THE HONG KONG CHINESE BANK LTD. v. FUNG KWONG CHIU ADVERTISING CO. LTD.

THE HONG KONG CHINESE BANK LTD. v. FUNG KWONG CHIU ADVERTISING CO. LTD.

Leave to adduce additional evidence was granted; the registered fixed charges over the deposit gave the garnishee an equitable proprietary interest that must be satisfied before a judgment creditor can claim against the deposit; accordingly the judgment creditor is entitled only to any sums accruing due to the judgment debtor after the garnishee has recouped liabilities under those charges, and the judgment creditor was ordered to pay the garnishee's costs by order nisi.

Citation
THE HONG KONG CHINESE BANK LTD. v. FUNG KWONG CHIU ADVERTISING CO. LTD.
Parties
Judgment Creditor: FUNG KWONG CHIU ADVERTISING COMPANY LIMITED; Judgment Debtor: CHARTER BEST DEVELOPMENT LIMITED; Garnishee: THE HONG KONG CHINESE BANK LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 September 1995
Case Number
HCA1745/1994
Procedural Posture
Garnishee Proceedings / Appeal (re Hearing) in Chambers, High Court
Outcome
Appeal allowed in part: leave granted to adduce additional evidence; judgment creditor entitled to monies accruing to the judgment debtor from the deposit only after garnishee's equitable claims are satisfied; order nisi that judgment creditor pay garnishee's costs.
Legal Topics
Garnishee Order, Fixed Charge, Priority of Security, Admission of Additional Evidence on Rehearing, Costs
Source Language
EN
Civil Procedure Banking Law Equity Secured Transactions Garnishment Garnishee Order Fixed Charge Priority of Security +2 more

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Parties

FUNG KWONG CHIU ADVERTISING COMPANY LIMITED

Judgment Creditor

CHARTER BEST DEVELOPMENT LIMITED

Judgment Debtor

THE HONG KONG CHINESE BANK LIMITED

Garnishee

Procedural Posture

Garnishee Proceedings / Appeal (re Hearing) in Chambers, High Court

Legal Issues

  1. 1 Whether fixed charges over a deposit preclude a garnishee order against that deposit
  2. 2 Whether additional evidence should be admitted on a re-hearing
  3. 3 Ranking of equitable proprietary rights of the garnishee versus the judgment creditor

Ratio Decidendi

Leave to adduce additional evidence was granted; the registered fixed charges over the deposit gave the garnishee an equitable proprietary interest that must be satisfied before a judgment creditor can claim against the deposit; accordingly the judgment creditor is entitled only to any sums accruing due to the judgment debtor after the garnishee has recouped liabilities under those charges, and the judgment creditor was ordered to pay the garnishee's costs by order nisi.

Court Disposition

Appeal allowed in part: leave granted to adduce additional evidence; judgment creditor entitled to monies accruing to the judgment debtor from the deposit only after garnishee's equitable claims are satisfied; order nisi that judgment creditor pay garnishee's costs.

Orders

  • Leave granted to the garnishee to adduce additional evidence on re-hearing.
  • Any money accruing due to the judgment debtor from the deposit up to the amount of the judgment debt, less $148,134.12 already paid, together with interest and costs, shall be paid to the judgment creditor.