PANDIX LTD v. TSE OY MOON

PANDIX LTD v. TSE OY MOON

The Tribunal granted the compulsory sale because the Applicant proved by credible expert evidence that the existing buildings were structurally unsafe and beyond their design life (thus redevelopment justified), established that reasonable steps and multiple fair offers were made to acquire the Respondent's undivided share with no substantive response or proof of representation, and demonstrated that the EUV valuations and proposed auction reserve (HK$72,000,000) were reasonable; accordingly an order for sale by public auction with nominated trustees and ancillary directions was warranted.

Citation
PANDIX LTD v. TSE OY MOON
Parties
Applicant: Applicant; Respondent: Madam Tse
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
19 November 2010
Case Number
LDCS3000/2009
Procedural Posture
Application Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Judgment (reasons for Judgment)
Outcome
Order for compulsory sale granted
Legal Topics
Redevelopment Justification, Valuation (existing Use Value), Reasonable Steps to Acquire Minority Shares, Auction Reserve Price, Appointment of Trustees, Service and Notice Requirements
Source Language
EN
Land Law Property Law Compulsory Sale / Compulsory Purchase Redevelopment Justification Valuation (existing Use Value) Reasonable Steps to Acquire Minority Shares Auction Reserve Price Appointment of Trustees +1 more

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Parties

Applicant

Applicant

Madam Tse

Respondent

Procedural Posture

Application Under Land (compulsory Sale for Redevelopment) Ordinance Cap.545 / Judgment (reasons for Judgment)

Legal Issues

  1. 1 Whether redevelopment of the lots is justified due to age and state of repair of existing buildings
  2. 2 Whether the Applicant has taken reasonable steps to acquire all undivided shares including the Respondent's share
  3. 3 Whether the EUV valuations for the Respondent's unit are fair and reasonable in comparison to Applicant's units

Ratio Decidendi

The Tribunal granted the compulsory sale because the Applicant proved by credible expert evidence that the existing buildings were structurally unsafe and beyond their design life (thus redevelopment justified), established that reasonable steps and multiple fair offers were made to acquire the Respondent's undivided share with no substantive response or proof of representation, and demonstrated that the EUV valuations and proposed auction reserve (HK$72,000,000) were reasonable; accordingly an order for sale by public auction with nominated trustees and ancillary directions was warranted.

Court Disposition

Order for compulsory sale granted

Orders

  • EUV of each unit as set out in valuation reports is fair and reasonable
  • Redevelopment of the 1st and 2nd Lots is justified due to age and state of repair and Applicant took reasonable steps to acquire undivided shares