Re

HCMP 728/2026

[2026] HKCFI 4795

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO 728 OF 2026

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REASONS FOR JUDGMENT

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1.There is before the court an ex parte originating summons filed on 11 May 2026 by the joint and several trustees (“Trustees”) [1] of the property of [redacted] (“Bankrupt”) for an order that a letter of request in the form annexed thereto be issued to the High Court of England and Wales (“English Court”) seeking its assistance in aid of the administration of the Bankrupt’s estate.

2.At the hearing on 12 June 2026, this Court raised a number of queries regarding the application which had not been addressed by the Trustees including:

(1)  Whether it is right for the Trustees to ask the Hong Kong court to seek assistance from the English Court in respect of a real property registered in the joint names of the Bankrupt and his wife when the question of the rights to and interests in real property is determined by lex situs and therefore, may not vest in the Trustees; and

(2)  Whether it is necessary for the Trustees to seek an order from the English Court to compel HSBC UK to comply with the Trustees’ request when no prior request had been made to bank.

3.The application was adjourned sine die to allow the Trustees to clarify the position and adduce further evidence in support of the application.

BACKGROUND

4.The Bankrupt is a Hong Kong resident and holds a Hong Kong Identity Card.

5.The Bankrupt was the sole shareholder and director of [redacted], a company incorporated in Hong Kong (“Company”).

6.On 7 July 2021, the Company was wound up by the court in Hong Kong. By order dated 15 December 2021, the Trustees were appointed as joint and several liquidators of the Company.

7.On 4 October 2024, the Company presented a bankruptcy petition against the Bankrupt in Hong Kong. On 20 May 2025, a bankruptcy order was made against the Bankrupt.[2]

8.At the General Meeting of Creditors held on 27 August 2025, it was resolved that the Trustees be appointed as joint and several trustees of the property of the Bankrupt.[3]

9.Following the appointment, the Trustees conducted investigations into the assets of the Bankrupt and commissioned an “Asset Trace Report” dated 27 February (“Report”). The Report identified the following assets located within the UK which may belong to the Bankrupt (collectively “Identified Assets”)[4]:

(1)  A property at [redacted], registered at His Majesty’s Land Registry under title no. [redacted][5] in the joint name of the Bankrupt and his wife (“Property”), which is believed to have been purchased with the Bankrupt’s funds;

(2)  Money deposited in the bank account at HSBC UK numbered 40xxxxxxxx5674 maintained in the name of the Bankrupt (“Funds”); and

(3)  A 2016 Mini Countryman registration no. [redacted] (“Vehicle”) which appears to have been acquired with GBP12,000 paid by the Bankrupt to a second hand car dealer.

10.The Bankrupt did not attend the creditors’ meeting pursuant to s.26(1) of the Bankruptcy Ordinance (Cap 6) (“BO”). Despite repeated demands from the Trustees, the Bankrupt failed to provide any information concerning his dealings, affairs or property.[6] 

DISCUSSION

11.The first issue which the court has to consider is whether the English Court may grant recognition of and assistance to the Trustees in the terms stated in the revised draft letter of request, which includes seeking assistance to enable the Trustees to take control of the Identified Assets. The application was made on the basis that as a result of the bankruptcy order and the appointment of the Trustees, the Identified Assets would be vested in the Trustees by virtue of s.58(2) of the BO.

12.In Kireeva v Bedzhamov [2025] AC 812, a trustee in bankruptcy appointed by the Russian court applied for recognition of a bankruptcy order made by the Russian court and the trustee’s appointment as the debtor’s trustee in bankruptcy and “such further relief as the court sees fit, including orders for the entrustment of” a property located in London held by the debtor (§15).

(1)  Snowden J (as he then was) granted recognition of the bankruptcy order and the appointment of the trustee on the basis that the debtor had submitted to the jurisdiction of the Russian Court, but dismissed the application insofar as it sought assistance in relation to the property holding that, by reason of the immovables rule, English law did not recognise the trustee as having any claim on behalf of the estate to the property in England (§§18-20). The Court of Appeal by a majority upheld the judge’s decision.

(2)  In the appeal before the Supreme Court, the trustee argued that the claim for assistance in relation to the property was not barred by the immovables rule as the effect of the rule was limited to preventing an automatic vesting of the legal title to the property in the trustee. Although the foreign bankruptcy order could not bypass the local system for transferring legal title under the lex situs, the English court would, however, recognise that the property fell within the trustee’s bankrupt estate and would assist the trustee to realise it for the benefit of the estate and the creditors (§20).

(3)  The Supreme Court dismissed the appeal, holding that the effect of the immovables rule is that the provisions of foreign law have no effect on the ownership of interests in land situated in England and that a foreign court has no jurisdiction to make an order which affects the ownership of interests in land in England. The immovables rule is a substantive rule of English law and, unless some exception exists applicable in the case of a foreign bankruptcy, it will apply to the claims of the foreign trustees (§§46-48).

