EAST ASIA FINANCE CO. LTD. AND ANOTHER v. LI CHOI HUNG AND OTHERS

EAST ASIA FINANCE CO. LTD. AND ANOTHER v. LI CHOI HUNG AND OTHERS

Where the finance company paid the dealer, received original vehicle registration documents and the dealings showed a sale occurred, the transaction constituted a true hire purchase transferring ownership to the finance company and was enforceable; it was not an unregistered bill of sale invalidating the agreements.

Citation
EAST ASIA FINANCE CO. LTD. AND ANOTHER v. LI CHOI HUNG AND OTHERS
Parties
1st Plaintiff: EAST ASIA FINANCE COMPANY LIMITED; 2nd Plaintiff: EAST ASIA CREDIT COMPANY LIMITED; 1st Defendant: LI CHOI HUNG; 2nd Defendant: TAM LI MING; 3rd Defendant: SHUM CHI TIM; 4th Defendant: LI CHIU FAN
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 June 2002
Case Number
HCCL80/1999
Procedural Posture
Commercial Action Hire Purchase Dispute / Judgment After Hearing (reasons Handed Down)
Outcome
Judgment for the plaintiffs against the 1st, 2nd and 3rd defendants for the sums claimed; declaration that 1st plaintiff is sole legal and beneficial owner of the remaining four taxis; judgment for possession of two taxis and agreed sums against the 1st defendant.
Legal Topics
Hire Purchase, Ownership Transfer, Bills of Sale Registration, Refinancing, Possession, Summary Judgment
Source Language
EN
Commercial Law Contract Law Property Law Security Devices (bills of Sale) Hire Purchase Ownership Transfer Bills of Sale Registration Refinancing +2 more

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Parties

EAST ASIA FINANCE COMPANY LIMITED

1st Plaintiff

EAST ASIA CREDIT COMPANY LIMITED

2nd Plaintiff

LI CHOI HUNG

1st Defendant

TAM LI MING

2nd Defendant

SHUM CHI TIM

3rd Defendant

LI CHIU FAN

4th Defendant

Procedural Posture

Commercial Action Hire Purchase Dispute / Judgment After Hearing (reasons Handed Down)

Legal Issues

  1. 1 Whether the transactions effected a sale transferring legal and beneficial title to the plaintiff finance company
  2. 2 Whether the agreements were in substance bills of sale requiring registration under the Bills of Sale Ordinance (Cap.20) and void if unregistered
  3. 3 Whether defendants were liable for unpaid instalments and liable to deliver up vehicles

Ratio Decidendi

Where the finance company paid the dealer, received original vehicle registration documents and the dealings showed a sale occurred, the transaction constituted a true hire purchase transferring ownership to the finance company and was enforceable; it was not an unregistered bill of sale invalidating the agreements.

Court Disposition

Judgment for the plaintiffs against the 1st, 2nd and 3rd defendants for the sums claimed; declaration that 1st plaintiff is sole legal and beneficial owner of the remaining four taxis; judgment for possession of two taxis and agreed sums against the 1st defendant.

Orders

  • Judgment entered against the 1st defendant in agreed terms including payment of sums claimed and delivery up of two taxis.
  • Judgment entered against the 2nd and 3rd defendants for the sums claimed.