Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Redemption of encumbrances

Legal area

Court

25 Mar 2010

RE LIGHT TIME INVESTMENTS LTD

Citation

RE LIGHT TIME INVESTMENTS LTD
Court

Court of First Instance
Case number

HCMP332/2010

The one-stage approach is not permissible because s12A(2) grants a discretion that only arises upon payment into court under s12A(1); the court lacks jurisdiction to declare release before payment and must therefore order payment into court, notice/advertisement and then permit a s12A(2) application so as to preserve the encumbrancers' rights.
25 Mar 2010

RE LIGHT TIME INVESTMENTS LTD

Citation

RE LIGHT TIME INVESTMENTS LTD
Court

Court of First Instance
Case number

HCMP335/2010

The court held it has no jurisdiction to make a conditional declaration freeing land from an encumbrance before payment into court; the one-stage approach improperly defeats the statutory discretion under s12A(2). The correct course is to order payment into court under s12A(1), require advertisement to protect unknown mortgagees, and then permit a subsequent s12A(2) application for declaration after specified notice periods.