Hong Kong Case Law: Decisions & Judgments

Topic

Disposition to defraud creditors

Legal area

Court

2 Sept 2025

CHUNG YING BUILDING MATERIALS COMPANY LTD (in Liquidation) v. CHOW WAI LAM, WILLIAM AND OTHERS

Citation

[2025] HKCFI 3964
Court

Court of First Instance
Case number

HCA656/2019

The court granted leave to amend and to file the supplemental witness statement because, on the affidavit material and taking the defendants' pleaded case at its highest, the defence of laches was not shown to be bound to fail; the defendants' explanation for the timing, while imperfect, was not unreasonable and the trial was not so imminent when the summonses were issued that prejudice could not be compensated by costs or case management directions, therefore justice required allowing the amendments subject to costs orders.
11 Sept 2023

RE LIU JIANGYUAN

Citation

[2023] HKCFI 2326
Court

Court of First Instance
Case number

HCB1227/2023

The court made a bankruptcy order because the statutory demand remained unsatisfied establishing insolvency under the Bankruptcy Ordinance, the debtor failed to comply with Bankruptcy Rules r.68 and provided no explanation or affidavit for the delay, and she produced no credible, precise evidence of any substantive defence to the Guarantee despite having the documents for over a year; accordingly there was no bona fide dispute on substantial grounds to resist the petition.
28 Jul 2021

PATRICK COWLEY AND ANOTHER (The Joint and Several Trustees in Bankruptcy of the Property of the Bankrupt) v. ALL POWERFUL HOLDING LTD AND ANOTHER

Citation

[2021] HKCFI 2132
Court

Court of First Instance
Case number

HCB104/2017

The court varied the freezing order only to permit limited exceptions: HK$25,000 per month for the 2nd Respondent's administrative costs and a lump sum of HK$750,000 for future legal expenses. The court refused the large repayment to alleged creditors and the larger administrative and legal sums because the 2nd Respondent is insolvent, failed to prove the validity and ordinary‑course nature of the claimed debts, the creditors are closely associated with the Bankrupt creating a real risk of dissipation, and the evidential basis for quantum was unsatisfactory. The court allowed a modest legal e…
1 Aug 2018

PATRICK COWLEY AND ANOTHER (The Joint and Several Trustees in Bankruptcy of the Property of the Bankrupt) v. ALL POWERFUL HOLDING LTD AND ANOTHER

Citation

[2018] HKCFI 1802
Court

Court of First Instance
Case number

HCB104/2017

The court granted Chabra (freezing) injunctions against APHL and APIL and limited disclosure against APIL because the Trustees established a good arguable case that the 2015 share transfer was at an undervalue and made with intent to defraud creditors, that Mr Lau retained substantive control of the trust and companies creating a real risk of dissipation, and the balance of convenience favoured preserving the assets for creditors; the trustees must give a cross-undertaking limited to HK$40,000,000, indemnified by HSBC; the corporate veil need not be pierced at this stage and lawful winding up…
14 Nov 2013

CHEUNG YING LUN AND ANOTHER v. LEGAL WAY LTD AND ANOTHER

Citation

CHEUNG YING LUN AND ANOTHER v. LEGAL WAY LTD AND ANOTHER
Court

Court of First Instance
Case number

HCA1554/2012

On the proved facts—sale at substantial undervalue relative to market value, sale concluded seven days after judgment against the vendor, same solicitors acting for vendor and purchaser, unusual stamping/registration and assignment timing, and defendants' failure to rebut—the proper inference is that Legal Way transferred the property with intent to defraud its creditors; accordingly the transfer is voidable under s60 CPO and the agreement and assignment are set aside.
19 Mar 2002

YU TAI HING CO. LTD. v. SO SO HEUNG AND OTHERS

Citation

YU TAI HING CO. LTD. v. SO SO HEUNG AND OTHERS
Court

Court of First Instance
Case number

HCMP5493/2001

The tenancies, entered into immediately before the charging order hearing, at rents substantially below market, for long locked-in terms and involving related parties with no contrary evidence, were deliberate and dishonest attempts to defeat enforcement of the plaintiff's judgment and therefore were set aside as dispositions made with intent to defraud creditors under s60(1) CPO; costs were awarded against the 1st and 2nd defendants and on an indemnity basis against the 1st due to obstructive and dishonest conduct.

Hong Kong Case Law

CHUNG YING BUILDING MATERIALS COMPANY LTD (in Liquidation) v. CHOW WAI LAM, WILLIAM AND OTHERS

RE LIU JIANGYUAN

PATRICK COWLEY AND ANOTHER (The Joint and Several Trustees in Bankruptcy of the Property of the Bankrupt) v. ALL POWERFUL HOLDING LTD AND ANOTHER

PATRICK COWLEY AND ANOTHER (The Joint and Several Trustees in Bankruptcy of the Property of the Bankrupt) v. ALL POWERFUL HOLDING LTD AND ANOTHER

CHEUNG YING LUN AND ANOTHER v. LEGAL WAY LTD AND ANOTHER

YU TAI HING CO. LTD. v. SO SO HEUNG AND OTHERS