VENNEX LTD v. LEUNG CHUNG CHING AND OTHERS

VENNEX LTD v. LEUNG CHUNG CHING AND OTHERS

The Tribunal held that the statutory phrase 'a valuation report prepared not earlier than 3 months before the date on which the application is made' refers to the date the report was prepared/signed/completed rather than the internal date to which a valuation refers; the Applicant's report complied. The Tribunal accepted the EUV valuations as fair and reasonable, found redevelopment justified by the building's age and dilapidation on expert evidence, found the Applicant took reasonable steps and made fair offers to acquire remaining shares, and therefore granted an order for compulsory sale and fixed the reserve price at the assessed redevelopment value.

Citation
VENNEX LTD v. LEUNG CHUNG CHING AND OTHERS
Parties
Applicant: Applicant; Respondent: 1st Respondents; Respondent: 2nd Respondent
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
11 March 2011
Case Number
LDCS6000/2009
Procedural Posture
Compulsory Sale Application Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Hearing and Determination (order Made)
Outcome
Application granted; order for compulsory sale made under the Ordinance
Legal Topics
Redevelopment Justification, Valuation Date Requirement, Existing Use Value Apportionment, Reasonable Offers to Minority Owners, Procedural Non‑participation
Source Language
EN
Land Law Property Law Compulsory Sale/compulsory Purchase Valuation Law Redevelopment Justification Valuation Date Requirement Existing Use Value Apportionment Reasonable Offers to Minority Owners +1 more

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Parties

Applicant

Applicant

1st Respondents

Respondent

2nd Respondent

Respondent

Procedural Posture

Compulsory Sale Application Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Hearing and Determination (order Made)

Legal Issues

  1. 1 Whether the valuation report met the s.3(1) and Part 1 Schedule 1 requirement as to timing (date of report v. date of valuation)
  2. 2 Whether the Existing Use Values (EUVs) in the report were fair and reasonable for apportionment
  3. 3 Whether redevelopment of the lot is justified by age and state of repair

Ratio Decidendi

The Tribunal held that the statutory phrase 'a valuation report prepared not earlier than 3 months before the date on which the application is made' refers to the date the report was prepared/signed/completed rather than the internal date to which a valuation refers; the Applicant's report complied. The Tribunal accepted the EUV valuations as fair and reasonable, found redevelopment justified by the building's age and dilapidation on expert evidence, found the Applicant took reasonable steps and made fair offers to acquire remaining shares, and therefore granted an order for compulsory sale and fixed the reserve price at the assessed redevelopment value.

Court Disposition

Application granted; order for compulsory sale made under the Ordinance

Orders

  • All undivided shares in the lot to be sold by public auction for purposes of redevelopment under s.4(1)(b) of the Ordinance
  • Mr. Bernard Tam and Mr. Samuel Ching nominated by the Applicant appointed as trustees to discharge trustees' duties under the Ordinance and authorized to charge remuneration as set out in applicant's solicitor's letter dated 8 November 2010