Hong Kong Case Law: Decisions & Judgments

Topic

15% rule

Legal area

Court

27 Jan 1986

RE LAU MING TAK AND ANOTHER t/a WING HING LUNG

Citation

RE LAU MING TAK AND ANOTHER t/a WING HING LUNG
Court

Court of First Instance
Case number

HCB458/1985

The 15% rule is an integral element of the court's discretionary power under s.9(3); the evidential burden of proving that available assets amount to less than 15% falls on the party who raises that issue (here the debtor), but even if that burden is met the court retains an overall discretion whether to make a receiving order; applying the discretion, the court made receiving orders against both debtors.
3 Oct 1985

RE CHAN SHING WO

Citation

RE CHAN SHING WO
Court

Court of First Instance
Case number

HCB612/1985

The court will not invoke the 15% rule to defeat preferential wage claims where appreciable assets exist that would satisfy preferred creditors; the debtor failed to prove a reasonable prospect of payment or provide adequate particulars of proposed funding, therefore no adjournment should be granted and a Receiving Order should be made.
25 Sept 1985

RE WONG WAI GING

Citation

RE WONG WAI GING
Court

Court of First Instance
Case number

HCB98/1985

The burden under s.9(3) to satisfy the court that assets after deductions are insufficient to pay a 15% dividend rests on the petitioning creditor and that burden was not discharged here; notwithstanding that, the court properly exercised its discretion to make a Receiving Order because the debtor's evidence was unsatisfactory and an investigation into her affairs was necessary.
15 Jul 1985

RE CHUNG CHEUK MAN

Citation

RE CHUNG CHEUK MAN
Court

Court of First Instance
Case number

HCB232/1985

Mantell J. accepted jurisdiction to set aside the original Receiving Order because the debtors' solicitor was prevented from attending, then, after hearing the petition de novo and applying established principles on burden of proof and judicial discretion (including regard to the Official Receiver's view and public interest), exercised his discretion to make a fresh Receiving Order despite admissions of heavy indebtedness and potential insufficiency of assets to pay a 15% dividend.
21 Dec 1984

RE CHOW LIN SHING t/a TAK HING PAPER BOXES FACTORY

Citation

RE CHOW LIN SHING t/a TAK HING PAPER BOXES FACTORY
Court

Court of First Instance
Case number

HCB451/1984

Applicant has locus as a person interested under Section 33 but failed to establish grounds to annul the adjudication; the 15% rule is discretionary and inapplicable where preferential creditors exist; absence of a mandatory Rule 80(3) report was noted but oral figures were accepted; therefore annulment and rescission were refused.

Hong Kong Case Law

RE LAU MING TAK AND ANOTHER t/a WING HING LUNG

RE CHAN SHING WO

RE WONG WAI GING

RE CHUNG CHEUK MAN

RE CHOW LIN SHING t/a TAK HING PAPER BOXES FACTORY