EIGHT-STAR GLORY LTD AND ANOTHER v. THE PERSONAL REPRESENTATIVES OF JOSE CHOW (DECEASED) AND OTHERS

EIGHT-STAR GLORY LTD AND ANOTHER v. THE PERSONAL REPRESENTATIVES OF JOSE CHOW (DECEASED) AND OTHERS

The Tribunal found on balance that statutory requirements of Cap.545 were met (buildings over 50 years old, applicants held 83.33% of shares, reasonable steps taken to acquire remaining shares), expert evidence established the buildings were beyond reasonable economic repair and redevelopment was justified, substituted service was properly effected and no prejudice arose from the valuation amendment; accordingly an order for compulsory sale by auction with the stated reserve price was warranted.

Citation
EIGHT-STAR GLORY LTD AND ANOTHER v. THE PERSONAL REPRESENTATIVES OF JOSE CHOW (DECEASED) AND OTHERS
Parties
1st Applicant: EIGHT-STAR GLORY LIMITED; 2nd Applicant: GOOD STANDING (HONG KONG) LIMITED; 1st Respondent: THE PERSONAL REPRESENTATIVES OF JOSE CHOW (DECEASED); 2nd Respondent (discontinued): MAIN SEA DEVELOPMENT LIMITED; 3rd Respondent: CHIU SIN YEE; 4th Respondent (discontinued): LUN YIM FONG
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
26 August 2011
Case Number
LDCS14000/2010
Procedural Posture
Land Compulsory Sale (land (compulsory Sale for Redevelopment) Ordinance, Cap.545) / Judgment at Trial (lands Tribunal)
Outcome
Application for compulsory sale granted in favour of the Applicants.
Legal Topics
Compulsory Sale for Redevelopment, Service by Substituted Publication, Adverse Possession Claim, Valuation Date and Admissibility, Reserve Price and Auction Sale, Expert Evidence on Structural Condition, Intelligent House Test
Source Language
EN
Property Law Land Law Statutory Compulsory Sale Valuation Law Building/regulatory Compliance Compulsory Sale for Redevelopment Service by Substituted Publication Adverse Possession Claim +4 more

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Parties

EIGHT-STAR GLORY LIMITED

1st Applicant

GOOD STANDING (HONG KONG) LIMITED

2nd Applicant

THE PERSONAL REPRESENTATIVES OF JOSE CHOW (DECEASED)

1st Respondent

MAIN SEA DEVELOPMENT LIMITED

2nd Respondent (discontinued)

CHIU SIN YEE

3rd Respondent

LUN YIM FONG

4th Respondent (discontinued)

Procedural Posture

Land Compulsory Sale (land (compulsory Sale for Redevelopment) Ordinance, Cap.545) / Judgment at Trial (lands Tribunal)

Legal Issues

  1. 1 Whether statutory conditions under Cap.545 were satisfied (building age and ownership threshold)
  2. 2 Whether applicants took reasonable steps to acquire all shares
  3. 3 Whether substituted service/publication was sufficient and fair

Ratio Decidendi

The Tribunal found on balance that statutory requirements of Cap.545 were met (buildings over 50 years old, applicants held 83.33% of shares, reasonable steps taken to acquire remaining shares), expert evidence established the buildings were beyond reasonable economic repair and redevelopment was justified, substituted service was properly effected and no prejudice arose from the valuation amendment; accordingly an order for compulsory sale by auction with the stated reserve price was warranted.

Court Disposition

Application for compulsory sale granted in favour of the Applicants.

Orders

  • Order for compulsory sale of the buildings at 78 and 80 Sai Yee Street, Mongkok, by way of auction under section 4(1)(b) of the Land (Compulsory Sale for Redevelopment) Ordinance (Cap.545).
  • Reserve price fixed at HK$136,000,000 for the auction sale; particulars and conditions of sale to be substantially the same as draft in hearing bundle F1 (pp.10–38) initialed and approved by the Tribunal on 3 August 2011.