The Appeal Committee of the Court of Final Appeal granted leave to appeal against the judgment of the Court of Appeal in Sime Darby Motor Services Limited v Director of Lands [2024] 2 HKLRD 319, on the following two questions of law:

1. Under what circumstances is a decision made by the Director of Lands in land exchange or lease modification applications or other Government lease related decisions amenable to judicial review?
2. If the Decision is reviewable, whether the application of the Policy, insofar as it may render land not capable of any meaningful development, is inherently illogical, irrational and perverse?

The underlying judicial review proceedings concerned the refusal of the Director of Lands to entertain a land exchange application (i.e. the Decision), on the ground that the subject land, falling within boundaries of village environs, ought to be preserved for the building of small houses under the Small House Policy unless exceptional circumstances exist (i.e. the Policy).

The Court of First Instance ([2022] 4 HKLRD 714) held that, notwithstanding the principle established by the Judicial Committee of the Privy Council in Hang Wah Chong Investment Co Ltd v Attorney General [1981] HKLR 336, the Decision based on the Policy asserted by the Director of Lands was amenable to judicial review, and that the substantive grounds of review were made out.

The Court of Appeal ([2024] 2 HKLRD 319) reached a contrary conclusion.

The full Determination of the Appeal Committee can be viewed here.

The appeal will be heard on 1 April 2025.

Justin Lam and