Read the full judgment text of HCMP 3041/2016 on BabelCite. This High Court CFI judgment was delivered on 27 January 2021 before Deputy High Court Judge William Wong SC.
Partition Ordinance – Order for Sale – Variation of Reserve Price – Market Conditions – Co-ownership – Costs – Nathan Road Properties – Social Unrest – COVID-19 Pandemic – Valuation Evidence – Burden of Proof – Adjournment – Open Market Sale – The Plaintiffs applied to vary an order for sale of three properties at Nathan Road made in 2018 with a reserve price of HK$525.89 million. Market conditions worsened due to social unrest and the COVID-19 pandemic, leading to failed sales attempts over two years. New valuation reports indicated the aggregate value of the Properties was approximately HK$265 million, and an offer of HK$280 million was received. The 2nd Defendant objected to the new price as too low but provided no evidence to support a higher valuation. The Official Receiver and the Bankrupt's estate beneficiaries had no objection to the application. The Court held it had jurisdiction to vary the reserve price under the Partition Ordinance Cap 352 s.6. The Court found the new reserve price appropriate based on market evidence and failed previous sales attempts. The Court rejected the 2nd Defendant's speculation on market rebound as no crystal ball exists. The Court held the 2nd Defendant had ample opportunity to obtain a valuation report but chose not to. The Court held further adjournment would cause prejudice to the Plaintiffs. Application granted. Sale to proceed pursuant to Tang Offer subject to open market requirement. Commission fixed at 1%. 2nd Defendant ordered to pay Plaintiffs' costs of Summons hearing on party to party basis. Official Receiver costs paid from proceeds.
Legal issues: Jurisdiction to vary sale order · Appropriateness of new reserve price · Objection by co-owner without evidence
Outcome: Application granted. Sale order varied to facilitate sale at new reserve price.
Cited by 2 cases · Cites 4 cases