RE LI XIAOMING (李曉明)

RE LI XIAOMING (李曉明)

The petition was dismissed because the Petitioner failed to do all that was reasonable to bring the statutory demand to the Debtor's attention (substituted service by one‑day newspaper advertisement was insufficient given knowledge the Debtor was not in Hong Kong and no factual basis he would see the advert), and there existed a bona fide dispute on substantial grounds as to the debt arising from whether the mortgagee obtained the best reasonably obtainable price for the aircraft; on those bases the petition could not succeed.

Citation
[2020] HKCFI 361
Parties
Petitioner/creditor: UBS AG; Debtor: Li Xiaoming
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 March 2020
Case Number
HCB1498/2019
Procedural Posture
Bankruptcy (creditor's Petition) / Decision on Petition (court of First Instance Judgment)
Outcome
Petition dismissed
Legal Topics
Statutory Demand, Service of Process/substituted Service, Bona Fide Dispute on Debt, Mortgagee Duty to Obtain Best Price, Proof of Service (bankruptcy Rules), Application to Dismiss Petition
Source Language
EN
Insolvency/bankruptcy Civil Procedure Property/mortgage Commercial Law Contract Statutory Demand Service of Process/substituted Service Bona Fide Dispute on Debt +3 more

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Parties

UBS AG

Petitioner/creditor

Li Xiaoming

Debtor

Procedural Posture

Bankruptcy (creditor's Petition) / Decision on Petition (court of First Instance Judgment)

Legal Issues

  1. 1 Whether the statutory demand was properly served in compliance with Bankruptcy Rules and Procedure
  2. 2 Whether the Debtor has established a bona fide dispute on substantial grounds as to the debt
  3. 3 Whether the mortgagee discharged its duty to obtain the best price reasonably obtainable on sale of the mortgaged aircraft

Ratio Decidendi

The petition was dismissed because the Petitioner failed to do all that was reasonable to bring the statutory demand to the Debtor's attention (substituted service by one‑day newspaper advertisement was insufficient given knowledge the Debtor was not in Hong Kong and no factual basis he would see the advert), and there existed a bona fide dispute on substantial grounds as to the debt arising from whether the mortgagee obtained the best reasonably obtainable price for the aircraft; on those bases the petition could not succeed.

Court Disposition

Petition dismissed

Orders

  • Petition dismissed
  • Costs to the Debtor