LIU CHONG HING BANK LTD v. HOMEX RATTAN HONG KONG LTD AND OTHERS

LIU CHONG HING BANK LTD v. HOMEX RATTAN HONG KONG LTD AND OTHERS

The Court allowed the appellant's appeal and refused leave to join the applicants because the applicants had no defence on the merits, their interests post-dated the mortgage, and notices of possession had been posted, and therefore the exercise of discretion required refusal of joinder under Order 15 Rule 10.

Citation
LIU CHONG HING BANK LTD v. HOMEX RATTAN HONG KONG LTD AND OTHERS
Parties
Plaintiff/appellant (mortgagee): LIU CHONG HING BANK LIMITED; Defendant/mortgagor: HOMEX RATTAN HONG KONG LIMITED; 1st Applicant (tenant): HOMEX HOLDINGS HONG KONG LIMITED; 2nd Applicant (sub Tenant): YING HONG SHUN COMPANY LIMITED; 2nd Applicant (sub Tenant): TSINGHUA ARCHITECTURAL DESIGNERS (HONG KONG) LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 October 1984
Case Number
HCMP1043/1984
Procedural Posture
Miscellaneous Proceedings (mortgage/possession) / Appeal Against Master's Decision Under Order 15 Rule 10 (in Chambers Hearing 12 Oct 1984)
Outcome
Appeal allowed; Master's decision granting leave to join applicants set aside
Legal Topics
Joinder Under Order 15 Rule 10, Order of Possession, Actual Occupation, Failure to Appeal, Mortgagee Remedies
Source Language
EN
Mortgage Law Landlord and Tenant Civil Procedure Possession Joinder Under Order 15 Rule 10 Order of Possession Actual Occupation Failure to Appeal +1 more

Case Brief

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Parties

LIU CHONG HING BANK LIMITED

Plaintiff/appellant (mortgagee)

HOMEX RATTAN HONG KONG LIMITED

Defendant/mortgagor

HOMEX HOLDINGS HONG KONG LIMITED

1st Applicant (tenant)

YING HONG SHUN COMPANY LIMITED

2nd Applicant (sub Tenant)

TSINGHUA ARCHITECTURAL DESIGNERS (HONG KONG) LIMITED

2nd Applicant (sub Tenant)

Procedural Posture

Miscellaneous Proceedings (mortgage/possession) / Appeal Against Master's Decision Under Order 15 Rule 10 (in Chambers Hearing 12 Oct 1984)

Legal Issues

  1. 1 Whether the Master erred in granting leave to join applicants as defendants under Order 15 Rule 10
  2. 2 Whether applicants in actual physical possession with no defence should be joined
  3. 3 Whether failure to appeal timeously was due to wilful default and whether a defence on the merits exists

Ratio Decidendi

The Court allowed the appellant's appeal and refused leave to join the applicants because the applicants had no defence on the merits, their interests post-dated the mortgage, and notices of possession had been posted, and therefore the exercise of discretion required refusal of joinder under Order 15 Rule 10.

Court Disposition

Appeal allowed; Master's decision granting leave to join applicants set aside

Orders

  • Allow appeal by Liu Chong Hing Bank Limited
  • Refuse leave to Homex Holdings Hong Kong Limited, Ying Hong Shun Company Limited and Tsinghua Architectural Designers (Hong Kong) Limited to be joined as Defendants under Order 15 Rule 10