HONOUR FINANCE COMPANY LIMITED v. CHAN YAN PAK

HONOUR FINANCE COMPANY LIMITED v. CHAN YAN PAK

The defendant may plead both set-off and counterclaim against the assignee but the defendant's equities under section 9 are statutorily confined to meeting the assignee's claim only to the extent of the assigned debt; the Master was right to refuse to strike out the amended counterclaim and the appeal is dismissed with costs to the defendant.

Citation
HONOUR FINANCE COMPANY LIMITED v. CHAN YAN PAK
Parties
Plaintiff/appellant: Honour Finance Company Limited; Defendant/respondent: Chan Yan Pak
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 June 1988
Case Number
HCA2990/1988
Procedural Posture
Civil Appeal / Appeal From Master's Decision; Hearing in Chambers; Decision Delivered
Outcome
Appeal dismissed
Legal Topics
Assignment of Debt, Set Off, Counterclaim, Equities Against Assignee, Costs Orders
Source Language
EN
Contract Law Equity Civil Procedure Costs Assignment of Debt Set Off Counterclaim Equities Against Assignee +1 more

Case Brief

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Parties

Honour Finance Company Limited

Plaintiff/appellant

Chan Yan Pak

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Master's Decision; Hearing in Chambers; Decision Delivered

Legal Issues

  1. 1 Whether a defendant may plead both set-off and counterclaim against an assignee in respect of the same transaction
  2. 2 Extent to which a defendant's equities under section 9 of the Law Amendment and Reform (Consolidation) Ordinance, Cap.23, may be exercised against an assignee
  3. 3 Whether a counterclaim may exceed the amount of the assigned debt

Ratio Decidendi

The defendant may plead both set-off and counterclaim against the assignee but the defendant's equities under section 9 are statutorily confined to meeting the assignee's claim only to the extent of the assigned debt; the Master was right to refuse to strike out the amended counterclaim and the appeal is dismissed with costs to the defendant.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs to the defendant
  • Plaintiff's summons to strike out the defendant's amended counterclaim dismissed