TRUMP WELL INTERNATIONAL LTD. v. SIU FUNG KNITTING FACTORY CO. LTD.

TRUMP WELL INTERNATIONAL LTD. v. SIU FUNG KNITTING FACTORY CO. LTD.

The vendor had not proved title by the 5:00 p.m. deadline because the deed of release did not expressly discharge the second mortgage, the purported rectification arrived after the deadline and lacked evidence of authority to confirm discharge; discharge of the first mortgage does not, on the facts, operate to discharge the second mortgage automatically, therefore the purchaser's requisition was not satisfactorily answered and the purchaser is entitled to the relief granted.

Citation
TRUMP WELL INTERNATIONAL LTD. v. SIU FUNG KNITTING FACTORY CO. LTD.
Parties
Purchaser: Trump Well International Limited; Vendor: Siu Fung Knitting Factory Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 January 1999
Case Number
HCMP2408/1998
Procedural Posture
Vendor and Purchaser Summons (conveyancing) / Hearing and Judgment at First Instance
Outcome
Purchaser's summons granted in part; vendor failed to prove title by the required time and purchaser entitled to relief as ordered.
Legal Topics
Proof of Title, Mortgage Discharge, Deed of Release, Rectification, Vendor and Purchaser Requisitions, Completion Deadline
Source Language
EN
Conveyancing Property Equity Contract Proof of Title Mortgage Discharge Deed of Release Rectification +2 more

Case Brief

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Parties

Trump Well International Limited

Purchaser

Siu Fung Knitting Factory Company Limited

Vendor

Procedural Posture

Vendor and Purchaser Summons (conveyancing) / Hearing and Judgment at First Instance

Legal Issues

  1. 1 Whether the vendor proved its title by 5.00 p.m. on 12 May 1998 under s.13 Conveyancing and Property Ordinance (Cap. 219)
  2. 2 Whether discharge of the first (equitable) mortgage operated to discharge the second (legal) mortgage
  3. 3 Whether the purported rectified deed of release, received after the deadline and effected by the verifying solicitor, validly evidenced discharge of the second mortgage

Ratio Decidendi

The vendor had not proved title by the 5:00 p.m. deadline because the deed of release did not expressly discharge the second mortgage, the purported rectification arrived after the deadline and lacked evidence of authority to confirm discharge; discharge of the first mortgage does not, on the facts, operate to discharge the second mortgage automatically, therefore the purchaser's requisition was not satisfactorily answered and the purchaser is entitled to the relief granted.

Court Disposition

Purchaser's summons granted in part; vendor failed to prove title by the required time and purchaser entitled to relief as ordered.

Orders

  • Relief sought in paragraphs 1, 2, 3, 5 and 8 of the summons granted to the purchaser
  • Vendor ordered to return deposits totalling 1957500.00 HKD to the purchaser