WELL PRESTIGE INVESTMENT LTD v. FANG MENG SUNG, JOHN

WELL PRESTIGE INVESTMENT LTD v. FANG MENG SUNG, JOHN

The court preferred Mr Fang's evidence and contemporaneous documents, found the loans were advanced to Mr Chan and Madam Hung and remain unpaid in the sum of $3,480,000, and found the 2005 sale to Well Prestige was a sham intended to defeat Mr Fang's equitable mortgage; accordingly judgment was entered for Mr Fang for the loan sum with interest at judgment rate from 16 September 2000 and the sale was declared subject to the equitable mortgage so the Equitable Mortgage registration should not be vacated.

Citation
WELL PRESTIGE INVESTMENT LTD v. FANG MENG SUNG, JOHN
Parties
Plaintiff (hcmp No 1246 of 2007); 1st Defendant in Counterclaim: Well Prestige Investment Limited; Plaintiff (hca No 2021 of 2006); Defendant and Counterclaimant in HCMP No 1246 of 2007: Fang Meng Sung, John; Defendant (hca No 2021 of 2006); 2nd Defendant in Counterclaim: Chan Ying Kai; Defendant (hca No 2021 of 2006); 3rd Defendant in Counterclaim: Hung Sin Yee Josephine
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 May 2012
Case Number
HCMP1246/2007
Procedural Posture
Civil: Loan Recovery and Land Registration/vacation of Registration / Judgment Following Consolidated Trial
Outcome
Judgment for Mr Fang (plaintiff) in the loan action for $3,480,000; Well Prestige's claim to vacate registration dismissed; declaration that sale to Well Prestige is subject to Mr Fang's equitable mortgage; costs to Mr Fang (order nisi).
Legal Topics
Loan Repayment, Equitable Mortgage, Priority of Registration, Vacation of Registration, Sham Transaction, Bona Fide Purchaser, Declaration, Interest on Judgment
Source Language
EN
Contract Property Equity Land Registration Conveyancing Loan Repayment Equitable Mortgage Priority of Registration +5 more

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Parties

Well Prestige Investment Limited

Plaintiff (hcmp No 1246 of 2007); 1st Defendant in Counterclaim

Fang Meng Sung, John

Plaintiff (hca No 2021 of 2006); Defendant and Counterclaimant in HCMP No 1246 of 2007

Chan Ying Kai

Defendant (hca No 2021 of 2006); 2nd Defendant in Counterclaim

Hung Sin Yee Josephine

Defendant (hca No 2021 of 2006); 3rd Defendant in Counterclaim

Procedural Posture

Civil: Loan Recovery and Land Registration/vacation of Registration / Judgment Following Consolidated Trial

Legal Issues

  1. 1 Whether loans were advanced by Mr Fang to Mr Chan and Madam Hung and remain unpaid
  2. 2 Whether the equitable mortgage registered by Mr Fang charges the Property and survives sale to Well Prestige
  3. 3 Whether the sale to Well Prestige was a genuine transaction or a sham intended to defeat Mr Fang's equitable interest

Ratio Decidendi

The court preferred Mr Fang's evidence and contemporaneous documents, found the loans were advanced to Mr Chan and Madam Hung and remain unpaid in the sum of $3,480,000, and found the 2005 sale to Well Prestige was a sham intended to defeat Mr Fang's equitable mortgage; accordingly judgment was entered for Mr Fang for the loan sum with interest at judgment rate from 16 September 2000 and the sale was declared subject to the equitable mortgage so the Equitable Mortgage registration should not be vacated.

Court Disposition

Judgment for Mr Fang (plaintiff) in the loan action for $3,480,000; Well Prestige's claim to vacate registration dismissed; declaration that sale to Well Prestige is subject to Mr Fang's equitable mortgage; costs to Mr Fang (order nisi).

Orders

  • Judgment for Fang Meng Sung, John for $3,480,000
  • Interest on the judgment sum at judgment rates from 16 September 2000 to date and thereafter at judgment rate