ELEGANT PROFIT LTD v. CHUNG LAI SANG AND ANOTHER

ELEGANT PROFIT LTD v. CHUNG LAI SANG AND ANOTHER

Section 31 of Cap.219 (as interpreted by the English authorities applying LPA 1925 s.141) vests in the assignee of the reversion the right to enforce lease covenants and to recover arrears of rent which became due and payable before assignment; the assignor is divested of any concurrent cause of action. Accordingly the original landlord could not recover those antecedent arrears and the appeal is allowed.

Citation
ELEGANT PROFIT LTD v. CHUNG LAI SANG AND ANOTHER
Parties
Claimant (former Landlord, Respondent): Elegant Profit Limited; 1st Defendant (tenant, Appellant): Chung Lai Sang; 2nd Defendant (licensee; Claim Withdrawn): Loyal Crown Enterprise Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 August 2005
Case Number
HCSA8/2005
Procedural Posture
Small Claims Tribunal Appeal to Court of First Instance / Appeal Judgment
Outcome
Appeal allowed; judgment below set aside; judgment entered for 1st Defendant against Claimant
Legal Topics
Assignment of Reversion, Arrears of Rent, Enforcement of Lease Covenants, Statutory Construction of Cap.219 S.31
Source Language
EN
Landlord and Tenant Property Law Contract Law Assignment of Reversion Arrears of Rent Enforcement of Lease Covenants Statutory Construction of Cap.219 S.31

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Parties

Elegant Profit Limited

Claimant (former Landlord, Respondent)

Chung Lai Sang

1st Defendant (tenant, Appellant)

Loyal Crown Enterprise Limited

2nd Defendant (licensee; Claim Withdrawn)

Procedural Posture

Small Claims Tribunal Appeal to Court of First Instance / Appeal Judgment

Legal Issues

  1. 1 Whether a landlord who has assigned the reversion can sue for rent arrears that became due before the assignment
  2. 2 Whether section 31 of Cap.219 (equivalent to LPA 1925 s.141) divests the assignor of the cause of action for antecedent breaches
  3. 3 Whether both assignor and assignee can concurrently sue the tenant for pre-assignment breaches

Ratio Decidendi

Section 31 of Cap.219 (as interpreted by the English authorities applying LPA 1925 s.141) vests in the assignee of the reversion the right to enforce lease covenants and to recover arrears of rent which became due and payable before assignment; the assignor is divested of any concurrent cause of action. Accordingly the original landlord could not recover those antecedent arrears and the appeal is allowed.

Court Disposition

Appeal allowed; judgment below set aside; judgment entered for 1st Defendant against Claimant

Orders

  • Appeal allowed
  • Judgment entered for the 1st Defendant against the Claimant