Court Reaffirms Jurisdiction and Finds Good Cause to Vacate Charging Orders
Hilda Wong appeared for the applicant (“Tang”) in successfully vacating the registration of charging orders over a property (“Property”) in Re Tang Hoi Chun [2024] HKDC 143.
The Property was previously owned by two individuals, one of whom was a Mr Yau Tik Sunny (“Sunny”). American Express Bank Limited (“AE”) had previously obtained the charging orders against Sunny’s half share of the Property in 2002, shortly after the Property was sold to Tang. The charging orders were not re-registered.
Tang entered into an agreement to sell the Property in 2023, pursuant to which he had to vacate the charging orders before completion. When Tang’s solicitors wrote to AE’s solicitors requesting that they enter into a consent summons to vacate the charging orders and received no substantive reply, Tang applied by ex parte originating summons (“OS”) to vacate the charging orders.
Tang's solicitors subsequently notified AE and Sunny of the hearing of the OS. In response, AE acknowledged service and stated that AE had no objection to, or any submissions in respect of, Tang’s application and asked for their attendance to be excused. Sunny also had neither any objection to nor submissions regarding Tang’s application.
The Court found that the charging orders could and should be discharged for the following reasons:
(1) the Court has inherent jurisdiction to vacate registrations in the Land Registry upon “good cause” being shown;
(2) pursuant to the effect of section 17 of the Land Registration Ordinance, as the principles relevant to vacating prohibitory orders also apply to vacating charging orders; and
(3) “good cause” to vacate was shown by, inter alia, the charging orders ceasing to have effect and encumber the Property since they had not been re-registered, there being no conceivable issue or interest relating to re-registration that could arise given AE and Sunny’s positions, and any enforcement or execution proceedings on the charging orders are time-barred.
In light of the above, the Court made no order as to costs of the proceedings.
Link to judgment: https://lnkd.in/gcXpUXkb
Link to Hilda’s profile: https://lnkd.in/df3rtvpm
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