SUNNY PALACE LTD AND OTHERS v. CHEUNG LAI LING RITA AND ANOTHER

SUNNY PALACE LTD AND OTHERS v. CHEUNG LAI LING RITA AND ANOTHER

Applicants satisfied statutory threshold (>90%); valuations by appointed valuer accepted for market value as at 2 Aug 2023 and for redevelopment residual value as at 31 Oct 2024; expert engineering evidence established building is obsolete and in poor repair such that redevelopment is justified; applicants demonstrated reasonable steps to acquire remaining shares including purchase of several respondent interests and substituted service on missing owner; accordingly tribunal granted compulsory sale, appointed trustees and fixed reserve price at HKD 286,000,000.

Citation
[2024] HKLdT 95
Parties
1st Applicant: SUNNY PALACE LIMITED (朗殿有限公司); 2nd Applicant: DYNAMIC SUMMIT LIMITED (沛峰有限公司); 3rd Applicant: MARWIN INVESTMENT LIMITED (明榮投資有限公司); 1st Respondent (discontinued): LOK TIN SANG (駱天生); 2nd Respondent (discontinued): LOK TIN KEI (駱天基); 3rd Respondent (discontinued): LOK TIN YIN (駱天賢); 4th Respondent (discontinued): LOK TIN ON (駱天安); 5th Respondent: CHEUNG LAI LING RITA (張麗玲); 6th Respondent (missing Owner): THE PERSONAL REPRESENTATIVE OF THE ESTATE OF LATE SOO YEE LEE (李素如)
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
9 December 2024
Case Number
LDCS5000/2023
Procedural Posture
Land (compulsory Sale for Redevelopment) Ordinance Application (cap 545) / Judgment After Trial (order for Sale)
Outcome
Order for sale granted under the Land (Compulsory Sale for Redevelopment) Ordinance (Cap 545)
Legal Topics
Redevelopment Justification, Majority Owner Threshold, Valuation and Reserve Price, Reasonable Steps to Acquire Shares, Missing Owner and Substituted Service, Trustees Appointment, Costs
Source Language
EN
Land Law Compulsory Sale for Redevelopment Property Valuation Building and Construction Law Redevelopment Justification Majority Owner Threshold Valuation and Reserve Price Reasonable Steps to Acquire Shares +3 more

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Parties

SUNNY PALACE LIMITED (朗殿有限公司)

1st Applicant

DYNAMIC SUMMIT LIMITED (沛峰有限公司)

2nd Applicant

MARWIN INVESTMENT LIMITED (明榮投資有限公司)

3rd Applicant

LOK TIN SANG (駱天生)

1st Respondent (discontinued)

LOK TIN KEI (駱天基)

2nd Respondent (discontinued)

LOK TIN YIN (駱天賢)

3rd Respondent (discontinued)

LOK TIN ON (駱天安)

4th Respondent (discontinued)

CHEUNG LAI LING RITA (張麗玲)

5th Respondent

THE PERSONAL REPRESENTATIVE OF THE ESTATE OF LATE SOO YEE LEE (李素如)

6th Respondent (missing Owner)

Procedural Posture

Land (compulsory Sale for Redevelopment) Ordinance Application (cap 545) / Judgment After Trial (order for Sale)

Legal Issues

  1. 1 What is the market value of each property in the Building as at 2 August 2023?
  2. 2 Whether redevelopment is justified due to age and/or state of repair under section 4(2)(a) of the Ordinance?
  3. 3 Whether applicants have taken reasonable steps to acquire all undivided shares under section 4(2)(b)?

Ratio Decidendi

Applicants satisfied statutory threshold (>90%); valuations by appointed valuer accepted for market value as at 2 Aug 2023 and for redevelopment residual value as at 31 Oct 2024; expert engineering evidence established building is obsolete and in poor repair such that redevelopment is justified; applicants demonstrated reasonable steps to acquire remaining shares including purchase of several respondent interests and substituted service on missing owner; accordingly tribunal granted compulsory sale, appointed trustees and fixed reserve price at HKD 286,000,000.

Court Disposition

Order for sale granted under the Land (Compulsory Sale for Redevelopment) Ordinance (Cap 545)

Orders

  • All undivided shares in the Lot be sold by public auction for purposes of redevelopment of the Lot
  • Mr Anthony Chow Wing Kin and Ms Anna Chow Suk Han, nominated by the applicants, be appointed trustees to discharge duties under the Ordinance in relation to the sale