Re: YUEN WAI YING

HCB 4570/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO. 4570 OF 2001

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J U D G M E N T

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1. This is a petition presented by the debtor Madam Yuen Wai Ying, trading as Man Ying Seafood, for her own bankruptcy. The debtor has filed a statement of affairs disclosing that she has owed approximately HK$2.1 million to various unsecured creditors. The petition was adjourned several times due to the opposition of one of the creditors who has obtained a judgment against the debtor in July this year. In short, the creditor has alleged that the debtor is not insolvent and that she has transferred assets to others after or at the time of the petition and she has been carrying on business under another name.

2. In those circumstances, I thought it appropriate to adjourn the petition for the Official Receiver to carry out such investigation as may be appropriate under Section 8(1) of the Bankruptcy Ordinance. I understand from the debtor's solicitors that the opposing creditor has since withdrawn his opposition to the petition and I have been told by the Official Receiver that an investigation of the debtor's affairs has been carried out. The Official Receiver is of the view that the debtor is insolvent and this would be an appropriate case for a bankruptcy order.

3. In the circumstances, I make a bankruptcy order against the debtor.

4. The debtor's solicitors ask for costs against the opposing creditor. I do not think it appropriate to award costs against the opposing creditor because I take the view that the matters raised by the opposing creditor do reveal a prima facie case for the Official Receiver to investigate into the debtor's affairs. I do not think the opposition was unreasonable. Hence, I decline to award costs against the opposing creditor.