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 found that the foreign exchange losses were properly debited to the defendant's current account in accordance with the parties' course of dealings and were therefore recoverable as part of the indebtedness; and that the bank was under no obligation to realize the depositor's security or set it off against the indebtedness, having lawful and contractual rights to refrain from realizing security. Therefore the summary judgment was correctly entered and the appeal must be dismissed.

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
HCA21102/1998
Procedural Posture
Appeal From Summary Judgment / Judgment Delivered
Outcome
Appeal dismissed with costs
Legal Topics
Summary Judgment, Set Off, Realization of Security, Foreign Exchange Transactions, Guarantor Liability
Source Language
EN
Banking Contract Security Civil Procedure Guarantee Summary Judgment Set Off Realization of Security +2 more

Case Brief

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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

Appeal From Summary Judgment / Judgment Delivered

Legal Issues

  1. 1 Whether the foreign exchange loss was properly included in the bank's claim and summary judgment amount
  2. 2 Whether the bank was obliged to realize the depositor's security and set it off against the indebtedness reducing the judgment

Ratio Decidendi

The court found that the foreign exchange losses were properly debited to the defendant's current account in accordance with the parties' course of dealings and were therefore recoverable as part of the indebtedness; and that the bank was under no obligation to realize the depositor's security or set it off against the indebtedness, having lawful and contractual rights to refrain from realizing security. Therefore the summary judgment was correctly entered and the appeal must be dismissed.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs.
  • Summary judgment against the 1st and 4th defendants for approximately HK$4000000 affirmed.