Hong Kong International Credit Ltd v Registrar of Titles

The case before the court was an application by Hong Kong International Credit Ltd to extend a caveat lodged over certain property and for an injunction restraining the sale proceeds of the property. The Registrar of Titles opposed the application on the basis that the caveat had been lodged without proper grounds and that an injunction would cause significant prejudice to the purchaser. The court was required to determine whether the caveat should be extended and whether an injunction should be granted.

The court found that the caveat was not supported by proper grounds, as the applicant had failed to disclose a material fact which undermined the basis of the claim. The court held that the applicant had a duty to make full disclosure to the court, and that failure to do so could result in the caveat being disregarded. The court also found that the balance of convenience favoured the Registrar of Titles, as the injunction would cause significant prejudice to the purchaser who had acted in good faith and without notice of the caveat. However, the court was satisfied that the applicant had provided an undertaking to compensate the purchaser for any losses incurred as a result of the injunction, and that this was sufficient to justify granting a limited injunction subject to certain conditions.

The court refused the application to extend the caveat, finding that the applicant had not satisfied the requirements of the relevant legislation. The court also granted a limited injunction subject to conditions, including that the applicant provide an undertaking to compensate the purchaser for any losses incurred as a result of the injunction. The court emphasised that the undertaking was of significant value, as it provided a safeguard against any prejudice to the purchaser.

The final orders of the court were that the application to extend the caveat be refused, and that a limited injunction be granted subject to certain conditions. The applicant was ordered to provide an undertaking to compensate the purchaser for any losses incurred as a result of the injunction, and the injunction was to be discharged upon the applicant providing evidence of the undertaking to the court. The purchaser was also ordered to provide evidence of the sale proceeds to the court, to enable the court to assess the amount of compensation to be paid by the applicant.