CHAN PUI SZE AND MAK HAU YIN (THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF THE BANKRUPT) v. WANG JUE

CHAN PUI SZE AND MAK HAU YIN (THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF THE BANKRUPT) v. WANG JUE

On the evidence the Court found the interspousal transfers were made pursuant to a genuine Marital Settlement Agreement which provided mutual releases and reciprocal obligations constituting consideration; the Trustees failed to prove the transfers were gifts made at an undervalue or that the agreement was a sham; accordingly s.49 relief was not available and the Trustees' claim was dismissed.

Citation
[2024] HKCFI 2491
Parties
Plaintiff (the Joint and Several Trustees of the Property of the Bankrupt): Chan Pui Sze and Mak Hau Yin; Defendant (spouse of the Bankrupt): Wang Jue
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 September 2024
Case Number
HCMP1655/2017
Procedural Posture
Bankruptcy Proceedings — Application Under Section 49 Bankruptcy Ordinance (cap.6) / Judgment (court of First Instance)
Outcome
Trustees' claim dismissed
Legal Topics
Transactions at Undervalue, Section 49 Bankruptcy Ordinance, Common Intention Constructive Trust, Resulting Trust, Sham Transaction, Insolvency Presumption, Marital Settlement Agreement
Source Language
EN
Bankruptcy Trusts Property Family Law Insolvency Transactions at Undervalue Section 49 Bankruptcy Ordinance Common Intention Constructive Trust +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 11 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Chan Pui Sze and Mak Hau Yin

Plaintiff (the Joint and Several Trustees of the Property of the Bankrupt)

Wang Jue

Defendant (spouse of the Bankrupt)

Procedural Posture

Bankruptcy Proceedings — Application Under Section 49 Bankruptcy Ordinance (cap.6) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether defendant was sole beneficial owner of US properties
  2. 2 Whether the interspousal transfers were transactions at an undervalue under s.49 BO
  3. 3 Whether the bankrupt was insolvent at the time of the transfers or became insolvent as a result

Ratio Decidendi

On the evidence the Court found the interspousal transfers were made pursuant to a genuine Marital Settlement Agreement which provided mutual releases and reciprocal obligations constituting consideration; the Trustees failed to prove the transfers were gifts made at an undervalue or that the agreement was a sham; accordingly s.49 relief was not available and the Trustees' claim was dismissed.

Court Disposition

Trustees' claim dismissed

Orders

  • Trustees' claim dismissed
  • Order nisi that the Trustees pay the costs of and occasioned by the action to the Defendant, to be taxed if not agreed, certificate for two counsel