Fok Lai Ying v. Governor in Council and Others
Read the full judgment text of HCMP 940/1996 on BabelCite. This High Court CFI judgment was delivered on 26 September 1996.
1. The Applicant Madam Fok Lai Ying ("Madam Fok") is the owner of a property in No.2 Ngau Pei Sha New Village, Shatin, New Territories (the Remaining Portion of Lot No.853 in DD No. 194, Shatin) ("the property"). The property consists of a three-storey house with an open space of about 2410 sq.ft. The property is used as a home by Madam Fok, her husband and their three children.
Cites 1 case
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HCMP000940/1996 1996, No. MP940 ------------------------ H E A D N O T E ------------------------ Judicial Review - Property owner challenged resumption of her property under Crown Land Resumption Ordinance on the ground that she had not been given prior notice of the resumption so as to enable her to make representations. HELD :
1996, No. MP940 IN THE SUPREME COURT OF HONG KONG HIGH COURT MISCELLANEOUS PROCEEDINGS --------------------
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--------------------- Coram : Hon Mr Justice Cheung in Court Date of hearing : 9 and 10 September 1996 Date of handing down judgment : 26 September 1996 ----------------------- J U D G M E N T ------------------------ The facts 1. The Applicant Madam Fok Lai Ying ("Madam Fok") is the owner of a property in No.2 Ngau Pei Sha New Village, Shatin, New Territories (the Remaining Portion of Lot No.853 in DD No. 194, Shatin) ("the property"). The property consists of a three-storey house with an open space of about 2410 sq.ft. The property is used as a home by Madam Fok, her husband and their three children. 2. By a notice published in the Gazette on 6th December 1995 ("the Notice") a portion of property was resumed under the Crown Lands Resumption Ordinance ("the Ordinance"). By letter dated 31st January 1996 the Director of Lands informed Madam Fok that 2,112 sq.ft. of the open space of her home was being resumed. The area affected was said to be agricultural land. Madam Fok is aggrieved by the decision and she lodged this judicial review to challenge the validity of the resumption. The challenge 3. The challenge is based on three grounds. Firstly, under the principle of natural justice. Secondly, the decision to resume her land was made ultra vires in that the resumption was not for a public purpose. Thirdly, the provisions of the Ordinance are contrary to Article 14 of the Bill of Rights. I will now deal with each of the grounds. Duty to act fairly 4. Madam Fok said that the resumption was against the principle of natural justice; she is entitled in law to know the particulars of the resumption and be afforded an opportunity to make representations before the decision to resume her land was made. 5. The classic origin of the requirement to hear a party is in Cooper v. Wandsworth Board of Works [1863] 14 CB (NS 180) in which the Board demolished a partly built house, without giving any opportunity to the builder to be heard in opposition to the demolition. Willes J. said at page 190
6. Administrative law has made great strides since that decision. More recently in R. v. Secretary of State for the Home Department, Ex parte Doody [1994] AC 531 which was concerned with a scheme that prisoners receiving mandatory sentences of life imprisonment may be released upon licence, Lord Mustill of the House of Lord stated that :
7. Challenge to the Ordinance on the ground of natural justice in fact was first raised In re an application by K.O.Y. Investment Co. Ltd. and Others [1983] HKLR 28 in which the Full Bench consisting of Mayo J. (as he then was), the late Hunter J. and Mantell J. dismissed an application for judicial review of a resumption order on the grounds that the owners of the property had not received notice of the intended resumption and natural justice had not been observed. It is with pleasant surprise that I revisit K.O.Y after 14 years. It is necessary to examine the reasons in K.O.Y. to see why the application was dismissed. Mayo J. at page 39 stated that :
8. Mr Philip Dykes, Counsel for the Respondents, submitted that he would refrain from relying on this particular reason. Development since K.O.Y., as illustrated by the case of Doody, clearly indicated that the duty to act fairly will often require that a person who may be adversely affected by a decision should have an opportunity to make representations on his behalf before a decision is taken. In the context of the Ordinance, this would necessarily involve giving the property owner prior notice and the right to make representations before the resumption is made. 9. Mayo J. also relied on s.9 of the Ordinance which provide that :
10. The learned Judge said that if the section was considered in the context of the Ordinance, it had the effect of excluding the type of claim which was made by the applicants in that case. Again Mr Dykes submitted that he would not be relying on this particular reason. It is clear that s.9 refers to action or suit for loss or damages sustained by the property owner. It does not exclude the supervisory jurisdiction of the court in determining whether procedural propriety was observed in the decision making process. Exclusion of duty to act fairly? 11. The real issue in this application is whether the right to be notified or make representation was excluded by the legislature when the Ordinance was enacted. Hunter J. was of the view that pointers were against a construction requiring prior consultation. He stated that :
