WEDNESDAY, DECEMBER 9, 1981
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+ IN SUCH CIRCUMSTANCES, IT IS NOT JUST AND/OR FAIR TO ASSUME THAT BECAUSE THE PARTIES SETTLE OUT OF COURT THE LANDLORD IS NECESSARILY LYING TO THE COURT, OR THAT THE TENANT IS NECESSARILY THREATENED,+ SAID MISS TAM.
+ALSO, THE LANDLORD'S GROUND OF RECOVERING POSSESSION MAY NO LONGER BE AN OPERATIVE OR THE SOLE OPERATIVE FACTOR THAT PERSUADED THE TENANT TO SETTLE THE CASE.+
FURTHERMORE, SHE ADDED, WHEN A LANDLORD SETTLES THE CASE WITH THE TENANT BY EX-GRATIA PAYMENT OF COMPENSATION HE PAYS TO RECOVER POSSESSION OF HIS PREMISES AND NOT BECAUSE HE THREATENED THE TENANT INTO DELIVERING VACANT POSSESSION.
MISS TAM THEN SPELLED OUT THE REASONS IN FAVOUR OF ACCEPTING SETTLEMENT OUT OF COURT WITHOUT THE LANDLORD SUFFERING RESTRICTION OVER HIS PROPERTY:
* THE TENANT IS GIVEN THE ALTERNATIVES THAT HE CAN FIGHT THE
CASE IF HE HAS NOWHERE ELSE TO LIVE OR TAKES THE COMPENSATION PAYMENT. THE LANDLORD WILL BE PREPARED TO PAY WHAT HE CAN AFFORD, AND THE TENANT CAN ALSO ASK FOR A LONGER PERIOD TO PLAN HIS MOVE TO THE NEW HOME-
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* IN NO OTHER CIVIL PROCEEDINGS CAN IT BE FORMED A PARTY (LANDLORD) PENALISED FOR SETTLING OUT OF COURT, OR THE COURT ENTERTAINING AN ASSUMPTION THAT A PARTY TENANT) IS NECESSARILY WORSE OFF, OR THAT A PARTY (LANDLORD) HAU ED TO THE COURT, ESPECIALLY WHERE BOTH PARTIES ARE SUI JURIS AND ADDED BY LAWYERS-
* A SETTLEMENT CAN SAVE THE COURT'S TIME AND/OR LITIGANTS' COSTS-
* WHERE THE TERANT ACCEPTS MONEY INSTEAD OF PROTECTION IT
INDICATES THAT HE NEEDS NO PROTECTION, I.E. HE HAS OTHER FEASIBLE PLANS AND
* ALTHOUGH THE LANDLORD CAN ASK FOR THE TRIBUNAL'S CONSENT TO
LIFT THE RESTRICTIONS HE WILL HAVE TO SHOW A CHANGE OF CIRCUMSTANCES WHICH JUSTIFIES HIS APPLICATION. WHERE HE OBTAINS POSSESSION OF THE PREMISES BY SETTLING OUT OF COURT THERE IS NO EVIDENCE ON RECORD TO CONTRADICT OR SUPPORT HIM. THE TRIBUNAL CAN ONLY MAKE A DECISION ON HIS WORDS, WHETHER TRUE OR FALSE.
MR CHAN KAM-CHUEN SAID PROLONGED USE OF RENT CONTROL WOULD CLEARLY BE A SERIOUS DISINCENTIVE TO THE LAND INVESTORS AND DEVELOPERS.
+THIS WOULD EVENTUALLY STRANGLE THE SUPPLY OF RENTED ACCOMMODATION IN THE PRIVATE SECTOR AND EVEN IF AVAILABLE THE FIRST OR FRESH LETTINGS WOULD BE SET AT EXTREMELY HIGH LEVELS TO TAKE INTO ACCOUNT THE CONTROLLED RETURNS ON RENT AND HIGH INFLATION.+
+WE MAY WELL BE FACED WITH A LARGE RESERVE OF EMPTY FLATS FOR SALE ONLY, BUT NOT FOR LETTING.
+BUT, AT SUCH HIGH PRICES HOW MANY OF OUR SALARIED WORKEPS ARE ABLE TO AFFORD EVEN THE SMALLEST AND REMOTELY LOCATED FLATS?+ HE ASKED.
/MR CHAN