Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Equitable mortgage vs sale
  • 11 Aug 1994

    CHEANG KUOK SAM v. CHUI KIN WING

    Citation
    CHEANG KUOK SAM v. CHUI KIN WING
    Court
    Court of First Instance
    Case number
    HCMP1602/1993

    On the evidence the court found the transaction constituted an unconditional sale and purchase agreement, not an equitable mortgage or charge; although the loan was not proven to be a sham on the balance of probabilities, the Plaintiff and his solicitors knew of the Attorney's restraint order and deliberately failed to notify the Attorney in the ex parte application for the charging order, which was material non-disclosure; consequently the charging order nisi and absolute were discharged and the sale proceeds ordered paid into general revenue under the Drug Trafficking (Recovery of Proceeds)…