Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Presumption of desire
  • 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…