Hong Kong Case Law: Decisions & Judgments

Topic

Realisation of security

Legal area

Court

31 Aug 2018

RE SNG ALLAN, also known as SNG HOCK SENG

Citation

[2018] HKCFI 2016
Court

Court of First Instance
Case number

HCB3651/2018

There was no contractual term or admissible evidence of a trade custom imposing an obligation on the petitioner to sell the margin shares at any particular time; the petitioner was properly bound by the nil valuation in the petition and the statutory demand, the respondent produced no evidence to show earlier sale would have covered the debt, expert evidence was unnecessary, and therefore the bankruptcy petition succeeded.
5 Dec 2014

KWONG IAN (HONG KONG) CONSTRUCTION AND REAL ESTATE DEVELOPMENT COMPANY LTD v. IP PUI LAM

Citation

KWONG IAN (HONG KONG) CONSTRUCTION AND REAL ESTATE DEVELOPMENT COMPANY LTD v. IP PUI LAM
Court

Court of First Instance
Case number

HCA2078/2011

The guarantee was a continuous, irrevocable undertaking covering the outstanding debt (including the salary); the creditor was not obliged to realise non‑existent securities or sue Brava before suing the guarantor; the plaintiff had not repudiated or abandoned the SPA; the defendant had legal advice and accepted the indebtedness; accordingly the defendant was liable under the guarantee for the outstanding principal and accrued interest.
12 Dec 2011

RE DAYS INTERNATIONAL LTD

Citation

RE DAYS INTERNATIONAL LTD
Court

Court of First Instance
Case number

HCCW299/2011

The court held that the petitions must succeed because statutory demands had been served, the amounts claimed were presently due and payable (any deduction for security value was speculative until realisation), the majority of banking creditors had rejected the restructuring proposals, and there was no legitimate reason to withhold the normal winding-up orders sought by the petitioner.
29 Oct 2007

INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LTD v. CHIN CHI WING SIMON

Citation

INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LTD v. CHIN CHI WING SIMON
Court

Court of First Instance
Case number

HCB6405/2007

Because the debt was based on an unsatisfied judgment, the consent stay was breached by the debtors' default, the debtors could not set aside the judgment and did not put forward a repayment proposal that the petitioner was reasonably bound to accept, the court was obliged to make bankruptcy orders against both debtors.
23 Jun 2003

CHINA MERCHANTS BANK v. HUANG JINCAN

Citation

CHINA MERCHANTS BANK v. HUANG JINCAN
Court

Court of First Instance
Case number

HCA2268/2002

Defendant failed to produce credible, quantified evidence of undervalue or realistic alternative actions; the Bank had taken reasonable steps, relied on audit and legal advice and sold to the only practicable buyer at a commercially rational price; accordingly summary judgment was appropriate for the Bank on the guaranty.
7 Nov 2001

THE CHINA AND SOUTH SEA BANK LTD. v. HAPPY SQUARE LTD. AND ANOTHER

Citation

THE CHINA AND SOUTH SEA BANK LTD. v. HAPPY SQUARE LTD. AND ANOTHER
Court

Court of First Instance
Case number

HCA10674/2000

The alleged oral 1st and 2nd agreements were inherently implausible and contradicted by contemporaneous written loan documents, acknowledgements of indebtedness, extensions and realisation of securities; inconsistent versions by defendants further destroyed credibility; consequently there was no triable issue and the appeal was dismissed.
7 Nov 2001

THE CHINA AND SOUTH SEA BANK LTD. v. KILOWORLD LTD. AND ANOTHER

Citation

THE CHINA AND SOUTH SEA BANK LTD. v. KILOWORLD LTD. AND ANOTHER
Court

Court of First Instance
Case number

HCA10672/2000

The judge found the defence that two oral agreements suspended or varied the defendants' written loan obligations to be incredible on the basis of inconsistency with contemporaneous loan documents and acknowledgements, inherent commercial implausibility, lack of any written record for important terms (notably the 75% purchase term), and shifting versions by the defendants; accordingly there was no real or bona fide defence and the appeal was dismissed.
2 Apr 2001

RE YOHAN CHANDRA

Citation

RE YOHAN CHANDRA
Court

Court of First Instance
Case number

HCB3453/2000

The creditor was not obliged to realise other security or to proceed first against a solvent principal debtor or co‑surety before enforcing a guarantee; the default judgment against the debtor was properly obtained and ought not be set aside, and therefore a bankruptcy order against the debtor was correctly made.
16 Mar 2000

CHEKIANG FIRST BANK LTD. v. HENG HING ENTERPRISES (HK) LTD. AND OTHERS

Citation

CHEKIANG FIRST BANK LTD. v. HENG HING ENTERPRISES (HK) LTD. AND OTHERS
Court

Court of First Instance
Case number

HCA21101/1998

The Court held that the FX losses formed part of the account and were properly included in the indebtedness; and that the bank was under no obligation to realise the deposit security or set it off, therefore the summary judgment against the 1st and 4th defendants was upheld.