PRAISE FORTUNE LTD v. ALEGANA ENTERPRISES LTD

Parties

Procedural Posture

Civil Action for Recovery of Specific Property by Way of Order 29, Rule 6 Application / Interlocutory Application Heard in Chambers (order 29, Rule 6)

Legal Issues

1. 1 Whether the Pledgee disputes title or only claims a right to retain the pledged shares as security
2. 2 Whether the parties reached an agreement to terminate the loan and for immediate repayment
3. 3 Whether payment into court satisfied the condition in Order 29, rule 6 to obtain return of the specific property

Ratio Decidendi

The court found the conditions of Order 29, r6 were satisfied: the Pledgee did not dispute the Pledgor's title but only claimed a right to retain as security, the Pledgor paid the Sum into court based on the Pledgee's closing statement and the parties had agreed to terminate the loan, contractual provisions relied upon by the Pledgee did not negate this position, and therefore the Pledgee was ordered to transfer and deliver the pledged shares to the Pledgor upon the Sum remaining in court.

Court Disposition

Order made in favour of the plaintiff: the Pledgee ordered to transfer and deliver the pledged shares to the Pledgor upon the Sum remaining in court; costs to plaintiff with certificates for two counsel

Orders

• The defendant shall forthwith transfer and deliver the Pledged Shares to the plaintiff and execute all necessary documents for that purpose upon the Sum remaining in court pending final determination or further order
• The Sum of HK$66,335,000 shall remain in court as security pending final determination or further order