HSBC Bank v Shi Yuzhi: Bankruptcy Order Appeal - Court's Discretion & Debt Threshold
In HSBC Bank (Singapore) Limited v Shi Yuzhi, the High Court of Singapore heard an appeal by Mr. Shi Yuzhi against a bankruptcy order granted in favor of HSBC Bank (Singapore) Limited. The originating summons was based on a debt of $22,719.70. The Assistant Registrar granted the bankruptcy order on 1 June 2017. The court dismissed the appeal, finding that the Assistant Registrar did not err in making the bankruptcy order, and addressed complaints made by the Defendant about the court.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Bankruptcy
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal against bankruptcy order. The court dismissed the appeal, affirming the Assistant Registrar's decision, and addressed complaints against the court.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| HSBC Bank (Singapore) Limited | Plaintiff, Respondent | Corporation | Appeal Dismissed | Won | |
| Shi Yuzhi | Defendant, Appellant | Individual | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tham Kai Mun | Kelvin Chia Partnership |
4. Facts
- The Plaintiff commenced an Originating Summons against the Defendant on 27 December 2016 based on a debt of $22,719.70.
- The Defendant was served a statutory demand under s 62 of the Bankruptcy Act for an outstanding debt of $22,469.05.
- The Assistant Registrar granted a bankruptcy order in respect of the Defendant on 1 June 2017, with an outstanding debt of $3,519.99.
- The Defendant filed an appeal on 6 July 2017 against the Bankruptcy Order.
- The Official Assignee determined the Defendant to be unsuitable for the Debt Repayment Scheme.
- A settlement was reached between the Plaintiff and a third party regarding the outstanding sum owed by the Defendant.
- Three other creditors had lodged proofs of debt against the Defendant’s bankruptcy estate.
5. Formal Citations
- HSBC Bank (Singapore) Ltd v Shi Yuzhi, Bankruptcy No 2678 of 2016, [2017] SGHC 211
6. Timeline
| Date | Event |
|---|---|
| Statutory demand served on the Defendant | |
| Outstanding debt of $22,719.70 | |
| Originating Summons filed by the Plaintiff | |
| Bankruptcy Application served on the Defendant | |
| First hearing of the Bankruptcy Application | |
| Hearing adjourned due to disagreement on interest | |
| Hearing adjourned to resolve the matter | |
| Affidavit of non-satisfaction filed | |
| Hearing adjourned for Official Assignee to consider Debt Repayment Scheme | |
| Notice sent to Defendant regarding requisite documents | |
| Notice sent to Defendant regarding requisite documents | |
| Official Assignee determined Defendant unsuitable for Debt Repayment Scheme | |
| Registrar’s Notice issued to Plaintiff’s solicitors | |
| Bankruptcy Order granted against the Defendant | |
| Settlement between Plaintiff and a third party | |
| Defendant appeared before Duty Registrar | |
| Defendant filed Registrar’s Appeal No 173 of 2017 | |
| First hearing date of the appeal | |
| Email from Brenda on behalf of the trustees in bankruptcy | |
| Trustees in bankruptcy advertised notice | |
| Second hearing | |
| Deadline for filing of proofs of debt |
7. Legal Issues
- Court's power and discretion to grant bankruptcy order
- Outcome: The court held that the AR had the power to grant the Bankruptcy Order and did not err in making the order.
- Category: Procedural
- Related Cases:
- [2017] 3 SLR 414
- [2013] 2 SLR 801
- [2004] 3 SLR(R) 603
- [2014] 2 SLR 446
- Minimum debt threshold for bankruptcy application
- Outcome: The court clarified that the minimum debt threshold is to be considered as at the date of the bankruptcy application and not the date of the order.
- Category: Substantive
8. Remedies Sought
- Bankruptcy Order
- Dismissal of Appeal
9. Cause of Actions
- Debt
- Bankruptcy Application
10. Practice Areas
- Bankruptcy
- Commercial Litigation
11. Industries
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lembaga Tabung Angkatan Tentera (Malaysia) v Ling Lee Soon | High Court | Yes | [2017] 3 SLR 414 | Singapore | Cited regarding the court's power to dismiss a bankruptcy application for cause under s 65(2)(e) of the Bankruptcy Act. |
| Chimbusco International Petroleum (Singapore) Pte Ltd v Jalalludin bin Abdullah | High Court | Yes | [2013] 2 SLR 801 | Singapore | Cited regarding the discretion to dismiss bankruptcy proceedings under s 65(2)(e) of the Bankruptcy Act even if the court is satisfied that there are no triable issues. |
| Lee Kiang Leng Stanley v Lee Han Chew (trading as Joe Li Electrical Supplies) | Unknown | Yes | [2004] 3 SLR(R) 603 | Singapore | Cited regarding the scope and limit of the court’s discretion under either of these provisions. |
| Mohd Zain bin Abdullah v Chimbusco International Petroleum (Singapore) Pte Ltd and another appeal | Unknown | Yes | [2014] 2 SLR 446 | Singapore | Cited regarding the scope and limit of the court’s discretion under either of these provisions. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) |
| O 56 r 1(3) of the Rules of Court (Cap 322, R 5, 2014 Rev Ed) |
| Bankruptcy Rules (Cap 20, R 1, 2006 Rev Ed) |
| r 235(4) of the Bankruptcy Rules (Cap 20, R 1, 2006 Rev Ed) |
| r 237(1) of the Bankruptcy Rules (Cap 20, R 1, 2006 Rev Ed) |
| r 127 of the Bankruptcy Rules |
| r 119 of the Bankruptcy Rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Act (Cap 20) | Singapore |
| s 62 of the Bankruptcy Act (Cap 20, 2009 Rev Ed) | Singapore |
| s 56B of the Bankruptcy Act | Singapore |
| s 56C of the Bankruptcy Act | Singapore |
| s 8(1) of the Bankruptcy Act | Singapore |
| s 123(1)(b) of the Bankruptcy Act | Singapore |
| s 61 of the Bankruptcy Act | Singapore |
| s 61(1)(a) of the Bankruptcy Act | Singapore |
| s 57(1)(a)(i) of the Bankruptcy Act | Singapore |
| s 60(1) of the Bankruptcy Act | Singapore |
| s 59 of the Bankruptcy Act | Singapore |
| s 65(1) of the Bankruptcy Act | Singapore |
| s 65(2)(e) of the Bankruptcy Act | Singapore |
| s 64(1) of the Bankruptcy Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Bankruptcy Order
- Statutory Demand
- Debt Repayment Scheme
- Official Assignee
- Trustees in Bankruptcy
- Affidavit of Non-Satisfaction
- Annulment
- Minimum Debt Threshold
15.2 Keywords
- Bankruptcy
- Appeal
- Debt
- Singapore
- High Court
- Bankruptcy Act
- Bankruptcy Rules
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Bankruptcy | 90 |
| Debt Recovery | 50 |
| Civil Procedure | 30 |
| Administrative Law | 10 |
16. Subjects
- Bankruptcy
- Civil Procedure
- Debt Recovery