Re Alex So Yat Sang

HCB000238/1983

IN BANKRUPTCY

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Coram: The Honourable Mr. Justice Jones in Court.

Dates of hearing: 26 March & 4 May 1984

Date of delivery of judgment: 4 May 1984

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JUDGMENT

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1. On the 5th August 1983 the petitioner obtained judgment against the debtor, Mr. So, for the sum of $377,616.34 with interest at 8% from the 8th July 1983 to date of judgment and costs of $905. This debt remains unpaid.

2. A bankruptcy notice based on the judgment was filed on the 4th November 1983, but was not complied with. The bankruptcy petition was filed on the 1st March 1984.

3. The debtor who appeared in person opposed the application for a receiving order on the grounds that his assets would not be sufficient to pay a dividend of 15%. The debtor is at present unemployed, but I am satisfied upon the evidence that he gave that he is trying his best to obtain employment in his field which is that of a television cameraman. He is a married man with 2 children. His wife is running a business selling souvenirs and gifts which was transferred to her by the debtor in January 1982. The debtor says the net profit amounts to about $3,000 per month. Out of this sum the debtor's wife is repaying a debt of $30,000 owed by the debtor to the Bank of America at the rate of $2,500 per month and with the rest of ber income she supports the family. However, I infer that the debtor must be receiving some other outside help. In fact the debtor and his family live with his father-in-law who pays the rent.

4. The debtor was cross-examined by Mr. Lee for the petitioning creditor and by Mr. Allison for the Official Receiver. I accept the evidence of the debtor that he is not possessed of any assets let alone sufficient to pay a dividend of 15%. Accordingly it is necessary to determine whether I should in the exercise of my discretion make a receiving order under Section 9(3) of the Bankruptcy Ordinance. The matters to be taken into consideration were set out by Clough, J. in Re Fan Hung Sang (Bankruptcy 7/1983). One of the most important factors is the attitude of the Official Receiver. In this case Mr. Allison after hearing the evidence did not support the application.

5. I found the debtor to be an honest and reliable witness. I do not consider that an investigation of his affairs by the Official Receiver would serve any useful purpose.

6. As a result the petition will be dismissed. No order as to costs.

Representation:

Mr. John Lee (Shea & Co.) for Petitioner.

Mr. C.H. Allison for Official Receiver.

Debtor in person.