Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Auction of secured assets

Legal area

Court

28 Jun 2013

HUA NING INDUSTRIES LTD v. BEST LEADER ENGINEERING LTD

Citation

HUA NING INDUSTRIES LTD v. BEST LEADER ENGINEERING LTD<br>
Court

Court of First Instance
Case number

HCA1801/2008

The court rejected defendants' implied term and assignment defences, accepted plaintiffs' evidence that no valuable equipment was removed and that the auction was conducted fairly, found no evidence of prejudice to guarantors or diminution of security value and denied amendment raising new cheque defences; judgment entered for Hua Ning for $28,537,236 and for Mr Chan against Mr Sze and Best Leader for $3,569,551.23 with specified interest and costs orders.
28 Jun 2013

CHAN KA MING v. SZE KUNG YEE AND ANOTHER

Citation

CHAN KA MING v. SZE KUNG YEE AND ANOTHER
Court

Court of First Instance
Case number

HCA215/2009

The court found no implied pay-when-paid term in the Cooperation Agreement or Rental Agreements because the criteria for implication were not met; there was no effective assignment of rental debts; Mr Chan did not remove valuable assets and the auction was conducted openly by an independent auctioneer so no prejudice to guarantors was proved; absent expert valuation evidence the defence that guarantors were discharged failed; consequently judgment was entered for Hua Ning for rental arrears and for Mr Chan against Mr Sze and Best Leader for the adjusted loan amount plus interest and costs.