BECTIC FINANCE CO LTD v. CALGO ASIA LTD AND OTHERS

BECTIC FINANCE CO LTD v. CALGO ASIA LTD AND OTHERS

Although many allegations by the defendants were found not to be believable on the documentary record and authorities concerning deeds and collateral contracts, there remained unresolved background factual issues (share allotment, unexplained payments, witness' mortgaging of property) that required investigation at...

Source-derived case information.

Citation
BECTIC FINANCE CO LTD v. CALGO ASIA LTD AND OTHERS
Parties
Plaintiff: BECTIC FINANCE COMPANY LIMITED; 1st Defendant: CALGO ASIA LIMITED; 2nd Defendant: LAU KWOK LEUNG RON; 3rd Defendant: CHAN SIU LING BETTY
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 October 2005
Case Number
HCA2333/2004
Procedural Posture
Appeal Against Summary Judgment / Ruling on Appeal (interlocutory)
Outcome
Appeal allowed; Master Yeung's summary judgment dated 20 July 2005 set aside; defendants granted unconditional leave to defend; trial ordered on unresolved issues
Legal Topics
Summary Judgment, Set Off, Counterclaim, Collateral Contract, Parol Evidence Rule, Deed, Promissory Note, Debenture, Mortgage, Money Lenders Ordinance
Source Language
en
Contract Civil Procedure Commercial Law Banking Guarantee Money Lending Summary Judgment Set Off +8 more

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Parties

BECTIC FINANCE COMPANY LIMITED

Plaintiff

CALGO ASIA LIMITED

1st Defendant

LAU KWOK LEUNG RON

2nd Defendant

CHAN SIU LING BETTY

3rd Defendant

Procedural Posture

Appeal Against Summary Judgment / Ruling on Appeal (interlocutory)

Legal Issues

  1. 1 Whether summary judgment should have been granted on the loan and guarantees
  2. 2 Whether oral collateral agreements contradicting deeds are admissible
  3. 3 Whether defendants' assertions are 'believable' on summary judgment test

Ratio Decidendi

Although many allegations by the defendants were found not to be believable on the documentary record and authorities concerning deeds and collateral contracts, there remained unresolved background factual issues (share allotment, unexplained payments, witness' mortgaging of property) that required investigation at trial; accordingly the summary judgment was set aside and unconditional leave to defend was granted.

Court Disposition

Appeal allowed; Master Yeung's summary judgment dated 20 July 2005 set aside; defendants granted unconditional leave to defend; trial ordered on unresolved issues

Orders

  • Appeal allowed
  • Summary judgment dated 20 July 2005 set aside