RE CHEUNG SUNG KEI CIVIC

RE CHEUNG SUNG KEI CIVIC

Because the securities and legal charge were provided by third parties and not the debtors, the petitioner was not a 'secured creditor' of the debtors under Bankruptcy Ordinance s2; third-party security is irrelevant to the validity of the statutory demands and the debtors raised no valid defence, so bankruptcy orders were properly made.

Citation
[2019] HKCFI 186
Parties
Petitioner: ZHONGTAI INTERNATIONAL SECURITIES LIMITED; Debtor: TAM SIU LEUNG (譚紹良); Debtor: TAM SHUK YI FANNY (譚淑儀); Debtor: CHEUNG SUNG KEI CIVIC (張崇基)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 January 2019
Case Number
HCB7403/2017
Procedural Posture
Bankruptcy Petitions (statutory Demands) / Hearing and Adjudication; Judgment and Reasons for Judgment
Outcome
Each debtor was adjudged bankrupt; petitioner entitled to its costs.
Legal Topics
Statutory Demand, Secured Creditor, Third Party Security, Estoppel, Bankruptcy Order, Security Deed, Legal Charge
Source Language
EN
Bankruptcy Insolvency Civil Procedure Statutory Demand Secured Creditor Third Party Security Estoppel Bankruptcy Order +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 2 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

ZHONGTAI INTERNATIONAL SECURITIES LIMITED

Petitioner

TAM SIU LEUNG (譚紹良)

Debtor

TAM SHUK YI FANNY (譚淑儀)

Debtor

CHEUNG SUNG KEI CIVIC (張崇基)

Debtor

Procedural Posture

Bankruptcy Petitions (statutory Demands) / Hearing and Adjudication; Judgment and Reasons for Judgment

Legal Issues

  1. 1 Whether the debt in each statutory demand was a liquidated sum susceptible to enforcement by bankruptcy petition
  2. 2 Whether security provided by third parties rendered the petitioner a 'secured creditor' and thus a defence to the statutory demands
  3. 3 Whether estoppel or representations regarding withholding enforcement by the petitioner constituted a defense

Ratio Decidendi

Because the securities and legal charge were provided by third parties and not the debtors, the petitioner was not a 'secured creditor' of the debtors under Bankruptcy Ordinance s2; third-party security is irrelevant to the validity of the statutory demands and the debtors raised no valid defence, so bankruptcy orders were properly made.

Court Disposition

Each debtor was adjudged bankrupt; petitioner entitled to its costs.

Orders

  • Bankruptcy order made against Tam Siu Leung
  • Bankruptcy order made against Tam Shuk Yi Fanny