Re Wang Liangping
Read the full judgment text of HCB 8393/2020 on BabelCite. This HCB judgment was delivered on 9 December 2025.
1. This is the substantive hearing of the summons dated 28 April 2025 (“ the Summons ”) for a non-commencement order against Madam Wang (“ NCO ”) pursuant to sections 30AB and 30 AC of the Bankruptcy Ordinance, Cap 6 (“ BO ”) or alternatively a suspension order (“ SO ”) pursuant to section 30A of the BO.
Cites 2 cases
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HCB 8393/2020 [2025] HKCFI 6164 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE BANKRUPTCY PROCEEDINGS NO 8393 OF 2020 __________________________
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________________ J U D G M E N T ________________ Introduction 1.This is the substantive hearing of the summons dated 28 April 2025 (“the Summons”) for a non-commencement order against Madam Wang (“NCO”) pursuant to sections 30AB and 30 AC of the Bankruptcy Ordinance, Cap 6 (“BO”) or alternatively a suspension order (“SO”) pursuant to section 30A of the BO. 2.Madam Wang was adjudicated bankrupt by an order made by Master J Wong on 26 May 2021 and the Official Receiver (“the OR”) was appointed to be the provisional trustee. On 29 June 2021, Mr Chow and Mr Sutton (collectively “the Trustees”) were appointed by the creditors of Madam Wang to be the Joint and Several Trustees of the property and estate of Madam Wang (“the Estate”). The Summons was taken out by the Trustees. 3.Mr Chow made an affirmation to support their application by the Summons dated 28 April 2025 (“Chow’s Affirmation”). 4.At the hearing, Madam Wang does not appear. Mr Yeung appears for the Trustees. The OR has indicated their neutral position and asked to be excused by a letter dated 9 September 2025. 5.Mr Yeung summarises the case of the Trustees as follows:
Relevant legal principles 6.The relevant provisions in the BO are as follows:
7.Section 30A(1) of the BO provides that a bankrupt is discharged from bankruptcy by the expiration of the relevant period depending on whether it is his first bankruptcy. Section 30A(3) provides that where the court is satisfied on the application of the trustee or one of the bankrupt’s creditors that a valid objection based on one or more grounds set out in section 30A(4) has been made, the court may exercise the discretion to order that the relevant period shall cease to run for not more than 4 years if the bankrupt has not previously been adjudged bankrupt. Discussion 8.In Chow’s Affirmation, a detailed account of Madam Wang’s persistent failure to attend the initial physical interview as scheduled by the OR and the Trustees and to produce documents concerning her affairs, dealing and property to the Trustees is given. As a matter of fact, Madam Wang has never responded to the bankruptcy proceedings and the requests of the OR and the Trustees. The Trustees have not heard from Madam Wang and are not certain about her current whereabouts. 9.On the unchallenged evidence of Mr Chow, I am satisfied that Madam Wang is clearly in breach of her statutory duties under the BO to (1) perform all acts and things in relation to her property as reasonably required by the OR and the Trustees; (2) aid to her utmost of her power to realise her property and distribution of proceeds to her creditors, including proactive full and frank disclosures by providing all pertinent information of her assets and financial dealings; and (3) attend interviews with the Trustees at such times and places as the Trustees may appoint for the purpose of investigating her affairs. 10.On the other hand, I am satisfied by the evidence of Mr Chow that Madam Wang has been aware of the bankruptcy order against her and all the requests for initial physical requests made by the OR and the Trustees. There is no question that sections 30AB (1)(a), (b) and (c) are amply satisfied on the evidence. 11.The only obstacle is the lateness of this application. It was made very late when the 4-year bankruptcy period had less than one month left. 12.The Trustees have not given any specific explanation as to why it has taken so long for them to make the present applications in Chow’s Affirmation. 13.In this regard, Mr Yeung relies heavily on Re Yeung Chun Wai Anthony (Bankrupt) [2025] 1 HKLRD 1114. There, Linda Chan J dealt with a similar application which was six months before the expiry of the 4‑year bankruptcy period. The learned judge referred to Re James Henry Ting [2021] HKCFI 1704. Similarly, the trustees’ application for a NCO was made only 3.5 years after the bankruptcy order was made and so an extension of time under sections 30AB(3) and (4) of the BO. There, Ng J at §71 set out the relevant considerations relating to an application for an extension of time for a NCO application. Such non-exhaustive factors include:
14.With these factors in mind, I scrutinise the evidence of Mr Chow and they are evidently present in this matter. 15.Madam Wang’s refusal to co-operate with the Trustees aside, there is cogent evidence suggestive of her disposition of certain assets in the Estate to the detriment of her creditors. This is indeed an aggravating factor. 16.As summarised by Mr Yeung, such dispositions as revealed by the Trustees’ investigation include:
17.On the other hand, according to Mr Chow, the total indebtedness of Madam Wang is HK$533,969,641.93 and there has been only limited recovery of HK$1,418,014.61, representing merely 0.27%. The net asset deficiency of Madam Wang stands at HK$532,551,627.32 as of 31 March 2025. The outstanding indebtedness of Madam Wang is huge. 18.From the evidence of Mr Chow, I am convinced that the Trustees have had an enormous task and they have expended significant resources and costs to conduct independent investigations. They have had no assistance from Madam Wang. It is a reasonable inference from Madam Wang’s non-responses and non-cooperation throughout these years that she merely wants to sit out the bankruptcy period. 19.I am aware that the Summons was taken out a few months later than those summonses in Re Yeung Chun Wai Anthony and Re James Henry Ting. I do not find that the Trustees have taken a dilatory approach in this matter and the delay is not culpable. I agree with Mr Yeung that the conduct of Madam Wang makes a mockery of the bankruptcy regime. It is grossly unfair to her creditors that she is allowed an automatic discharge after the expiry of the bankruptcy period. The Trustees should be given more time to continue their investigations and administer the Estate for the benefit of the creditors of Madam Wang. 20.In the circumstances, I come to the conclusion that an extension of time should be granted to the Trustees to make the NCO application and the NCO application should be granted. 21.Mr Yeung has indicated that the NCO is the primary relief that the Trustees are seeking. Thus, there is no need to consider the SO application in light of my conclusion. Disposition and Orders 22.For the reasons given, I accede to the application of the Trustees for the requisite extension of time and the NCO against Madam Wang. I make an order in terms of §§1-4 of the Summons. 23.The Trustees further ask for ancillary relief for the purpose of their application. I have perused §§6-8 of the Summons and I am satisfied that the ancillary relief sought is necessary and appropriate. I make an order in terms of these paragraphs as well. 24.The Trustees have prepared a statement of costs and ask for costs to be summarily assessed by this court. I agree that costs should follow the event and having taken a broad brush approach, I assess the costs to be paid out of the Estate at HK$500,000 (counsel fee of HK$115,500 allowed in full). Such costs should be reimbursed by Madam Wang after all her unsecured creditors have been fully repaid or upon her discharge from bankruptcy, whichever is earlier. 25.Lastly, I thank Mr Yeung for his thorough and helpful submissions.
Mr Cedric Yeung, instructed by Messrs Reynolds Porter Chamberlain, for the Joint and Several Trustees of the Bankrupt Estate The Defendant was not represented and did not appear Petitioner was excused Official Receiver's Office was excused |
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