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 appeal was dismissed because the former management committee (respondent in LDBM 20/2002) had ceased to hold office and there were substantial doubts about its capacity and authority to pursue taxation proceedings; a management committee is not a separate legal entity from the incorporated owners but acts as...

Source-derived case information.

Citation
THE INCORPORATED OWNERS OF KWAI WAN INDUSTRIAL BUILDING v. KWAI FUNG INDUSTRIAL LTD
Parties
Incorporated Owners; Applicant in Multiple Consolidated LDBM Actions; Party Affected by Taxation: The Incorporated Owners of Kwai Wan Industrial Building; Respondent in LDBM 20/2002; Appellant on This Appeal From the Master's Order: Management Committee (lastly with the Treasurer Mr Chan Koon Keung) of the Incorporated Owners of Kwai Wan Industrial Building; Applicant in LDBM 20/2002; Chair of Alternative Management Committee Elected 16 October 2003: Chan Pui Ying; 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; Respondents in Consolidated LDBM 208/209/210/212/222/226; Liable for Costs Under Orders: Owners who lost in the consolidated applications
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
17 February 2005
Case Number
LDBM208/2002
Procedural Posture
Appeal From Master's Order Staying Taxation Proceedings / Judgment on Appeal (court of First Instance)
Outcome
Appeal dismissed; Master's order staying the taxation proceedings upheld
Legal Topics
Validity and Capacity of Management Committee, Separate Legal Personality, Authority to Enforce Costs Orders, Stay of Proceedings, Consolidation and Apportionment of Costs
Source Language
en
Building Management Law Civil Procedure Agency Law Costs and Taxation of Costs Validity and Capacity of Management Committee Separate Legal Personality Authority to Enforce Costs Orders Stay of Proceedings +1 more

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Parties

The Incorporated Owners of Kwai Wan Industrial Building

Incorporated Owners; Applicant in Multiple Consolidated LDBM Actions; Party Affected by Taxation

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 on This Appeal From the Master's Order

Chan Pui Ying

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

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

Owners who lost in the consolidated applications

Respondents in Consolidated LDBM 208/209/210/212/222/226; Liable for Costs Under Orders

Procedural Posture

Appeal From Master's Order Staying Taxation Proceedings / Judgment on Appeal (court of First Instance)

Legal Issues

  1. 1 Whether a management committee of incorporated owners is a separate legal entity distinct from the incorporated owners
  2. 2 Whether a former management committee that has ceased in office has capacity and authority to proceed with taxation of costs
  3. 3 Whether stay of taxation proceedings was justified pending resolution of disputes about authority and capacity

Ratio Decidendi

The appeal was dismissed because the former management committee (respondent in LDBM 20/2002) had ceased to hold office and there were substantial doubts about its capacity and authority to pursue taxation proceedings; a management committee is not a separate legal entity from the incorporated owners but acts as their agent, and those doubts justified a stay of the taxation pending resolution of the competing claims to authority.

Court Disposition

Appeal dismissed; Master's order staying the taxation proceedings upheld

Orders

  • Stay of the taxation proceedings ordered by the Master on 15 July 2004 is affirmed
  • Order nisi that the appellant pays the Incorporated Owners the costs of the appeal, to be taxed if not agreed