Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Fixed vs floating charge

Legal area

Court

27 Oct 2023

BEI NI LTD v. CORNWELL (HONG KONG) LTD

Citation

[2023] HKCFI 2749
Court

Court of First Instance
Case number

HCA923/2022

The court held the Huatai Share Charge is a fixed charge because Huatai retained sufficient control and proceeds of disposals were automatically applied to reduce indebtedness; therefore the Huatai Share Charge ranks ahead of the P Charging Order and the Judgment finally determined substantive rights, making it appealable as of right under Order 59 r21(1)(a) RHC.
13 Jul 2023

BEI NI LTD v. CORNWELL (HONG KONG) LTD

Citation

[2023] HKCFI 1799
Court

Court of First Instance
Case number

HCA923/2022

The Huatai Share Charge was a fixed charge because Huatai had positive legal control over the charged shares and over sale proceeds which were automatically applied to reduce the margin debt; accordingly the Huatai Share Charge has priority over the plaintiff's P Charging Order and the Sum paid into court is to be paid out to Huatai; however no implied undertaking as to damages arose from the P Charging Order nisi and that limb of Huatai's application is dismissed.