LEE ING CHEE v. CHOO KIM SAN AND OTHERS

LEE ING CHEE v. CHOO KIM SAN AND OTHERS

On the evidence the court found key transactions concerning shares registered in the names of Asiatic, Triumphant and Fermay were shams so that beneficial ownership remained in C.K. San and charging orders in respect of those shares were made absolute; by contrast the court found the parcel comprising approximately 8 million shares sold to Rocky/Coef was, on balance, purchased bona fide for value so beneficial interest passed to Rocky/Coef and charging orders in respect of IPC shares were discharged; hearsay evidence presented under the statutory hearsay rules was admissible and the plaintiffs bore the burden of proving sham transactions which the court found established for specified...

Citation
LEE ING CHEE v. CHOO KIM SAN AND OTHERS
Parties
Plaintiff (mp 540/1977): Malaysia Borneo Finance Corporation (M) Berhad; Plaintiff (action No. 2459 of 1976): Lee Ing Chee (also known as Lee Hai-Hock); Plaintiff (miscellaneous Proceedings No. 155 of 1977): Lee Kon-Wah; 1st Defendant: Choo Kim San; 2nd Defendant: Asiatic Nominees, Ltd.; 3rd Defendant: Triumphant Nominees, Ltd.; 4th Defendant: David Ng Pak Shing; 5th Defendant: Melville Edward Ives; 6th Defendant: Ho Chapman; 7th Defendant: Fermay Company, Ltd.; 8th Defendant: Chow Chaw-I; 9th Defendant: Hwang Shang Pai; 10th Defendant: IPC Nominees, Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 January 1978
Case Number
HCA2459/1976
Procedural Posture
Consolidated Civil Proceedings Enforcing Foreign Malaysian Judgments; Equitable Relief (charging Orders and Garnishee Orders) / Judgment (25 January 1978)
Outcome
Mixed: certain charging orders made absolute; certain charging and garnishee orders discharged (in whole or in part); partial monetary garnishee order made absolute to the extent found payable to C.K. San
Legal Topics
Charging Orders, Garnishee Orders, Registration of Foreign Judgments, Sham Transactions, Nominee Holdings, Conspiracy Allegation, Hearsay Admissibility, Imputed Knowledge
Source Language
EN
Civil Law Equity Company Law Enforcement of Foreign Judgments Evidence Law Trusts and Nominees Charging Orders Garnishee Orders +6 more

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Parties

Malaysia Borneo Finance Corporation (M) Berhad

Plaintiff (mp 540/1977)

Lee Ing Chee (also known as Lee Hai-Hock)

Plaintiff (action No. 2459 of 1976)

Lee Kon-Wah

Plaintiff (miscellaneous Proceedings No. 155 of 1977)

Choo Kim San

1st Defendant

Asiatic Nominees, Ltd.

2nd Defendant

Triumphant Nominees, Ltd.

3rd Defendant

David Ng Pak Shing

4th Defendant

Melville Edward Ives

5th Defendant

Ho Chapman

6th Defendant

Fermay Company, Ltd.

7th Defendant

Chow Chaw-I

8th Defendant

Hwang Shang Pai

9th Defendant

IPC Nominees, Ltd.

10th Defendant

Procedural Posture

Consolidated Civil Proceedings Enforcing Foreign Malaysian Judgments; Equitable Relief (charging Orders and Garnishee Orders) / Judgment (25 January 1978)

Legal Issues

  1. 1 Whether C.K. San had divested beneficial ownership of specified San Imperial shares at dates orders nisi were made
  2. 2 Whether contested share transactions were genuine or sham and thus whether beneficial title passed
  3. 3 Whether purchase moneys were payable to C.K. San or to defendants/Syndicate

Ratio Decidendi

On the evidence the court found key transactions concerning shares registered in the names of Asiatic, Triumphant and Fermay were shams so that beneficial ownership remained in C.K. San and charging orders in respect of those shares were made absolute; by contrast the court found the parcel comprising approximately 8 million shares sold to Rocky/Coef was, on balance, purchased bona fide for value so beneficial interest passed to Rocky/Coef and charging orders in respect of IPC shares were discharged; hearsay evidence presented under the statutory hearsay rules was admissible and the plaintiffs bore the burden of proving sham transactions which the court found established for specified...

Court Disposition

Mixed: certain charging orders made absolute; certain charging and garnishee orders discharged (in whole or in part); partial monetary garnishee order made absolute to the extent found payable to C.K. San

Orders

  • Charging order nisi made absolute: 422,560 shares (Asiatic)
  • Charging order nisi made absolute: 400,000 shares (Triumphant)