Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Double proof rule

  • 18 Mar 2008

    RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND ANOTHER

    Citation
    RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND ANOTHER
    Court
    Court of First Instance
    Case number
    HCCW20/1998

    For creditors who have contractual claims including deferred interest, they are entitled to continue receiving dividends from both estates until the full contractual claim is satisfied; however, PIHL cannot be subrogated to the Guaranteed Creditors' rights against PDL because interim dividends paid by PIHL were post-proof payments not appropriated to the debts, the rule against double proof prevents PIHL competing with creditors in PDL's liquidation, and therefore no subrogation arises and any surplus received by Guaranteed Creditors is held on trust for PIHL.

  • 18 Mar 2008

    RE PEREGRINE INVESTMENTS HOLDINGS LTD.

    Citation
    RE PEREGRINE INVESTMENTS HOLDINGS LTD.
    Court
    Court of First Instance
    Case number
    HCCW32/1998

    The court held that guaranteed creditors who have contractual claims, including non-provable deferred interest, are entitled to continue to receive dividends from both PDL and PIHL until their full contractual claims are satisfied; however, no subrogation arises for PIHL because interim/post-proof dividends paid by PIHL do not appropriate or reduce the debts owed by PDL, and the rule against double proof prevents PIHL from proving in PDL's liquidation in competition with the guaranteed creditors; any surplus held by the guaranteed creditors is held on trust for PIHL.