7 Feb 2024
CHEN YUNG NGAI KENNETH, ONE OF THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF THE BANKRUPT, LI SHU CHUNG v. JOHNNIE YAM, JACKY LEE & CO (a firm) AND OTHERS
- Citation
- [2024] HKCFI 361
- Court
- Court of First Instance
- Case number
- HCMP2221/2021
The transfers totaling GBP118,699.59 were dispositions within s.42 BO and are void; the defendants failed to discharge the burden of proving the s.42(6) trust exception because there was no objective evidence of a Quistclose trust (no communications, no contractual structure, contemporaneous bank statements contradicted claimed earmarking), and even if the defendants’ evidence were accepted the legal tests in Bieber/Twinsectra would not be met. Accordingly the sum is vested in the Trustee and costs were ordered nisi against the 1st and 3rd defendants.