HO YIK HUNG, a bankrupt v. FRED LEE and CHOW WAI LAN, CHRISTINE joint and several trustees of the property of HO YIK HUNG, a bankrupt

HCB 3528/2019

[2020] HKCFI 437

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO 3528 OF 2019

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D E C I S I O N

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1.  The Bankrupt, Mr Ho Yik Hung, applied by Summons dated 23 December 2019 to have a document which he signed and signified the amount of his repayment to be declared void on the basis that he was coerced to sign the same.

2.  I am of the view that there is no basis for such an application.  First, it is improper for the Court to determine an issue of coercion by affidavit or affirmation evidence.  Secondly, it is unnecessary for the Court to determine this issue as Mr Oh for the Trustees-in-bankruptcy (the “Trustees”) made clear to the Court during the hearing that they are not holding the Bankrupt to the document he signed.  Indeed, Mr Oh indicated that the likely sum that the Bankrupt will be asked to repay on a monthly basis is about HK$2,500 which I consider to be a very reasonable sum.

3.  I have reminded Mr Ho that as a bankrupt, he cannot be expected to pursue a lifestyle prior to his bankruptcy.  He has an important duty to repay his creditors.  It cannot be correct that he should only be repaying his indebtedness as and when he obtains a salary increment.

4.  I am of the view that section 83 of the Bankruptcy Ordinance, Cap.6 is not involved as the Trustees have not yet made a definitive decision on the Bankrupt’s monthly repayment amount. 

5.  In any event, I agree with Mr Oh for the Trustees that if Mr Ho contributes HK$2,500 per month, he would still have $9,366 per month to spend, which would be sufficient to meet his reasonable domestic needs. 

6.  I am of the view that it is up to the Trustees to make a proper and reasonable assessment taking into account the circumstances of the Bankrupt. 

7.  Accordingly, the Bankrupt’s Summons dated 23 December 2019 is dismissed. 

8.  I also make a costs order that there be no order as to costs as the Trustees are not asking for costs. 

9.  Finally, I thank Mr Oh for the Trustees for his helpful assistance.