XCHRX FOUR SEAS ELECTRICAL APPLIANCES LTD. v. SOUTH BOSS RESOURCES LTD. AND ANOTHER

1998, No. A16937

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 16937 OF 1998

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J U D G M E N T

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1. This is an application for leave to appeal out of time. On 22nd February 1999, Master Poon entered judgment in favour of the Plaintiff against the 1st and 2nd Defendants on an O. 14 application for the sum of $2,965,880.00 together with interest and costs.

2. The claim against the 1st Defendant for the said sum was in respect of dishonoured cheques drawn by the 1st Defendant in favour of the Plaintiff. The cheques were in payment of goods sold and delivered in August 1998.

3. The 1st Defendant was represented by solicitors at all times except for a short period. On 10th February 1999 the 1st Defendant filed a notice to act in person and at the hearing before Master Poon the 1st Defendant was not represented by solicitors. On 5th March 1999, the 1st Defendant's present solicitors filed a notice to act in these proceedings.

4. The application before me was issued on 1st June 1999. The notice of appeal should have been issued within five days after the judgment of Master Poon given on 22nd February 1999. There is a substantial period of delay. The affirmation of Lam To Ming does not provide any satisfactory explanation for this substantial delay in my view.

5. Further, I fail to see any merit in the proposed appeal against Master Poon's judgment.

6. It is trite law that cheques are to be treated as cash. They are to be honoured unless there is good reason to the contrary.

7. Two copy letters have been produced in evidence from customers of the 1st Defendant complaining about defects in some of the goods supplied. It has been pointed out to me that these complaints, even if valid, were only in respect of a portion of the goods sold and delivered. In the circumstances, there does not appear to me to be any arguable defence based on total failure of consideration of the cheques or any other defence. There is no merit in the appeal in any event.

8. In the exercise of my discretion, I dismiss the application with costs to the Plaintiff.