DHARMALA INTERNATIONAL FINANCE LTD. v. CHARTER VIEW HOLDINGS (H.K.) LTD. AND OTHERS

DHARMALA INTERNATIONAL FINANCE LTD. v. CHARTER VIEW HOLDINGS (H.K.) LTD. AND OTHERS

Under the express terms of the guarantee the lender was entitled to abstain from enforcing or perfecting securities and there was no evidence the plaintiff's conduct affected the value or enforceability of the bills; accordingly the 2nd Defendant had no arguable defence and summary judgment was properly entered and upheld on appeal.

Citation
DHARMALA INTERNATIONAL FINANCE LTD. v. CHARTER VIEW HOLDINGS (H.K.) LTD. AND OTHERS
Parties
Plaintiff/respondent: dharmala international finance limited; 1st Defendant: CHARTER VIEW HOLDINGS (H.K.) LIMITED; 2nd Defendant/appellant: TANG PUI YIN DETVEX; 3rd Defendant: DRAGON ASIA GROUP INVESTMENTS (H.K.) LIMITED
Court
Court of Appeal
Jurisdiction
Hong Kong
Judgment Date
7 July 1999
Case Number
CACV98/1999
Procedural Posture
Civil Appeal / Appeal to Court of Appeal From High Court (summary Judgment)
Outcome
Appeal dismissed
Legal Topics
Summary Judgment, Surety Liability, Enforcement and Perfection of Securities, Exemption Clauses Reasonableness
Source Language
EN
Contract Guarantee Banking Law Civil Procedure Summary Judgment Surety Liability Enforcement and Perfection of Securities Exemption Clauses Reasonableness

Case Brief

Summary, issues, holding and outcome

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Parties

dharmala international finance limited

Plaintiff/respondent

CHARTER VIEW HOLDINGS (H.K.) LIMITED

1st Defendant

TANG PUI YIN DETVEX

2nd Defendant/appellant

DRAGON ASIA GROUP INVESTMENTS (H.K.) LIMITED

3rd Defendant

Procedural Posture

Civil Appeal / Appeal to Court of Appeal From High Court (summary Judgment)

Legal Issues

  1. 1 Whether creditor's failure to enforce or perfect bills of exchange discharged the guarantor/surety
  2. 2 Whether the plaintiff's actions or inaction amounted to connivance or materially varied the risk to the surety
  3. 3 Whether the exemption/limitation clauses in the guarantee are reasonable under the Control of Exemption Clauses Ordinance

Ratio Decidendi

Under the express terms of the guarantee the lender was entitled to abstain from enforcing or perfecting securities and there was no evidence the plaintiff's conduct affected the value or enforceability of the bills; accordingly the 2nd Defendant had no arguable defence and summary judgment was properly entered and upheld on appeal.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Order nisi that the Plaintiff have its costs of the appeal