INCORPORATED OWNERS OF MILLION FORTUNE INDUSTRIAL CENTRE v. JIKAN DEVELOPMENT LTD

Parties

Procedural Posture

Garnishee Proceedings / Judgment on Garnishee Orders (court of First Instance, Master’s Decision)

Legal Issues

1. 1 Whether sums held in specified bank accounts were held on trust for third party owners or were beneficially owned by the manager (2nd Judgment Debtor)
2. 2 Whether Garnishee Orders Nisi should be discharged or made absolute as to particular accounts
3. 3 Whether making a Garnishee Order Absolute would risk interfering with third party proprietary rights

Ratio Decidendi

Accounts that were shown by statute and Deeds of Mutual Covenant to be maintained for specific buildings and were identified as such (Hang Seng Accounts Nos.2–7 and Wing Lung fixed deposit No.10 and Wing Lung savings No.9) were held to be trust monies and the Garnishee Orders Nisi as to those accounts were discharged; by contrast, where the appellant failed to provide reliable evidence that grouped or time-deposit accounts were trust monies (Accounts Nos.8 and 12) the Master exercised his discretion to make Garnishee Orders Absolute; Account No.1 was discharged because withdrawals and account treatment created a real risk of interfering with third-party proprietary rights.

Court Disposition

Partial discharge of Garnishee Orders Nisi and partial granting of Garnishee Orders Absolute according to evidential findings and discretion to protect third-party proprietary rights

Orders

• Garnishee Order Absolute made in respect of Account No. 8 (Wing Lung savings account credit HKD3,414.95)
• Garnishee Order Absolute made in respect of Account No. 12 (Yien Yieh commercial bank aggregated credit HKD635,127.50)