Verdict 31/PTKT dated august 13, 2001 on settlement kết quả bóng đá trực tiếp credit contract dispute

THE SUPREME PEOPLE’S APPELLATE COURT kết quả bóng đá trực tiếp HO CHI MINH CITY

VERDICT 31/PTKT DATED AUGUST 13, 2001 ON SETTLEMENT kết quả bóng đá trực tiếp CREDIT CONTRACT DISPUTE

According to the plaintiff’s following statement kết quả bóng đá trực tiếp fact:

According to the credit contract No. HCM/FL/93/1 and HCM/RC/93/2 dated August 27, 1993, VID Public Bank offered Saigon Lodge Hotel Joint Venture Company a term loan amount kết quả bóng đá trực tiếp USD 400,000 and a revolving loan amount kết quả bóng đá trực tiếp USD 400,000 secured by mortgaging their hotel and guarantees provided by the company's directors. VID Public bank and Saigon Lodge joint venture company signed an agreement on mortgaging kết quả bóng đá trực tiếp Saigon Lodge hotel located at 215, Nam Ky Khoi Nghia, District 3, HCMC, which was notarized at the Notary Public Office kết quả bóng đá trực tiếp Ho Chi Minh city on March 30, 1993 with the register number 51771 and on November 15, 1994 with the register number 80208.

These loans started being withdrawn on March 1, 1994. According to the periodic inspection schedule, on June 20, 1998, the bank informed Saigon Lodge joint venture company kết quả bóng đá trực tiếp the requirement that the revolving loan limit had to be depreciated each year by an amount kết quả bóng đá trực tiếp USD 50,000 from December 31, 1998. Despite the bank’s repeated warnings, Saigon Lodge joint venture company refused to repay such amount.    On January 16, 1999, the bank sent Saigon Lodge joint venture company the written notice kết quả bóng đá trực tiếp recovery kết quả bóng đá trực tiếp the outstanding balance kết quả bóng đá trực tiếp UD 354,422 (including principal, interest and late payment interest amounts) which was determined as kết quả bóng đá trực tiếp January 15, 1999.

On March 15, 1999, VID Public bank filed a claim for Saigon Lodge's following payments:

Total debt that Saigon Lodge must repay was USD 354,478.13, including:

Principal debt: USD 350,000.00

Total interest payable till March 23, 1999: USD 3,470.84

Late payment interest amount paid per year kết quả bóng đá trực tiếp USD 50,000 till March 23, 1999: USD 1,007.29

On February 23, 2000, the People’s Court kết quả bóng đá trực tiếp Ho Chi Minh city held a mediation meeting between litigants. As participants agreed on repayment kết quả bóng đá trực tiếp debts, the Court issued the successful mediation report and granted the decision No. 27/CNTT-KT dated February 23, 2000 to endorse agreements between litigants. On August 25, 2000, the Supreme People’s Procuracy issued the Official Document No.19/KN-AKT stating their protest against the decision to endorse agreements between litigants No. 27/CNTT-KT dated February 23, 2000 kết quả bóng đá trực tiếp the People’s Court kết quả bóng đá trực tiếp Ho Chi Minh city.  In the cassation review verdict No. 07/GDT-KT dated February 20, 2000, the Supreme People’s Court revoked the Decision to endorse agreements between litigants No. 27/CNTT-KT and returned case dossiers to the People’s Court kết quả bóng đá trực tiếp Ho Chi Minh city to handle the case according to legal procedures.

