Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Construction of loan agreements

Legal area

Court

19 Dec 2022

HONG KONG SAI KUNG NGONG WO RESORT DEVELOPMENT LIMITED（香港西貢昂窩渡假村發展有限公司）v. TOTALCORP (NOMINEES) LIMITED

Citation

[2022] HKCFA 28
Court

Court of Final Appeal
Case number

FACV10/2022

There was no properly supported inferred agreement that capitalised interest to produce an effective rate above 60%. The Final Agreement retrospectively fixed the extension rate at 3.8% per month (45.6% p.a.), which did not contravene s24 Cap 163; and the rule in BS Lyle does not operate as a universal rule of law that every extension creates a new loan capitalising accrued interest. Consequently the charge and loan were enforceable and the appeal is dismissed.
17 Dec 2021

TOTALCORP (NOMINEES) LTD v. HONG KONG SAI KUNG NGONG WO RESORT DEVELOPMENT LTD

Citation

[2021] HKCA 1935
Court

Court of Appeal
Case number

CACV72/2020

Leave to appeal was refused because the proposed questions did not raise matters of great general or public importance: question (1) was premised on an assumed illegality contrary to the court's construction of a fresh loan; question (2) was fact-specific; question (3) was answered by concurrent findings and a statutory exemption making it academic; no exceptional circumstances justified leave under the 'or otherwise' limb; costs were awarded to the respondent.