CROWNING SUCCESS LTD v. BRIGHTLAND CORPORATION LTD AND ANOTHER

CROWNING SUCCESS LTD v. BRIGHTLAND CORPORATION LTD AND ANOTHER

Section 19 covers instruments 'pending registration' and the court will exercise its wide discretion to vacate registration where doing so is just in the circumstances; here the court allowed vacatur of five instruments affecting the whole property on payment into court of HK$12,000,000 (HK$6,000,000 for the 1st Defendant and HK$6,000,000 for the Plaintiff) because the dispute concerned only Unit C, parties sought damages not specific performance, the 2nd Defendant offered security, and the sums ordered were assessed as sufficient to protect the parties' interests.

Citation
CROWNING SUCCESS LTD v. BRIGHTLAND CORPORATION LTD AND ANOTHER
Parties
Plaintiff (hca1445); 1st Defendant (hca1540): Brightland Corporation Limited; 2nd Defendant: Banhart Company Limited; Plaintiff (hca1540): Crowning Success Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 April 2008
Case Number
HCA1540/2005
Procedural Posture
Civil Property/land Registration Dispute / Interlocutory Application to Vacate Registration; Pre Trial
Outcome
Application allowed on terms
Legal Topics
Vacation of Lis Pendens, Security/payment Into Court, Jurisdiction of S.19 LRO, Interlocutory Relief, Mitigation of Loss
Source Language
EN
Property Law Civil Procedure Land Registration Vacation of Lis Pendens Security/payment Into Court Jurisdiction of S.19 LRO Interlocutory Relief Mitigation of Loss

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Parties

Brightland Corporation Limited

Plaintiff (hca1445); 1st Defendant (hca1540)

Banhart Company Limited

2nd Defendant

Crowning Success Limited

Plaintiff (hca1540)

Procedural Posture

Civil Property/land Registration Dispute / Interlocutory Application to Vacate Registration; Pre Trial

Legal Issues

  1. 1 Whether s.19 of the Land Registration Ordinance empowers the court to vacate instruments that are 'pending registration' as well as registered instruments
  2. 2 Whether the court should exercise its discretion to vacate registration of instruments affecting the whole property when the dispute concerns a part only
  3. 3 Appropriate quantum of security to be paid into court to permit sale of the property

Ratio Decidendi

Section 19 covers instruments 'pending registration' and the court will exercise its wide discretion to vacate registration where doing so is just in the circumstances; here the court allowed vacatur of five instruments affecting the whole property on payment into court of HK$12,000,000 (HK$6,000,000 for the 1st Defendant and HK$6,000,000 for the Plaintiff) because the dispute concerned only Unit C, parties sought damages not specific performance, the 2nd Defendant offered security, and the sums ordered were assessed as sufficient to protect the parties' interests.

Court Disposition

Application allowed on terms

Orders

  • Upon payment into court of HK$6,000,000 as security for the 1st Defendant (HCA 1445/2005) and HK$6,000,000 as security for the Plaintiff (HCA 1540/2005), the registration of the following instruments in the Land Registry is vacated: Writ of Summons in HCA 1445/2005 Memorial No.05072700970010; Preliminary sale and...
  • Liberty to apply for further directions if necessary