LONGIN INVESTMENT LTD AND ANOTHER v. TRIZONG LTD AND OTHERS

LONGIN INVESTMENT LTD AND ANOTHER v. TRIZONG LTD AND OTHERS

Because Hirose provided the purchase money for the debenture, a resulting trust arose in his favour; his inaccurate nomination to the Club did not amount to misconduct of the kind that bars equitable relief, so he was entitled to possession of the debenture and the charging order nisi over the debenture was discharged while the charging order over the shares was made absolute.

Citation
LONGIN INVESTMENT LTD AND ANOTHER v. TRIZONG LTD AND OTHERS
Parties
1st Plaintiff: Longin Investment Limited; 2nd Plaintiff: Hanwa Kozai (Hong Kong) Company; 1st Defendant: Trizone Limited; 2nd Defendant: Iwasawa Isoo; 3rd Defendant: Asahi Iwasawa & Associates Management Consultants Limited; 1st Claimant: Anthony Tsang; 2nd Claimant: Hirose Akehide
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 July 1995
Case Number
HCA10155/1993
Procedural Posture
Interpleader and Charging Order Proceedings / Judgment (high Court, Barnett J)
Outcome
Interpleader claimants entitled to the debenture certificate; charging order nisi over the debenture discharged; charging order over shares made absolute; costs allocated as between parties.
Legal Topics
Resulting Trust, Interpleader, Charging Order, Clean Hands Doctrine, Nomination and Corporate Membership
Source Language
EN
Equity Trusts Civil Procedure Enforcement Property Law Resulting Trust Interpleader Charging Order +2 more

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Parties

Longin Investment Limited

1st Plaintiff

Hanwa Kozai (Hong Kong) Company

2nd Plaintiff

Trizone Limited

1st Defendant

Iwasawa Isoo

2nd Defendant

Asahi Iwasawa & Associates Management Consultants Limited

3rd Defendant

Anthony Tsang

1st Claimant

Hirose Akehide

2nd Claimant

Procedural Posture

Interpleader and Charging Order Proceedings / Judgment (high Court, Barnett J)

Legal Issues

  1. 1 Whether claimant (Hirose) had sufficient title/right to possession to defeat the Bailiff's seizure in interpleader proceedings
  2. 2 Whether the payment by Hirose gave rise to a resulting trust in his favor in respect of the debenture
  3. 3 Whether Hirose's breach of Club nomination rules constituted 'unclean hands' barring equitable relief

Ratio Decidendi

Because Hirose provided the purchase money for the debenture, a resulting trust arose in his favour; his inaccurate nomination to the Club did not amount to misconduct of the kind that bars equitable relief, so he was entitled to possession of the debenture and the charging order nisi over the debenture was discharged while the charging order over the shares was made absolute.

Court Disposition

Interpleader claimants entitled to the debenture certificate; charging order nisi over the debenture discharged; charging order over shares made absolute; costs allocated as between parties.

Orders

  • Debenture certificate to be released to and dealt with by Mr Hirose Akehide as he sees fit
  • Charging order nisi over the debenture discharged