RE ALISON WONG LEE FUNG YING so known as LEE, FUNG YING ALISON

HCB 3820/2019

[2019] HKCFI 2748

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO 3820 OF 2019

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D E C I S I O N

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1.  It is never pleasant to have to make a bankruptcy order but I think in the present case, there is no choice for the court but to make it. There is a judgment debt in the nature of a costs order for over HK$0.5 million, the exact sum of which is stated to be HK$592,980.94 up to the date of the statutory demand.

2.  The costs order gives rise to a joint and several liability on the part of the debtor and her former partner, Mr Tang, and therefore payment may be recovered from either of them or both of them provided, of course, there is no double recovery. 

3.  As nothing has been recovered from Mr Tang, the petitioner, in my view, is entitled to pursue the debtor for repayment of the debt.  The debtor has, in effect, accepted legal liability although she has raised various matters regarding the approach taken by the petitioners.  In the ultimate analysis, however, I can see nothing improper in the petitioners pursuing their legal rights as creditors under a judgment debt. 

4.  The debtor has offered to settle the amount outstanding by a payment of HK$250,000 shortly followed by monthly instalments of HK$50,000 towards the balance.  This has not proved acceptable to the creditor and in all the circumstances, bearing in mind that the costs order was made in November 2018, the demand was served in May 2019 and the petition was presented in June 2019, I am unable to say that the petitioners are behaving in a way that no reasonable creditor would have done in the sense used in the law in relation to section 6D(3) of the Bankruptcy Ordinance (Cap 6).

5.  There being no defence to the petition, I am afraid the petitioners are entitled, as of right, to a bankruptcy order.  There will therefore be a bankruptcy order in the usual form with costs of the petition to be paid out of the estate.