RE LIGHT TIME INVESTMENTS LTD

RE LIGHT TIME INVESTMENTS LTD

The one‑stage approach is impermissible because s12A(2) confers a discretionary power to declare land free only upon payment into court under s12A(1); declaring freedom in advance would extinguish the discretion before it arises. The correct course is to order payment into court, require public advertisement to protect unidentified mortgagees, then permit a s12A(2) paper application for declaration after the advertisement period.

Citation
RE LIGHT TIME INVESTMENTS LTD
Parties
Applicant/plaintiff: Light Time Investments Limited; Proposed Counterparty/respondent: The Government; Encumbrancers/respondents (unidentified): Unknown mortgagees and descendants
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 March 2010
Case Number
HCMP334/2010
Procedural Posture
Application Under Section 12 a Conveyancing and Property Ordinance Cap.219 / Interim Hearing to Order Payment Into Court and Directions for Advertisement Prior to Further S12 A(2) Application
Outcome
Application partly granted: order for payment into court under s12A(1) with directions for advertisement and a timetable for a subsequent s12A(2) paper application; no order as to costs.
Legal Topics
Redemption of Encumbrance, Section 12 a Procedure, Notice and Substituted Service, Declarations to Free Land From Mortgages
Source Language
EN
Conveyancing Property Law Civil Procedure Redemption of Encumbrance Section 12 a Procedure Notice and Substituted Service Declarations to Free Land From Mortgages

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Parties

Light Time Investments Limited

Applicant/plaintiff

The Government

Proposed Counterparty/respondent

Unknown mortgagees and descendants

Encumbrancers/respondents (unidentified)

Procedural Posture

Application Under Section 12 a Conveyancing and Property Ordinance Cap.219 / Interim Hearing to Order Payment Into Court and Directions for Advertisement Prior to Further S12 A(2) Application

Legal Issues

  1. 1 Whether a one‑stage order (payment plus immediate declaration freeing land) is permissible under s12A
  2. 2 Whether the court may grant relief before payment into court
  3. 3 Adequacy of searches and requirement for notice/advertisement to locate mortgagees

Ratio Decidendi

The one‑stage approach is impermissible because s12A(2) confers a discretionary power to declare land free only upon payment into court under s12A(1); declaring freedom in advance would extinguish the discretion before it arises. The correct course is to order payment into court, require public advertisement to protect unidentified mortgagees, then permit a s12A(2) paper application for declaration after the advertisement period.

Court Disposition

Application partly granted: order for payment into court under s12A(1) with directions for advertisement and a timetable for a subsequent s12A(2) paper application; no order as to costs.

Orders

  • Order pursuant to s12A(1) that applicant pay into court the sums stated in the applications or the larger sums stated in the applicant's written opening to redeem the registered mortgages and any interest thereon.
  • Within seven days after payment into court the applicant must advertise in a widely circulated local Chinese newspaper a notice of this order and payment into court and state that any person interested may apply within 14 days to be joined as a respondent.