15 Jan 2024
OCEAN ALLIED FINANCE LTD v. SZE, LILY
- Citation
- [2024] HKDC 86
- Court
- District Court
- Case number
- DCCJ2977/2021
The retained HK$165,000 was properly treated as prepayment of six months' interest and must be disregarded from the principal under s2(3) MLO; the defendant failed to prove that the intermediary was the plaintiff's agent or that the plaintiff colluded with the intermediary; accordingly the effective interest rate is HK$330,000/(HK$1,100,000−HK$165,000)=35.3% which is lawful, so the agreement is enforceable and the plaintiff is entitled to judgment for the principal plus interest at 30% p.a. from 21 April 2021.