RE LIN QINGXIONG

RE LIN QINGXIONG

The Debtor's case of actual release by the Petitioner in favour of Mr Li was rejected: the evidence was self-serving, lacking corroboration or direct documentary proof, contradicted by available documents (Credit Committee minutes and Letter of Intent), undermined by commercial improbability given share values, and insufficient under the Guarantees' clause requiring written waiver; accordingly the Petition succeeds and a bankruptcy order is made.

Citation
[2020] HKCFI 884
Parties
Petitioner: Guotai Junan Securities (Hong Kong) Limited; Debtor: Lin Qingxiong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 June 2020
Case Number
HCB6306/2019
Procedural Posture
Bankruptcy Proceedings / Judgment on Bankruptcy Petition
Outcome
Petition granted; usual bankruptcy order made against Mr Lin Qingxiong
Legal Topics
Statutory Demand, Guarantee, Release/substitution of Guarantor, Bona Fide Dispute, Estoppel
Source Language
EN
Bankruptcy Law Contract Law Securities Law Statutory Demand Guarantee Release/substitution of Guarantor Bona Fide Dispute Estoppel

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 3 Authorities cited 3 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Guotai Junan Securities (Hong Kong) Limited

Petitioner

Lin Qingxiong

Debtor

Procedural Posture

Bankruptcy Proceedings / Judgment on Bankruptcy Petition

Legal Issues

  1. 1 Whether the Debtor raised a bona fide dispute to the debt on substantial grounds
  2. 2 Whether the Petitioner actually released the Debtor from the Guarantees by accepting Mr Li as substitute guarantor
  3. 3 Whether any waiver or release complied with the Guarantees' requirement for written signed waiver

Ratio Decidendi

The Debtor's case of actual release by the Petitioner in favour of Mr Li was rejected: the evidence was self-serving, lacking corroboration or direct documentary proof, contradicted by available documents (Credit Committee minutes and Letter of Intent), undermined by commercial improbability given share values, and insufficient under the Guarantees' clause requiring written waiver; accordingly the Petition succeeds and a bankruptcy order is made.

Court Disposition

Petition granted; usual bankruptcy order made against Mr Lin Qingxiong

Orders

  • Usual bankruptcy order against Mr Lin Qingxiong
  • Order nisi that the costs of the Petition, including all costs previously reserved, be to the Petitioner, to be taxed if not agreed, with certificate for Counsel