FAST FORWARD LTD v. MAGICSOUND CO LTD AND OTHERS

FAST FORWARD LTD v. MAGICSOUND CO LTD AND OTHERS

The Court held that the defendants' prior right to use the Main Roof was a registrable but unregistered interest and therefore was null and void as against the plaintiff, a subsequent bona fide purchaser who registered the 1988 Assignment; no constructive trust was imposed on the plaintiff because the plaintiff's conscience was not affected; however the defendants succeed against the vendor (Sui Ying) on their covenant/derogation claims, entitling them to declarations and damages to be assessed.

Citation
FAST FORWARD LTD v. MAGICSOUND CO LTD AND OTHERS
Parties
Plaintiff: Fast Forward Limited; 1st Defendant: Magicsound Company Limited; 2nd Defendant: Hung Nien Electronics Limited; Third Party: Sui Ying Investment Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 November 1990
Case Number
HCA7090/1988
Procedural Posture
Civil Property (ejectment/possession and Third Party Claim) / Judgment (trial Concluded)
Outcome
Mixed: plaintiff entitled to possession against 1st and 2nd defendants; 1st and 2nd defendants succeed on third party claims against Sui Ying for declarations and damages.
Legal Topics
Registration Priority, Licence Versus Proprietary Interest, Constructive Trust, Covenant for Quiet Enjoyment, Derogation of Grant, Overreaching, Registration Procedure and Memorials
Source Language
EN
Property Law Land Registration Conveyancing Contract Equity Registration Priority Licence Versus Proprietary Interest Constructive Trust +4 more

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Parties

Fast Forward Limited

Plaintiff

Magicsound Company Limited

1st Defendant

Hung Nien Electronics Limited

2nd Defendant

Sui Ying Investment Company Limited

Third Party

Procedural Posture

Civil Property (ejectment/possession and Third Party Claim) / Judgment (trial Concluded)

Legal Issues

  1. 1 Whether defendants had a proprietary or registrable interest in the Main Roof or only a personal/licence interest
  2. 2 Whether any prior interest of the defendants (via Wong) was registrable and, if unregistered, whether it was null and void as against the plaintiff under the Land Registration Ordinance s.3(2)
  3. 3 Whether the right to use the Main Roof was effectively granted independent of the notional 4/100 undivided shares in the DMC

Ratio Decidendi

The Court held that the defendants' prior right to use the Main Roof was a registrable but unregistered interest and therefore was null and void as against the plaintiff, a subsequent bona fide purchaser who registered the 1988 Assignment; no constructive trust was imposed on the plaintiff because the plaintiff's conscience was not affected; however the defendants succeed against the vendor (Sui Ying) on their covenant/derogation claims, entitling them to declarations and damages to be assessed.

Court Disposition

Mixed: plaintiff entitled to possession against 1st and 2nd defendants; 1st and 2nd defendants succeed on third party claims against Sui Ying for declarations and damages.

Orders

  • Plaintiff awarded possession of the Main Roof and structures against the 1st and 2nd defendants
  • Mesne profits and damages to be assessed by a Master