ULTRA POWER E & M ENGINEERING CO LTD v. HAR ENGINEERING LTD

ULTRA POWER E & M ENGINEERING CO LTD v. HAR ENGINEERING LTD

The cheque was payment for approved invoices and not conditional escrow; there was no total failure of consideration and a probable counterclaim does not defeat an action on a dishonoured cheque; accordingly summary judgment was entered for the cheque amount with interest and costs.

Citation
ULTRA POWER E & M ENGINEERING CO LTD v. HAR ENGINEERING LTD
Parties
Plaintiff: Ultra Power E & M Engineering Co. Ltd.; Defendant: Har Engineering Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
6 September 2006
Case Number
DCCJ2773/2006
Procedural Posture
Civil (district Court) / Summary Judgment (order 14) Decision
Outcome
Judgment for Plaintiff
Legal Topics
Dishonoured Cheque, Summary Judgment, Failure of Consideration, Set Off/counterclaim, Payment, Indorsement, Interest, Costs
Source Language
EN
Contract Commercial Civil Procedure Negotiable Instruments Dishonoured Cheque Summary Judgment Failure of Consideration Set Off/counterclaim +4 more

Case Brief

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Parties

Ultra Power E & M Engineering Co. Ltd.

Plaintiff

Har Engineering Limited

Defendant

Procedural Posture

Civil (district Court) / Summary Judgment (order 14) Decision

Legal Issues

  1. 1 Whether plaintiff entitled to summary judgment for amount of dishonoured cheque
  2. 2 Whether defendant's counterclaim or probable counterclaim can defeat summary judgment on a cheque
  3. 3 Whether there was a total failure of consideration that would allow extrinsic evidence to avoid cheque liability

Ratio Decidendi

The cheque was payment for approved invoices and not conditional escrow; there was no total failure of consideration and a probable counterclaim does not defeat an action on a dishonoured cheque; accordingly summary judgment was entered for the cheque amount with interest and costs.

Court Disposition

Judgment for Plaintiff

Orders

  • Judgment for the Plaintiff in the sum of HKD 102740 being the amount of the dishonoured cheque
  • Interest at judgment rate from 7 June 2006 (date of writ) to date of judgment and thereafter at judgment rate from date of judgment to date of full payment