(4)  The statutory measures which exclude the application of the immovables rule to foreign insolvencies is s.426 of the Insolvency Act 1986 (“Act”) and Cross-Border Insolvency Regulations 2026 (“CBIR”)[7]. However, s.426 of the Act does not apply to the debtor’s bankruptcy as Russia has not been designated as a “relevant country or territory” for the purposes of s.426 (§§49-54). Nor does CBIR apply as it is common ground that the debtor has not had his centre of main interests or an establishment in Russia at any material time, such that it is not open to the trustee to seek recognition or to obtain assistance under CBIR (§§55-62).

(5)  The Supreme Court concluded that the immovables rule “is not concerned solely with the vesting of title but has the effect, as earlier explained, that at common law no recognition will be given to any provision of foreign law or any order of a foreign court which purports to affect rights to or interests in land located in England. It follows that the common law does not recognise the Property as being part of the assets that are within the scope of the respondent’s bankruptcy in Russia. As a matter of English law, his interests in the Property are unaffected by the Russian bankruptcy order” (§69).

13.In the present case, the Trustees rely on s.426 of the Act on the basis that Hong Kong is a designated “relevant country or territory” for the purpose of that provision. Sections 426 provides that:

“(4) The courts having jurisdiction in relation to insolvency law in any part of the United Kingdom shall assist the courts having the corresponding jurisdiction in any other part of the United Kingdom or any relevant country or territory.

…

(11) In this section “relevant country or territory” means –

(a) any of the Channel Islands or the Isle of Man; or

(b) any country or territory designated for the purposes of this section by the Secretary of State by order made by statutory instrument.” (underlined added)

14.In the Schedule to The Co-operation of Insolvency Courts (Designation of Relevant Countries and Territories) Order 1986, Hong Kong is designated as one of the “relevant countries and territories” for the purpose of s.426 of the Act.

15.As Hong Kong is a designated territory for the purpose of s.426 of the Act, the English Court would in the exercise of its power under s.426 grant recognition and assistance to the Trustees to assist them in taking control over the Bankrupt’s assets including his rights and interests in the Property notwithstanding the immovables rule. Of course, whether the application may be acceded to and what relief should be granted is a matter for the English Court.

16.I am satisfied that for the purpose of assisting the English Court in considering the application for recognition and assistance, it is appropriate for the Hong Kong court to issue a letter of request, the wordings of which have been amended and approved by this Court.

17.As regards the HSBC UK Account, I accept the Trustees’ explanation that no request was made to HSBC UK for payment of the Funds due to their concern that the bank might inform the Bankrupt of the Trustees’ request (as part of its contractual duty owed to the client) such that the Funds might be gone before they are able to obtain any order from the English Court.

18.The Trustees accept that the ownership of the Vehicle is not clear as no public information is available regarding its ownership although the Report states that the Vehicle is owned by the Bankrupt and his wife.  Since the Bankrupt has failed to provide any information relating to his assets, assistance from the English Court is required to determine whether the Bankrupt in fact holds any rights or interests in the Vehicle.

19.According to the Trustees’ investigation, the Property, the Funds and the Vehicle are the only identified assets of the Bankrupt, all of which are located in England.  In the circumstances, it is necessary for the Trustees to seek recognition and assistance from the English Court so that they can properly discharge their duties and functions as trustees of the estate of the Bankrupt.

20.At the request of this Court, the Trustees have revised the terms of the draft letter of request to include (1) the correct particulars of each asset, including the details of their ownership; and (2) each power available to the Trustees, with the corresponding provisions under Hong Kong law. A table summarising the powers stated in the letter of request and the relevant provisions under the BO is included in Annex A.

21.For the reasons set out above, this Court made the following order:

(1)  A letter of request in the terms approved by this Court be issued to the High Court of England and Wales seeking recognition of and assistance to the Trustees;

(2)  The costs of and occasioned by the application, subject to taxation, be paid out of the assets of the bankruptcy estate of the Bankrupt; and

(3)  Liberty to apply.

Ms Hillary Yue, of Munros, for the Trustees

Annex A

Letter of Request	Power	Provisions of the Bankruptcy Ordinance (Cap. 6) (“BO”) and the Bankruptcy Rules (Cap 6A) (“BR”)
Para 19(b)(i)	conduct necessary investigation and obtain information to recover the property of the Bankrupt including the Identified Assets	Section 29 of BO
Para 19(b)(ii)	take control, recovering and/or realise the Bankrupt’s interests in the Property including, where the Trustees consider it necessary to do so, commence proceedings in the Court of England and Wales against the Debtor and/or his spouse, [redacted], the joint owner of the Property, for the purpose of recovering the Bankrupt’s interests in the Property	Section 60(1)(a) of BO
Para 19(b)(iii)	register an appropriate notice at HM Land Registry against the title to the Property to protect the interest of the Bankruptcy Estate pending determination of the above-mentioned proceedings and to take all steps necessary to register such notice	Rule 73 of BR
Para 19(b)(iv)	take steps to recover the funds deposited at the HSBC UK Account and to obtain all information and documents concerning the HSBC UK Account	Sections 53(1) and 60(1)(aa) of BO
Para 19(b)(v)	take appropriate steps to take possession of the Vehicle and to obtain all information and documents concerning the Vehicle	Sections 53(1) and 60(1)(aa) of BO
Para 19(b)(vi)	seek any appropriate orders from the English Court in relation to recovery of the property of the Bankrupt including the Identified Assets	Section 60(6) of BO