KONG FAI

The Debtors' asserted crossclaim lacked substance because their evidence was outdated, speculative or relied on incorrect assumptions (notably a valid hotel licence). Independent professional valuations contemporaneous with the sale supported the sale price on appropriate forced-sale/repossession and market bases. The Receivers acted as agents of Kingsway and the Petitioner was not liable for any alleged undervalue. Therefore the petitions succeed and bankruptcy orders should issue.

Citation
[2018] HKCFI 2504
Parties
Judgment Creditor (petitioner): Shanghai Commercial Bank Limited; Judgment Debtor: Shiu Kwong Man Jimmy; Judgment Debtor: Siu Kong Fai
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 November 2018
Case Number
HCB4243/2017
Procedural Posture
Bankruptcy Petition / Hearing and Judgment (order Nisi)
Outcome
Bankruptcy order made against both debtors; petition allowed in favour of the Petitioner; order nisi for costs to the Petitioner
Legal Topics
Statutory Demand, Crossclaim/setoff, Sale by Receivers, Valuation Dispute, Vacant Possession, Costs
Source Language
EN
Bankruptcy Insolvency Receivership Property Civil Procedure Statutory Demand Crossclaim/setoff Sale by Receivers +3 more

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Parties

Shanghai Commercial Bank Limited

Judgment Creditor (petitioner)

Shiu Kwong Man Jimmy

Judgment Debtor

Siu Kong Fai

Judgment Debtor

Procedural Posture

Bankruptcy Petition / Hearing and Judgment (order Nisi)

Legal Issues

  1. 1 Whether the Debtors possessed a bona fide crossclaim that had substance to defeat or stay the bankruptcy petitions
  2. 2 Whether the sale of 129 Temple Street by the Receivers was at an undervalue
  3. 3 Whether the Petitioner could be held liable for actions of the Receivers who acted as agents of the charged company

Ratio Decidendi

The Debtors' asserted crossclaim lacked substance because their evidence was outdated, speculative or relied on incorrect assumptions (notably a valid hotel licence). Independent professional valuations contemporaneous with the sale supported the sale price on appropriate forced-sale/repossession and market bases. The Receivers acted as agents of Kingsway and the Petitioner was not liable for any alleged undervalue. Therefore the petitions succeed and bankruptcy orders should issue.

Court Disposition

Bankruptcy order made against both debtors; petition allowed in favour of the Petitioner; order nisi for costs to the Petitioner

Orders

  • A usual bankruptcy order against Mr Shiu Kwong Man Jimmy and Mr Siu Kong Fai
  • Costs to the Petitioner to be taxed if not agreed and paid forthwith, with certificate for counsel (order nisi)