United Overseas Bank Ltd v Chung Khiaw Bank Ltd

• Jurisdiction: Singapore
• Judge: Chua F A J
• Judgment Date: 10 July 1968
• Neutral Citation: [1968] SGFC 7
• Citation: [1968] SGFC 7
• Date: 10 July 1968
• Published date: 19 September 2003
• Plaintiff Counsel: G Starforth Hill and KS Chung (Chung & Co)
• Docket Number: Civil Appeal No Y8 of 1968
• Defendant Counsel: David T See and Francis Teoh Ong Cheh (RCH Lim & Co)
• Court: Federal Court (Singapore)
• Year: 1968

The circumstances which give rise to this appeal are as follows:

The appellants, United Overseas Bank, Ltd, sued Tay Soo Tong in Suit No 2189 of 1965 and obtained a judgment for $378,267.31 on 16 June 1966.

On 22 September 1966 the respondents in this appeal, Chung Khiaw Bank, Ltd, took out an originating summons no 239 of 1966 against the same Tay Soo Tong and an order for substituted service was obtained against him and the originating summons was not heard until 14 November 1966.

In the meanwhile United Overseas Bank Ltd took out a writ of seizure and sale and an order was obtained on 27 October 1966, attaching the interest of Tay Soo Tong in certain immovable properties (hereinafter referred to as the said properties) and on 28 October 1966, the order of attachment was registered against the said properties.

At the hearing of the originating summons no 239 of 1966, Tay Soo Tong, not having entered an appearance, the Chung Khiaw Bank Ltd obtained an order, inter alia:

(a) declaring them to be the legal mortgagee of the said properties;

(b) giving them liberty to sell the said properties out of court;

(c) directing the net proceeds of sale to be paid to them in satisfaction or part satisfaction of the amount due and owing by Tay Soo Tong to them.

At the hearing no mention was made of the order of attachment of 27 October 1966, obtained by the United Overseas Bank, Ltd and registered against the said properties on the 28 October 1966.

Between 15 November 1966, and 10 March 1967, correspondence passed between the solicitors for United Overseas Bank, Ltd and the sheriff of Singapore regarding the sale of the said properties that had been attached. The sheriff tried to bring the United Overseas Bank Ltd and the Chung Khiaw Bank Ltd to some sort of understanding as to the disposal of the said properties but without success.

On 23 January 1967, the Chung Khiaw Bank Ltd registered the order obtained by them on 14 November 1966, at the Registry of Deeds against the said properties.

On 18 March 1967, the Sheriff applied in summons-in-chambers entered No 441 of 1967 in Suit No 2180 of 1965 for, inter alia,liberty to proceed with the sale of the said properties pursuant to the writ of seizure and sale dated 25 October 1966. The sheriff in his affidavit said that he believed that there was a question of priority as between the United Overseas Bank Ltd and the Chung Khiaw Bank Ltd in regard to the said properties. Both the banks were served.

The sheriff`s summons was heard on 29 May 1967, by AV Winslow J, who made no order on the application.

On 25 October 1967, the United Overseas Bank Ltd took out a summons-in-chambers entered no 2393 of 1967 in originating summons no 239 of 1966 seeking an order:

(1) that a copy of the summons-in-chambers and copies of all affidavits in support thereof be served on the sheriff of Singapore;

(2) that the sheriff of Singapore be made a party to the said originating summons;

(3) that the order of court dated 14 November 1966, made in the originating summons be set aside and that the Registrar of Deeds do rectify the Register of Deeds and cancel the entry made on 23 January 1967, in the said register of the registration of the order of court dated 14 November 1966, made in the originating summons;...