RE LEUNG NIN WAH, SIMON

HCB 6998/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

IN BANKRUPTCY PROCEEDINGS NO. 6998 OF 2001

____________

____________

______________

J U D G M E N T

______________

1.  This is a notice of motion under section 20I of the Bankruptcy Ordinance, Cap. 6 taken out by Leung Nin Wah, Simon (“the Bankrupt”), seeking an order that the bankruptcy order against him be annulled on the ground that a voluntary arrangement has been approved by the creditors in a creditors’ meeting on 30 December 2004 under section 20E of Cap. 6, and that all debts under the voluntary arrangement have been satisfied and discharged.

2.  There are only 2 creditors, both of them are unsecured.  Subsequent to the bankruptcy order made on 7 February 2002, only the petitioning creditor, Bank of China (Hong Kong) Limited, proved its debt of around $4 million.  The other creditor, the Bank of East Asia Limited, did not prove its debt of $16 million.  Both creditors participated in the voluntary arrangement and approved it in the creditors’ meeting without modification, as appeared from a report of the chairman of the meeting filed under section 20G in HCBI No. 1459 of 2004. 

3.  The debts of the creditors under the voluntary arrangement have been fully paid by a third party contributor, Li Zanyuan, who is the employer of the Bankrupt, as appeared from the Nominee’s notice and report of the completion of the voluntary arrangement dated 17 February 2005.  The Nominee has distributed the contribution made by the third party to the creditors in accordance with the voluntary arrangement.

4.  I understand that the Bankrupt has been working as a business negotiator for his employer, specialising in the purchase of hotels in the Mainland, and it is important to his employment that he is not a bankrupt.

5.  The petitioning creditor was informed of the present application and has confirmed would not oppose it.  All legal costs of the petition have been waived by the petitioner.

6.  The other creditor has also been informed and has confirmed it would not oppose the application. 

7.  The Official Receiver does not oppose the application and the costs estimated by the Official Receiver in the sum of $18,057.00 have been paid in advance.

8.  As for the costs and expenses of the administration of the voluntary arrangement and the costs incurred by the Official Receiver, all have been settled by the third party contributor.

9.  I make an order in terms of the notice of motion.  I also order that the bankruptcy petition presented on 29 October 2001 be dismissed.  I do not propose to dispense with advertisement and gazetting of the notice of annulment under section 33(5) of Cap. 6.