International Trust and Finance Ltd v Chui Pui Cheng

• Jurisdiction: Singapore
• Judge: Chan Sek Keong JC
• Judgment Date: 15 July 1986
• Neutral Citation: [1986] SGHC 21
• Docket Number: Suit No 4962 of 1985
• Date: 15 July 1986
• Year: 1986
• Published date: 19 September 2003
• Plaintiff Counsel: Lin Yuen Ming (Lim Ganesh & Liu)
• Citation: [1986] SGHC 21
• Defendant Counsel: Marilyn Tan (Advani Hoo Morris & Kumar)
• Court: High Court (Singapore)
• Subject Matter: Revenue Law,Banking,Meaning,Deed of acknowledgment of debt,Whether promissory note within meaning of Stamp Duties Act,Promissory notes,Principles applicable,ss 47 & 53 Stamp Duties Act (Cap 147, 1970 Ed),Stamp duties

his appeal concerns a short but important point on the stamping of promissory notes under the Stamp Duties Act (Cap 147, 1970 Ed) (the Act). It came before me by way of an appeal by the defendant against the decision of the deputy registrar giving him leave to defend upon provision of a bank guarantee of the amount claimed within 21 days from the date of the order.

The plaintiffs claim is for $53,072.90 together with interest at the rate of 10.50% per annum from 25 April 1985, until the date of payment pursuant to the provisions of a deed of acknowledgment of debt (the deed) made between the plaintiffs and the defendant on 25 April 1985.

The defendant does not deny the amount claimed but denies its liability to pay the same on the ground that the deed is a promissory note, that it was stamped after the execution thereof and is therefore not admissible in evidence by virtue of s 53 read with s 47 of the Act. Plaintiffs counsel concedes that if the deed were a promissory note under the Act, the plaintiff would fail in its claim based on the deed. The defence is wholly without merit apart from its technicality as there is no doubt that the defendant owed the amount claimed. It is not common knowledge that Singapore still has in its statute book a law which renders inadmissible in evidence any promissory note executed in Singapore (other than one issued by or in favour of or expressed to be payable by a bank or a merchant bank approved by the minister) which is not stamped (at $1) prior to its execution, when, under the same statute, all the other chargeable instruments which are not duly stamped including promissory notes executed outside Singapore and instruments chargeable with ad valorem stamp duty, may be stamped at any time after execution upon payment of an appropriate penalty and thus rendered admissible in evidence.

The deed, which was executed by both parties under seal, reads as follows:

THIS DEED is made the 25 April 1985 One thousand nine hundred and eighty five (1985) Between CHUI PUI CHENG of No 285 South Bridge Road, Singapore, Merchant (hereinafter called the Mortgagor) of the one part And INTERNATIONAL TRUST & FINANCE LTD a company incorporated in Singapore and having its registered office at No 49 New Bridge Road, Singapore (hereinafter called the Mortgagee) of the other part.

WHEREAS by an Instrument of Mortgage (hereinafter referred to as the said Mortgage) dated the 30 May 1983 (Registered in the Registry of Titles as Instrument No I/43414C) and made by the Mortgagor in favour of the Mortgagee the land and premises described in the said Mortgage and more particularly described in the Schedule hereto were mortgaged to the Mortgagee for securing the repayment of the principal monies and interest thereon in accordance with the terms covenants and conditions therein contained.

AND WHEREAS on the 25 April 1985 a sum of Dollars Five hundred and thirty thousand, three hundred eighty nine and cents forty ($530,389.40) being the principal and interest due under the said Mortgage is due and payable by the Mortgagor to the Mortgagee.

AND WHEREAS further interest at the rate of Dollars One hundred and forty eight and cents ninety three ($148.93) per day is payable from 25 April 1985.

AND WHEREAS the Mortgagor has agreed to sell the land and premises described in the schedule hereto (hereinafter referred to as the said land and premises) for only Dollars Four hundred and eighty thousand ($480,000) of which a sum of only Dollars Four hundred and seventy seven thousand, three hundred and sixteen and cents fifty ($477,316.50) will be paid to the Mortgagee.

AND WHEREAS the Mortgagee has agreed to release the said land and premises from the said Mortgage on the terms and conditions hereinafter appearing.

NOW THIS DEED WITNESSETH as follows:

1 In pursuance of the said agreement and in consideration of the Mortgagee releasing the said land and premises from the said Mortgage, the Mortgagor HEREBY ACKNOWLEDGES AND CONFIRMS that a sum of Dollars Fifty three thousand, seventy two and cents ninety ($53,072.90) together with interest at the rate of Eleven and a half per centum (11.50%) per annum from the 25 April 1985, are still due and payable to the Mortgagee.

(2) The Mortgagor HEREBY COVENANTS with the Mortgagee to:

(a) Pay the interest on the aforesaid sum at the rate aforesaid, or at...