RE CARMEN GO

HCB 235/2005

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

IN BANKRUPTCY PROCEEDINGS NO. 235 OF 2005

____________

____________

______________

D E C I S I O N

______________

1.  This is a summons issued on 7 March 2006 by Woon Kay Chang, the petitioning creditor, seeking an order for the private examination of Carmen Go, a bankrupt, under section 29 of the Bankruptcy Ordinance, Cap. 6.

2.  The application was made by the petitioner because the Official Receiver has realised only a very small amount in the estate.  The petitioner is willing to provide funding for the private examination if ordered by the court.

3.  The petitioner has locus to apply under section 29, see Re Taylor, ex parte Crossley (1872) LR 13 Eq 409.

4.  The petition presented against the bankrupt was founded on the judgment debt of US$3 million with interest, being the amount due on a judgment dated 30 November 2004 in HCA No. 1797 of 2004.  A bankruptcy order was made on the petition by a Master on 13 April 2005. 

5. According to the statement of affairs dated 19 August 2005 submitted by the bankrupt, she has total assets of HK$1,000.00 cash and she is indebted to one creditor in the sum of US$3 million, this being the petitioner.  The petitioner has filed a proof of debt of HK$24 million odd on 1 September 2005.  Apart from the petitioner, DBS Bank (Hong Kong) Limited submitted a proof of debt of HK$196,984.11.  The Official Receiver has realised a bank balance of only HK$46.00 odd.

6.  At the interview with the Official Receiver on 15 August 2005, the bankrupt stated equivocally that she might be able to repay the debt owed to the petitioner by end of August 2005 or early September 2005.

7.  At a subsequent interview on 20 August 2005, she informed the Official Receiver that she had investments of US$5 million and was waiting for the outcome of her investment from the individual entrusted with her funds.  However, she failed to provide details of her relationship with this person or the nature of the investments allegedly carried out on her behalf, claiming that she had lost contact with this person.

8.  On 10 October 2005, the Official Receiver again enquired with the bankrupt regarding the repayment of her debt to the petitioner.  She told the Official Receiver that hopefully she would be able to make payments by the end of October 2005.  When she was contacted at the end of November 2005, she promised she might be able to repay by 12 December 2005.

9.  The Official Receiver has taken the view that the bankrupt has been unco-operative, and that she is not making full and frank disclosure of her financial affairs.  The Official Receiver and the petitioner believe that a private examination would be beneficial to the administration of the estate in that more substantial and useful information might be obtained regarding the financial affairs of the bankrupt. 

10.  I am satisfied that this is an appropriate case for an order for private examination.  I order the bankrupt to attend before a Master of the High Court to be examined under section 29 at such time as directed by the court, with 2 hours estimated.  The petitioner is to have the conduct of the examination by his solicitor or counsel. 

11.  I further order the bankrupt to provide to the petitioner all documents in her possession, custody or power relating to herself, her dealings or property within 21 days of this order.  I make no order as to the costs of this application.