LAM CHOK LAI AND ANOTHER v. THE OFFICIAL RECEIVER AND TRUSTEE IN BANKRUPTCY OF LAM CHOK WAI, A BANKRUPT AND ANOTHER

LAM CHOK LAI AND ANOTHER v. THE OFFICIAL RECEIVER AND TRUSTEE IN BANKRUPTCY OF LAM CHOK WAI, A BANKRUPT AND ANOTHER

The court accepted the plaintiffs' evidence of up-to-date valuations and market attempts as demonstrating that the proposed reduced reserve price and the independent HK$280m offer reflected the realistic market value; accordingly the court varied the earlier sale order under the Partition Ordinance to permit sale on those terms with limited opportunity for the objector to file an expert report within seven days, and made ancillary directions and costs orders to effect an immediate sale and end the co-ownership.

Citation
[2021] HKCFI 260
Parties
1st Plaintiff: LAM CHOK LAI; 2nd Plaintiff: LAM CHOK LAI, The Executor of the Estate of LAM SHUM SHUN MUI, Deceased; 1st Defendant: The Official Receiver and Trustee in Bankruptcy of LAM CHOK WAI, a Bankrupt; 2nd Defendant: GENERAL FORTUNE INTERNATIONAL INC.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 February 2021
Case Number
HCMP3041/2016
Procedural Posture
Partition Ordinance Sale Application Under Cap.352 / Application for Further Directions and Variation of Order for Sale (hearing and Decision)
Outcome
Summons granted in part; order varied to permit sale at revised reserve and to allow acceptance of independent offer subject to conditions and costs directions.
Legal Topics
Partition, Order for Sale, Variation of Court Order, Valuation Evidence, Costs Allocation, Trusteeship, Charging Order
Source Language
EN
Property Law Civil Procedure Insolvency/bankruptcy Equity Partition Order for Sale Variation of Court Order Valuation Evidence +3 more

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Parties

LAM CHOK LAI

1st Plaintiff

LAM CHOK LAI, The Executor of the Estate of LAM SHUM SHUN MUI, Deceased

2nd Plaintiff

The Official Receiver and Trustee in Bankruptcy of LAM CHOK WAI, a Bankrupt

1st Defendant

GENERAL FORTUNE INTERNATIONAL INC.

2nd Defendant

Procedural Posture

Partition Ordinance Sale Application Under Cap.352 / Application for Further Directions and Variation of Order for Sale (hearing and Decision)

Legal Issues

  1. 1 Whether the court should vary the reserve price and give further directions under section 6 of the Partition Ordinance to effect a sale
  2. 2 Whether updated professional valuations and market offers justify reducing the reserve price
  3. 3 Whether to adjourn to permit the objecting party to file an expert valuation report

Ratio Decidendi

The court accepted the plaintiffs' evidence of up-to-date valuations and market attempts as demonstrating that the proposed reduced reserve price and the independent HK$280m offer reflected the realistic market value; accordingly the court varied the earlier sale order under the Partition Ordinance to permit sale on those terms with limited opportunity for the objector to file an expert report within seven days, and made ancillary directions and costs orders to effect an immediate sale and end the co-ownership.

Court Disposition

Summons granted in part; order varied to permit sale at revised reserve and to allow acceptance of independent offer subject to conditions and costs directions.

Orders

  • Time for completion of the sale pursuant to the Tang Offer extended for one week
  • The 2nd Defendant may file an expert report, if so advised, within 7 days from the date of the order