Glory Realty Company Pte Ltd v Datuk Wong Chik Lim

• Jurisdiction: Singapore
• Judgment Date: 10 November 1990
• Date: 10 November 1990
• Docket Number: Originating Summons No 636 of 1989
• Court: High Court (Singapore)

Glory Realty Co Pte Ltd

Plaintiff

and

Wong Chik Lim

Defendant

[1990] SGHC 86

Lai Kew Chai J

Originating Summons No 636 of 1989

High Court

Land–Conveyance–Purchaser of property paying part of purchase price to vendor's solicitors as stakeholders–Solicitors adjudged bankrupt and unable to pay sum to vendor–Vendor claiming sum from purchaser–Whether sum recoverable from purchaser

The plaintiff, Glory Realty Co Pte Ltd (“Glory”), agreed to sell the defendant, Wong Chik Lim (“Wong”), a flat under an agreement for sale. Under the agreement, Wong was to pay 10% of the balance of the purchase price to Glory's solicitors as stakeholders, on completion of the sale and purchase of the flat. Of this amount, 5% was to be paid to Glory within seven days of the receipt by Wong or his solicitors of the certificate of fitness for occupation. In this action, Glory claimed the 5% of the purchase price which was not paid by Glory's former solicitors, whose sole proprietor was adjudged bankrupt. The issue was whether Glory was entitled to claim the unpaid deposit sum from Wong.

Held, dismissing the claim:

The loss fell on Glory. By cl 3 (1) (i) of the agreement, Glory agreed that the payment of the 5% in question be made over to the solicitors as stakeholders. As stakeholders, the solicitors became trustees for both the plaintiff and defendant. Wong duly paid the last 5% of the purchase price in accordance with the terms of the agreement. He was no longer obliged to perform any other part of the agreement. Glory's only recourse was against its trustees, the solicitors: at [7].

Burt v Claude Cousins & Co Ltd [1971] 2 QB 426 (folld)

Skinner v Trustee of Property of Reed [1967] Ch 1194; [1967] 2 All ER 1286 (folld)

Sorrell v Finch [1977] AC 728 (folld)

S Rai (Hin Rai & Tan) for the plaintiff

Chan Eng Thai (David Ong & Lim) for the defendant.

Judgment reserved.

Lai Kew Chai J

1 This originating summons is concerned with the question as to the rights and liabilities of a developer/vendor and a purchaser of a residential property (who sold and purchased under the prescribed agreement for sale) in connection with the deposit of 5% of the purchase price paid over to the purchaser's solicitor who, by reason of bankruptcy, had become unable to pay out the 5% deposit to the vendor when due. In these proceedings the plaintiffs are claiming to be entitled to the sum of $73,557.07 being the sum due from the defendant, which sum represented 5% of...