National Resources Capital Ltd v. Lo Yuen Fong and Another

DCCJ 775/2010

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO. 775 OF 2010

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Coram : H.H. Judge E. Yip in Chambers

Date of Hearing : 18^th May, 2010

Date of Reasons for Decision : 18^th May, 2010

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Reasons for Decision

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1.The Plaintiff was a licensed money-lender. It had lent money to the respective Defendants, who failed to repay. The Plaintiff obtained judgment in default. The Master made an order, among others, that the Defendants were to pay interest on the outstanding loans at judgment rate from the date of judgment until full payment. The Plaintiff appeals such order, on the basis that interest between the date of judgment until full payment shall be at 27% per annum, namely the contractual rate according to the loan agreements.

2.The instance of interest on judgment sum and its rate are discretionary awards.  In the present instance, the 27% interest sought by the Plaintiff is based on the loan agreement which stipulates, at clause 2, as follows:

…[T]he borrower shall pay to the lender the interest at the rate described in the paragraph (b) of the First Schedule hereto from the date of Judgment in any proceedings instituted by the lender for recovery of any or all sum due unpaid by the borrower until the date of full payment of that sum.

3.It is a contractual term accepted by both the lender and the borrower.  There is nothing to suggest that such a clause shall not be given full effect.  The discretion has to be exercised in favour of allowing interest on judgment sum to run at 27% per annum until full payment.  I allow the Plaintiff’s appeal.

4.The Plaintiff has addressed me on costs.  I order no costs today. 

Ms. CHAN Pui Yin Gloria, of M/s. Gloria Chan & Co. for the Plaintiff

1^st Defendant (LO YUEN FONG), in person, absent.

2^nd Defendant (TANG YIU FAI BENJAMIN), in person, absent.