Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Hypothecation

Legal area

Court

9 Mar 2022

BINCHUANG RESOURCES CO., LTD v. LOCKWOOD GROUP LTD AND ANOTHER

Citation

[2022] HKCFI 739
Court

Court of First Instance
Case number

HCA2167/2019

The court found on the balance of probabilities that the 1st Defendant breached the loan agreement by failing to advance the loan and by transferring and causing disposal of the pledged shares absent any event of default; the Portfolio Protection Arrangements proviso did not justify the transfers on the evidence; the 1st Defendant had no arguable defence to the breach of contract claim; accordingly an interim payment under O.29 r.11 was justified and the court exercised its discretion to order payment of 75% of the assessed value of the shares (HK$72.54 million) being HK$54,405,000 payable wi…
15 Oct 1984

UNION BANK OF HONG KONG LTD v. CHAN KONG t/a THETA INDUSTRIES CO AND ANOTHER

Citation

UNION BANK OF HONG KONG LTD v. CHAN KONG t/a THETA INDUSTRIES CO AND ANOTHER
Court

Court of First Instance
Case number

HCA11179/1983

The Bank lawfully acquired the bill (or at minimum an equitable security) by virtue of the application to negotiate together with the letters of hypothecation; accordingly the Bank was entitled to credit US$10,000, dispatch the bill for collection, apply that credit to outstanding trust receipts and to realize security when the bill was dishonoured; the 2nd Defendant is liable under the guarantee. The 1st Defendant's counterclaim is dismissed.