Hong Kong Case Law: Decisions & Judgments

Topic

Trust receipt

Legal area

Court

2 Dec 2009

RE HANG FUNG JEWELLERY CO LTD

Citation

RE HANG FUNG JEWELLERY CO LTD
Court

Court of First Instance
Case number

HCCW503/2008

The Court held the cargo receipt constituted an attornment effecting constructive delivery and thereby completed a valid pledge in favour of the Bank over the 40 identified gold bars; although the cargo receipt would otherwise be an assurance of chattels (and thus a bill of sale), it fell within the statutory exception as a document used in the ordinary course of business as proof of possession or control of goods and therefore did not require registration; accordingly the pledge was valid and the Bank was entitled to apply the proceeds of sale to discharge the indebtedness. The Pledge and Tr…
26 Nov 2002

RE MAN KWOK SHING

Citation

RE MAN KWOK SHING
Court

Court of First Instance
Case number

HCB10375/2002

The court found no proven material variation: the sale proceeds remained trust money and the bank did not permit a variation that discharged the guarantors; alternatively, even if a variation occurred it fell within the wide protective scope of clause 3.05 of the Guarantee, so the guarantors were not discharged; accordingly the petitions succeeded and bankruptcy orders were made against each debtor.
26 Nov 2002

RE KWAN PAK HIN HENRY

Citation

RE KWAN PAK HIN HENRY
Court

Court of First Instance
Case number

HCB10380/2002

The court found no proved material variation: the proceeds remained trust money and the allegation that the bank permitted HF Foods not to account was unsupported and contradicted by the trust receipt terms; alternatively, even if variation occurred, clause 3.05 of the Guarantee was sufficiently wide to cover the indulgence/variation and keep the guarantors liable; trust receipt and overdraft facilities are distinct so any variation affecting trust receipts did not discharge the overdraft liability; accordingly the petitions succeeded and bankruptcy orders were made.
26 Nov 2002

RE LEUNG SIU CHUNG HENRY

Citation

RE LEUNG SIU CHUNG HENRY
Court

Court of First Instance
Case number

HCB10379/2002

The debtors failed to prove any material variation of the Facilities Letter; the alleged conduct was not established and, in any event, clause 3.05 of the Guarantee covered the alleged indulgence/variation so the guarantors were not discharged; expert evidence proffered without leave was inadmissible; trust receipt and overdraft facilities are distinct and any defect in the trust receipt part would not discharge liability for the overdraft; accordingly bankruptcy orders were made against each debtor.
18 Nov 1988

NANYANG COMMERCIAL BANK LIMITED v. LAM TIM FOOK t/a THE HONG KONG DAILY TRADING COMPANY AND ANOTHER

Citation

NANYANG COMMERCIAL BANK LIMITED v. LAM TIM FOOK t/a THE HONG KONG DAILY TRADING COMPANY AND ANOTHER
Court

Court of First Instance
Case number

HCA2665/1987

On the credibility of witnesses and the documentary record the court found the bank's evidence more probable and held the debt remained a US dollar debt until the bank fixed it into Hong Kong dollars on 8 February 1984 at the rate of 7.808, entitling the plaintiff to judgment for the calculated HKD sum with interest and credit for the guarantor's payment.
7 Jan 1988

HANG SENG BANK LTD v. CHAN FONG CHIU AND OTHERS

Citation

HANG SENG BANK LTD v. CHAN FONG CHIU AND OTHERS
Court

Court of First Instance
Case number

HCA3615/1984

The bank and its solicitors assumed the duty of explaining the mortgage to the chargors; that duty was inadequately performed and the mortgage on its true construction secured only a principal sum of $140,000, with $100,000 to be treated as applied to the bills facility (lower rate) and $40,000 to the overdraft; accordingly interest must be apportioned: $100,000 at the bills rate and $40,000 at the overdraft rate from 29 May 1984.
28 Oct 1985

CHUNG KHIAW BANK LIMITED v. WONG OI MING AND ANOTHER

Citation

CHUNG KHIAW BANK LIMITED v. WONG OI MING AND ANOTHER
Court

Court of First Instance
Case number

HCA13834/1983

The counterclaim failed because the defendants' pleaded case was contradicted by the contemporaneous documentary record and timeline, their material allegations were inconsistent and uncorroborated, the alleged contract and quota arrangements were not proved, and the court preferred the bank officials' evidence; accordingly plaintiff was entitled to judgment for the proven indebtedness and possession of the mortgaged property.
17 Jan 1983

THE CHARTERED BANK v. RAYMOND SINCLAIR ROMAINE O\'NEILL AND JAMES WILLIAM MIDDLETON t/a PESTEX PEST CONTROL CO

Citation

THE CHARTERED BANK v. RAYMOND SINCLAIR ROMAINE O\'NEILL AND JAMES WILLIAM MIDDLETON t/a PESTEX PEST CONTROL CO
Court

Court of First Instance
Case number

HCA8845/1981

On the balance of probabilities the court accepted the second defendant's sworn statements and conduct as evidencing an enforceable oral partnership formed in 1977, making the second defendant liable for the partnership debts to the Plaintiff.
24 Oct 1973

THE CANTON TRUST & COMMERCIAL BANK LTD v. HO PUI-SHUE AND OTHERS

Citation

THE CANTON TRUST & COMMERCIAL BANK LTD v. HO PUI-SHUE AND OTHERS
Court

Court of First Instance
Case number

HCA814/1969

In the absence of any indication by the debtor that particular lodgments represented proceeds of the goods covered by the Trust Receipt, the bank was entitled to treat those lodgments as available to reduce the debtor's overdraft and to appropriate them accordingly; accordingly the defendants who signed the Trust Receipt are liable to indemnify the bank for the unpaid principal and interest, and the guarantors under the Letter of Guarantee are liable for the guaranteed sum and agreed interest.