Lim Zhipeng v Seow Suat Thin

• Jurisdiction: Singapore
• Judge: Choo Han Teck J
• Judgment Date: 24 April 2019
• Neutral Citation: [2019] SGHC 104
• Court: High Court (Singapore)
• Hearing Date: 24 April 2019,17 April 2019
• Docket Number: HC/Suit No 336 of 2018 (HC/Registrar’s Appeal No 45 of 2019)
• Plaintiff Counsel: Adrian Tan Wen Cheng and Delson Tan (August Law Corporation)
• Defendant Counsel: Kanthosamy Rajendran (Relianze Law Corporation)
• Subject Matter: Civil Procedure,Summary judgment
• Published date: 27 April 2019

Choo Han Teck J:

One Derek Cheong Wee Ker (“Mr Cheong”), the son of Madam Seow Suat Thin, the defendant, owed Lim Zhipeng, the plaintiff, $595,000. He was unable to pay the debt in full and had a balance of $490,000 unpaid when he was adjudicated a bankrupt on 13 July 2017. On 28 September 2017 the defendant signed what was purported to be an agreement by deed (“the Agreement”).

In the Agreement, made between the defendant and the plaintiff, the defendant gave a guarantee to the plaintiff that in the event Mr Cheong is unable pay the outstanding sum of $490,000, the defendant will pay the outstanding debt. On or about 21 November 2017, the defendant paid $40,000 to the plaintiff and the plaintiff also received a total of $11,500 from Mr Cheong on several occasions. This brought the total outstanding debt down to $438,500.

The plaintiff sued the defendant on the Agreement and obtained summary judgment against her for the sum of $438,500, and this is an appeal by the defendant against the summary judgment. Mr K Rajendran appeared on behalf of the defendant (appellant) and Mr Adrian Tan appeared on behalf of the plaintiff (respondent).

Mr Rajendran’s main point was that the Agreement between the plaintiff and the defendant was void for contravening s 76(1)(c) of the Bankruptcy Act (Cap 20, 2009 Rev Ed) (“BA”) which provides as follows: 76 – (1) On the making of a bankruptcy order — (a) the property of the bankrupt shall — (i) vest in the Official Assignee without any further conveyance, assignment or transfer; and (ii) become divisible among his creditors; (b) the Official Assignee shall be constituted receiver of the bankrupt’s property; and (c) unless otherwise provided by this Act — (i) no creditor to whom the bankrupt is indebted in respect of any debt provable in bankruptcy shall have any remedy against the person or property of the bankrupt in respect of that debt; and (ii) no action or proceedings shall be proceeded with or commenced against the bankrupt in respect of that debt,

except by leave of the court and in accordance with such terms as the court may impose.

Mr Rajendran submitted that once a person (like Mr Cheong) has been made a bankrupt no creditor (like the plaintiff) “shall have any remedy against the person or property of the bankrupt”. He submitted that after Mr Cheong’s bankruptcy, he is incapable of entering into any agreement that makes him indebted to anyone.

Although...