Sim Lim Finance Ltd v Pelandok Enterprises Pte Ltd and Another

• Judge: Wee Chong Jin CJ
• Judgment Date: 26 March 1981
• Neutral Citation: [1981] SGHC 9
• Citation: [1981] SGHC 9
• Defendant Counsel: First defendants not represented
• Published date: 19 September 2003
• Plaintiff Counsel: Liu Yuen Ming (Lim, Ganesh & Liu)
• Date: 26 March 1981
• Docket Number: Suit No 3146 of 1980
• Court: High Court (Singapore)
• Subject Matter: O 42 r 12, O 83 r 4 Rules of the Supreme Court 1970,Civil Procedure,Judgments and orders,Judgment in default of appearance,Rate of interest,ss 18(2) 80(2)(i) & First Sch para 7 Supreme Court of Judicature Act (Cap 15)

The plaintiffs, a finance company, sued the defendants for monies advanced to the first defendant under a mortgage. They applied for leave to enter judgment under O 83 r 4 against the first defendant in default of appearance for $1,755,691.90 and interest at the rate of $1,024.14 per day from 1 October 1980 until payment.

The application was heard by the Registrar on 10 February 1981 who granted leave to enter judgment for the sum claimed and interest at the rate claimed from 1 October 1980 until the date of judgment and thereafter at 8% per annum. The plaintiffs now appeal contending that they were not only entitled to interest at the rate claimed from 1 October 1980 until the date of judgment but also thereafter at the same rate `until payment`.

Order 42 r 12 of the Rules of the Supreme Court provides:

Every judgment debt shall carry interest at the rate of 8 per centum per annum or at such other rate not exceeding the rate aforesaid as the court directs, such interest to be calculated from the date of judgment until the judgment is satisfied.

Despite this rule the plaintiffs contend that they are entitled to interest at the rate claimed until the judgment debt is satisfied. They rely on s 18(2) of the Supreme Court of Judicature Act and para 7 of the First Schedule thereto. Section 18(2) reads:

Without prejudice to the generality of sub-s (1) of this section the High Court shall have the powers set out in the First Schedule to this Act:

`Provided that all such powers shall be exercised in accordance with any written law or Rules of court relating to them.`

Paragraph 7 of the First Schedule reads:

Power to direct interest to be paid on debts, including judgment debts, or on sums found due on taking accounts between parties, or on sums found due and unpaid by receivers or other persons liable to account to the court.

It is contended that s 18(2) read with para 7 of the interest to be paid on a judgment debt and that in a case where as here, there is an agreement or covenant between the parties to pay interest at an agreed rate `as well after as before any judgment` the court has a discretionary power to order payment of interest at a rate exceeding the statutory rate of 8% per annum prescribed under O 42 r 12.

In support of this contention the plaintiffs rely on the case of Economic Life Assurance Society v Usborne & Ors [1902] AC 147. In my opinion that case is distinguishable. It decided where in a...