CHEUNG TAK LEE v. NG CHING KIU

CHEUNG TAK LEE v. NG CHING KIU

Applying s.12A CPO, the court found it appropriate to allow payment into court to redeem the mortgage and adopted a 20% per annum notional interest rate (following Man Chi Kan). Calculating interest from the 1905 lease produced HK$172.80, which the court held sufficient; leave was granted to pay that sum into court and to apply for a declaration freeing the property upon payment.

Citation
CHEUNG TAK LEE v. NG CHING KIU
Parties
Mortgagor: Lau Ut Po; Mortgagee/encumbrancer: Ng Ching Kiu
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 November 2007
Case Number
HCMP1263/2007
Procedural Posture
Application Under S.12 a Conveyancing and Property Ordinance (mortgage Discharge) / Judgment Delivered (6 November 2007)
Outcome
Leave granted to pay HK$172.80 into court to redeem the mortgage; leave granted to apply for a declaration freeing the property upon payment; no order as to costs.
Legal Topics
Mortgage Discharge, Section 12 a Conveyancing and Property Ordinance, Payment Into Court, Notional Interest Rate
Source Language
EN
Property Law Conveyancing Mortgages Civil Procedure Mortgage Discharge Section 12 a Conveyancing and Property Ordinance Payment Into Court Notional Interest Rate

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Parties

Lau Ut Po

Mortgagor

Ng Ching Kiu

Mortgagee/encumbrancer

Procedural Posture

Application Under S.12 a Conveyancing and Property Ordinance (mortgage Discharge) / Judgment Delivered (6 November 2007)

Legal Issues

  1. 1 Whether s.12A CPO permits payment into court to redeem a long‑standing mortgage where the mortgagor is deceased and the encumbrancer cannot be located
  2. 2 What notional interest rate, if any, should be applied to compute a historical debt for purposes of redemption
  3. 3 Whether the sum calculated is sufficient to redeem the encumbrance and justify a declaration freeing the property

Ratio Decidendi

Applying s.12A CPO, the court found it appropriate to allow payment into court to redeem the mortgage and adopted a 20% per annum notional interest rate (following Man Chi Kan). Calculating interest from the 1905 lease produced HK$172.80, which the court held sufficient; leave was granted to pay that sum into court and to apply for a declaration freeing the property upon payment.

Court Disposition

Leave granted to pay HK$172.80 into court to redeem the mortgage; leave granted to apply for a declaration freeing the property upon payment; no order as to costs.

Orders

  • Leave granted to plaintiff to pay HK$172.80 into court to redeem the mortgage.
  • Leave granted to plaintiff to apply for a declaration freeing the property from the mortgage upon payment into court.