EASY POLICY FINANCE LTD v. 陈海滨

EASY POLICY FINANCE LTD v. 陈海滨

Court found the Loan Agreement and Legal Charge to be genuine and rejected Chen's forgery allegation; although there were breaches of the MLO (s18 and s27) and a drafting error on default interest, the court exercised its discretion under s18(3) and s22(2) to enforce the instruments; it refused rectification of clause 1 to 24% but limited enforceable default interest to simple interest at 24% p.a.; set principal at HKD 10,765,000.00, allowed recovery of Government Rent and Rates HKD 137,708.60, and awarded interest at 24% p.a. from 21 August 2015 and ancillary possession and costs orders.

Citation
[2025] HKCFI 4295
Parties
Plaintiff: Easy Policy; Defendant: Chen
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 September 2025
Case Number
HCA1256/2021
Procedural Posture
Civil Money Lending / Mortgage Enforcement / Judgment at Trial
Outcome
Claim allowed; counterclaim dismissed; judgment for plaintiff against defendant for principal, government rent and rates, interest and possession order if not paid
Legal Topics
Enforceability of Loan Agreements, Forgery/signature Disputes, Compliance With Money Lenders Ordinance (s7, S18, S22, S24 27, S29), Rectification of Instruments, Default Interest Vs Effective Interest, Possession Order, Government Rent and Rates Recovery, Limitation on Recovery of Interest
Source Language
EN
Money Lending / Consumer Finance Contract Property Equity Restitution/unjust Enrichment Limitation Enforceability of Loan Agreements Forgery/signature Disputes +6 more

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Parties

Easy Policy

Plaintiff

Chen

Defendant

Procedural Posture

Civil Money Lending / Mortgage Enforcement / Judgment at Trial

Legal Issues

  1. 1 Signature authenticity (forgery)
  2. 2 Whether loan documents satisfy s18 MLO and exercise of s18(3) discretion
  3. 3 Whether execution outside licensed premises contravened s7/29 MLO

Ratio Decidendi

Court found the Loan Agreement and Legal Charge to be genuine and rejected Chen's forgery allegation; although there were breaches of the MLO (s18 and s27) and a drafting error on default interest, the court exercised its discretion under s18(3) and s22(2) to enforce the instruments; it refused rectification of clause 1 to 24% but limited enforceable default interest to simple interest at 24% p.a.; set principal at HKD 10,765,000.00, allowed recovery of Government Rent and Rates HKD 137,708.60, and awarded interest at 24% p.a. from 21 August 2015 and ancillary possession and costs orders.

Court Disposition

Claim allowed; counterclaim dismissed; judgment for plaintiff against defendant for principal, government rent and rates, interest and possession order if not paid

Orders

  • Easy Policy do recover against Chen the sum of HKD 10,902,708.60 (outstanding principal HKD 10,765,000.00 and Government Rent and Rates HKD 137,708.60)
  • Easy Policy do recover against Chen interest on the outstanding principal of HKD 10,765,000.00 at the rate of 24% per annum from 21 August 2015 until full payment