WISE GRACE INVESTMENT LTD AND OTHERS v. LUI MAN DUNG AND OTHERS

WISE GRACE INVESTMENT LTD AND OTHERS v. LUI MAN DUNG AND OTHERS

On the proper construction of Cap 545 the tribunal must be satisfied of the s4(2) prerequisites before ordering sale; here the applicants met the ownership threshold and, applying the tenantable standard to expert evidence, the buildings' age and state of repair justify redevelopment and applicants took reasonable steps to acquire shares; there is no residual discretion to refuse sale once s4(2) is satisfied; RDV set at $242,000,000; order for sale made and trustees appointed; costs ordered nisi in favour of respondents to be taxed if not agreed.

Citation
[2025] HKLdT 5
Parties
1st Applicant: Wise Grace Investment Limited (智喜投資有限公司); 2nd Applicant: Ready Earn Limited (韋迪有限公司); 3rd Applicant: Fortune Motion Limited (聖維有限公司); 1st Respondent: Lui Man Dung (雷文動); 2nd Respondent (discontinued): Lee Ka Leung (李嘉樑); 3rd Respondent: Lam Yip Yick (林業億); 4th Respondent (discontinued): Allen Charles William; 5th Respondent: Liu Ching Heung (廖清香) by guardian ad litem Wong Chung Yam (黃松欽); 6th Respondent (discontinued): Leung Choi Kam (梁彩金); 7th Respondent (discontinued): Belcity International Development Limited (麗拜國際發展有限公司)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
13 February 2025
Case Number
LDCS15000/2021
Procedural Posture
Land (compulsory Sale for Redevelopment) Main Application No 15000 of 2021 / Judgment (13 February 2025)
Outcome
Application granted; order for compulsory sale made under Cap 545
Legal Topics
Land (compulsory Sale for Redevelopment) Ordinance Cap 545, Redevelopment Justification, Age and State of Repair, Reasonable Steps to Acquire, Residual Discretion, Reserve Price and Apportionment, Tenantable Standard
Source Language
EN
Land Law Compulsory Sale Property Valuation Administrative/statutory Interpretation Land (compulsory Sale for Redevelopment) Ordinance Cap 545 Redevelopment Justification Age and State of Repair Reasonable Steps to Acquire +3 more

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Parties

Wise Grace Investment Limited (智喜投資有限公司)

1st Applicant

Ready Earn Limited (韋迪有限公司)

2nd Applicant

Fortune Motion Limited (聖維有限公司)

3rd Applicant

Lui Man Dung (雷文動)

1st Respondent

Lee Ka Leung (李嘉樑)

2nd Respondent (discontinued)

Lam Yip Yick (林業億)

3rd Respondent

Allen Charles William

4th Respondent (discontinued)

Liu Ching Heung (廖清香) by guardian ad litem Wong Chung Yam (黃松欽)

5th Respondent

Leung Choi Kam (梁彩金)

6th Respondent (discontinued)

Belcity International Development Limited (麗拜國際發展有限公司)

7th Respondent (discontinued)

Procedural Posture

Land (compulsory Sale for Redevelopment) Main Application No 15000 of 2021 / Judgment (13 February 2025)

Legal Issues

  1. 1 Issue 1: Market value of each property (EUV)
  2. 2 Issue 2: Whether redevelopment justified by age and/or state of repair (s4(2)(a)(i))
  3. 3 Issue 3: Whether reasonable steps taken to acquire all undivided shares (s4(2)(b))

Ratio Decidendi

On the proper construction of Cap 545 the tribunal must be satisfied of the s4(2) prerequisites before ordering sale; here the applicants met the ownership threshold and, applying the tenantable standard to expert evidence, the buildings' age and state of repair justify redevelopment and applicants took reasonable steps to acquire shares; there is no residual discretion to refuse sale once s4(2) is satisfied; RDV set at $242,000,000; order for sale made and trustees appointed; costs ordered nisi in favour of respondents to be taxed if not agreed.

Court Disposition

Application granted; order for compulsory sale made under Cap 545

Orders

  • All undivided shares in the Lots to be sold by public auction for redevelopment
  • Mr Cheung Wood Keung and Ms Pang Shuk Man Eva appointed as trustees to carry out duties under the Ordinance