RE CHEUNG CHUN YUEN BARRY

HCB 1223/2014

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

BANKRUPTCY PROCEEDINGS NO 1223 OF 2014

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J U D G M E N T
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1.  This is the hearing of a bankruptcy petition presented by the petitioner, Mr Leung Chee Hon, against the debtor, Mr Cheung Chun Yuen Barry (“Mr Cheung”).

2.  The petition is based on a statutory demand requiring Mr Cheung to pay HK$47,266,666, being the amount due under a judgment obtained by the petitioner against Mr Cheung on 22 October 2013. There is no dispute that the statutory demand had been served on Mr Cheung personally on 22 November 2013 and the same remained unsatisfied by the time the bankruptcy petition was presented on 18 February 2014.

3.  Apart from the sum of HK$3,000,000 paid by Mr Cheung to the petitioner on 9 June 2014, the judgment debt remains unpaid.

4.  Mr Tollan for the petitioner submits that where, as here, the debt upon which the petition is based is clearly established and the procedural requirements have been complied with, a petitioning creditor has a prima facie right to a bankruptcy order, and the court should only exercise its discretion to adjourn the petition for payment where there is a reasonable prospect of the debt being paid in full within a reasonable time (Ho Ying Pat Bobby v Overseas Way (China) Ltd [2011] 2 HKLRD 837 at §12, per Le Pichon JA). I agree.

5.  Mr Cheung has not filed any affirmation nor advanced any ground in opposition to the petition. The petition has the support of another creditor, Fully Field Ltd, to which HK$72,800,000 is owed.    

6.  As there is no valid ground to oppose the petition, I make a usual bankruptcy order against Mr Cheung with costs to the petitioner and the supporting creditors, including all costs reserved.