RE CHEUNG HING CHIK also known as CHARLES H.C. CHEUNG

HCB 1901/2020

[2020] HKCFI 2234

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO 1901 OF 2020

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J U D G M E N T

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1.  This is the hearing of the petition presented by Ling Sing Limited, the petitioner, on 7 May 2020 against the debtor. The petition is based upon the debtor Mr Cheung’s non-compliance with a statutory demand dated 27 February 2020 for the sum of US$749,000.

2.  According to the statutory demand, it was money stolen and/or misappropriated by Mr Cheung from the bank account of Ling Sing on different days during 2019.  There is no dispute as to personal service of the statutory demand.

3.  Since Mr Cheung had failed to comply with the statutory demand, the present petition was presented on 7 May 2020.  It was personally served on Mr Cheung on 12 May 2020. 

4.  At the call-over hearing before the master on 8 July 2020, there was no dispute as to the sum due from Mr Cheung.  Today, Mr Cheung tells this court that he had repaid part of the debt and the outstanding amount should be about US$710,000.  I do not think this dispute as to the amount due has any bearing on the outcome today.  Still, the creditor has shown that the debtor has failed to pay a debt of over HK10,000. 

5.  At the hearing today, Mr Cheung informs the court orally that he has the ability to repay the debt.  He has 50% interest in an accounting firm which he can sell at an estimated amount of HK$6 million.  He also informs the court that he potentially may receive monies, being assets from two estates, pursuant to a promissory note and an undertaking.

6.  There is no proof of this ability to pay.  Mr Cheung has not even started negotiating sale of his interest in the partnership, despite having the statutory demand for over 5 months.  The monies from the two estates which he referred to allegedly could not be passed to him because of the lockdown in the Philippines due to COVID-19.  One cannot see any expected date as to when the money will come in.  There are too many uncertainties.  All that Mr Cheung can give or had given to the petitioner creditor as of today was an unsigned promissory note and a so-called undertaking which would lend him £1,000,000 in the month of July.  July has gone by.

7.  I do not think the creditor should be put to the trouble of waiting for Mr Cheung’s attempts to try to arrange his finance in order to meet a debt that is long known to him, especially in circumstances where the debt arose from his own misconduct. 

8.  Accordingly, I grant a bankruptcy order.