CHEKIANG FIRST BANK LTD. v. HENG HING ENTERPRISES (HK) LTD. AND OTHERS

CHEKIANG FIRST BANK LTD. v. HENG HING ENTERPRISES (HK) LTD. AND OTHERS

The Court held that the FX losses formed part of the account and were properly included in the indebtedness; and that the bank was under no obligation to realise the deposit security or set it off, therefore the summary judgment against the 1st and 4th defendants was upheld.

Citation
CHEKIANG FIRST BANK LTD. v. HENG HING ENTERPRISES (HK) LTD. AND OTHERS
Parties
Plaintiff: Chekiang First Bank Limited; 1st Defendant: Heng Hing Enterprises (HK) Limited; 2nd Defendant: Sze Sui Fat; 3rd Defendant: Vernon International Limited; 4th Defendant: Li Yerk Hon
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 March 2000
Case Number
HCA21101/1998
Procedural Posture
Civil Appeal / Appeal From Summary Judgment
Outcome
Appeal dismissed with costs
Legal Topics
Summary Judgment, Set Off, Realisation of Security, Foreign Exchange Transactions, Guarantee
Source Language
EN
Banking Law Contract Security Interests Civil Procedure Summary Judgment Set Off Realisation of Security Foreign Exchange Transactions +1 more

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Parties

Chekiang First Bank Limited

Plaintiff

Heng Hing Enterprises (HK) Limited

1st Defendant

Sze Sui Fat

2nd Defendant

Vernon International Limited

3rd Defendant

Li Yerk Hon

4th Defendant

Procedural Posture

Civil Appeal / Appeal From Summary Judgment

Legal Issues

  1. 1 Whether the foreign exchange forward contract loss could be included in the summary judgment debt
  2. 2 Whether the bank was obliged to realise a deposit security and set it off against the indebtedness reducing the judgment

Ratio Decidendi

The Court held that the FX losses formed part of the account and were properly included in the indebtedness; and that the bank was under no obligation to realise the deposit security or set it off, therefore the summary judgment against the 1st and 4th defendants was upheld.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs
  • Summary judgment against the 1st and 4th defendants in the total sum of approximately HK$4,000,000