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HCMP559/2025
In the Matter of the properties known as (i) The Whole First Floor, Second Floor and Third Floor, No. 13, 15, 17 and 19 Chung On Street and Nos. 38-40 Shiu Wo Street... and In the Matter of Order 88 Rule 1 of the Rules of the High Court, Cap. 4A BETWEEN The Hongkong and Shanghai Banking Corporation Limited AND Yeung Fuk Kwong & Others
Case Details
Case ReferenceHCMP559/2025
CourtCourt of First Instance of the High Court 高等法院(原訟法庭)
Date Published2026-03-20
LanguageEnglish
NCN[2026] HKCFI 1608
Claimant / ApplicantThe Hongkong and Shanghai Banking Corporation Limited
Defendant / RespondentYeung Fuk Kwong, Young Fuk Ki Sarena (Executrix of Estate of Suen Wan Yuk), Everin (Hong Kong) Limited, New Loyal (Hong Kong) Limited
JudgesMr Recorder William Wong, SC
Claimant CounselMr Lau
Defendant CounselMr Wong SC
Defendant SolicitorsChristine F.L. Ip & Young
Judgment Summary
Facts
- •TWDF borrowed facilities secured by Defendants' properties.
- •Outstanding liabilities were approximately HKD 445 million as of April 2025.
- •Bank demanded repayment in July 2023.
- •Defendants alleged oral representation contradicted written terms.
- •1st Defendant affirmed terms in Facility Letter-8 despite alleged knowledge of restrictions.
Issues
- •Enforcement of mortgages under Order 88.
- •Validity of misrepresentation and mistake defenses.
- •Breach of duty of good faith in demanding repayment.
- •Effect of 'no set-off' clauses on cross-claims.
Outcome
- •Defenses of misrepresentation and mistake dismissed.
- •Defense of breach of good faith dismissed.
- •Bank granted enforcement of mortgages.
- •Defendants to pay Outstanding Liabilities.
- •Defendants to deliver up Mortgaged Properties.
Implication
- •Written terms prevail over oral representations.
- •Affirmation bars rescission.
- •No set-off clauses block cross-claims against mortgage debt.
- •Banks may demand repayment without specific default events if contract allows.
Laws & Authorities Cited
- §Rules of the High Court, Cap. 4A, O.88 r.1
- §HSBC v King Wai Pieces Good Company Limited [2025] HKCFI 1371
- §Habib Bank Zurich (Hong Kong) Ltd v Tee Vee Brands International Ltd [2025] HKCFI 2100
- §But Ka Chon v Interactive Brokers [2019] 4 HKLRD 85
- §Have Result Finance Ltd v Chan How Chung Victor [2025] HKCFI 2611
- §Wong Ling Pan v Team Building Ltd [2021] HKCFI 336
- §DBS Bank (Hong Kong) Ltd v Honour Elite Corporation Ltd and Another [2026] HKCFI 401
- §CCMD Overseas Ltd v Sinom Investments Ltd [2025] HKCA 678
- §Woodeson v Credit Suisse (UK) Ltd [2018] EWCA Civ 1103
- §CF v SHK [2024] 5 HKC 303
- §Chitty on Contracts (36th Ed)