12 May 2015
The company failed to adduce sufficiently precise, credible and particularised evidence to demonstrate a bona fide dispute on substantial grounds (including failure of consideration or a credible oral variation); consequently the strike out application failed and the winding up petition stands.
30 Aug 2013
Section 4(4) of the Limitation Ordinance must be given its correct construction in Hong Kong: 'action' bears the wide meaning in section 2 and includes bankruptcy petitions; therefore a judgment debt older than 12 years is statute-barred and cannot support a bankruptcy petition, and only interest accruing within six years may be claimed.
19 Nov 2004
The court held that the petitioner took reasonable and sufficient steps to serve the statutory demand and the petition (personal service attempted at the bankrupt's last known address and newspaper advertisement; substituted service ordered), the burden lay on the bankrupt to prove lack of notice and an arguable defence to the debt, and she failed to show any valid or arguable ground to dispute the debt; accordingly the bankruptcy order was not rescinded.
16 Jan 2004
The petition was struck out because the opposing contributory raised a bona fide dispute on substantial grounds—material unexplained discrepancies in accounting, alleged advances made after cessation of business, absence of supporting vouchers, and substantial payments from the company to the director—so presenting the petition was an abuse of process; accordingly the petition was dismissed and indemnity costs awarded to the opposing contributory.
24 Jul 2002
The court found the petitioner had established an outstanding debt in excess of US$5 million, the debtor produced no evidence of ability to pay, the proposals to compound were speculative and unsupported, and the terms of the guarantee allowed enforcement without first realising securities (and the statement of account clause did not prevent other proof). Therefore there was no substantial dispute and a bankruptcy order was properly made against the debtor.
6 Nov 1998
Petitioner failed to produce sufficient evidence that Simpson Development was indebted; there was a substantial dispute over the nature of the funds (loan versus investment) and therefore the debt was bona fide disputed; accordingly a winding-up order could not be made and the petition was dismissed.