Hong Kong Case Law: Decisions & Judgments

Topic

Preferential payment

Legal area

Court

17 Aug 2022

FRED LEE AND CHOW WAI LAN, CHRISTINE, TRUSTEE OF THE PROPERTY OF CHU YUNG, A BANKRUPT v. CHU YUNG

Citation

[2022] HKCFI 2487
Court

Court of First Instance
Case number

HCB2027/2018

The trustee proved on balance that the bankrupt failed to disclose and account for substantial sale proceeds and was evasive and uncooperative; accordingly the court exercised its discretion to suspend the automatic discharge to protect creditors and to allow further investigation, ordering suspension for two years from 18 June 2022 and awarding costs to the trustee.
21 Jan 2019

RE K C K GARMENT FACTORY LTD

Citation

[2019] HKCFI 585
Court

Court of First Instance
Case number

HCCW300/2014

The liquidators failed to prove the requisite subjective desire to prefer the 1st respondent: the payments were made to reduce guarantors' contingent liabilities and to attempt to prolong the company's trading; evidence (including requests to extend the loans and lack of contemporaneous demands) was inconsistent with a desire to prefer the 1st respondent, so the summons against Hong Kong Construction Financing Limited is dismissed. Separately, where the presumption in s50(5) Cap 6 applies to payments to an associate (Apparel Partner Ltd) and relevant respondents did not contest, the declarati…
24 Oct 2003

RE LUEN CHEONG TAI CONSTRUCTION CO LTD

Citation

RE LUEN CHEONG TAI CONSTRUCTION CO LTD
Court

Court of First Instance
Case number

HCCW190/2002

The court granted a retrospective validation order under s.182 because the six payments were for certified subcontract works in the ordinary course of business, were funded by government receipts, materially kept the company and project afloat thereby benefiting unsecured creditors and swelling the companys assets, and despite a suspicion of knowledge that suspicion was not decisive; accordingly validation was appropriate and no order as to costs was made.

Hong Kong Case Law

FRED LEE AND CHOW WAI LAN, CHRISTINE, TRUSTEE OF THE PROPERTY OF CHU YUNG, A BANKRUPT v. CHU YUNG

RE K C K GARMENT FACTORY LTD

RE LUEN CHEONG TAI CONSTRUCTION CO LTD