WONG TAT CHUN v. YICKO FINANCE LTD.

WONG TAT CHUN v. YICKO FINANCE LTD.

The defendants' assertions (condition precedent and lack of delivery) were not believable on the evidence; the Escrow arrangement advanced by the defendants was inconsistent and implausible, the Escrow Documents were delivered, and the Covenantors and Success Gold are bound by the Deed and Share Mortgage; accordingly specific performance was ordered and the applications to set aside the statutory demands dismissed.

Citation
WONG TAT CHUN v. YICKO FINANCE LTD.
Parties
Plaintiff/creditor: Yicko Finance Limited; Defendant/company Charged Under Share Mortgage: Success Gold Enterprises Limited; Applicant/covenantor: Chan Shan; Applicant/covenantor: Wong Tat Chun
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 July 1999
Case Number
HCSD16/1999
Procedural Posture
Civil Action for Specific Performance and Related Relief; Applications to Set Aside Statutory Demands / Chambers Decision on Order 86 Summons and Applications to Set Aside Statutory Demands (summary Determination)
Outcome
Order 86 summons for specific performance granted; applications to set aside statutory demands dismissed; costs to follow the event (order nisi granted)
Legal Topics
Specific Performance, Statutory Demand, Share Mortgage, Escrow Delivery, Guarantee, Charges Over Securities, Summary Judgment
Source Language
EN
Contract Company Security Equity Civil Procedure Specific Performance Statutory Demand Share Mortgage +4 more

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Parties

Yicko Finance Limited

Plaintiff/creditor

Success Gold Enterprises Limited

Defendant/company Charged Under Share Mortgage

Chan Shan

Applicant/covenantor

Wong Tat Chun

Applicant/covenantor

Procedural Posture

Civil Action for Specific Performance and Related Relief; Applications to Set Aside Statutory Demands / Chambers Decision on Order 86 Summons and Applications to Set Aside Statutory Demands (summary Determination)

Legal Issues

  1. 1 Whether the Deed and Share Mortgage were enforceable against the Covenantors and Success Gold
  2. 2 Whether there was delivery of the deeds or only conditional escrow delivery preventing enforcement
  3. 3 Whether an oral condition precedent (completion of a separate share transaction) prevented the Deed/Share Mortgage from taking effect

Ratio Decidendi

The defendants' assertions (condition precedent and lack of delivery) were not believable on the evidence; the Escrow arrangement advanced by the defendants was inconsistent and implausible, the Escrow Documents were delivered, and the Covenantors and Success Gold are bound by the Deed and Share Mortgage; accordingly specific performance was ordered and the applications to set aside the statutory demands dismissed.

Court Disposition

Order 86 summons for specific performance granted; applications to set aside statutory demands dismissed; costs to follow the event (order nisi granted)

Orders

  • Specific performance and relief sought in the Order 86 summons granted in terms
  • Applications HCSD15/99 and HCSD16/99 to set aside Statutory Demands dismissed