OSMAN MOHAMMED ARAB AND ANOTHER v. CHU CHI HO IAN

HCB 4344/2012

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO 4344 OF 2012

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D E C I S I O N

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1.  There are two applications before this court by (1) Sun Willie Financing Limited and Dragonite Resources Limited and (2) Forefront Finance Company Limited (“Applicants”) for leave to be heard at the so‑called “Sanction Application” by the trustees in bankruptcy of Chu Chi Ho Ian (“Trustees”).

2.  Under section 82(3) of the Bankruptcy Ordinance, the Trustees may apply to the court for directions in relation to any particular matter arising under the bankruptcy. It is common practice for trustees to apply for such directions on an ex parte basis, sometimes simply in writing, as observed by Harris J in re Cyberworks Audio Video Technology Limited [2010] 2 HKLRD 1137. As I see it, whether or not the Applicants should be allowed to be heard when the Trustees make such an application is essentially a matter of case management within the discretion of the court.

3.  Despite the able arguments of counsel for the Applicants, I am not satisfied that it is right to order the Trustees to disclose the Funding Agreement to them by reason of the confidentiality clause contained in it and I am not satisfied that any useful purpose will be served by allowing the three Applicants to appear in the Sanction Application without ordering the Trustees to disclose the Funding Agreement to them. Further, I am not satisfied that it is right for the Applicants to even appear at the Sanction Application when the Trustees will have to explain to the court details of the investigation which they intend to pursue for which funding is required, when it is no secret that the Applicants are the subject of their investigation.

4.  In the exercise of my discretion, I hereby dismiss the Summonses dated 10 and 12 November 2014 by the Applicants, with costs to the Trustees.