Full legislation
s.120AAZK
Limited liabilities of sub-tenant on termination of superior tenancy
(1)
This section applies
if—
(a)
a regulated tenancy for a subdivided unit is a sub-tenancy created out of
another tenancy;
(b)
the regulated tenancy is terminated because of the termination of a tenancy
superior to the regulated tenancy (
superior tenancy
);
and
(c)
the tenant of the regulated tenancy (
sub-tenant
) fails to
deliver up vacant possession of the subdivided unit on the date on which the
regulated tenancy is terminated (
termination date
).
(2)
Only the following person may recover as a civil debt from the
sub-
tenant the
compensation determined under subsection (3) (
compensation
) for the
sub-tenant’s failure to deliver up vacant possession of the subdivided unit on the
termination date—
(a)
the superior landlord who terminates the superior tenancy; or
(b)
if the superior landlord in writing waives the right to recover the
compensation—the landlord of the regulated tenancy
(
sub-landlord
).
(3)
The compensation is determined in accordance with the following
formula—
A = B × C
where—
A
means the compensation;
B
means the monthly rent payable by the sub-tenant under the regulated
tenancy for the subdivided unit immediately before the termination
date;
C
means the number of months covering the period commencing on the date
immediately after the termination date and ending on the date on which the
sub-tenant delivers up vacant possession of the subdivided unit
(
holding-over period
).
(4)
If the number of months covering a holding-over period is not an integer, it is
to be rounded down to the nearest integer.
(5)
The compensation recoverable by the superior landlord or sub-landlord must be
paid by the sub-tenant within 15 days after the date on which the sub-tenant
delivers up vacant possession of the subdivided unit.
(6)
The right (if any) of the superior landlord or
sub-
landlord under common law
rules or equitable principles to make further claims
against—
(a)
the sub-tenant; or
(b)
a surety or guarantor for the sub-tenant’s liabilities under the regulated
tenancy,
for the
sub-
tenant’s failure to deliver up vacant possession of the
subdivided unit on the termination of the regulated tenancy and trespass to land in
respect of the subdivided unit during the
holding-
over period is
abrogated.
(7)
Also, the right (if any) of the superior landlord or
sub-
landlord to make claims
against any other occupiers (who are residing with the
sub-
tenant in the subdivided
unit during the
holding-
over period)
for—
(a)
their failure to vacate the subdivided unit on the termination of the
regulated tenancy; and
(b)
their trespass to land in respect of the subdivided unit during the
holding-over period,
is abrogated.
(8)
Subject to subsection (9), despite
section 52A
of the High Court
Ordinance,
section 53
of the District Court Ordinance and
section
12
of the Lands Tribunal Ordinance, no order as to costs may be made in
favour of the superior landlord or
sub-
landlord (whichever is applicable) against
the
sub-
tenant in the following proceedings (
specified
proceedings
)—
(a)
proceedings commenced by the superior landlord to recover possession of the
subdivided unit;
(b)
proceedings commenced by the superior landlord or sub-landlord to claim the
compensation from the sub-tenant.
(9)
Subsection (8) does not
apply—
(a)
if the sub-tenant has conducted the sub-tenant’s case in the specified
proceedings in a frivolous or vexatious manner; or
(b)
in respect of the costs of any counterclaim made by the sub-tenant in the
specified proceedings.
(10)
Also, despite
section 48
of the High Court Ordinance,
section
49
of the District Court Ordinance and
section 12B
of the Lands
Tribunal Ordinance, no interest on all or any part of the compensation may be
included in the sum for which judgment is given in favour of the superior landlord
or sub-landlord (whichever is applicable) against the sub-tenant in the specified
proceedings.
(11)
In this
section—
District Court Ordinance
(
《區域法院條例》
) means the District Court Ordinance (
Cap. 336
);
High Court Ordinance
(
《高等法院條例》
) means the High Court Ordinance (
Cap. 4
);
Lands Tribunal Ordinance
(
《土地審裁處條例》
) means the Lands Tribunal Ordinance (
Cap. 17
);
superior landlord
(
上級業主
) has the meaning given by
section 120AAZJ(7)
.