Re Jeyaretnam Joshua Benjamin

• Jurisdiction: Singapore
• Judge: Tan Lee Meng J
• Judgment Date: 12 March 2001
• Neutral Citation: [2001] SGHC 46
• Docket Number: Bankruptcy No 2491 of 2000
• Date: 12 March 2001
• Year: 2001
• Published date: 19 September 2003
• Plaintiff Counsel: Debtor/judgment debtor in person
• Citation: [2001] SGHC 46
• Defendant Counsel: Davinder Singh SC and Hri Kumar (Drew & Napier),Sunari bin Kateni
• Court: High Court (Singapore)
• Subject Matter: Failure to make instalment payment on time,Insolvency Law,s 7 Bankruptcy Act (Cap 20, 2000 Ed),Bankruptcy,Bankruptcy order,Whether consent order necessary,Voluntary arrangement

: In this case, the appellant, Mr Joshua Benjamin Jeyaretnam, appealed against the assistant registrar`s order of 19 January 2001 in Bankruptcy Petition No 2491 of 2000, which made him a bankrupt. That petition was filed with seven other petitions (Bankruptcy Petition Nos 2492-2493 of 2000 and Nos 2511-2515 of 2000). The hearing of the other petitions was adjourned pending the outcome of Mr Jeyaretnam`s appeal against the assistant registrar`s order in Bankruptcy Petition No 2491 of 2000. I dismissed Mr Jeyaretnam`s appeal with costs and now set out the reasons for my decision.

Background

The bankruptcy proceedings in question resulted from Mr Jeyaretnam`s failure to pay to the petitioners damages awarded to them by the High Court for defamation. On or about 3 November 2000, the petitioners agreed to allow Mr Jeyaretnam to pay the damages in instalments. The terms of this agreement (hereinafter referred to as `the Agreement`), which set out the dates on which the instalments were due, included one which provided that if Mr Jeyaretnam failed to pay any of the said instalments on time, the petitioners were entitled, at their absolute discretion, to terminate the Agreement and to proceed with or restore their respective bankruptcy petitions, and that in such an event, Mr Jeyaretnam shall consent to a bankruptcy order being made against him.

It was further agreed between the parties that in consideration of the petitioners agreeing to give Mr Jeyaretnam additional time to settle his debt on the terms of the Agreement, Mr Jeyaretnam would agree to a consent order, which was intended to embody the terms of the Agreement. Consequently, at the hearing of the bankruptcy petitions on 3 November 2000, a consent order was entered with respect to each of the bankruptcy petitions. The orders have since been extracted.

-	on or by 1 December 2000	-	$	3,927.00
-	on or by 1 January 2001	-	$	2,850.00
-	on or by 1 February 2001	-	$	2,850.00
-	on or by 1 March 2001	-	$	2,850.00
-	on or by 1 April 2001	-	$	2,850.00
-	on or by 1 May 2001	-	$	2,850.00
-	on or by 1 June 2001	-	$	2,850.00
-	on or by 1 July 2001	-	$	2,850.00
-	on or by 1 August 2001	-	$	2,421.66

The terms of the consent order with respect to the bankruptcy petition presently being considered are as follows:

1. The debt due under this Petition in the aggregate sum of $27,721.66 and disbursements fixed at $1,077.00 shall be paid in the following manner:-

(i) the sum of $2,500.00 to be paid in cash by 1.00 pm on 6 November 2000;

(ii) the balance to be paid by way of the following instalments:

2. All payments are to be made by cash or cheque in the debtor`s name (such cheques being made payable to Messrs Drew & Napier). All such payments are to be made through the Debtor`s solicitors, M/s G Raman & Partners and to the Creditor`s solicitors, and the letter accompanying such payments to be marked for the attention of Mr Davinder Singh or Mr Hri Kumar. If payment is made by cheque, the cheque must bear a date on or before the due date of payment. Otherwise, it will be treated as a failure to make payment on time.

3. The hearing of this Petition shall be adjourned for 1 week. In the event the Debtor pays the sum of $2,500.00 as provided in Clause 1(i) above, the Creditor`s solicitor shall inform the Court by 8 November 2000, whereupon the Petition will be withdrawn, with liberty to the Creditor to restore the same for hearing on or by 3 August 2001.

4. If the Debtor fails to make any of the payments set out in Clause 1 above, the Creditor shall be entitled, at his absolute discretion, to proceed with and/or restore this Bankruptcy Petition. In that event, the debtor shall consent to a bankruptcy order being made against him. [Emphasis is added.]

Mr Jeyaretnam paid the first two instalments. On 28 December 2000, his solicitor, Mr G Raman, wrote to the petitioners` solicitors to request that he be given until 16 January 2001 to pay the third instalment that was due on 1 January 2001. On 2 January 2001, the petitioners` solicitors replied, agreeing to an extension until noon on 16 January 2001 for the payment of the said instalment, subject to the terms of the Agreement and the consent order.

Mr Jeyaretnam did not pay the third instalment on time. On 16 January 2001, Mr Raman wrote to the petitioners` solicitors to inform them...