ABLE LUCK DEVELOPMENT LTD AND OTHERS v. BOLY METAL MANUFACTORY LTD AND OTHERS

ABLE LUCK DEVELOPMENT LTD AND OTHERS v. BOLY METAL MANUFACTORY LTD AND OTHERS

Applicants satisfied the applicable statutory ownership threshold (80% under Cap 545A because lot is OU(B) non-industrial), the Building is sufficiently aged and in a state of repair/obsolescence to justify redevelopment under section 4(2)(a), applicants took reasonable steps to acquire minority shares under section 4(2)(b), revitalization is not a statutory requirement nor a barrier to ordering compulsory sale, the tribunal determined the EUV at HKD 1,414,015,000 (as at 29 March 2018) and the RDV/reserve price at HKD 2,349,000,000 (as at 12 March 2021), and therefore granted an order for sale by public auction with specified ancillary directions.

Citation
[2022] HKLdT 17
Parties
1st Applicant: Able Luck Development Limited; 2nd Applicant: Biel Crystal Manufactory Limited; 3rd Applicant: Manway Corporation Limited; 4th Applicant: Huge Wise Trading Limited; 5th Applicant: Sky Huge Development Limited; 6th Applicant: Nice Express Development Limited; 7th Applicant: Able Wide Corporation Limited; 8th Applicant: Well Nice Corporation Limited; 9th Applicant: High Smart Industrial Limited; 1st Respondent (discontinued): Boly Metal Manufactory Limited; 2nd Respondent (discontinued): Cheng Sing Kun; 3rd Respondent (discontinued): yuen pui kiu; 4th Respondent: pawling limited; 5th Respondent (discontinued): henson & company limted; 6th Respondent (discontinued): psk limited; 7th Respondent (discontinued): lee son wong; 8th Respondent (discontinued): ng cheung fui
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
22 April 2022
Case Number
LDCS11000/2018
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment (trial Concluded; Judgment Dated 22 April 2022)
Outcome
Order for sale granted under Cap 545; tribunal determines EUV and RDV and sets reserve price; trustees appointed; costs ordered nisi in favour of respondent
Legal Topics
Compulsory Sale, Redevelopment, Zoning Interpretation, Threshold for Applications, Expert Valuation, Revitalization, Proportionality
Source Language
EN
Property Law Land Law Administrative Law Constitutional Law Valuation Law Compulsory Sale Redevelopment Zoning Interpretation +4 more

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Parties

Able Luck Development Limited

1st Applicant

Biel Crystal Manufactory Limited

2nd Applicant

Manway Corporation Limited

3rd Applicant

Huge Wise Trading Limited

4th Applicant

Sky Huge Development Limited

5th Applicant

Nice Express Development Limited

6th Applicant

Able Wide Corporation Limited

7th Applicant

Well Nice Corporation Limited

8th Applicant

High Smart Industrial Limited

9th Applicant

Boly Metal Manufactory Limited

1st Respondent (discontinued)

Cheng Sing Kun

2nd Respondent (discontinued)

yuen pui kiu

3rd Respondent (discontinued)

pawling limited

4th Respondent

henson & company limted

5th Respondent (discontinued)

psk limited

6th Respondent (discontinued)

lee son wong

7th Respondent (discontinued)

ng cheung fui

8th Respondent (discontinued)

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application / Judgment (trial Concluded; Judgment Dated 22 April 2022)

Legal Issues

  1. 1 Whether applicants met statutory ownership threshold under Cap 545 and Cap 545A
  2. 2 Whether redevelopment justified by age or state of repair under section 4(2)(a) Cap 545
  3. 3 Whether tribunal must consider revitalization or other alternatives before granting order

Ratio Decidendi

Applicants satisfied the applicable statutory ownership threshold (80% under Cap 545A because lot is OU(B) non-industrial), the Building is sufficiently aged and in a state of repair/obsolescence to justify redevelopment under section 4(2)(a), applicants took reasonable steps to acquire minority shares under section 4(2)(b), revitalization is not a statutory requirement nor a barrier to ordering compulsory sale, the tribunal determined the EUV at HKD 1,414,015,000 (as at 29 March 2018) and the RDV/reserve price at HKD 2,349,000,000 (as at 12 March 2021), and therefore granted an order for sale by public auction with specified ancillary directions.

Court Disposition

Order for sale granted under Cap 545; tribunal determines EUV and RDV and sets reserve price; trustees appointed; costs ordered nisi in favour of respondent

Orders

  • All undivided shares in the lot to be sold by public auction for redevelopment of the lot
  • Mr Shum Man Wai and Ms Lo Hoi Ying (nominated by applicants) appointed as trustees to discharge duties under the Ordinance