STATE CHINA FINANCE LTD v. LEUNG MAN WAI

STATE CHINA FINANCE LTD v. LEUNG MAN WAI

The court found that the applicants raised serious questions to be tried on clog of the equity of redemption and on the existence of a resulting trust in favour of Sin; damages would not be an adequate remedy for the applicants and the balance of convenience, together with practical considerations about purchaser's title and ensuing litigation, justified granting interlocutory relief subject to conditions (undertaking as to damages and payment of HK$457,000 into court).

Citation
STATE CHINA FINANCE LTD v. LEUNG MAN WAI
Parties
Plaintiff/defendant: STATE CHINA FINANCE LIMITED; Defendant/1st Plaintiff: LEUNG MAN WAI; 2nd Plaintiff: SIN SAU CHING
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
2 July 2010
Case Number
DCMP1985/2009
Procedural Posture
Miscellaneous Proceedings and Civil Action Concerning Charging Order, Possession and Sale; Interlocutory Injunction Applications / Interlocutory Hearing and Decision on Applications for Interlocutory Injunctions
Outcome
Interlocutory injunctions granted in both actions subject to conditions
Legal Topics
Interlocutory Injunction, Charging Order, Equity of Redemption, Resulting Trust, Possession and Sale, Undertaking as to Damages, Priority of Registered Interests
Source Language
EN
Property Law Equity Civil Procedure Trusts Conveyancing Mortgage Law/charging Orders Interlocutory Injunction Charging Order +5 more

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Parties

STATE CHINA FINANCE LIMITED

Plaintiff/defendant

LEUNG MAN WAI

Defendant/1st Plaintiff

SIN SAU CHING

2nd Plaintiff

Procedural Posture

Miscellaneous Proceedings and Civil Action Concerning Charging Order, Possession and Sale; Interlocutory Injunction Applications / Interlocutory Hearing and Decision on Applications for Interlocutory Injunctions

Legal Issues

  1. 1 Whether the conduct of the judgment creditor constituted a clog on the equity of redemption and thus gives rise to a serious question to be tried
  2. 2 Whether Sin Sau Ching holds a beneficial interest in the property (resulting trust) rendering the charging order void
  3. 3 Whether damages would be an adequate remedy and where the balance of convenience lies for injunctive relief

Ratio Decidendi

The court found that the applicants raised serious questions to be tried on clog of the equity of redemption and on the existence of a resulting trust in favour of Sin; damages would not be an adequate remedy for the applicants and the balance of convenience, together with practical considerations about purchaser's title and ensuing litigation, justified granting interlocutory relief subject to conditions (undertaking as to damages and payment of HK$457,000 into court).

Court Disposition

Interlocutory injunctions granted in both actions subject to conditions

Orders

  • Abridgement of time for service and leave to rely on affirmations in DCMP 1985/2009 granted in DCCJ 2213/2010
  • Leung and Sin to pay HK$457000 into court by noon 6 July 2010 as condition of injunction