EASY ONE FINANCE LTD v. KWOK WAI YEE AND ANOTHER

Parties

Procedural Posture

Civil Action Debt Recovery / Money Lender Claim (summary Judgment and Default Judgment Applications) / Hearing and Decision on Summonses for Summary Judgment Under O 14 R 1 and Judgment in Default Under O 83 a R 4

Legal Issues

1. 1 Whether summary judgment should be entered against the defendants under O 14 r 1 and O 83A r 4
2. 2 Whether the loan agreements and guarantees are void or unenforceable by reason of non est factum, misrepresentation or forgery
3. 3 Whether the guarantee can be set aside for undue influence and whether the plaintiff had notice or was put on inquiry

Ratio Decidendi

The claimed defences (non est factum, misrepresentation, undue influence) were unparticularised and contradicted by plaintiff's credible contemporaneous evidence; the forgery allegation was insufficiently supported but not so plainly impossible to deny leave to defend; therefore Kwok was granted conditional leave to defend on payment into court (HK$700,000 in DCCJ 3566/2017 and HK$500,000 in DCCJ 3567/2017) and judgment in default was entered against Ho under O 83A r 4 for the specified outstanding sums with interest and indemnity costs unless the conditions are met.

Court Disposition

Conditional leave to defend granted to Kwok Wai Yee on payment into court; judgment entered against Ho Ka Man under O 83A r 4; summary judgment will follow against Kwok if condition not met.

Orders

• Unless the 1st defendant pays $700,000 into court within 28 days from the date of the handing down of this judgment, the plaintiff may enter judgment against the 1st defendant for the amount claimed in the statement of claim with interest and costs, which costs are to be taxed on an indemnity basis if not agreed;
• If the aforesaid sum of $700,000 is so paid into court, the 1st defendant may defend the action by serving her defence within 7 days of the payment into court;