Hong Kong Case Law: Decisions & Judgments

Topic

Holder in due course

Legal area

Court

15 Jun 2012

HO SHUI CHEE v. HU XUAN MING RAYMOND AND ANOTHER

Citation

HO SHUI CHEE v. HU XUAN MING RAYMOND AND ANOTHER
Court

Court of First Instance
Case number

HCA1559/2011

The court found the cheques were delivered operatively as security and payable on demand; the defendants' oral agreement claiming conditional delivery to defeat liability was inadmissible as contradicting the written instruments and was inherently unbelievable on the facts; the cheques were supported by consideration (the loans) and the second defendant signed as indorser such that the plaintiff, as holder in due course of at least two cheques, was entitled to summary judgment on the loans claim for HK$1,000,000; only cheque no. 483722 raised a triable issue but that did not prevent summary j…
26 Jan 2006

EUROSTAR (FAST EAST) LTD v. ALBERT TSANG JEWELRY DESIGN LTD

Citation

EUROSTAR (FAST EAST) LTD v. ALBERT TSANG JEWELRY DESIGN LTD
Court

District Court
Case number

DCCJ2774/2005

The contemporaneous written acknowledgement demonstrated the cheques were issued for settlement and became operative on delivery; there was no evidence cheques were held in escrow and s21(3) presumption of valid unconditional delivery was unrebutted; therefore oral evidence purporting to impose a condition was excluded as inconsistent with an operative bill and the defendant had no realistic prospect of success on appeal; leave to appeal is dismissed with costs.
22 Dec 2003

BANK OF CHINA (HONG KONG) LTD v. YIU CHEONG METAL LTD

Citation

BANK OF CHINA (HONG KONG) LTD v. YIU CHEONG METAL LTD
Court

Court of First Instance
Case number

HCA10615/2000

On the totality of credible evidence the Bank gave value for the cheque and had no notice or knowledge of the fraud perpetrated by Sunic/Mr Au; the Bank is therefore a holder in due course under ss29-30 of the Bills of Exchange Ordinance and takes the cheque free of the Defendant's personal defence, entitling the Bank to judgment on the cheque claim.
27 Jun 2003

THE CHINA STATE BANK LTD v. SINOEARN INTERNATIONAL LTD

Citation

THE CHINA STATE BANK LTD v. SINOEARN INTERNATIONAL LTD
Court

District Court
Case number

DCCJ4192/2002

The court found on evidence that the bank became holder (bearer/indorsee) in due course for value, had no actual or constructive notice of fraud or defective title, the Defendant failed to prove fraud/collusion to the high standard required, and statutory dispensation of notice of dishonour applied; accordingly the Plaintiff was entitled to enforce the three cheques and judgment was entered for the amounts claimed with interest and costs.
29 Aug 2002

Delta Asia Credit Ltd. v. Wang Chong Hong Co. Ltd.

Citation

Delta Asia Credit Ltd. v. Wang Chong Hong Co. Ltd.
Court

District Court
Case number

DCCJ2709/2002

Because the plaintiff was a holder in due course under s38(b) of the Bills of Exchange Ordinance the defendant's allegation of non-delivery is merely a personal defence against the prior payee and not a defence to the holder in due course, and the defendant's asserted lack of knowledge of negotiation is not a defence; therefore there was no triable issue and summary judgment was properly entered for the plaintiff.
25 Apr 2002

Edward Wong Credit Ltd. v. Man Hing Handbag Co. Ltd. and Others

Citation

Edward Wong Credit Ltd. v. Man Hing Handbag Co. Ltd. and Others
Court

District Court
Case number

DCCJ20208/2001

The plaintiff was a holder in due course because it took the cheques for value and in good faith and had no actual or implied notice of any defect; nothing in the circumstances put the plaintiff on inquiry; therefore summary judgment was entered against the 4th and 5th defendants for the amounts of their cheques.
7 Feb 2002

SIN HUA BANK LTD. v. LEE YUK WAH FIENNA t/a ACCU-TEK

Citation

SIN HUA BANK LTD. v. LEE YUK WAH FIENNA t/a ACCU-TEK
Court

Court of First Instance
Case number

HCA8075/1999

The defendant's account was not believable in the context of the surrounding undisputed commercial practices and contemporaneous documents; Topearn's directors knowingly gave false undertakings when endorsing the post-dated cheques, amounting to fraud, so there was no triable issue and the plaintiff was entitled to summary judgment as holder in due course.
15 Nov 2001

LIN HSIEN TSENG v. SO SIN MUI, BONNIE

Citation

LIN HSIEN TSENG v. SO SIN MUI, BONNIE
Court

District Court
Case number

DCCJ8790/2001

The court allowed the appeal and set aside summary judgment because a cheque is not itself a full contract but may be evidence of terms of an underlying contract; consequently the Parol Evidence Rule does not bar proof of conditional delivery and s.21 of the Bills of Exchange Ordinance permits evidence that delivery was conditional between immediate parties, entitling the defendant to a trial and leave to defend (subject to holder in due course exceptions).
29 Nov 2000

JINDAL EXPORTS LTD. v. WACO TRADING CO. LTD.

Citation

JINDAL EXPORTS LTD. v. WACO TRADING CO. LTD.
Court

Court of First Instance
Case number

HCA15404/1999

Summary judgment was refused because there were genuine triable issues of fact and law — notably entitlement to reject the goods (and thus total failure of consideration), whether a settlement discharged the bill, and whether the drawer could invoke rights as a holder in due course — which required resolution at trial; therefore unconditional leave to defend was granted.
15 Jun 2000

GENERALE BELGIAN BANK v. TSANG CHIU KIT AND ANOTHER

Citation

GENERALE BELGIAN BANK v. TSANG CHIU KIT AND ANOTHER
Court

Court of First Instance
Case number

HCA16544/1999

At the time of presentment the plaintiff was the endorsed holder and presented the cheque for payment; failure of consideration is not a defence against a holder in due course; the defendants' allegations (including cancellation of endorsement and subsequent possession of the cheque) were unproved and not credible; therefore defendants disclosed no arguable defence and the summary judgment in favour of the plaintiff was correctly entered.