Hong Kong Regulations

BANKRUPTCY RULES - RULE 48

Hearing of application to set aside

(Past version on 30/06/1997).

(1) On receipt of an application under rule 47, the court may, if satisfied
that no sufficient cause is shown for it, dismiss it without giving notice to
the creditor.

(2) Starting with the date on which the application is dismissed, the time
limited for compliance with the statutory demand runs again.

(3) If the application is not dismissed under paragraph (1), the court shall
fix the date, time and place for it to be heard, and shall give at least 7
days' notice thereof to-

   (a)  the debtor or, if the debtor's application was made by a solicitor
        acting for him, the solicitor;

   (b)  the creditor; and

   (c)  whoever is named in the statutory demand as the person with whom the
        debtor may enter into communication with reference to the demand

(or, if more than one person is so named, the first of them).

(4) On the hearing of the application, the court shall consider the evidence
then available to it, and may either summarily determine the application or
adjourn it, giving such directions as it thinks appropriate.

(5) The court may grant the application if-

   (a)  the debtor appears to have a counterclaim, set-off or cross demand
        which equals or exceeds the amount of the debt or debts specified in
        the statutory demand;

   (b)  the debt is disputed on grounds which appear to the court to be
        substantial;

   (c)  it appears that the creditor holds some security in respect of the
        debt claimed by the demand, and either rule 44(5) is not complied with
        in respect of it, or the court is satisfied that the value of the
        security equals or exceeds the full amount of the debt; or

   (d)  the court is satisfied, on other grounds, that the demand ought to be
        set aside.

(6) Where the creditor holds some security in respect of his debt, and rule
44(5) is complied with in respect of it but the court is satisfied that the
security is under-valued in the statutory demand, the creditor may be required
to amend the demand accordingly (but without prejudice to his right to present
a bankruptcy petition by reference to the original demand).

(7) If the court dismisses the application, it shall make an order authorizing
the creditor to present a bankruptcy petition either forthwith, or on or after
a date specified in the order.

(8) A copy of the order shall be sent by the applicant forthwith to the
creditor. (L.N. 77 of 1998)