LI KWAN CHUEN v. VECTOR DEVELOPMENT LTD

LI KWAN CHUEN v. VECTOR DEVELOPMENT LTD

Because the assignments were sealed with the wrong common seal, the vendor's conveyance was defective; under s.35(1)(b) the vendor is under an implied covenant to execute further assurances and therefore is treated as a constructive trustee for the purchaser; where the vendor cannot be located and has been struck...

Source-derived case information.

Citation
LI KWAN CHUEN v. VECTOR DEVELOPMENT LTD
Parties
Plaintiff: LI KWAN CHUEN; Defendant: VECTOR DEVELOPMENT LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 April 2009
Case Number
HCMP142/2009
Procedural Posture
Miscellaneous Proceedings / Judgment (court of First Instance)
Outcome
Declaration granted that the defendant is a constructive trustee of the property; Registrar appointed to execute a confirmatory assignment; plaintiff to pay costs of execution; no order as to costs of the application; leave to apply if difficulties arise.
Legal Topics
Constructive Trust, Confirmatory Assignment, Common Seal Defect, Implied Covenant Under S.35(1)(b), Service Out and Struck‑off Company, Appointment of Registrar to Execute Documents
Source Language
en
Conveyancing Trusts Property Civil Procedure Constructive Trust Confirmatory Assignment Common Seal Defect Implied Covenant Under S.35(1)(b) +2 more

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Parties

LI KWAN CHUEN

Plaintiff

VECTOR DEVELOPMENT LIMITED

Defendant

Procedural Posture

Miscellaneous Proceedings / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the defendant is a constructive trustee of the property because the assignments were sealed with the wrong common seal
  2. 2 Whether the implied covenant in s.35(1)(b) of the Conveyancing and Property Ordinance requires the vendor to execute a confirmatory assignment
  3. 3 Whether the Court may appoint the Registrar to execute a confirmatory assignment when the vendor cannot be located or is struck off

Ratio Decidendi

Because the assignments were sealed with the wrong common seal, the vendor's conveyance was defective; under s.35(1)(b) the vendor is under an implied covenant to execute further assurances and therefore is treated as a constructive trustee for the purchaser; where the vendor cannot be located and has been struck off, the court will appoint the Registrar to execute a confirmatory assignment to perfect the purchaser's title.

Court Disposition

Declaration granted that the defendant is a constructive trustee of the property; Registrar appointed to execute a confirmatory assignment; plaintiff to pay costs of execution; no order as to costs of the application; leave to apply if difficulties arise.

Orders

  • Declaration that Vector Development Limited was a constructive trustee of Flat C and Flat Roof, 4th Floor Level, Universal Building, Nos.5-13 New Street, Hong Kong, in favour of Li Kwan Chuen
  • Appointment of the Registrar of the High Court to execute a confirmatory assignment of the property to take effect as if executed by Vector Development Limited