The exclusion must be clear and express 12. Before one examine these factors it must be borne in mind that the Ordinance empowers the government to compulsory acquire the property of a person, although with payment of compensation. Other than matters of personal liberty, a person's ownership of a property and his right to deal with it in accordance in his wish must be one of the most important aspects of his well being. Without doubt, the Ordinance is one of the most draconian of our statutes. Clear and express indications must be present before one could say that the Ordinance excludes the requirement of notifying the land owner and of allowing him to make representations before the resumption is made. The requirement of notice is the minimum procedural safeguard before such a drastic action is being taken. In this regard it is worthwhile to note that under the Basic Law of Hong Kong, which will come into operation in less than 300 days, the right to private ownership of property is recognised and Article 6 expressly provides that the Hong Kong Special Administrative Region shall protect the right of private ownership of property in accordance with the law. It is also worthwhile to bear in mind what was said by the Court of Appeal in Chan Lau Fong and Others v. The Attorney General [1992] 2 HKLR 203 at 222 that :
These stringent requirements highlight the need for a clear and express exclusion. The factors Who to consult 13. The first reason relied upon by Hunter J.A. was that s.3 requires the Governor to consult the Executive Council and not anyone else. Section 3 states: "Whenever the Governor-in-Council decides that the resumption of any land is required for a public purpose, the Governor may order the resumption hereof under this Ordinance." 14. Similar argument was advanced in Doody by the Secretary of State that the prisoners may not be consulted. Criminal Justice Act 1967, s.61(1) states :
The Secretary of State argued that the consultation was to enable him to learn the views of the Judiciary and not to provide the prisoners with an opportunity to make representations. Nonetheless, the Court of Appeal and the House of Lords had no hesitation in affording the prisoners the right to make representations. This approach is readily understandable if the focus is on the individual who is directly affected by the decision. Lord Mustill at page 560 held that :
Once the focus is directed in this manner, it would naturally follow that the consultation is not limited only to the Executive Council but also to the property owner which is directly affected by the decision. Notice under the Ordinance 15. The second and third factors deal with the first notice to be given after the resumption. It is a fact that under the Ordinance the notice to the land owner is only required to be given after the resumption has been made. That, however, does not preclude the requirement of observing the rules of natural justice or duty to act fairly. It is precisely due to the absence of provisions relating to the giving of prior notice or enabling the party affected to make representation that common law develops the notion of natural justice or the duty to act fairly which is to be engraved to the decision-making process. The position is best put by Lord Bridge of Harwich in Lloyd v. McMahon [1987] AC 625 at pages 702 to 703 :
Valuation of compensation 16. In respect of s.11(1b) of the Ordinance which provides that :
17. In my view all that the section does is to provide a cut-off day for the valuation of the resume property. It has nothing to do with the duty to act fairly before the resumption. Decision final? 18. In relation to Hunter J.A.'s view that the decision was intended to be final and inviolate, by reference to s.9 and s.19, I have already expressed my view on s.9 earlier. S.19, states that:
Again the conclusive nature of the evidence would not preclude the operation of the duty to act fairly. Public policy consideration 19. The other factors are in respect of public policy, the difficulties of consulting all the owners and undesirable publicity consequences. It is clear that matters of public policy are involved in resumption of land. It is equally clear that public policy consideration would not necessarily mandate a scheme which precludes public consultation. This is well demonstrated by legislations such as the Town Planning Ordinance which contains resumption provisions under s.4(2) but nonetheless, provides for the public exhibition of draft plans and consideration of objections from members of the public (ss.5 and 6). Whilst it is recognised that the decision to publish the draft plans lies with the discretion of the Town Planning Board, the point is simply that public policy considerations can go hand in hand with the public being afforded the opportunity to be consulted and raise objections. A similar right to consult is set out in the Roads (Works, Use and Compensation) Ordinance which also gives the government the power to resume land for the purpose of road works. Again there are provisions for raising objections to published plan and scheme of road work. Actual consultation 20. Hunter J.A. stated that the requirement to consult may well involve consultation with more than the owners of one site; this would be approximate to the United Kingdom public enquiry type of system and it cannot be deemed to be implied or read into the Ordinance. 