RE CHEUNG KWOK LUN ALAN

HCB 10968/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPCTY PROCEEDINGS NO. 10968 OF 2001

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J U D G M E N T

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1. This petition is brought by Pacific Century Insurance Company Limited. The debtor, Mr Cheung Kwok Lun Alan, was the former insurance agent of the petitioner.

2. The debt in the statutory demand is in the sum of HK$342,981.98 as at 19 October 2001 and is based on two agreements, being the Manager's Rollover Financing Agreement and the Agent's Financing Agreement both dated 1 February 1995. The statutory demand was served on the debtor personally on 21 June 2001. The petition herein was filed on 22 November 2001 and served on the debtor personally on 18 January 2002.

3. At the last hearing before me on 11 March 2002, the debtor placed before me a letter in Chinese that he had written to the court dated 26 February 2002. In that letter, he admitted that he owed the petitioner a sum of HK$242,412.04 under the Financing Agreement. He was not clear about the balance of HK$75,760.82 and he had requested a breakdown and statement from the petitioner. He was not provided with any information despite his requests.

4. The debtor informed me at the last hearing that he would contest the balance of HK$75,000 odd. As there is no dispute regarding that part of the debt which he has admitted being HK$242,412.04, I adjourned the hearing of the petition to 22 April 2002 on condition that the debtor was to pay into court the amount not in dispute by 14 March 2002, failing which the petitioner's solicitors was to notify the court on 15 March for the petition to be re-listed for hearing on 18 March 2002. I was given to understand by the debtor that he could pay the amount not in dispute any time. I also gave directions for the debtor and the petitioner to file affidavits in opposition and in reply.

5. I understand from the petitioner's solicitors that no payment has been made into court by the debtor of the sum not in dispute. The debtor has not appeared today.

6. In the circumstances, as there is no payment of the amount of the debt not in dispute which is way above the threshold in the Bankruptcy Ordinance, it would be appropriate to make a bankruptcy order. I also award costs to the petitioner.