Re Liu Wing Ting Stephen (廖榮定) (Debtor) (No 2) [2026] 1 HKLRD 1100; [2025] HKCFI 6003 (Victor K. T. Lui)

Victor K. T. Lui represented the Creditor in Re Liu Wing Ting Stephen (廖榮定) (Debtor) (No 2) [2026] 1 HKLRD 1100; [2025] HKCFI 6003.

A bankruptcy petition presented by the Creditor against the Debtor was dismissed by the Judge on the ground of defective service with costs to be paid by the Creditor to the Debtor. In the present application, the Creditor sought a stay of taxation of the costs pending appeal, arguing that the Creditor had strong grounds of appeal, namely, (i) that the Judge ered in not exercising the court’s discretion under r.203 of the Bankruptcy Rules (Cap.6A, Sub.Leg.) to either dispense with service, allow substituted service or adjourn the petition hearing for the Creditor to remedy the defective service; and (ii) that the Debtor should not be given his costs of the proceedings given that the Debtor was found to have failed to show a bona fide defence on substantial grounds.

Held, that the taxation of the costs be stayed, that

1. The Creditor had been notified of the Debtor’s objection to the defective service six months before the petition hearing *1101 but had taken no steps and had not sought any adjournment to cure the defect. Even if there was a general rule allowing a petitioner the opportunity to serve the petition despite a complaint of defective service being upheld in the case of a debtor’s defence being rejected, in the circumstances of this case, the exercise of discretion could not be argued to have been clearly wrong. (See paras.5-6.)
2. Where the petition was correctly dismissed, the fact that the Debtor did not demonstrate a bona fide defence should not be a reason to deprive the Debtor of his costs of the proceedings. (See para.7.)
3. The Creditor also raised its own financial problems as a ground for granting a stay. The Court was prepared to, with no strong opposition from the Debtor, order that the taxation of costs be stayed if the sum of $325,000 was paid into court by the Creditor within 14 days. (See para.8.)

Application

This was the creditor’s application for a stay of taxation of the costs of a petition presented by the creditor which had been dismissed, pending appeal of the dismissal.

[The above is excerpted from the headnote to the report in HKLRD.]