THE INCORPORATED OWNERS OF KWAI WAN INDUSTRIAL BUILDING v. KWAI FUNG INDUSTRIAL LTD

THE INCORPORATED OWNERS OF KWAI WAN INDUSTRIAL BUILDING v. KWAI FUNG INDUSTRIAL LTD

The stay was correctly ordered because (1) a management committee is not a separate legal entity independent of the incorporated owners but acts under the authority of the incorporated owners; (2) the named management committee in LDBM 20/2002 had ceased to hold office and there were substantial doubts about its capacity and authority to pursue taxation; and (3) because the Bill of Costs includes costs attributable to the IO, the IO has a direct interest and the taxation should not proceed until the pending proceedings determining committee validity are resolved.

Citation
THE INCORPORATED OWNERS OF KWAI WAN INDUSTRIAL BUILDING v. KWAI FUNG INDUSTRIAL LTD
Parties
Applicant in Consolidated Proceedings; Intervener/respondent in Appeal (represented by Management Committee Elected 16 October 2003): The Incorporated Owners of Kwai Wan Industrial Building; Respondent in LDBM 20/2002; Appellant in This Appeal: Management Committee (lastly with the Treasurer Mr Chan Koon Keung) of the Incorporated Owners of Kwai Wan Industrial Building; Respondent in LDBM 208/2002: Kwai Fung Industrial Limited; Respondents in LDBM 209/2002: Chung Sun Kwai and Fan Kam Hing; Respondent in LDBM 210/2002: Kohan International Limited; Respondent in LDBM 212/2002: Liu Chan Mo Ching Sabrina; Applicant in LDBM 20/2002; Defendant in LDBM 222/2002; Chair of Management Committee Elected 16 October 2003: Chan Pui Ying; Respondent in LDBM 226/2002: Lau Yin Hei
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
17 February 2005
Case Number
LDBM210/2002
Procedural Posture
Appeal From Master's Decision Staying Taxation Proceedings / Judgment on Appeal (dismissal of Appeal)
Outcome
Appeal dismissed; stay of taxation proceedings upheld
Legal Topics
Validity and Capacity of Management Committee, Authority to Enforce Costs Orders, Stay of Proceedings Pending Resolution of Party Capacity, Locus Standi and Solicitor Authority
Source Language
EN
Building Management Law Civil Procedure Costs and Taxation Agency Law Validity and Capacity of Management Committee Authority to Enforce Costs Orders Stay of Proceedings Pending Resolution of Party Capacity Locus Standi and Solicitor Authority

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Parties

The Incorporated Owners of Kwai Wan Industrial Building

Applicant in Consolidated Proceedings; Intervener/respondent in Appeal (represented by Management Committee Elected 16 October 2003)

Management Committee (lastly with the Treasurer Mr Chan Koon Keung) of the Incorporated Owners of Kwai Wan Industrial Building

Respondent in LDBM 20/2002; Appellant in This Appeal

Kwai Fung Industrial Limited

Respondent in LDBM 208/2002

Chung Sun Kwai and Fan Kam Hing

Respondents in LDBM 209/2002

Kohan International Limited

Respondent in LDBM 210/2002

Liu Chan Mo Ching Sabrina

Respondent in LDBM 212/2002

Chan Pui Ying

Applicant in LDBM 20/2002; Defendant in LDBM 222/2002; Chair of Management Committee Elected 16 October 2003

Lau Yin Hei

Respondent in LDBM 226/2002

Procedural Posture

Appeal From Master's Decision Staying Taxation Proceedings / Judgment on Appeal (dismissal of Appeal)

Legal Issues

  1. 1 Whether a term of a management committee is a separate legal entity distinct from the incorporated owners
  2. 2 Whether the management committee named in LDBM 20/2002 had capacity and authority to prosecute taxation proceedings
  3. 3 Whether the taxation proceedings should be stayed pending determination of competing proceedings on the validity of management committees

Ratio Decidendi

The stay was correctly ordered because (1) a management committee is not a separate legal entity independent of the incorporated owners but acts under the authority of the incorporated owners; (2) the named management committee in LDBM 20/2002 had ceased to hold office and there were substantial doubts about its capacity and authority to pursue taxation; and (3) because the Bill of Costs includes costs attributable to the IO, the IO has a direct interest and the taxation should not proceed until the pending proceedings determining committee validity are resolved.

Court Disposition

Appeal dismissed; stay of taxation proceedings upheld

Orders

  • Appeal dismissed
  • Stay of taxation proceedings ordered to remain in effect pending resolution of proceedings determining capacity/validity of management committees