TONG CHOR YIN AUGUSTINE t/a AUGUSTINE C.Y. TONG & CO., SOLICITORS & NOTARIES v. FORTUNE CONCEPT GROUP LTD

Parties

Procedural Posture

Landlord and Tenant Summary Judgment / Order 14 Application (high Court)

Legal Issues

1. 1 Whether tenant lost entitlement to exercise option to renew under clause 9 by failing to perform stipulations as at 31 July 2007
2. 2 Whether tenant's denial of landlord's title amounted to repudiation permitting forfeiture/termination
3. 3 Whether s58 Conveyancing and Property Ordinance prevents landlord's claim for forfeiture or relief

Ratio Decidendi

The tenant had failed to perform the stipulations required by clause 9 and was in arrears as at the 31 July 2007 deadline and therefore lost the right to exercise the option to renew; independently, the tenant's denial of the landlord's title amounted to repudiation which the landlord accepted; section 58 CPO did not apply because the lease expired by effluxion of time and the alleged breach only disqualified renewal, so landlord's Order 14 application is granted in part.

Court Disposition

Part grant of summary judgment for the landlord

Orders

• Paragraphs (1) and (4) of the landlord's summons dated 2 April 2008 are granted.
• No order is made in respect of paragraphs (2), (3) and (5) of the landlord's summons dated 2 April 2008.