Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Pre-bankruptcy conduct

  • 21 May 2008

    FRED LEE v. MA YUET SIN

    Citation
    FRED LEE v. MA YUET SIN
    Court
    Court of First Instance
    Case number
    HCB5334/2002

    Given the settled authorities on the limited circumstances in which trustees should object to automatic discharge, the trustee's application here—relying principally on excessive borrowing and without evidence of timely investigation into alleged losses—should not have been brought; accordingly the trustee was disallowed from recouping costs from the estate and was ordered personally to pay the bankrupt's costs.

  • 2 May 2008

    FRED LEE AND ANOTHER v. LAU CHI KAM

    Citation
    FRED LEE AND ANOTHER v. LAU CHI KAM
    Court
    Court of Appeal
    Case number
    CACV233/2007

    The bankrupt's gambling was found to be unsatisfactory conduct, but the Court exercised its discretion against suspending the automatic discharge because the bankrupt had cooperated, made substantial regular contributions to creditors during the bankruptcy (HK$388,400), there was no evidence of hidden assets or gambling with borrowed funds, the trustees failed to produce evidence of payment or to conduct adequate investigation, and the rehabilitative and public interest factors favored discharge; therefore the trustees' appeal was dismissed.

  • 7 Mar 2008

    RE CHU YIN WAH

    Citation
    RE CHU YIN WAH
    Court
    Court of First Instance
    Case number
    HCB22498/2002

    The court found that excessive pre-bankruptcy borrowing in each case constituted unsatisfactory conduct under s30A(4)(d) but the trustees failed to prove deliberate misrepresentations because they did not adduce specific evidence from lender staff or case-specific investigation; balancing the misconduct against each bankrupt's cooperative post-bankruptcy conduct and substantial contributions to estates, the court exercised its discretion to refuse any suspension of automatic discharge and dismissed the trustees' applications.

  • 14 Sept 2007

    FRED LEE v. LIU MAN HOO

    Citation
    FRED LEE v. LIU MAN HOO
    Court
    Court of First Instance
    Case number
    HCB11719/2002

    Section 30A(4)(a) does not apply to a bankrupt who has, with due diligence, already made significant contributions during the usual four-year period; a trustee must investigate and exercise the s30A(3) discretion balancing rehabilitation and creditors' interests, and on the facts suspension was not justified so the trustee's application was dismissed and the suspension lifted.

  • 20 Jul 2007

    RE SHIU KWOK WING SAMUEL

    Citation
    RE SHIU KWOK WING SAMUEL
    Court
    Court of First Instance
    Case number
    HCB24713/2002

    The court found the bankrupt primarily responsible for the misrepresentation on the JCG loan application which constituted unsatisfactory pre-bankruptcy conduct; balancing that finding against four years of cooperation, repayment contributions and personal/family circumstances, the court exercised its discretion under section 30A(3) to suspend the automatic discharge for a minimal period of three months from 11 February 2007 and ordered costs to the trustee.