In the trial court, the plaintiff requested Saigon Lodge to return total debt kết quả bóng đá trực tiếp USD 431,279.70, including:

Outstanding principal debt: USD 350.000,00

Interest amount accruing till April 23, 2001: USD 81,279.70

Additionally, Saigon Lodge had to pay the amount kết quả bóng đá trực tiếp principal debt at the interest rate kết quả bóng đá trực tiếp the overdue debt quoted by the State Bank kết quả bóng đá trực tiếp Vietnam during the period kết quả bóng đá trực tiếp default on debt repayment until they had managed to repay all kết quả bóng đá trực tiếp their outstanding debts. If Saigon Lodge fails to discharge their debt obligations, the Court ordered them to liquidate their mortgaged property, Saigon Lodge hotel, so that the bank recovered their debts. If Saigon Lodge hotel building in liquidation was unable to cover debts or its liquidation was unlikely, Mr. Vo Van Bang and Mrs. Huynh Thi My Duc, as two guarantors, acted on its behalf to repay debts.

The defendant (Saigon Lodge joint venture company): Confirming that the outstanding debt kết quả bóng đá trực tiếp USD 431,279.70 that the plaintiff stated was true. If Saigon Lodge fails to discharge our debt obligations, we agreed to liquidate our hotel building to pay our debts.

Other interested persons:

1) Mr. Vo Van Bang’s opinions: We, including 5 guarantors (2 Vietnamese nationals and 3 Malaysian nationals), are jointly responsible for providing security for such debt.  Requesting the Court to reconsider the type kết quả bóng đá trực tiếp guarantee specified in our letter kết quả bóng đá trực tiếp guarantee.

2) Mrs. Huynh Thi My Duc’s opinions: We only agreed to mortgage the Saigon Lodge hotel building, not our right to use the land plot located at 215, Nam Ky Khoi Nghia, District 3, HCMC. If liquidation kết quả bóng đá trực tiếp the hotel building takes place, signing a contract to rent the land plot with the holder kết quả bóng đá trực tiếp the land use right will be required.

3) Opinions kết quả bóng đá trực tiếp Mr. Saw Siang Kin, Mr. Lim Chui Pher and Mr. Lim Chooi Kui: We respect all kết quả bóng đá trực tiếp the Court’s decision pertaining to Saigon Lodge hotel's credit relationship with VID Public bank.  Especially, as we have part in guarantee liabilities, we are committed to fulfilling them.  VID Public bank is now bringing a legal action against us in Malaysia.

The trial court’s verdict No. 67/KTST dated April 23, 2001 kết quả bóng đá trực tiếp the People’s Court kết quả bóng đá trực tiếp Ho Chi Minh city was announced with the following subject matters:

1/ Accepting part kết quả bóng đá trực tiếp the claim filed by VID Public bank, ordering Saigon Lodge to pay VID Public bank an amount kết quả bóng đá trực tiếp USD 431,279.70, including:

Outstanding principal debt: USD 350.000,00

Interest amount accruing till April 23, 2001: USD 81,279.70

In terms kết quả bóng đá trực tiếp debt repayment methods: The aforesaid debt will be paid in a foreign currency unit. If they have no foreign currency to repay debt, they must pay the amount kết quả bóng đá trực tiếp USD 431,279.70 converted into Vietnamese dong at the forex buy rate quoted by Vietcombank branch kết quả bóng đá trực tiếp Ho Chi Minh city at the repayment date. Saigon Lodge will have to pay the interest amount at the overdue interest rate kết quả bóng đá trực tiếp the State Bank kết quả bóng đá trực tiếp Vietnam applied to the principal debt amount until debt obligations are all discharged.

If Saigon Lodge fails to repay debt to VID Public bank, they will have to be affected by coercive measures, including liquidation kết quả bóng đá trực tiếp the right to operate and manage Saigon Lodge hotel building for the remaining period kết quả bóng đá trực tiếp joint venture which lasts 11 years (according to the investment licence No. 494/GP dated December 31, 1992, the time span kết quả bóng đá trực tiếp the joint venture company is 20 years from the date kết quả bóng đá trực tiếp issuance kết quả bóng đá trực tiếp the investment licence). After such period, the property will be returned to Vietnamese parties. Liquidation kết quả bóng đá trực tiếp property must comply with the Law on Foreign Investment in Vietnam and other instructional documents kết quả bóng đá trực tiếp the Ministry kết quả bóng đá trực tiếp Planning and Investment. The new owner kết quả bóng đá trực tiếp the hotel building will only have the restricted right to use and operate the building within such remaining period according to the investment licence and must sign a contract to rent the land plot with the holder kết quả bóng đá trực tiếp the right to use the land plot (Mrs. Huynh Thi My Duc) under the guidance kết quả bóng đá trực tiếp the Ministry kết quả bóng đá trực tiếp Planning and Investment.

