NATIONAL RESOURCES CAPITAL LTD v. LO YUEN FONG AND ANOTHER

NATIONAL RESOURCES CAPITAL LTD v. LO YUEN FONG AND ANOTHER

The court exercised its discretion to give full effect to the clear contractual term which provided for interest at 27% per annum from the date of judgment until full payment; nothing suggested the clause should not be enforced, therefore the plaintiff's appeal was allowed and interest was ordered at 27% per annum.

Citation
NATIONAL RESOURCES CAPITAL LTD v. LO YUEN FONG AND ANOTHER
Parties
Plaintiff: NATIONAL RESOURCES CAPITAL LIMITED; 1st Defendant: LO YUEN FONG; 2nd Defendant: TANG YIU FAI BENJAMIN
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
18 May 2010
Case Number
DCCJ775/2010
Procedural Posture
Civil Action (money Lending) / Appeal Against Master's Order on Interest on Judgment
Outcome
Plaintiff's appeal allowed; interest at 27% per annum from date of judgment until full payment
Legal Topics
Post Judgment Interest, Contractual Interest Clause, Discretionary Award of Interest, Enforcement of Loan Agreements
Source Language
EN
Contract Civil Procedure Money Lending Judgment Enforcement Post Judgment Interest Contractual Interest Clause Discretionary Award of Interest Enforcement of Loan Agreements

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Parties

NATIONAL RESOURCES CAPITAL LIMITED

Plaintiff

LO YUEN FONG

1st Defendant

TANG YIU FAI BENJAMIN

2nd Defendant

Procedural Posture

Civil Action (money Lending) / Appeal Against Master's Order on Interest on Judgment

Legal Issues

  1. 1 Whether a contractual clause can govern the rate of interest on judgment debt from date of judgment until full payment
  2. 2 Whether the court should exercise its discretion to award post-judgment interest at the contractual rate (27% per annum) rather than the judgment rate

Ratio Decidendi

The court exercised its discretion to give full effect to the clear contractual term which provided for interest at 27% per annum from the date of judgment until full payment; nothing suggested the clause should not be enforced, therefore the plaintiff's appeal was allowed and interest was ordered at 27% per annum.

Court Disposition

Plaintiff's appeal allowed; interest at 27% per annum from date of judgment until full payment

Orders

  • Appeal allowed
  • Interest on the outstanding loans to run at 27% per annum from the date of judgment until full payment