21. To deal with this issue, it is necessary to look briefly to the history of the matter. In about 1990 the government prepared a layout plan for the expansion of the To Shek, Chap Wai Kon and Ngau Pei Sha villages at Shatin. The purpose of the expansion was to provide sites for the construction of "small houses", that is, house sites for eligible indigenous villagers under the government's small house policy. A layout plan called L/ST 35/3 was finally approved on 28th January 1991. In order to carry out the scheme into effect would involve the resumption of land. Before the approval of this layout plan was made, the government consulted the representatives of the three villages, although not with Madam Fok. Thus, what actually took place was that the government, as is expected of an enlightened and responsible administration, did consult the views of the persons affected by the scheme. Hence, the problems envisaged by Hunter J.A. in his judgment are not real or insurmountable difficulties. Other considerations 22. Hunter J.A. also referred to the provisions in the lease to resume the land for any other public purpose on giving 3 months notice and the profits to be made out at the development of this site. There is no similar provision in the lease of Madam Fok and she is using the property as her home and the question of profit-making simply does not come in. The fact that two subsequent statutes contain provisions for notice and objection does not mean that the Ordinance must intend to exclude the right to be heard. One must look at the Ordinance itself to see if the exclusion is clearly or expressly intended. What the applicant seeks 23. In Bushell and another v. Secretary of State for the Environment [1981] AC 75, public local enquiry was held following objections to a scheme for the construction of motorways and roads. Lords Dipock approving of the judgment of Lord Greene M.R. in B. Johnson & Co. (Builders) Limited v. Minister of Health [1949 ] 2 All ER 393 stated that :
24. Mr Dykes also referred to Norwest Holst Limited v. Secretary of State for Trade [1978] 1 Ch 201 in which Ormrod L.J. emphasized that the ordinary principles of natural justice must be kept flexible and must be adapted to the circumstances prevailing in any particular case and that this rule is not to be used to frustrate the intention of the legislature. 25. In the present case, Madam Fok is not demanding an enquiry and she is not asking for an opportunity to argue her case. She is not seeking discovery of documents, examination of witnesses, or other evidence. 26. Her case is simply that (1) the government should inform her before the land is resumed and the area and location of the land proposed to be resumed and the proposed use of the resume land, (2) she be permitted to put in a submission in writing to be forwarded to the Executive Council, either in its original form or if the government deems it too lengthy, in a form edited by the government. The purpose is to let the Executive Council know her view. Right to be heard not excluded 27. Development of law in this area since K.O.Y. shows that the focus is on the right of the person affected by the decision and the presumption that administrative power must be exercised fairly generally requires the person who may be adversely affected by the decision to be given an opportunity to make representations. The circumstances in which it may be said that the legislature intends to exclude the right must be narrowly construed. Having regard to these, I come to the view that such a right has not been excluded by the Ordinance. I am unable to accept the reasoning of K.O.Y that the legislative intent is to exclude the need to hear the property owner who is directly affected by the resumption. The circumstances relied by the court are not clear or express indications of exclusion. I am unable to adopt the K.O.Y. decision. In so doing I bear in mind the caution of Goff L.J. (as he then was), in Regina v. Greater Manchester Coroner Ex parte Tal and another [1985] 1 Q B 67 about single judge departing from a decision of the Full Bench in the supervisory jurisdiction. 28. In my view Madam Fok ought to be notified of the intended resumption and that she ought to be given an opportunity to make representations to the Executive Council before the resumption. This has not be done, the requirement of fairness has not been observed and in so doing the resumption, in so far as it affects Madam Fok, ought to be quashed. Has the Applicant been heard? 29. Mr Dykes submitted that even if such a duty exists, Madam Fok's objection were noted by the Governor-in-Council and in the circumstances she was "heard" by the decision-maker. 30. I do not accept that the duty has been discharged. On 23rd November 1993, Madam Fok's former solicitors wrote to the District Land Registrar seeking information of the resumption. There was no reply. On 27th March 1995, Madam Fok's present lawyer requested the Clerk to Executive Council to bring notice to Members of the Council of the Applicant's objections when considering the resumption. It is said by Mr Ho Ting Yau of the District Land Office that there was an investigation on the feasibility of excluding the affected portion of the property from the resumption but the exclusion was considered impracticable. Without given details of the resumption, Madam Fok was just not able to make a reasoned representation of her case. She could only ask the Executive Council to note her objection without being able to present her case that, for example, it may be only part of the property needs to be resumed and not the whole. Without knowing her case, the duty to act fairly cannot said to have been discharged. Other Grounds 31. Having found that the duty to hear the Applicant exists and such duty has not been discharged, I will briefly deal with the other grounds of challenge relied by Madam Fok. Ultra vires 32. Mr Kwok submitted that the resumption was made ultra vires and not for a public purpose. The heading of the Notice published in the Gazette is as follows :
