Y K ENGINEERING CO LTD v. SHI JIAREN

Y K ENGINEERING CO LTD v. SHI JIAREN

The petition was not dismissed because the petitioner reasonably refused the debtor's offer: the debtor failed to act when served with the statutory demand and when the petition was presented, produced no contemporaneous evidence of income or bank records until late, and did not demonstrate ability to perform the instalment plan; therefore s6D(3) was not satisfied and a bankruptcy order was granted.

Citation
[2021] HKCFI 3159
Parties
Petitioner: Y Engineering Company Limited; Debtor: Mr Shi Jiaren
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 August 2021
Case Number
HCB407/2021
Procedural Posture
Bankruptcy Petition / Substantive Hearing and Decision (bankruptcy Order Granted)
Outcome
Bankruptcy order granted against the Debtor
Legal Topics
Statutory Demand, Offer to Compound, S 6 D(3) Bankruptcy Ordinance, Dismissal for Unreasonable Refusal
Source Language
EN
Bankruptcy Debt Recovery Civil Procedure Statutory Demand Offer to Compound S 6 D(3) Bankruptcy Ordinance Dismissal for Unreasonable Refusal

Case Brief

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Parties

Y Engineering Company Limited

Petitioner

Mr Shi Jiaren

Debtor

Procedural Posture

Bankruptcy Petition / Substantive Hearing and Decision (bankruptcy Order Granted)

Legal Issues

  1. 1 Whether the petition should be dismissed under s6D(3) of the Bankruptcy Ordinance because the debtor made an offer that was unreasonably refused
  2. 2 Whether the debtor was able to pay the debt when the statutory demand was served and the petition presented
  3. 3 Whether the debtor's repayment proposal was genuine and supported by evidence of ability to pay

Ratio Decidendi

The petition was not dismissed because the petitioner reasonably refused the debtor's offer: the debtor failed to act when served with the statutory demand and when the petition was presented, produced no contemporaneous evidence of income or bank records until late, and did not demonstrate ability to perform the instalment plan; therefore s6D(3) was not satisfied and a bankruptcy order was granted.

Court Disposition

Bankruptcy order granted against the Debtor

Orders

  • Bankruptcy order granted against the Debtor.
  • Costs of the petition, including reserved costs, to be paid by the Debtor to the Petitioner; such costs to be taxed if not agreed.