FUBON BANK (HONG KONG) LTD v. WELFORM LTD

FUBON BANK (HONG KONG) LTD v. WELFORM LTD

The Tribunal found on the evidence of negotiation, correspondence, receipts and the parties' conduct (payments and occupation) that an oral agreement for a 3-month extension (1 Dec 2004–28 Feb 2005) existed at HKD18,500 per month; accordingly section 5 of the Amendment Ordinance meant no transitional termination notice was required for that extension, the fixed term expired on 28 Feb 2005, the Respondent became a licensee thereafter and the Applicant was entitled to recover possession and to mesne profits and costs as ordered.

Citation
FUBON BANK (HONG KONG) LTD v. WELFORM LTD
Parties
Applicant (landlord/mortgagee in Possession): Fubon Bank (Hong Kong) Limited (formerly known as International Bank of Asia Limited); Respondent (tenant): Welform Limited
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
24 March 2006
Case Number
LDPD3138/2005
Procedural Posture
Lands Tribunal Application for Possession (landlord and Tenant) / Judgment
Outcome
Application granted: Applicant to recover vacant possession; Respondent ordered to pay mesne profits and costs.
Legal Topics
Possession, Mesne Profits, Tenant Vs Licensee, Transitional Termination Notice, Extension of Tenancy, Estoppel, Notice to Quit
Source Language
EN
Landlord and Tenant Property Commercial Tenancy Statutory Interpretation Possession Mesne Profits Tenant Vs Licensee Transitional Termination Notice +3 more

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Parties

Fubon Bank (Hong Kong) Limited (formerly known as International Bank of Asia Limited)

Applicant (landlord/mortgagee in Possession)

Welform Limited

Respondent (tenant)

Procedural Posture

Lands Tribunal Application for Possession (landlord and Tenant) / Judgment

Legal Issues

  1. 1 Whether there was an agreement for extension or a new tenancy at HKD18,500 per month for 1 December 2004 to 28 February 2005
  2. 2 Whether the Respondent's grounds (ignorance of law and alleged non-disclosure of transitional termination notice) invalidate the alleged oral agreement
  3. 3 Whether a valid notice to quit was given by the Applicant after the alleged extension period

Ratio Decidendi

The Tribunal found on the evidence of negotiation, correspondence, receipts and the parties' conduct (payments and occupation) that an oral agreement for a 3-month extension (1 Dec 2004–28 Feb 2005) existed at HKD18,500 per month; accordingly section 5 of the Amendment Ordinance meant no transitional termination notice was required for that extension, the fixed term expired on 28 Feb 2005, the Respondent became a licensee thereafter and the Applicant was entitled to recover possession and to mesne profits and costs as ordered.

Court Disposition

Application granted: Applicant to recover vacant possession; Respondent ordered to pay mesne profits and costs.

Orders

  • Applicant shall recover vacant possession of the Premises from the Respondent
  • Respondent to pay arrears of mesne profits from 1 June 2005 to 28 February 2006 at HKD2,500 per month in the total sum of HKD22,500