Hong Kong’s Court of Final Appeal (CFA) recently handed down its judgment in the case of Guy Kwok-Hung Lam v Tor Asia Credit Master Fund LP [2023] HKCFA 9, upholding the Court of Appeal's earlier decision that a creditor's bankruptcy petition presented in Hong Kong should not be allowed to proceed where the petitioned debt is disputed and arises from an agreement with an exclusive jurisdiction clause (EJC) in favour of a foreign court.
On 30 August 2022, the Hong Kong Court of Appeal overturned the Court of First Instance's decision in the case of Guy Kwok-Hung Lam v Tor Asia Credit Master Fund LP and held that a creditor's bankruptcy petition presented in Hong Kong should not be allowed to proceed where the petitioned debt was disputed and arose from an agreement with an exclusive jurisdiction clause in favour of a foreign court.
Two recent Hong Kong cases highlight the importance for creditors to pursue action for debt recovery swiftly, as any undue delay may impact on the period for which interest is recoverable and may prevent any enforcement action on a judgment debt.
Bankruptcy Petition on a Judgment Debt Time Barred
Re Li Man Hoo, Re Foo SHuk Man Patty
In the current economic climate, security for payment is key. Although banks have started to lend money again, they remain cautious and those construction firms with weak balance sheets remain at risk of insolvency. This article discusses five pitfalls in the context of some relevant case-law and devices to protect against these.
Arbitration proceedings in England are creatures of contract, arising out of the agreement between the parties to refer their disputes to arbitration. However, except in limited circumstances, when one of the parties to an arbitration agreement becomes insolvent, England’s statutory insolvency regime takes precedence over the rules of the arbitration.
The Insolvency Regime in England and Wales