RE LIGHT TIME INVESTMENTS LTD

RE LIGHT TIME INVESTMENTS LTD

The one-stage approach is rejected: s12A(2) creates a discretion that only arises after payment into court and the court has no jurisdiction to declare land free from encumbrance before payment. The court therefore ordered payment into court under s12A(1), required public advertisement to notify potential mortgagees, and permitted a paper application under s12A(2) for the declaration after specified publicity and waiting periods; no costs ordered.

Citation
RE LIGHT TIME INVESTMENTS LTD
Parties
Applicant/plaintiff: Light Time Investments Limited; Encumbrancers/respondents: Mortgagees (various, largely unknown); Interested Party: The Government (interested party)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 March 2010
Case Number
HCMP345/2010
Procedural Posture
Application Under Section 12 a Conveyancing and Property Ordinance (cap.219) / Interim Order for Payment Into Court Made; Further Paper Hearing Under S12 A(2) to Follow After Advertisement
Outcome
Application granted in part: payments into court ordered under s12A(1); declaration under s12A(2) deferred pending advertisement and further paper application.
Legal Topics
Section 12 a CPO, Payment Into Court, Mortgage Discharge, Substituted Service/advertisement, In Situ Land Exchange
Source Language
EN
Conveyancing and Property Land Registration Civil Procedure Section 12 a CPO Payment Into Court Mortgage Discharge Substituted Service/advertisement In Situ Land Exchange

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Parties

Light Time Investments Limited

Applicant/plaintiff

Mortgagees (various, largely unknown)

Encumbrancers/respondents

The Government (interested party)

Interested Party

Procedural Posture

Application Under Section 12 a Conveyancing and Property Ordinance (cap.219) / Interim Order for Payment Into Court Made; Further Paper Hearing Under S12 A(2) to Follow After Advertisement

Legal Issues

  1. 1 Whether the court can grant a declaration freeing land from registered mortgages before payment into court under s12A
  2. 2 Whether a one-stage procedure (payment and declaration simultaneously) is permissible
  3. 3 Whether adequate steps have been taken to locate mortgagees and whether substituted service/advertisement is required

Ratio Decidendi

The one-stage approach is rejected: s12A(2) creates a discretion that only arises after payment into court and the court has no jurisdiction to declare land free from encumbrance before payment. The court therefore ordered payment into court under s12A(1), required public advertisement to notify potential mortgagees, and permitted a paper application under s12A(2) for the declaration after specified publicity and waiting periods; no costs ordered.

Court Disposition

Application granted in part: payments into court ordered under s12A(1); declaration under s12A(2) deferred pending advertisement and further paper application.

Orders

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