CHINNEY SHUN CHEONG BUILDING SERVICES ENGINEERING LTD (formerly known as CHINNEY E & M (MAINTENANCE) LTD) v. LO KWAI FAN

HCMP 629/2023

[2024] HKCFI 1507

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO 629 OF 2023

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REASONS FOR DECISION

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1.  By this court’s order dated 13 June 2023, this court ordered in paragraph 4 that the plaintiff be at liberty to sell the subject property at a minimum price of HK$6,060,000 in the secondary market, without payment of the premium to the Housing Authority, or 7,340,000 in the open market on the assumption that the premium for removal of alienation restriction has been fully paid.

2.  The plaintiff recovered possession of the property through the bailiff on 20 December 2023.  In the same month, the plaintiff appointed estate agents to try and sell the property. However, five viewers considered the price of the property to be too high as not to even negotiate.  It appears that the market price of the subject property has dropped by more than 10 per cent since the order was made. This is reflected in the valuation report and the information obtained from the website of the Housing Authority.

3.  By the present summons, the plaintiff seeks to vary paragraph 4 of the order to the effect that the plaintiff be at liberty to sell the property at a reduced minimum price of $5 million in the secondary market or $6.27 million in the open market.

4.  I am satisfied that the court has jurisdiction to give the parties further directions to effect the sale of the property due to change of circumstances and under the liberty to apply clause in the order. See Lam Chok Lai v The Official Receiver and Trustee in Bankruptcy of Lam Chok Wai [2021] HKCFI 260, §18.

5.  I am satisfied from reading the report, from the same valuer who gave the valuation before the order was made, using the same methodology, that the prices to which the plaintiff now seeks to vary are in accordance with the valuation and the information from the Housing Authority’s website.  The defendant consented to this application in writing on 16 April 2024.  He asked to be excused from attending the present hearing.

6.  In exercise of my jurisdiction, due to the change of circumstances, ie drop in market value, I grant the order sought in the summons.  I therefore order that paragraph 4 of the order dated 13 June 2023 be varied to the effect that the plaintiff be at liberty to sell the property by either private treaty or public auction at a minimum price of $5 million in the secondary market (without payment of the premium to the Housing Authority)  or $6.27 million in the open market (on the assumption that the premium for removal of alienation restriction has been fully paid).

7.  I make no order as to costs of this application.