Man Kam Tong v. Man Lin Tai
Read the full judgment text of HCA 5478/1981 on BabelCite. This High Court CFI judgment was delivered on 29 February 1984.
1. This case has underlined a sad and serious deficiency in the registration of titles in the New Territories. The plaintiff appears to possess a clear and unqualified paper title to Lot 3954 in Demarcation District (D.D.) 104. The defendant likewise appears to possess a clear unqualified paper title to Pok Wai Village House Lots 114, 125, 143 and 144 (the house lots). The plaintiff is able to point to the Land Office Map of D.D. 104 as showing the original boundaries of Lot 3954, and by this a
Cited by 3 cases
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HCA005478/1981 No. 5478 of 1981 Claim by apparent title holder of rural lot to possession of land in occupation of defendant. Defendant held paper title to house lots, but no means of identifying these house lots on the ground. Held:
Observations on inadequacy of present system of registration of titles and suggestions for its improvement. No. 5478 of 1981 IN THE SUPREME COURT OF HONG KONG HIGH COURT ________ BETWEEN
________ Coram: The Hon. Mr. Justice Hunter. Dates of Hearing: 26, 27, 30, 31 January., 1, 6 to 10 February 1984 Date of Delivery: 29 February 1984 ___________ JUDGMENT ___________ 1. This case has underlined a sad and serious deficiency in the registration of titles in the New Territories. The plaintiff appears to possess a clear and unqualified paper title to Lot 3954 in Demarcation District (D.D.) 104. The defendant likewise appears to possess a clear unqualified paper title to Pok Wai Village House Lots 114, 125, 143 and 144 (the house lots). The plaintiff is able to point to the Land Office Map of D.D. 104 as showing the original boundaries of Lot 3954, and by this action claims possession of that area. The problem is that this area now includes part of the house occupied by the defendant and now known as 91A Pok Wai Village. 2. The site of this house is what the defendant thought she bought in 1971 when she took a transfer of the House Lots. It is certainly the property she has considerably improved and occupied ever since. But her paper title proves on investigation to be illusory. There is no Pok Wai Village House Lot map, nothing to give location and reality to the House Lots she owns. If, as I think, such a House Lot Map must have been created by the orginal survey team in 1905, it has long since disappeared. It may well have been a casualty of the war. An attempt to reconstruct it during the 1960s was abandoned; apparently because it was thought to be too complex or perhaps creative of disputes. 3. Be that as it may, the present position as revealed in this case, where house lots conflict with rural lots, could hardly be more unsatisfactory. A system of land registration is intended to be simple, clear and certain. It is intended to ease conveyancing. Especially in the New Territories, where I understand professional assistance to be the exception rather than the rule, it is intended to be operated by the parties themselves. It was so operated here. But this system has form and no substance. It gives a deceptive appearance of certainty without the essential reality. It "sold" to the defendant not in defined area of land, but the strain and expense of a law suit. It has taken ten days detailed evidence, much of it from the elders of the village and dependent upon mature memories, to determine what the relationship on the ground is between Lot 3954 and the house lots. As landlord and as keeper of the register the Crown can surely do better than this: it can hardly do worse. 4. Pok Wai Village was originally surveyed in 1905 by surveyors from India. Their handiwork shows:
Titles 5. The titles of both parties therefore stem from Man Cheung Hing who was the plaintiff's grandfather. He died in 1911, and all the lots then passed to his two surviving sons Man Tim Yau: and Man Muk Tim who was the plaintiff's father and whom I shall call "father". Man Tim Yau died in 1918, and his share passed to his two sons Man To Lam.(Man T.L.) and Man Chuk Kan (Man C.K.). The holding of the senior surviving members of this branch of the Man family, namely father, Man T.L. and Man C.K. then comprised:
6. The split came in 1934. On 13th October 1934 father, Man T.L and Man C.K. mortgaged the four house lots to one Mok Ping. The Defendant's title stems from this transaction. The succeeding steps were:-
7. Lot 3954 remained in the Man family. Between about 1942 and 1948 father, Man T.L., Man C.K. and the plaintiff's mother and two elder brothers all died. Only the plaintiff, and his elder brother's wife, Madam Tang survived. There was considerable delay in making the necessary entries in the Register. On 20th November 1957 the plaintiff is shown as succeeding to the one-third shares in Lot 3954 of father and Man T.L. On 14th April 1981 he has shown as succeeding to the one-third share of Man C.K., as to 50% of this as trustee for his children. The nature of these transfers was such that they gave no occasion for any one to consider precise boundaries. 8. The plaintiff now claims possession of Lot 3954. To this the defendant raises two defences namely: -
1. Paper Titles 9. On the original D.D. 104 map, the presence of, houses in Pok Wai Village was shown conventionally by rectangular squares with diagonal hatching. These markings from their nature and location plainly relate to blocks of houses and to housing sites, not to individual houses. At some time similar hatched blocks appeared on D.D. 104 super-imposed on rural lots. When and by whom these entries were made, and with what accuracy they were surveyed is unknown. That they too were indicative of housing sites, can reasonably be inferred from the similarily in style to the village entries, and to the fact that they are to be found where old houses exist. 10. The effect of these entries is well illustrated by what has happened on a site situated immediately across the road way from the disputed site. On the original D.D. 104 there is here shown a large lot numbered 3951. Upon this there has been super-imposed a hatched rectangle. Within the area of this rectangle exist at least three house lots, numbers 90, 89, 126. From the evidence I have heard from their occupants and the documents of title produced it is apparent:-
