SHUM TSUNG FAI v. CHIAP HENG CHENG (H.K.) LTD.

HCA 8941/1998

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 8941 OF 1998

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J U D G M E N T

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1. This is an action by the plaintiff landlord to recover arrears of rent and loss of rental income arising from the defendant's breach of tenancy agreement and the defendant's counterclaim for return of deposit. The plaintiff was neither present nor represented at the hearing. The plaintiff's claim is therefore dismissed.

2. The defendant's counterclaim is as follows. The defendant was the plaintiff's tenant and paid the plaintiff $140,000 as rental deposit. Upon the expiry of the lease on 31 July 1997, the parties agreed that the defendant may remain in occupation of the premises holding over on a month to month basis at a monthly rental of $66,000 and that such arrangement could be terminated by either party giving one month's notice. On 21 March 1988, the defendant's solicitor gave notice to terminate the arrangement on 30 April 1998. The defendant did not pay rent for the month of April. Despite repeated request, the plaintiff refused to return the deposit.

3. In the absence of evidence from the plaintiff, I am satisfied that the counterclaim has been proved on a balance of probability. Accordingly, I enter judgment in favour of the defendant on its counterclaim in the amount of $74,000 with interest at half judgment rate from 2 July 1998 until today and thereafter at judgment rate until payment, after giving credit to the arrears of rent for April 1998 due to the plaintiff. I also award costs to the defendant, to be taxed if not agreed.