HCA 89/2020 and HCA 90/2020

[2024] HKCFI 1380

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO 89 OF 2020 AND ACTION NO 90 OF 2020

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(by Original Action)

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(by Counterclaim)

(Consolidated by the Order of Mr Registrar S. Kwang
dated the 27 ^th day of November 2020)

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J U D G M E N T

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Introduction

1. This is the consolidated trial of the plaintiff’s claims for the repayment of two loans against the 1 ^st defendant (“ D1 ”) and the 2 ^nd defendant (“ D2 ”) and D1 and D2’s counterclaim for a declaration that the Two Loan Agreements (as defined below) are unenforceable.

2. Pursuant to two loan agreements both dated 16 February 2015 (the Two Loan Agreements ”), the plaintiff (“ P ”) agreed to lend and D1 agreed to borrow RMB 80,000,000 (the “ Unit 17A Loan ”) and RMB 70,000,000 (the “Unit 17B Loan ”) (collectively the “ Two Loans ”) at a monthly interest of 1%. The date of repayment for the Two Loans was 28 August 2017.

3. Under the Two Loan Agreements, D1 is the borrower of the Two Loans and the registered owner of Unit 17B, Tower 1, Regence Royale, 2 Bowen Road, Hong Kong (“ Unit 17B ”). D2 is the registered owner of Unit 17A, Tower 1, Regence Royale, 2 Bowen Road, Hong Kong (“ Unit 17A ”) and is a guarantor of the Unit 17A Loan.

4. The Two Loans are secured by two second legal charges over the adjoining properties of Unit 17A (the “ Unit 17A Legal Charge ”) and Unit 17B (the “ Unit 17B Legal Charge ”) (together, the “ Legal Charges ”). Unit 17A is subject to a mortgage with Dah Sing Bank dated 7 October 2013 (with HK$37,000,000 being outstanding). Unit 17B is subject to a mortgage with Chong Hing Bank dated 25 September 2013 (with HK$35,800,000 being outstanding).

5. Although there is no dispute that the sums advanced pursuant to the Two Loans had been transferred to D1’s account, D1’s case is that the sums were immediately transferred to a third