2/ Rejecting VID Public bank's claim that Mr. Vo Van Bang and Mrs. Huynh Thi My Duc have to pay on Saigon Lodge’s behalf if the Saigon Lodge building in liquidation is not enough to pay debt or such liquidation is unlikely.

3. In terms kết quả bóng đá trực tiếp legal costs: Saigon Lodge must be liable for legal costs totaling 33,280,700 dong (Thirty three million and two hundred eighty seven thousand dong) at the Law Enforcement Service kết quả bóng đá trực tiếp Ho Chi Minh city. Refunding all advance payment kết quả bóng đá trực tiếp legal costs specified in the receipt No. 003444 dated April 3, 1999 at the Law Enforcement Service kết quả bóng đá trực tiếp Ho Chi Minh city to VID Public bank

On May 3, 2001, VID Public bank filed an appeal for two issues:

- Ordering that Mrs. Duc and Mr. Bang as two guarantors be responsible for acting on Saigon Lodge’s behalf to repay debts.

- Ordering that ownership kết quả bóng đá trực tiếp Saigon Lodge hotel building and Mrs. Duc’s right to use the land plot where the hotel is built must be liquidated.

In the Appellate Court:

The plaintiff retained the aforesaid appeal claim.

The plaintiff and interested persons rejected the plaintiff’s appeal claim. Mr. Bang and Mrs. Duc supposed that they signed the guarantee agreement upon the plaintiff's request when they said that as shareholders they had to do so. This means that their signing kết quả bóng đá trực tiếp such guarantee agreement was not certified by the notary public office.

Opinions kết quả bóng đá trực tiếp the Procuracy involved in the appeal trial: Requesting the appellate court to trial this appeal to reject the appeal claim kết quả bóng đá trực tiếp the plaintiff and retain the trial court’s verdict.

The Supreme People’s Appellate Court kết quả bóng đá trực tiếp Ho Chi Minh City considered that:

Pursuant to evidencing documents and testimonies kết quả bóng đá trực tiếp litigants forming grounds for establishing that VID Public bank and Saigon Lodge signed the credit contract No. HCM/FL/93/1, HCM/RC/93/2 dated August 27, 1993. Saigon Lodge admitted and was committed to repaying revolving loan debt kết quả bóng đá trực tiếp USD 431,279.70 to VID Public bank, including:

Outstanding principal debt: USD 350.000,00

Interest amount accruing till April 23, 2001: USD 81,279.70

This part was not appealed by litigants and the trial court judgement that the defendant has to pay such amounts was founded.

In light kết quả bóng đá trực tiếp the plaintiff’s appeal claim that Mrs. Duc and Mr. Bang are bound to repay debts on behalf kết quả bóng đá trực tiếp the defendant if the defendant is unable to pay debts;

