RE TAO WENGUANG

RE TAO WENGUANG

The petition was dismissed because the debtor established a bona fide dispute on substantial grounds and an arguable cross-claim exceeding the petitioning debt, supported by documents and assertions that the petitioner did not refute through affidavits from persons with personal knowledge; accordingly the statutory demand could not stand.

Citation
[2020] HKCFI 2348
Parties
Petitioner: IMC Development & Management Limited; Debtor: Tao Wenguang
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 September 2020
Case Number
HCB3813/2019
Procedural Posture
Bankruptcy Petition / Judgment Following Hearing on Statutory Demand
Outcome
petition dismissed
Legal Topics
Statutory Demand, Cross Claim, Bona Fide Dispute, Assignment of Debt, Set Off, Estoppel, Costs
Source Language
EN
Bankruptcy Insolvency Contract Company Law Civil Procedure Statutory Demand Cross Claim Bona Fide Dispute +4 more

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Parties

IMC Development & Management Limited

Petitioner

Tao Wenguang

Debtor

Procedural Posture

Bankruptcy Petition / Judgment Following Hearing on Statutory Demand

Legal Issues

  1. 1 Whether the debtor is unable to pay the petitioning debt under the Bankruptcy Ordinance
  2. 2 Whether the debtor has established a bona fide dispute on substantial grounds to resist the statutory demand
  3. 3 Whether the debtor’s asserted cross-claim/claim for bonus constitutes a mutual cross-claim exceeding the petitioning debt

Ratio Decidendi

The petition was dismissed because the debtor established a bona fide dispute on substantial grounds and an arguable cross-claim exceeding the petitioning debt, supported by documents and assertions that the petitioner did not refute through affidavits from persons with personal knowledge; accordingly the statutory demand could not stand.

Court Disposition

petition dismissed

Orders

  • Costs order nisi that the petitioner pay the costs of the debtor and of the Official Receiver to be assessed by way of gross sum assessment
  • Debtor to have his costs assessed in accordance with Order 62 rule 28A of the Rules of the High Court (Cap 4) as he acts in person