ESSENCE KNITTING & GARMENT FACTORY LTD v. CHAN SAU MAN

ESSENCE KNITTING & GARMENT FACTORY LTD v. CHAN SAU MAN

Both applications to vacate the lis pendens were dismissed: the 835 Form A was properly registrable and there was a live factual dispute as to beneficial ownership of the 835 Property so the offered undertakings did not constitute 'good cause' to vacate under s.19 LRO; the 836 Form A was properly registrable because the ancillary relief could lawfully extend to property indirectly via alleged controlling shareholding and the undertakings by Essence Knitting/Husband were insufficient to provide equivalent protection, so no good cause to vacate.

Citation
[2022] HKCFI 273
Parties
Plaintiff (hcmp 835/2021): Husband; Plaintiff (hcmp 836/2021): Essence Knitting & Garment Factory Limited; Defendant / Wife: Chan Sau Man
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 January 2022
Case Number
HCMP836/2021
Procedural Posture
Originating Summons to Vacate Lis Pendens (interlocutory Applications Under S.19 Land Registration Ordinance) / Hearing in the Court of First Instance (determination of Interlocutory Applications)
Outcome
Both applications dismissed; lis pendens registrations maintained
Legal Topics
Lis Pendens, Vacation of Registration, Ancillary Relief, S.19 Land Registration Ordinance, Undertakings, Beneficial Ownership, Shareholding as Indirect Interest in Land
Source Language
EN
Family Law Land Law Property Law Equity and Trusts Civil Procedure Lis Pendens Vacation of Registration Ancillary Relief +4 more

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Parties

Husband

Plaintiff (hcmp 835/2021)

Essence Knitting & Garment Factory Limited

Plaintiff (hcmp 836/2021)

Chan Sau Man

Defendant / Wife

Procedural Posture

Originating Summons to Vacate Lis Pendens (interlocutory Applications Under S.19 Land Registration Ordinance) / Hearing in the Court of First Instance (determination of Interlocutory Applications)

Legal Issues

  1. 1 Whether the notices of application for ancillary relief (Form A) were registrable as lis pendens against the specified properties
  2. 2 Whether good cause under s.19 LRO was shown to vacate the lis pendens
  3. 3 Whether undertakings offered by the Husband/Essence Knitting provided equivalent protection to the lis pendens

Ratio Decidendi

Both applications to vacate the lis pendens were dismissed: the 835 Form A was properly registrable and there was a live factual dispute as to beneficial ownership of the 835 Property so the offered undertakings did not constitute 'good cause' to vacate under s.19 LRO; the 836 Form A was properly registrable because the ancillary relief could lawfully extend to property indirectly via alleged controlling shareholding and the undertakings by Essence Knitting/Husband were insufficient to provide equivalent protection, so no good cause to vacate.

Court Disposition

Both applications dismissed; lis pendens registrations maintained

Orders

  • Both originating summonses dismissed
  • Costs order nisi that the costs of the two Originating Summonses to be paid to the Wife, to be taxed if not agreed