First Pacific Bank Ltd. v. Pena, Gregorio T

HCA004717/1999

HCA 4717/99

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 4717 OF 1999

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Coram: The Hon. Mr. Justice Sakhrani in Chambers

Date of Hearing: 21 October 1999

Date of Judgment: 21 October 1999

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J U D G M E N T

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1. This is an appeal against the decision of Mr. Acting Registrar C. Chan given on 20th September 1999 whereby he ordered that the Defendant do pay the Plaintiff (i) the sum of HK$168,702,100.88; (ii) daily interest of HK$60,085.68 from 7th January 1999 to the date of judgment and thereafter at judgment rate; and (iii) costs to be taxed on an indemnity basis.

2. The claim by the Plaintiff against the Defendant is on a guarantee executed by the Defendant in favour of the Plaintiff in respect of the indebtedness of the borrower, namely, Revodoor Hong Kong Ltd. On 7th January 1999, in a mortgage action under Miscellaneous Proceedings No. 5386 of 1998, Master Kwan ordered Revodoor Hong Kong Ltd. to pay the Plaintiff the sum of HK$168,702,100.88 and accrued interest in the sum of HK$4,199,064.54 secured by a mortgage dated 30th April 1997 and further interest payable on the sum of HK$168,702,100.88 at the daily rate of HK$60,085.68, subject to fluctuation, from 11th November 1998 to the date of judgment and thereafter at judgment rate until full payment.

3. The Plaintiff complains that Mr. Acting Registrar C. Chan omitted to give judgment for the accrued interest in the sum of HK$4,199,064.54. It is clear that the liability of the Defendant under the guarantee is to pay the sums owing by Revodoor Hong Kong Ltd. to First Pacific Bank. No dispute arises as to this. It is accepted by the Defendant that the order made by Mr. Acting Registrar C. Chan ought to be varied and in the circumstances, I allow the appeal.

4. The order of Mr. Acting Registrar C. Chan is varied and in its place it is ordered that the Defendant do pay the Plaintiff

(i) the sum of HK$168,702,100.88 being the principal sum;

(ii) the sum of HK$4,199, 064.54 being accrued interest;

(iii) daily interest of HK$60,085.68, subject to fluctuation, from 11th November 1998 to 7th January 1999 and thereafter at judgment rate until payment;

(iv) costs to be taxed on an indemnity basis.

5. As it has been agreed that there should be no order as to costs for the appeal, I make no order as to costs in respect of the appeal.

Representation:

Miss Joyce Chan Sze Ho of Messrs. Vincent T.K. Cheung, Yap & Co. for the Plaintiff.

Mr. C.Y. Wong of Messrs. Liu, Chan & Lam for the Defendant.