CHAN CHUN FAI AND OTHERS v. LEE SEE WOO

CHAN CHUN FAI AND OTHERS v. LEE SEE WOO

On the balance of all evidence the court found the first page of the deed of assignment produced by the plaintiffs was substituted and thus the assignment is forged; plaintiffs' key witnesses were found unreliable while Lee was credible; therefore there was no valid assignment to Richfair and Lee remains entitled to the benefit of the share charge and the underlying debt; plaintiffs' claim dismissed and declaratory relief granted in Lee's favour.

Citation
CHAN CHUN FAI AND OTHERS v. LEE SEE WOO
Parties
1st Plaintiff (original Action) and 1st Defendant (counterclaim): CHAN CHUN FAI; 2nd Plaintiff (original Action) and 2nd Defendant (counterclaim): CHU CHEONG HING JENNY; 3rd Plaintiff (original Action) and 3rd Defendant (counterclaim): PANG WING KEUNG; Defendant (original Action) and Plaintiff (counterclaim): LEE SEE WOO; 4th Defendant (counterclaim): CHU HON PONG; 5th Defendant (counterclaim): RICHFAIR LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 December 2012
Case Number
HCMP1318/2007
Procedural Posture
Civil Proprietary/contract (stop Notices and Share Charge) / Judgment (court of First Instance)
Outcome
Plaintiffs' Statement of Claim dismissed; deed of assignment held to be forged; declaration that no valid assignment to Richfair; declaration that Lee entitled to benefit of share charge and underlying debt; specified transferred new shares declared subject to the share charge; costs order nisi made.
Legal Topics
Share Charge, Assignment, Stop Notice, Declaratory Relief, Forgery Allegation, Takeovers Code/general Offer
Source Language
EN
Equity Contract Property Company Law Civil Procedure Fraud/forgery Share Charge Assignment +4 more

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Parties

CHAN CHUN FAI

1st Plaintiff (original Action) and 1st Defendant (counterclaim)

CHU CHEONG HING JENNY

2nd Plaintiff (original Action) and 2nd Defendant (counterclaim)

PANG WING KEUNG

3rd Plaintiff (original Action) and 3rd Defendant (counterclaim)

LEE SEE WOO

Defendant (original Action) and Plaintiff (counterclaim)

CHU HON PONG

4th Defendant (counterclaim)

RICHFAIR LIMITED

5th Defendant (counterclaim)

Procedural Posture

Civil Proprietary/contract (stop Notices and Share Charge) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the deed of assignment was forged or a sham
  2. 2 Whether the share charge and the underlying debt were validly assigned to Richfair
  3. 3 Whether Lee retains the beneficial interest and entitlement to the share charge and underlying debt

Ratio Decidendi

On the balance of all evidence the court found the first page of the deed of assignment produced by the plaintiffs was substituted and thus the assignment is forged; plaintiffs' key witnesses were found unreliable while Lee was credible; therefore there was no valid assignment to Richfair and Lee remains entitled to the benefit of the share charge and the underlying debt; plaintiffs' claim dismissed and declaratory relief granted in Lee's favour.

Court Disposition

Plaintiffs' Statement of Claim dismissed; deed of assignment held to be forged; declaration that no valid assignment to Richfair; declaration that Lee entitled to benefit of share charge and underlying debt; specified transferred new shares declared subject to the share charge; costs order nisi made.

Orders

  • Declaration that the deed of assignment dated 7 March 2003 produced by the plaintiffs is not the document signed by Lee (first page substituted) and is a forgery
  • Declaration that there was no valid assignment to Richfair of the share charge and the underlying debt