XCHRX LO KIT SHUM AND OTHERS v. IP YUI SUN AND ANOTHER

HCA 8631/1999

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 8631 OF 1999

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J U D G M E N T

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1. This is an application for summary judgment, under Order 86 of the Rules of the High Court, for specific performance of an oral agreement made in March 1999 for the sale of a business, carried on in partnership by P1, P2 and P3, to D1 and D2. The oral agreement comprehended the grant to D1 and D2, by P1 and P2, of a tenancy of Unit B, 7/F Mai On Industrial Building, and a similar grant to D1 and D2 by P2, of a tenancy of Unit C. There are disputes between the parties as to whether any such oral agreement was concluded; as to the terms of any such oral agreement; and as to the extent to which, if any, the oral agreement (if ever concluded at all) has been performed by D1 and D2. These include disputes about one of the terms of the alleged oral agreement relating to the re-imbursement by D1 and D2 to P1, P2 and P3 of the deposits made by the latter with the electricity and water utilities; but the most important of these disputes appear to relate to the rent payable, and the term of the tenancy, of each of the units and as to the instalment payments to be made as to the balance ($400,000) of the purchase price ($900,000), of which $500,000 has been received by P1, P2 and P3 as a down payment.

2. The court cannot possibly investigate, let alone resolve, these disputes on an application under Order 86 of the Rules of the High Court, and the whole matter must be investigated at a trial. I will therefore give the defendants unconditional leave to defend the action; costs will be costs in the cause. I will give no further directions at this stage, since I am told the plaintiffs may wish to amend the statement of claim.