SKK (H.K.) CO. LTD AND ANOTHER v. TSUI PO HING AND ANOTHER

SKK (H.K.) CO. LTD AND ANOTHER v. TSUI PO HING AND ANOTHER

The court ordered sale of the charged property because defendants admit inability to pay the judgment debts, there is sufficient equity after prior registered charges and sale expenses, the prior Legal Charge only affects priority and does not prevent enforcement, the disputes over the 7 cheques and related matters are barred by res judicata or abuse of process, defendants' counterclaims are unproven and largely time‑barred, and the late summons to set aside the charging order and to recover title deeds is unsupported; accordingly an order for sale with a specified reserve and costs directions was appropriate.

Citation
[2021] HKCFI 1676
Parties
1st Plaintiff: SKK (H.K.) CO. LTD.; 2nd Plaintiff: SK KAKEN CO. LTD.; 1st Defendant: Tsui Po Hing; 2nd Defendant: Tsui Po Cheung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 June 2021
Case Number
HCMP934/2019
Procedural Posture
Charging Order Enforcement; Originating Summons for Order for Sale / Judgment
Outcome
Originating summons granted in part: order for sale of the property made; summons by 2nd defendant dismissed; costs order nisi made against defendants with specified disallowances and directions for gross sum assessment
Legal Topics
Charging Order, Order for Sale, Res Judicata, Abuse of Process, Priority of Charges, Title Deeds, Costs Assessment, Partnership Liability, Limitation Period
Source Language
EN
Civil Procedure Property Law Enforcement of Judgments Partnership Law Land Registration Law Limitation Law Charging Order Order for Sale +7 more

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Parties

SKK (H.K.) CO. LTD.

1st Plaintiff

SK KAKEN CO. LTD.

2nd Plaintiff

Tsui Po Hing

1st Defendant

Tsui Po Cheung

2nd Defendant

Procedural Posture

Charging Order Enforcement; Originating Summons for Order for Sale / Judgment

Legal Issues

  1. 1 Whether the court should order sale of property subject to charging orders
  2. 2 Whether a prior registered legal charge prevents enforcement by sale
  3. 3 Whether defendants can re-litigate the 7 cheques issue (res judicata)

Ratio Decidendi

The court ordered sale of the charged property because defendants admit inability to pay the judgment debts, there is sufficient equity after prior registered charges and sale expenses, the prior Legal Charge only affects priority and does not prevent enforcement, the disputes over the 7 cheques and related matters are barred by res judicata or abuse of process, defendants' counterclaims are unproven and largely time‑barred, and the late summons to set aside the charging order and to recover title deeds is unsupported; accordingly an order for sale with a specified reserve and costs directions was appropriate.

Court Disposition

Originating summons granted in part: order for sale of the property made; summons by 2nd defendant dismissed; costs order nisi made against defendants with specified disallowances and directions for gross sum assessment

Orders

  • Order for sale of Workshop 13 on 2nd Floor and Flat Roof, Harry Industrial Building, Nos 49-51 Au Pui Wan Street, Fo Tan, Sha Tin, New Territories if defendants do not pay the 1st to 4th Judgment Debts within 28 days
  • Sale to be by public auction with reserve/minimum price set at HK$3,200,000