Read the full judgment text of CACV 83/2012; CACV 84/2012 on BabelCite. This Court of Appeal judgment was delivered on 30 August 2013 before Kwan JA, Fok JA and Barma JA.
Bankruptcy – appeal against bankruptcy orders founded on judgment debt more than 12 years old – Limitation Ordinance (Cap 347) s.4(4) – whether "action" includes bankruptcy or winding-up petitions – whether judgment debt statute-barred – construction of identically-worded English Limitation Act 1939 s.2(4) – W.T. Lamb & Sons v Rider [1948] 2 KB 331 – Lowsley v Forbes [1999] 1 AC 329 – Ridgeway Motors (Isleworth) Ltd v ALTS Ltd [2005] 1 WLR 2871 – Dennehy v Reasonable Endeavours Pty Ltd (2003) 130 FCR 494 – O'Mara Constructions Pty Ltd v Avery (2006) 230 ALR 581 – Re Man Po International Holdings Ltd [2012] 4 HKLRD 911 – Re Lau Wan (HCB 4136/2012) – Barras v Aberdeen Steam Trawling and Fishing Co Ltd [1933] AC 402 – R v Chard [1984] 1 AC 279 – presumption that legislature adopts judicial construction of words – whether the 1965 Hong Kong legislature should be taken to have legislated on the basis of W.T. Lamb – meaning of "action" under s.2 of the Ordinance – judgment dated 12 February 1999 for HK$14,811,695.14 and US$27,649.72 with interest – property recovered and sold in 2001 – principal reduced to HK$8,785,390.44 – statutory demand on 29 April 2011 – petitions presented 22 September 2011 – six-year bar on interest under s.4(4) – whether interest recoverable after 12-year bar – whether bona fide dispute of substance as to alleged 2000 settlement – test for dismissing bankruptcy petition on disputed debt – appeals allowed – bankruptcy orders set aside – costs to the Bank on party and party basis – certificate for two counsel.
Legal issues: Interpretation of "action" in s.4(4) of the Limitation Ordinance (Cap 347) – whether it bars bankruptcy petitions founded on judgment debts more than 12 years old · Effect of the six-year bar on interest on judgment debts under s.4(4) of the Limitation Ordinance · Test for dismissing a bankruptcy petition where the debt is alleged to be disputed
Outcome: Appeals allowed; bankruptcy orders made by the judge below set aside.
Cites 2 cases