POLYSET LTD. v. PANHANDAT LTD.

Court:Family Court (Hong Kong)
Judgement Number:FACV28/2000
Judgment Date:25 Apr 2002
FACV000028A/2000 POLYSET LTD. v. PANHANDAT LTD.

FACV000028A/2000

FACV No. 28 of 2000

IN THE COURT OF FINAL APPEAL OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

FINAL APPEAL NO. 28 OF 2000 (CIVIL)

(ON APPEAL FROM CACV NO. 70 OF 2000)

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Between:
POLYSET LIMITED Appellant
AND
PANHANDAT LIMITED Respondent

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Court: Mr Justice Bokhary PJ, Mr Justice Chan PJ, Mr Justice Ribeiro PJ, Mr Justice Litton NPJ and Lord Millett NPJ

Date of Determination: 25 April 2002

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D E T E R M I N A T I O N

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Mr Justice Bokhary PJ:

1. The determination of the Court on interest and costs will be given by Mr Justice Ribeiro PJ.

Mr Justice Ribeiro PJ:

2. Two questions were raised in the appeal. The first was as to whether the appellant, a purchaser under a contract for the sale and purchase of land, was entitled to rescind the agreement. The second was whether, if not, the respondent vendor was entitled to forfeit sums paid by way of deposit and part payment equivalent to 35% of the purchase price. The courts below had answered the first question negatively and the second affirmatively. This Court, with one member dissenting, allowed the appeal to the extent of holding that the answer to the second question should also have been "No".

3. The respondent was accordingly entitled to damages for breach of the contract (assessed by the trial judge at $33 million) but ordered to return the excess received by way of deposit and part payment. At the hearing of the appeal, the excess amount was taken to be $7.25 million. The parties now agree that this involved an arithmetical error and that the correct sum is $6.55 million.

4. This Court made an order nisi that each party should bear its own costs here and in the Court of Appeal. The parties were also directed to consult together with a view to agreeing the period and rate of interest payable on the amount ordered to be repaid with liberty to file written submissions for the Court's determination in the event of disagreement.

5. Such written submissions have now been received regarding the period and rate of interest payable and also as to whether the trial judge's award of 80% of the costs of the action in favour of the respondent should be varied in the light of the conclusions reached by this Court.

6. The appellant contends that it should be awarded interest at prime rate plus 1% on the $6.55 million sum as from 29 April 1998, the date when it started proceedings to recover the deposits. It also argues that the trial judge's award of 80% of the costs of the action, upheld by the Court of Appeal, was wrong...

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