Read the full judgment text of HCB 000871/1994 on BabelCite. This HCB judgment was delivered on 28 May 1999 before Le Pichon J.
Bankruptcy – automatic discharge – section 30A Bankruptcy Ordinance – objection by Official Receiver – grounds (d) and (g) of section 30A(4) – unsatisfactory conduct of bankrupt – offence under section 131(a) – obtaining credit to the extent of $100 or upwards without first informing creditor that he is an undischarged bankrupt – use of passport instead of Hong Kong identity card when opening bank accounts – whether such use constitutes unsatisfactory conduct additional to conduct forming basis of criminal conviction – exercise of court's discretion to suspend discharge – rehabilitation of bankrupt as key consideration – suspended sentence as further deterrent – Law Reform Commission of Hong Kong Report on Bankruptcy (May 1995) – Bankrupt adjudicated on 16 June 1995 – opened HSBC savings account on 22 May 1996 and Powervantage account later using passport – Powervantage account debit balance of $66,167.38 – obtained $22,000 personal loan from JCG Finance Company Limited on 6 January 1997 using identity card, refinanced at $60,000 on 20 September 1997 – did not disclose undischarged bankrupt status to creditors – pleaded guilty to two counts under section 131(a) and sentenced to six months' imprisonment suspended for two years on each count – ground (d) not established as Official Receiver failed to discharge burden of showing intent to cheat bank – Bankrupt's explanation for use of passport (short-notice opening before overseas training) accepted – discretion under ground (g) not exercised as Bankrupt adequately punished and at 40 years of age young enough to start a new life – suspended sentence to act as deterrent until March 2000 – application to suspend automatic discharge refused.
Legal issues: Whether use of passport instead of identity card constitutes unsatisfactory conduct under section 30A(4)(d) of the Bankruptcy Ordinance · Whether to exercise discretion to suspend automatic discharge under section 30A(4)(g) of the Bankruptcy Ordinance
Outcome: Official Receiver's application to suspend the automatic discharge of the Bankrupt under section 30A(3) of the Bankruptcy Ordinance refused; ground (d) not made out and discretion under ground (g) not exercised in favour of suspension.