[2026] HKCFI 125, the Court resolved a recurring issue in winding-up and bankruptcy proceedings – confirming that a restitutionary claim can be regarded as a liquidated sum and form the subject of a statutory demand.

The debtor in this case agreed to sell a Ferrari for US$3.4 million. The purchaser paid US$2.22 million in instalments, but the vehicle was never delivered. A statutory demand was served for repayment on the basis of restitution for total failure of consideration.

After reviewing seemingly conflicting authorities in England and Hong Kong, the Court held that:

Analysing from first principles, the Court reasoned that an unjust enrichment claim is not founded on the commission of a civil wrong, but is treated as a claim in debt for procedural purposes.

The Court also confirmed that an over-statement of a debt in a statutory demand will not automatically entitle the debtor to have it set aside; and that it was proper for the Respondent to apply to amend the statutory demand to reflect the correct amount of the debt as opposed to withdrawing the demand and issuing a new one.

, instructed by Tanner De Witt, acted for the Respondent.

, instructed by Simon Si & Co, acted for the Applicant.

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