In light kết quả bóng đá trực tiếp the fact that Saigon Lodge signed a loan agreement with VID Public bank, and Mr. Vo Van Bang and Mrs. Huynh Thi My Duc gave a written guarantee to Saigon Lodge for the loan offered by VID Public bank. However, this guarantee was not certified by the Notary Public office. In clause 3 kết quả bóng đá trực tiếp Article 2 in theNghị định 17-HĐBT nămdated January 16, 1990 kết quả bóng đá trực tiếp the Ministerial Council, now the Government, elaborating on implementation kết quả bóng đá trực tiếp the Ordinance on Economic Agreements, regulating "Property guarantee is a security provided by using property under the ownership kết quả bóng đá trực tiếp the obligor for discharging his/her debt obligations in case kết quả bóng đá trực tiếp his/her breach kết quả bóng đá trực tiếp economic agreements. The guarantor must own the property whose value is not less than the value kết quả bóng đá trực tiếp the property for which it agrees to give guarantee.  Property guarantee must be made in writing with endorsement kết quả bóng đá trực tiếp the property given by the bank where the guarantor carries out their transactions and notary office or competent authority in charge kết quả bóng đá trực tiếp business registration (in the absence kết quả bóng đá trực tiếp the notary office)". This means that Mr. Bang and Mrs. Duc's provision kết quả bóng đá trực tiếp guarantee for Saigon Lodge's loan offered by VID Public bank was in breach kết quả bóng đá trực tiếp laws on guarantee. The trial court’s verdict would have declared this guarantee agreement null and void. Whereas the appellate court sees that the judgement on the case and the decision in which two guarantors were not bound to such guarantee were relevant, the appellate court considers that the modification kết quả bóng đá trực tiếp the trial court's verdict is not necessary.  Therefore, there is no sound and sufficient grounds for accepting the plaintiff's appeal claim.

In light kết quả bóng đá trực tiếp the plaintiff's appeal for the court's ruling on liquidation kết quả bóng đá trực tiếp ownership kết quả bóng đá trực tiếp the hotel building and the right to use the land plot kết quả bóng đá trực tiếp Mrs. Duc:

As for the credit contract No. HCM/FL/93/1, HCM/RC/93/2 signed on August 27, 1993, in order to guarantee implementation kết quả bóng đá trực tiếp this contract, Saigon Lodge mortgaged the hotel building located at 215 Nam Ky Khoi Nghia, District 3, HCMC to VID Public bank. This mortgage was notarized by the Notary Public office kết quả bóng đá trực tiếp Ho Chi Minh city with the notary register No. 51771 dated March 30, 1993 and No. 80208 dated November 15, 1994.

Saigon Lodge hotel located at 215 Nam Ky Khoi Nghia, District 3, HCMC on the land plot kết quả bóng đá trực tiếp 815m²is now under the ownership kết quả bóng đá trực tiếp Mrs. Huynh Thi My Duc according to the decision on certification kết quả bóng đá trực tiếp the land use right No. 944/QD-DD dated October 15, 1993 kết quả bóng đá trực tiếp the Land Management Unit kết quả bóng đá trực tiếp Ho Chi Minh city.  According to restrictions in thexem bóng đá trựcand thekết quả bóng đá trực tiếp lệnh về quyền và nghĩa vụ của các tổ chức trong nước được Nhà nước giao đất, cho thuêhired by the state on October 14, 1994, private entities are prohibited from using the right to use land for contribution kết quả bóng đá trực tiếp capital to form a joint venture with foreign partners. This was the reasons why Saigon Lodge did not obtain the certificate kết quả bóng đá trực tiếp land use right. As Saigon Lodge hotel is the property kết quả bóng đá trực tiếp Saigon Load joint venture company, it must be subject to regulations laid down in the Law on Foreign Investment in Vietnam and investment licence. According to the investment licence, the time limit for this joint venture is 20 years. This means that the remaining time limit is 11 years after which the property must be returned to Vietnamese parties. If Saigon Lodge fails to repay debt to VID Public bank, they will have to be affected by coercive measures, including liquidation kết quả bóng đá trực tiếp the right to operate and manage Saigon Lodge hotel building for the remaining period kết quả bóng đá trực tiếp joint venture which lasts 11 years (according to the investment licence No. 494/GP dated December 31, 1992, the time span kết quả bóng đá trực tiếp the joint venture company is 20 years from the date kết quả bóng đá trực tiếp issuance kết quả bóng đá trực tiếp the investment licence). After such period, the property will be returned to Vietnamese parties. Liquidation kết quả bóng đá trực tiếp property must comply with theLuật Đầu tư vtv5 trực tiếp bóng đá hômand other instructional documents kết quả bóng đá trực tiếp the Ministry kết quả bóng đá trực tiếp Planning and Investment. The new owner kết quả bóng đá trực tiếp the hotel building will only have the restricted right to use and operate the building within such remaining period according to the investment licence and must sign a contract to rent the land plot with the holder kết quả bóng đá trực tiếp the right to use the land plot (Mrs. Huynh Thi My Duc) under the guidance kết quả bóng đá trực tiếp the Ministry kết quả bóng đá trực tiếp Planning and Investment.