The conclusion seems to be inescapable that in or after 1905 these house lots were carved out of the totality of Lot 3951. This was no doubt sensible and convenient. It may well be that their existence and approximate boundaries were then recorded on some Town Lot Map. What is remarkable is that no corresponding qualification seems to have been recorded on the title to Lot 3951, which still carries the appearance of extending to the whole of the lot as originally drawn. 11. At some unknown date a hatched square appeared on D.D. 104, super-imposed in the areas of Lots 3953 and 3954. It is also on the 1970 tracing of the original map. Since the war a complete aerial survey has been undertaken, supplemented by work on the ground. This was the basis first, of C-91-NE-D (the 1961 map) drawn in 1961 to the imperial scale of 1 : 1200; and secondly of 2-SE-21-D (the 1978 map) drawn in 1978 to a metric scale of 1 : 1000. These, and two aerial photographs taken in 1949 and 1967 respectively are all reliable evidence as to what existed on the ground at these dates. Surveyors on both sides have collated the information from these sources. They have enlarged both to a scale of 1 : 200. It is noteworthy that this involved an enlargement of the original D.D. 104 map of nearly 20 times. They have collated the apparent boundaries derived from these sources with the existing structure. The most useful drawings are exhibits D5, D6 and D7. These show that both the hatched area on D.D. 104 and the defendant's present site cover a substantial part of the original Lots 3953 and 3954. 12. The presence of this hatched square raises a strong suspicion that house lots were at one time carved out of the area of Lots 3953 and 3954. But it tells us nothing about the identities of these lots: and little about their precise boundaries. The problem is to identify on the ground the area of land in fact conveyed away by the Man family in 1937. For this purpose these documents have to be considered in the light of the history of the site i.e. the approximate area of Lots 3953 and 3954, as given in evidence. 13. As to this, my findings of fact upon the evidence which I have heard are as follows:
14. It is impossible on the available evidence to write the history of these house lots and of their relationship with Lots 3954 and 3953. It is sufficient for the purposes of this action to find, as I do, that in 1937 the area of the four house lots conveyed and intended to be conveyed by the sale of 8th June 1937 was identical to the site originally defined by Sin Shu Hing and the site now occupied by the defendant. It follows that whatever interest the plaintiff retains under his title to Lot 3954, this interest gives him no right to possession of any of the land now in the plaintiffs occupation, and his claim for possession against her must fail. 2. Possessory Title 15. As this matter was fully argued and the case may go further it is right that I should deal with it. 16. At the outset I shall consider two particular points taken by the plaintiff. The first was that in any event there was no proof of continuous adverse possession because Sin Shu Hing was dispossessed by Sit and Chau as a result of the knitting factory incident. This fails on my findings of fact. Sit always remained Sin's custodian: there was no dispossession; and no animus possidendi as owner in either man. 17. The second point is more substantial, and is that the possession of Sin and of the defendant should not be regarded as adverse within the meaning of the Ordinance. The plaintiff, it is said, in and after 1947 had no immediate use for the property because he could not afford to repair it. This situation continued until well into the limitation period. The land was thus akin to development land and the possession of Sin and the defendant should be treated as being pursuant to a licence from the plaintiff. I was invited to follow the view expressed allegedly to this effect by Lord Denning M.R. in Wallis's Cayton Bay Holiday Camp Ltd. v. Shell-Mex and B.P. Ltd. 1975 Q.B. 94 because no corrective legislation existed in Hong Kong similar to section 15(6) and paragraph 8(4) of schedule 1 of the U.K. Limitation Act 1980. 18. This problem arises out of a line of authority in England dealing with the relevance of the paper title holder's intentions to a claim to a possessory title. It goes back at least to a decision of the Court of Appeal in Leigh v. Jack (1879) 5 Ex.D 264 where Bramwell L.J. said:
This principle was approved and followed by the Court of Appeal in Williams Brothers Direct Supply Stores Ltd. v. Raftery Ltd. (1958) 1 Q.B. 159. There the paper title holder's plans for development had been frustrated first by the war and then by a refusal of planning permission. Acts of user of the soil by the claimant by cultivation and the keeping of grey-hounds, with no attempt physically to exclude the true owner, were held not to amount to dispossession. It is noteworthy that almost by definition this principle is dependent upon proof of two factual situations namely:-
