Re Yuen Mun Wa (Debtor)

Court of First Instance
Bankruptcy Proceedings No 6350 of 2011
Recorder Anthony Chan SC
Bankruptcy
16, 23 August 2012

Petition — bona fide dispute as to debt — court would not make bankruptcy order against alleged debtor who could show with sufficiently precise evidence bona fide defence

B presented a bankruptcy petition against D as a guarantor of the debts of C based on an unsatisfied statutory demand. D denied liability.

Held, making the bankruptcy order, that:

The court would not make a bankruptcy order against an alleged debtor who could show with sufficiently precise evidence a bona fide defence at the petition stage. The threshold applicable to a bona fide dispute on a debt was higher than that in respect of a summary judgment application. Here, D had not discharged that burden in this case.

A definitive decision by the Court of Appeal as to the applicable threshold required to resist the making of a bankruptcy order would be welcomed.

 

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