Since this dispute arises from implementation kết quả bóng đá trực tiếp the credit contract between Saigon Lodge and VID Public bank, the court does not handle the dispute over contribution kết quả bóng đá trực tiếp capital between parties in the Saigon Lodge joint venture company.  Hence, it is prohibitory to integrate the right to use the land plot at 215 Nam Ky Khoi Nghia, District 3, HCMC kết quả bóng đá trực tiếp Mrs. Huynh Thi My Duc in the joint venture without permission from parties involved in the joint venture. In addition, during the process kết quả bóng đá trực tiếp the Court’s handling this case, the Ministry kết quả bóng đá trực tiếp Planning and Investment also sent the Directive No. 7916/BKH/QLDA dated November 14, 1998 providing instructions for parties on submission kết quả bóng đá trực tiếp the application for modification kết quả bóng đá trực tiếp the investment licence but parties involved have failed to do so. On July 17, 2000, the Ministry kết quả bóng đá trực tiếp Planning and Investment issued a Notice No. 4388/BKH-QLDA clearly stating “Liquidation kết quả bóng đá trực tiếp the building is allowed only when terms and conditions kết quả bóng đá trực tiếp the mortgage agreement dated November 15, 1994 are observed, except the right to use the land plot where the building is located and attached equipment; and liquidation only helps collect the remaining outstanding debt.  The time length kết quả bóng đá trực tiếp liquidation kết quả bóng đá trực tiếp the right to use and operate the building is not longer than the remaining lifetime kết quả bóng đá trực tiếp the building in accordance with the investment licence No. 494/GP dated December 31, 1992. After liquidation, the new owner kết quả bóng đá trực tiếp the building must use the building to serve purposes specified in the investment licence and must pay rentals to the person allocated the right to use such land plot".

Therefore, there is no sound and sufficient grounds for accepting the plaintiff's appeal claim.

Based on the aforesaid arguments, the Supreme People’s Appellate Court kết quả bóng đá trực tiếp Ho Chi Minh city considers that there are sound and sufficient grounds for accepting the request from the Procuracy to hear the appeal.

In order to assure enforcement kết quả bóng đá trực tiếp the court’s judgement, it is necessary to reserve the decision to apply interim injunction No. 239/QDADBPKCTT dated July 31, 2001.

Pursuant to Article 70 kết quả bóng đá trực tiếp clause 1 kết quả bóng đá trực tiếp thePháp lệnh thủ tục giải trực tiếp bóng đá hôm nay euro các vụ án kinh tếcases.

HEREBY DECIDES

1. In terms kết quả bóng đá trực tiếp formalities, accepting the appeal claim kết quả bóng đá trực tiếp VID Public bank because it was filed within the prescribed duration.

2. In terms kết quả bóng đá trực tiếp inclusions, rejecting the appeal claim kết quả bóng đá trực tiếp VID Public bank and retaining the trial court's judgement on economic case No. 67/KTST dated April 23, 2001 kết quả bóng đá trực tiếp Ho Chi Minh city People's Court.

3. In order to assure enforcement kết quả bóng đá trực tiếp the court’s judgement, it is necessary to reserve the decision to apply interim injunction No. 239/QDADBPKCTT dated July 31, 2001.

4. Total legal cost kết quả bóng đá trực tiếp this appellate court: VID Public bank is liable for 200,000 dong in total legal cost kết quả bóng đá trực tiếp this appellate court which is withheld from legal costs paid in advance.