RE GUY KWOK-HUNG LAM

RE GUY KWOK-HUNG LAM

Lam failed to demonstrate a bona fide dispute on substantial grounds regarding the petition debt; the exclusive jurisdiction clause does not bar the Hong Kong court from deciding whether a bona fide dispute exists; the petition complied with s6B BO by disclosing the secured part and estimating its value; the Money Lenders Ordinance did not render the Credit Agreement unenforceable because the loans are secured and fall within the statutory exemption; allegations of estoppel/waiver and the cross-claim were unsubstantiated and insufficient in law or quantum to defeat the petition; the court therefore made a bankruptcy order against Lam and awarded costs against him in respect of the...

Citation
[2021] HKCFI 2135
Parties
Creditor / Petitioner: TOR ASIA CREDIT MASTER FUND LP; 1st Plaintiff (receivers and Managers Appointed): CP GLOBAL INC.; 2nd Plaintiff: CP ASSETS LIMITED; Debtor / 1st Defendant: GUY KWOK-HUNG LAM; 2nd Defendant: CINDY FUNG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 July 2021
Case Number
HCB4115/2020
Procedural Posture
Bankruptcy Petition and Related Originating Summons for Injunctive Relief / Judgment
Outcome
Bankruptcy order made against Guy Kwok-Hung Lam
Legal Topics
Statutory Demand, Exclusive Jurisdiction Clause, Bona Fide Dispute Test, Secured Creditor Valuation, Money Lenders Ordinance, Estoppel and Waiver, Receivership, Costs
Source Language
EN
Bankruptcy Law Companies Law Contract Law Injunctions Conflict of Laws Insolvency Practice Statutory Demand Exclusive Jurisdiction Clause +6 more

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Parties

TOR ASIA CREDIT MASTER FUND LP

Creditor / Petitioner

CP GLOBAL INC.

1st Plaintiff (receivers and Managers Appointed)

CP ASSETS LIMITED

2nd Plaintiff

GUY KWOK-HUNG LAM

Debtor / 1st Defendant

CINDY FUNG

2nd Defendant

Procedural Posture

Bankruptcy Petition and Related Originating Summons for Injunctive Relief / Judgment

Legal Issues

  1. 1 Whether there is a bona fide dispute on substantial grounds as to the petition debt
  2. 2 Whether an exclusive jurisdiction clause in the credit agreement prevents presentation of a bankruptcy petition in Hong Kong
  3. 3 Whether the petitioner is effectively a fully secured creditor so as to defeat the petition under s6B BO

Ratio Decidendi

Lam failed to demonstrate a bona fide dispute on substantial grounds regarding the petition debt; the exclusive jurisdiction clause does not bar the Hong Kong court from deciding whether a bona fide dispute exists; the petition complied with s6B BO by disclosing the secured part and estimating its value; the Money Lenders Ordinance did not render the Credit Agreement unenforceable because the loans are secured and fall within the statutory exemption; allegations of estoppel/waiver and the cross-claim were unsubstantiated and insufficient in law or quantum to defeat the petition; the court therefore made a bankruptcy order against Lam and awarded costs against him in respect of the...

Court Disposition

Bankruptcy order made against Guy Kwok-Hung Lam

Orders

  • Bankruptcy order made against Guy Kwok-Hung Lam
  • Costs of and occasioned by the originating summons to be paid by Lam to the plaintiffs, to be taxed if not agreed, with certificate for two counsel