CHAN PING SANG JOHNNY AND ANOTHER v. SECRETARY FOR JUSTICE

CHAN PING SANG JOHNNY AND ANOTHER v. SECRETARY FOR JUSTICE

The court held that the plaintiffs had acquired the beneficial interest in equity and, although the assignment was defectively executed, the vendor company was a trustee of the legal estate immediately prior to its deregistration; accordingly a vesting order under s45(b)(iii) Trustees Ordinance was appropriate to vest the vendor's estate, right, title, benefit and interest in the plaintiffs as joint tenants and to declare them legal and beneficial owners.

Citation
CHAN PING SANG JOHNNY AND ANOTHER v. SECRETARY FOR JUSTICE
Parties
Plaintiff: Plaintiffs; Vendor (dissolved): Eternal Nice Company Limited; Defendant (representing the Government): Secretary for Justice
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 April 2017
Case Number
HCMP335/2017
Procedural Posture
Miscellaneous Proceedings Under the Trustees Ordinance (vesting Order) / Judgment / Final Order
Outcome
Vesting order granted; declarations made that the vendor was trustee prior to dissolution and that the plaintiffs are legal and beneficial owners; costs awarded.
Legal Topics
Vesting Order, Bona Vacantia, Defective Execution of Assignment, Trusteeship, Title Perfection
Source Language
EN
Trusts Property Company Law Equity Civil Procedure Vesting Order Bona Vacantia Defective Execution of Assignment +2 more

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Parties

Plaintiffs

Plaintiff

Eternal Nice Company Limited

Vendor (dissolved)

Secretary for Justice

Defendant (representing the Government)

Procedural Posture

Miscellaneous Proceedings Under the Trustees Ordinance (vesting Order) / Judgment / Final Order

Legal Issues

  1. 1 Whether a vesting order under s45(b)(iii) of the Trustees Ordinance should be made where an assignment was defectively executed by a now dissolved vendor company
  2. 2 Whether the plaintiffs had acquired the beneficial interest in the property in equity and are entitled to the legal estate
  3. 3 Whether the property had become bona vacantia and whether the Secretary for Justice should be divested of any purported interest

Ratio Decidendi

The court held that the plaintiffs had acquired the beneficial interest in equity and, although the assignment was defectively executed, the vendor company was a trustee of the legal estate immediately prior to its deregistration; accordingly a vesting order under s45(b)(iii) Trustees Ordinance was appropriate to vest the vendor's estate, right, title, benefit and interest in the plaintiffs as joint tenants and to declare them legal and beneficial owners.

Court Disposition

Vesting order granted; declarations made that the vendor was trustee prior to dissolution and that the plaintiffs are legal and beneficial owners; costs awarded.

Orders

  • Declaration that Eternal Nice Company Limited was trustee of the legal estate of the car park immediately prior to its dissolution on 4 May 2012
  • Order vesting in the plaintiffs as joint tenants all the estate right title benefit and interest which Eternal Nice Company Limited had in the car park immediately prior to its dissolution