33. He accepted that under s.19 of the Ordinance it is sufficient to state in the Notice that the resumption is required for public purpose without stating the particular purpose for which the land is required and the conclusive nature of the Notice. However, he argued that as the purpose of the resumption was stated in the Notice, s.19 no longer applied. As the Applicant's property is already part and parcel of the Ngau Pei Sha New Village, resumption of her property does not increase the village area, hence the only public purpose as stated in the notice is unsustainable and the property was not resumed for public purpose. 34. I do not accept this argument. The body of the Notice actually contained the following :
The reference to the requirement for a public purpose in the Notice must activate the conclusive evidence provision of s.19. 35. In Chan Lau Fong and others v. The Attorney General, the respondent conceded that the conclusive evidence provision in s.19 did not apply if the Notice stated a particular purpose for the resumption. There is no similar concession in the present case. Clough J.A. in Chan Lan Fong stated that "by analogy with headings in a statute, it seems to us that a heading in a statutory notice may be used as a guide, albeit a brief and unexhaustive guide, in the interpretation of the meaning or scope of the operative provision of the Notice". 36. Mr Dykes drew my attention to s.18(3) of the Interpretation and General Clauses Ordinance which provides that marginal notes and section headings do not have any legislative effect and may not be used in the interpretation of statutes. Assuming such restrictions only apply to interpretation of statutes and not in relation to documents such as notices in the Gazette, the Notice actually stated that the Governor-in-Council decided that the properties were required for a public purpose. I agree with Mr Dykes' submission that the Governor-in-Council having decided that the resumption was for a public purpose but chose to describe that public purpose as resumption of land for village expansion area at Ngau Pei Sha New Village, then the description of the purpose does not detract from the fact that the resumption for a public purpose may be for any purpose of whatsoever description whether or not ejusdem generis with any of the purposes set out in paragraphs (a) to (c) of s.2 of the Ordinance which deals with the definition of resumption for a public purpose. Bill of Rights 37. The Applicant also argues that the statutory scheme of resumption is contrary to the provisions of Article 14 of the Bill of Rights. Article 14 is as follows :
38. In my view, Article 14 has no application to the present case: it does not include the right to hold and own property. Article 14 of the Bill of Rights is based on Article 17 of the International Covenant on Civil and Political Rights ("ICCPR"). It is clear from the General Comments of the Human Rights Committee that Article 17 of the ICCPR is intended to protect the privacy of the individual. This can be contrasted with Article 6 of the Basic Law and Article 1 of the Protocol No.1 of the European Convention on Human Rights which is in the following terms:
39. Mr Chong, counsel for the Applicant, addressed me on the judicial interpretation of "arbitrary" and "law" in cases such as Ex Parte Lee Kwok Hung [1993] 2 HKLR 51; R. v. Yu Yem Kin [1994] 4 HKC 75' Gillow v. United Kingdom 11 EHRR 335 Malone v. United Kingdom 7 EHRR14. 40. Mr Dykes accepted that the concept of "law" referred to in the Bill of Rights is something wider than the domestic law and encompasses a universal concept of justice. He, however, argued that the Applicant has not shown that the Respondents have acted unlawfully or arbitrarily. Having decided that there is a duty to act fairly under administrative law, it is not necessary for me to reach a concluded view that in the event Article 14 applies, whether the failure to give notice to the property owner amounts to an arbitrary or unlawful interference with her private rights. Conclusion 41. The Applicant has sought extensive remedies in her application but many were abandoned. In view of my decision, the only relief that is required in this case is a declaration that the order made by the 2nd Respondent for the resumption of the portion of the property of the Applicant was null and void. I shall grant liberty to the parties to apply for consequential orders that may be required. I shall grant costs nisi of the application to the Applicant. (P. Cheung) 42. Judge of the High Court Representation: Mr S.H. Kwok & Mr C.S. Chong inst'd by M/s Wong, Poon, Chan & Law, for Applicant Mr Philip Dykes inst'd by A.G.'s Chambers, for Respondents |
Cases cited in this judgment