RE NANIK DAYARAM

RE NANIK DAYARAM

The court found both grounds under s.30A(4)(c) and s.30A(4)(d) established: the bankrupt failed to co-operate and his pre-bankruptcy conduct was unsatisfactory (including suspicious transfers and post-petition dissipation of MPF funds). Balancing rehabilitation and public interest, and noting investigation is incomplete and the bankrupt's uncooperative conduct, the court exercised its discretion to suspend the running of discharge for three years from 12 June 2017 (costs reserved).

Citation
[2018] HKCFI 2497
Parties
Joint and Several Trustees (applicants): Osman Mohammed Arab & Wong Kwok Keung (RSM Nelson Wheeler); Bankrupt (respondent): Nanik Dayaram (also known as Nanik Dayaram Hathiramani); Creditor / Petitioner: The Hongkong and Shanghai Banking Corporation Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 November 2018
Case Number
HCB7651/2011
Procedural Posture
Bankruptcy Proceedings (suspension of Automatic Discharge) / Application for Suspension of Automatic Discharge Under S.30 a of the Bankruptcy Ordinance
Outcome
Discharge of bankruptcy suspended for 3 years from 12 June 2017; costs reserved.
Legal Topics
Suspension of Automatic Discharge, Failure to Co Operate With Trustee, Unsatisfactory Pre Bankruptcy Conduct, Dissipation of Assets, MPF Withdrawals, Fraud Conviction
Source Language
EN
Bankruptcy Insolvency Trusts and Property Criminal Law Civil Procedure Suspension of Automatic Discharge Failure to Co Operate With Trustee Unsatisfactory Pre Bankruptcy Conduct +3 more

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Parties

Osman Mohammed Arab & Wong Kwok Keung (RSM Nelson Wheeler)

Joint and Several Trustees (applicants)

Nanik Dayaram (also known as Nanik Dayaram Hathiramani)

Bankrupt (respondent)

The Hongkong and Shanghai Banking Corporation Limited

Creditor / Petitioner

Procedural Posture

Bankruptcy Proceedings (suspension of Automatic Discharge) / Application for Suspension of Automatic Discharge Under S.30 a of the Bankruptcy Ordinance

Legal Issues

  1. 1 Whether grounds under s.30A(4)(c) (failure to co-operate) and s.30A(4)(d) (unsatisfactory conduct) are established
  2. 2 Whether the court should exercise its discretion to suspend the automatic discharge and, if so, for what period
  3. 3 Whether specific incidents (non-disclosure of claim, non-disclosure of shareholdings, transfers to associated parties, dissipation of MPF funds) amount to failure to co-operate or unsatisfactory conduct

Ratio Decidendi

The court found both grounds under s.30A(4)(c) and s.30A(4)(d) established: the bankrupt failed to co-operate and his pre-bankruptcy conduct was unsatisfactory (including suspicious transfers and post-petition dissipation of MPF funds). Balancing rehabilitation and public interest, and noting investigation is incomplete and the bankrupt's uncooperative conduct, the court exercised its discretion to suspend the running of discharge for three years from 12 June 2017 (costs reserved).

Court Disposition

Discharge of bankruptcy suspended for 3 years from 12 June 2017; costs reserved.

Orders

  • The discharge of the bankruptcy under section 30A of the Bankruptcy Ordinance (Cap. 6) shall cease to run for a period of 3 years from 12 June 2017.
  • Costs be reserved.