BONTEX INTERNATIONAL LTD v. KAISER INVESTMENT (GROUP) LTD AND ANOTHER

BONTEX INTERNATIONAL LTD v. KAISER INVESTMENT (GROUP) LTD AND ANOTHER

The court found Bontex proved Kaiser repudiated the Lease by non-payment and surrender of possession; the defendants failed to prove the alleged pre-contract oral misrepresentations and failed to prove the staircase was an unauthorised building structure that deprived quiet enjoyment; Clause 4.16 of the Lease precluded reliance on prior representations and COECO was not properly pleaded or applicable; Kaiser’s counterclaim was struck out for lack of representation and Hiew is liable under his guarantee; judgment awarded HK$5,160,308.26 plus contractual interest and costs order nisi to Bontex.

Citation
[2026] HKCFI 117
Parties
Plaintiff (original Action); 1st Defendant (counterclaim Defendant): Bontex International Limited; 1st Defendant (original Action); 1st Plaintiff (counterclaim): Kaiser Investment (Group) Limited; 2nd Defendant (original Action); 2nd Plaintiff (counterclaim): Hiew Shek Kei; 2nd Defendant (counterclaim): Wong Sue Toa Stewart; 3rd Defendant (counterclaim): Chow Ka Fung Matthew; 4th Defendant (counterclaim): Paul P.L. Yip
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 January 2026
Case Number
HCA1560/2021
Procedural Posture
Lease Dispute; Landlord Claim for Unpaid Rent and Damages; Tenant Counterclaim (struck Out) / Judgment (trial Concluded)
Outcome
Judgment for plaintiff Bontex International Limited; defendants ordered to pay HK$5,160,308.26 with interest and costs order nisi in favour of Bontex; Kaiser’s counterclaim dismissed (struck out) for lack of representation
Legal Topics
Lease Termination, Repudiatory Breach, Guarantee Liability, Misrepresentation, Quiet Enjoyment, Unauthorised Building Works, Exclusion/integration Clause (no Warranties Clause), Striking Out for Lack of Representation (order 25 R 1 C), Interest and Costs
Source Language
EN
Landlord and Tenant Contract Property Law Civil Procedure Building Control Lease Termination Repudiatory Breach Guarantee Liability +6 more

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Parties

Bontex International Limited

Plaintiff (original Action); 1st Defendant (counterclaim Defendant)

Kaiser Investment (Group) Limited

1st Defendant (original Action); 1st Plaintiff (counterclaim)

Hiew Shek Kei

2nd Defendant (original Action); 2nd Plaintiff (counterclaim)

Wong Sue Toa Stewart

2nd Defendant (counterclaim)

Chow Ka Fung Matthew

3rd Defendant (counterclaim)

Paul P.L. Yip

4th Defendant (counterclaim)

Procedural Posture

Lease Dispute; Landlord Claim for Unpaid Rent and Damages; Tenant Counterclaim (struck Out) / Judgment (trial Concluded)

Legal Issues

  1. 1 Whether alleged oral misrepresentations induced the lease
  2. 2 Whether the staircase was an unauthorised building structure and breached quiet enjoyment
  3. 3 Whether Kaiser repudiated the lease and is liable for outstanding rent

Ratio Decidendi

The court found Bontex proved Kaiser repudiated the Lease by non-payment and surrender of possession; the defendants failed to prove the alleged pre-contract oral misrepresentations and failed to prove the staircase was an unauthorised building structure that deprived quiet enjoyment; Clause 4.16 of the Lease precluded reliance on prior representations and COECO was not properly pleaded or applicable; Kaiser’s counterclaim was struck out for lack of representation and Hiew is liable under his guarantee; judgment awarded HK$5,160,308.26 plus contractual interest and costs order nisi to Bontex.

Court Disposition

Judgment for plaintiff Bontex International Limited; defendants ordered to pay HK$5,160,308.26 with interest and costs order nisi in favour of Bontex; Kaiser’s counterclaim dismissed (struck out) for lack of representation

Orders

  • Defendants Kaiser Investment (Group) Limited and Hiew Shek Kei to pay Bontex International Limited HK$5,160,308.26
  • Interest on that sum at 2% above HSBC best lending rate from 14 November 2021 until date of judgment and thereafter at judgment rate until full payment