GOLDENWICK LTD v. STANDARD CHARTERED BANK (HONG KONG) LTD

GOLDENWICK LTD v. STANDARD CHARTERED BANK (HONG KONG) LTD

Goldenwick failed to prove good title because it did not satisfactorily answer Requisition 12 on undivided shares and common parts/right of way; the 1999 mortgage (being a charge over exclusive possession unaccompanied by any undivided shares) was not a mortgage of 'land' under the Conveyancing and Property Ordinance so section 53 did not operate to pass a legal estate by the 2002 assignment; mere recital that the sale was 'subject to and with the benefit of the Sub-DMC' did not amount to adequate disclosure of latent defects; accordingly SCB validly rescinded the Provisional Agreement and Agreement and is entitled to repayment of deposits and specified costs.

Citation
GOLDENWICK LTD v. STANDARD CHARTERED BANK (HONG KONG) LTD
Parties
Plaintiff in Hca2634/2004; Defendant in Hca2645/2004: Goldenwick Limited; Defendant in Hca2634/2004; Plaintiff in Hca2645/2004: Standard Chartered Bank (Hong Kong) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 March 2008
Case Number
HCA2634/2004
Procedural Posture
Conveyancing Dispute; Consolidated Actions Hca2634/2004 and Hca2645/2004 / Trial Judgment (court of First Instance)
Outcome
Judgment entered for Standard Chartered Bank (SCB). Goldenwick's claims dismissed. Declaration that the Provisional Agreement and the Agreement were validly rescinded/terminated; SCB's claims for repayment of deposits and specified costs allowed in part.
Legal Topics
Misrepresentation, Title Defects, Mortgagee Sale, Deed of Mutual Covenant, Requisition on Title, Rescission, Deposit Recovery, Duty of Disclosure
Source Language
EN
Property Law Conveyancing Contract Law Equity Land Registration Misrepresentation Title Defects Mortgagee Sale +5 more

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Parties

Goldenwick Limited

Plaintiff in Hca2634/2004; Defendant in Hca2645/2004

Standard Chartered Bank (Hong Kong) Limited

Defendant in Hca2634/2004; Plaintiff in Hca2645/2004

Procedural Posture

Conveyancing Dispute; Consolidated Actions Hca2634/2004 and Hca2645/2004 / Trial Judgment (court of First Instance)

Legal Issues

  1. 1 Whether oral representations induced rescission or entitled rescission for misrepresentation
  2. 2 Whether documents shown as deeds pending registration (Missing Documents) prima facie affect good title
  3. 3 Whether the 1999 mortgage constituted a mortgage of land under the Conveyancing and Property Ordinance and thus whether section 53 applied to the 2002 mortgagee sale

Ratio Decidendi

Goldenwick failed to prove good title because it did not satisfactorily answer Requisition 12 on undivided shares and common parts/right of way; the 1999 mortgage (being a charge over exclusive possession unaccompanied by any undivided shares) was not a mortgage of 'land' under the Conveyancing and Property Ordinance so section 53 did not operate to pass a legal estate by the 2002 assignment; mere recital that the sale was 'subject to and with the benefit of the Sub-DMC' did not amount to adequate disclosure of latent defects; accordingly SCB validly rescinded the Provisional Agreement and Agreement and is entitled to repayment of deposits and specified costs.

Court Disposition

Judgment entered for Standard Chartered Bank (SCB). Goldenwick's claims dismissed. Declaration that the Provisional Agreement and the Agreement were validly rescinded/terminated; SCB's claims for repayment of deposits and specified costs allowed in part.

Orders

  • Declaration that the Provisional Agreement and the Agreement had been validly terminated or rescinded by Goldenwick
  • Repayment of deposits to SCB in the total sum of 2580000 HKD