Resona Bank Ltd v. Lam Sie and Others

HCA11870/1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO.11870 OF 1999

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BETWEEN

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Before : Hon Tang J in Chambers

Date of Hearing : 5 November 2004

Date of Ruling on Interests : 14 January 2005

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RULING  ON  INTERESTS

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1.In my judgment dated 26 November 2004, the parties were required to make submissions on the appropriate interest rate within 14 days.  Submissions from the plaintiff were received on 8 December 2004.  There was then no submission from the 1^st and 2^nd defendants.

2.According to the plaintiff’s submissions, interests were payable in accordance with the agreed default rates, which were the contractual rates.  These rates were :

Banking Facilities	Agreed Default Rates
Advance Accounts	HK$ Prime Rate + 5%
Collection Advance	HK$ Prime Rate + 5%
Unpaid Export Bills	HK$ Bill Rate + 5%
Overdraft	HK$ Prime Rate + 5%
Pre-Export Loan	HK$ Prime Rate + 5%
Real Estate Loan	HK$ Prime Rate + 3.75% + 2% on each overdue instalment
HK$ Trust Receipt	HK$ Prime Rate + 6%

3.In paragraph 31 of the judgment I said :

“… I would give judgment in favour of the plaintiff :
	(1)	the sum of HK$23,466,877.66;
	(2)	the sum of HK$3,858,306.70;
	(3)	the sum of HK$6,284,484.12; and
	(4)	the sum of HK$926,700.18.”

4.However, the figures given in paragraph 31 included some interests.  For ease of calculation, I think it is preferable for the principal sums to be stated.  They are :

L.E. Garment Limited —

Banking Facilities	Principal Sums Due & Owing
Advance Accounts	HK$2,878,000.00
Collection Advance	HK$460,000.00
Unpaid Export Bills	HK$2,150,100.00
Overdraft	HK$8,699,380.10
Pre-Export Loan	HK$1,410,000.00
Real Estate Loan	HK$1,286,685.87
HK$ Trust Receipt	HK$2,982,000.00
Total	HK$19,866,165.97

Apace Knitting Factory Limited —

Banking Facilities	Agreed Default Rates
Unpaid Export Bills	HK$2,049,000.00
Real Estate Loan	HK$3,389,681.98
Total	HK$5,438,681.98

5.In respect of L.E. Garment Limited, interests calculated on the basis of the agreed default rate on the principal sums stated above, from 1 July 1999 up to the date of judgment, are :

Period	Daily Interest	No. of Days	Total
01/07/99 to 29/08/99	HK$7,054.75	60	HK$423,285.00
30/08/99 to 13/02/00	HK$7,190.82	168	HK$1,208,057.76
14/02/00 to 26/03/00	HK$7,326.89	42	HK$307,729.38
27/03/00 to 21/05/00	HK$7,462.96	56	HK$417,925.76
22/05/00 to 07/01/01	HK$7,735.10	231	HK$1,786,808.10
08/01/01 to 04/02/01	HK$7,462.96	28	HK$208,962.88
05/02/01 to 25/03/01	HK$7,190.82	49	HK352,350.18
26/03/01 to 22/04/01	HK$6,918.68	28	HK$193,723.04
23/04/01 to 20/05/01	HK$6,646.54	28	HK$186,103.12
21/05/01 to 02/07/01	HK$6,374.40	43	HK$274,099.20
03/07/01 to 23/08/01	HK$6,238.33	52	HK$324,393.16
24/08/01 to 18/09/01	HK$6,102.26	26	HK$158,658.76
19/09/01 to 03/10/01	HK$5,830.12	15	HK$87,451.80
04/10/01 to 07/11/01	HK$5,557.98	35	HK$194,529.30
08/11/01 to 12/12/01	HK$5,285.84	35	HK$185,004.40
13/12/01 to 06/11/02	HK$5,149.77	329	HK$1,694,274.33
07/11/02 to 22/07/03	HK$4,877.63	258	HK$1,258,428.54
23/07/03 to 23/09/04	HK$5,285.84	429	HK$2,267,625.36
24/09/04 to 16/11/04	HK$5,353.88	54	HK$289,109.52
17/11/04 to 26/11/04	HK$5,285.84	10	HK$52,858.40
TOTAL			HK$11,871,377.99*

* There is a slight difference between the total sum of HK$11,871,377.99 set out above and that stated in the table marked “Annex II” of HK$11,871,377.31 due to the rounding off of the daily interest for each period in the above table.

6.In respect of Apace Knitting Factory Limited, the interests accrued from 1 July 1999 to the date of judgment are as follows :

Period	Daily Interest	No. of Days	Total
01/07/99 to 29/08/99	HK$1,791.35	60	HK$107,481.00
30/08/99 to 13/02/00	HK$1,828.60	168	HK$307,204.80
14/02/00 to 26/03/00	HK$1,865.85	42	HK$78,365.70
27/03/00 to 21/05/00	HK$1,903.10	56	HK$106,573.60
22/05/00 to 07/01/01	HK$1,977.61	231	HK$456,827.91
08/01/01 to 04/02/01	HK$1,903.10	28	HK$53,286.80
05/02/01 to 25/03/01	HK$1,828.60	49	HK$89,601.40
26/03/01 to 22/04/01	HK$1,754.10	28	HK$49,114.80
23/04/01 to 20/05/01	HK$1,679.60	28	HK$47,028.80
21/05/01 to 02/07/01	HK$1,605.09	43	HK$69,018.87
03/07/01 to 23/08/01	HK$1,567.84	52	HK$81,527.68
24/08/01 to 18/09/01	HK$1,530.59	26	HK$39,795.34
19/09/01 to 03/10/01	HK$1,456.09	15	HK$21,841.35
04/10/01 to 07/11/01	HK$1,381.59	35	HK$48,355.65
08/11/01 to 12/12/01	HK$1,307.08	35	HK$45,747.80
13/12/01 to 06/11/02	HK$1,269.83	329	HK$417,774.07
07/11/02 to 22/07/03	HK$1,195.33	258	HK$308,395.14
23/07/03 to 23/09/04	HK$1,307.08	429	HK$560,737.32
24/09/04 to 16/11/04	HK$1,325.71	54	HK$71,588.34
17/11/04 to 26/11/04	HK$1,307.08	10	HK$13,070.80
TOTAL			HK$2,973,337.17

* There is a slight difference between the total sum of HK$2,973,337.17 set out above and that stated in the table marked “Annex II” of HK$2,973,340.88 due to the rounding off of the daily interest for each period in the above table.

7.So the judgment inclusive of interests calculated up to the date of judgment should be : principals of HK$19,866,165.97 and HK$5,438,681.98 plus total interests on the principals in the sum of HK$14,844,715.16.

8.Interests after the judgment shall be at the usual judgment rate.

Mr Sean H.J. Fang, instructed by Messrs Johnson, Stokes & Master, for the plaintiff