$11.3m awarded in resumption case

PUBLISHED : Wednesday, 03 August, 1994, 12:00am
UPDATED : Wednesday, 03 August, 1994, 12:00am

THE Lands Tribunal awarded $11.34 million compensation yesterday to a man whose leased share of a Sheung Wan block of Crown land was resumed by the Government.

The tribunal, comprising Judge Cruden and member M. W. Philips, made the ruling after an application by David Cheung Lung-cheong against the Director of Lands last month.

Mr Cheung had leased a one-sixth share of the land - the ground and mezzanine floors of the six-floor commercial building - at 11 Wing Lok Street. The property, on the fringe of the central business district, was part of a larger resumption of a number of adjoining Wing Lok Street properties as part of a Land Development Corporation scheme.

In a two-day hearing which began on July 4, Mr Cheung had claimed $14.3 million compensation.

However, the Director of Lands had contended that the value of the interest resumed was $9.5 million.

The resumption order, a Notice of Resumption dated April 7, 1992, was published in the Hong Kong Government Gazette three days later. At the date of resumption - July 10, 1992 - the property was let by Mr Cheung to a tenant. No claim has been brought by the tenant.

Mr Cheung also contended that a tenancy agreement - executed before the resumption notice on March 28, 1992, for a two-year period from April 1, 1993 - was frustrated by the resumption.

But in a judgment handed down yesterday, the tribunal held that the tenancy agreement had never taken effect because the resumption was completed well before commencement date.

Mr Cheung was awarded interest and costs.