19. It does not apply unless both are proved. For example, manifest exclusive physical possession by fencing or otherwise is likely to be held inconsistent with any future purpose. These cases were again cited with approval by the Court of Appeal in Tecbild Ltd. v. Chamberland (1969) 20 P.CR 633. 20. The matter came before the Court of Appeal again in Wallis's case. It was another case of frustrated development. The petrol company could not erect its garage until the road went in. In the meantime the claimant farmed the surface. By a majority the Court found against the claimant. Lord Denning first summarised the effect of he authorities along traditional lines p.103C. He emphasised that the Act required adverse possession, and that acts of user not inconsistent with future intentions did not constitute dispossession. But unfortunately, as were the greatest respect I feel bound to say, he went on to suggest that the reason behind this rule was some imputed licence. Ormrod L.J. also made reference to a licence in a passage starting at p.116G. But as I read his judgment this was in a very different way and for a very different purpose. He also formulated the test on traditional lines. His reference to a licence was his means of testing the validity of his factual conclusion under my above head (2), that the claimant's user was in fact trivial and not inconsistent with future development. I cannot detect in this judgment any attempt to qualify or alter the formulation of principle or to engraft any licence requirement onto it. 21. Next came Treloar v. Nute (1977) 1 All E.R. 230 in the Court of Appeal. In giving the judgment of the Court Sir John Pennycuick referred again to this rule in traditional terms describing it as "one special type of case". He cited the traditional part of Lord Denning's re-statement in Wallis's case and added words to the effect that he did not think Lord Denning intended to extend or enlarge the principle. 22. If the matter had stopped there one would have had an unbroken line of authority extending over five decisions of the Court of Appeal, with obiter additional observations from Lord Denning. But the matter came before the Court of Appeal again in Gray v. Wykeham-Martin (unreported) Court of Appeal (Civil Division) transcript No. 10A of 1977. This case was referred to by Slade J. in Powell v. McFarlane and Another (1971) 39 P.CR. 452. I know no more about this unreported decision than what we are told by Slade J. From this it appears that in Gray the Court of Appeal found the Wallis and Treloar decisions to conflict; disapproved Treloar as being too narrow; and approved a view of Wallis which treated Ormrod L.J.'s judgment as dependent upon a hypothetical licence. Not surprisingly perhaps therefore, Slade J. felt bound to conclude that the need for a licence was part of the ratio of Wallis's case. Upon the advice of the Law Reform Committee (Cmnd. 6923) Parliament intervened apparently with the express object of restoring the authority of Sir John Pennycuick's judgment in Treloar. 23. In my judgment we can reach the same conclusion by a shorter route and without legislative assistance. We are free to choose. For my part I would have no hesitation, if a conflict really exists, in preferring Treloar and the earlier authorities to Wallis's and Gray. If I should happen to be right upon my reading of Ormrod L.J.'s judgment in Wallis's, the choice between the earlier authorities and Gray is even simpler. 24. Directing myself in this way the issue of possessory title is simple on my findings of fact. The plaintiff gave no evidence suggesting any special or peculiar use for this property. It is, and always was, when it was in repair, residential. When it fell out of repair it was used for animals. Both classes of user are quite in consistent with any potential contemplated future user by the plaintiff, and having regard to the enclosed nature of the site to any user by the plaintiff at all. The possession in succession of Sin and of the defendant was therefore of a quality sufficient to be adverse within the meaning of the Ordinance. 25. Secondly, I would if necessary have concluded that the plaintiff also discontinued his possession. Again in the words of Bramwell L.J. in Leigh v. Jack "the smallest act" is sufficient to negative discontinuance. It seems to me here that the plaintiff did not even do that. 26. It follows that the defendant's defence of possessory title also succeeds. I will hear counsel further upon the consequences, but my present view is that it would not right to grant the defendant any of the declarations sought in the counter-claim. The owner of Lot 3953 is not before the Court. In his absence I cannot grant any declaration which apparently affects his Lot, or purports to determine the true boundary between Lots 3953 and 3954. My present view is that my conclusion under this head leads to no more than the dismissal of the plaintiffs claim. 27. A final word about the future. No one could have listened to the evidence in this case, and watched the concerned faces of the litigants, without being appalled by the hollowness of the documents of title and the cruel mockery which is the present system. There was a hint in the evidence that the problem has simply been ignored as too difficult to solve. I must reject that as incredible and assume that the search for ways and means to improve the system continues. I would like therefore to add two things, which I hope may assist this process. 28. First I recognise that the risk of appearing to be involved in the determination or provocation of disputes may have been a deterrent. But this could I think be met by a policy of recording what is clear and noting the ambiguous. It is difficult to see what objection there could have been in the 1960s, or now, to the publication of a reconstructed Town Lot Map giving numbers to all lots where inquiry on the ground revealed defined undisputed boundaries and matching paper titles. In every other case suitably worded warnings or caveats could have been noted on titles where appropriate. This would have avoided the false sense of security the present system gives. In particular it would warn newcomers e.g. potential buyers or mortgagees of the unreliability of the paper and the need to take special precautions. 29. Secondly it may be helpful to record the specific steps or precautions which could materially have assisted the parties here. They are:-
Representation: Thomas Lai instructed by M/s Rowdget W. Young & Co. for Plaintiff. Paul Wei instructed by M/s Lawrence T.S. Ong & Co. for Defendant. |
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