Wong Chee Siong and another v Tan Boon Hwa and another
Jurisdiction | Singapore |
Judge | Denise Wong AR |
Judgment Date | 05 August 2010 |
Neutral Citation | [2010] SGHC 222 |
Court | High Court (Singapore) |
Docket Number | Suit No 99 of 2010 (Summons No 1828 of 2010) |
Published date | 12 August 2010 |
Year | 2010 |
Hearing Date | 27 May 2010,22 July 2010,06 July 2010 |
Plaintiff Counsel | Lim Tiang Yao (Asia Law Corporation) |
Defendant Counsel | Gan Kam Yuin (Bih Li & Lee) |
Subject Matter | Civil Procedure,Contract,Equity |
Citation | [2010] SGHC 222 |
This is an application for summary judgment pursuant to O 14 of the Rules of Court (Cap 322, R 5, 2006 Rev Ed) (“the Rules”).
Background factsThe defendants in this action, Tan Boon Hwa (“Tan”) and Norieta B Galuga (“Norieta”) (collectively, “the Vendors”), are the owners of a Housing Development Board (“HDB”) flat known as Block 195 Kim Keat Avenue #11-342 Singapore 310195 (“the Property”). The Vendors granted the plaintiffs, Wong Chee Siong and Koo Chooi Ling (collectively, “the Purchasers”), an option to purchase the Property for the price of $402,000 (“the Option”). In consideration of the Option, the Purchasers paid the Vendors an option fee of $1,000 (“the Option Fee”). The Option was dated 29 June 2009 and it was to be exercised by the Purchasers on or before 13 July 2009. The Option was in the standard form for the sale and purchase of HDB flats.
On or about 9 July 2009, the Purchasers exercised the Option by paying the Vendors a sum of $2,000 and signing the acceptance form that was enclosed with the Option. According to clause 5.2 of the Option, the Option and the acceptance form signed by the Purchasers formed a binding contract for the sale and purchase of the Property. The signing was witnessed by one Chin Hwa Huat of C&H Realty Pte Ltd. A valid and binding agreement had therefore been made between the Vendors and the Purchasers for the sale and purchase of the Property. This fact was not in dispute between the parties. For convenience, the agreement between the parties for the sale and purchase of the Property will be referred to as “the Agreement”.
On or about 13 October 2009, the parties attended the first appointment with the HDB. The completion date for the sale was initially fixed at 26 November 2009. The sale was not completed as the Vendors failed to settle arrears in the sum of $42,685.67 owing to the HDB for upgrading costs and late payment charges. On or about 7 January 2010, the Vendors informed the Purchasers that they were unable to proceed with the sale as they could not settle the arrears due to their financial situation. They offered to compensate the Purchasers instead. The Purchasers rejected this offer and demanded that the sale be completed. The sale, however, was never completed.
On 10 February 2010, the Purchasers filed the present action to seek an order for specific performance of the Agreement, with all the necessary accounts and inquiries, or, in the alternative, damages for breach of the Agreement. The application before me was filed by the Purchasers for summary judgment under O 14 of the Rules for the above-mentioned remedies.
The main submissions of the parties The Purchasers seek specific performance of the Vendors’ obligations under the Agreement on the grounds that the Property has an intrinsic value which cannot be compensated by the usual remedy of damages. They aver that none of the usual reasons for denying specific performance, such as the general reluctance of the court to grant specific performance involving contracts for employment or personal service, are applicable. Further, although the Purchasers acknowledge that specific performance may be denied where severe hardship would be caused to the Vendors, they rely on para 27-031 of
The Vendors argued that there exist, in this action, triable issues that render the action unsuitable for summary judgment. Four main supporting arguments were proffered in this regard:
It may be useful to first set out the relevant terms of the contract.
Clause 9.3 of the Option states:
The Flat is sold subject to –
…
Clause 13.5 of the Option states:
The Seller agrees to take such steps as the Buyer may reasonably request to help the Buyer obtain the HDB’s approval for the purchase of the Flat.
Clause 15.1 of the Option states:
If the HDB’s approval for the sale or purchase of the Flat is not obtained, is refused or is revoked before the Completion Date and it is not due to the Seller’s or Buyer’s default in complying with the HDB’s terms of resale or requirements –
- the sale and purchase will be cancelled;
- this Option will be rescinded and become null and void and of no further effect ;
- the Seller will immediately, without demand, refund to the Buyer the Option Fee, Option Exercise Fee and any other monies paid by the Buyer to the Seller, without any interest or deduction;
- each party will bear his own costs in the matter; and
- neither party will have any other claim against the other.
Clause 15.2 of the Option states:
If the HDB’s approval for the sale and purchase of the Flat is withheld, refused, revoked or not obtained before the Completion Date and it is due to the Seller’s or Buyer’s default in complying with the HDB’s terms of resale or requirements, the other party will be entitled to enforce the terms of this Option for specific performance, damages and/or any other remedy.
The terms and conditions of a sale/purchase of a HDB resale flat as prescribed by the HDB (“the HDB Terms”) are, as would be apparent, incorporated into the Agreement via clause 9.3(b) of the Option (see
Clause 12.1 of the HDB Terms states:HDB’s approval for resale is granted subject to:-
…- The seller paying all outstanding taxes/charges, e.g. Property Tax, Service/Conservancy charges up to the effective date of resale; and
- The seller paying an ex-tenancy, arrears/debts and administrative charges owing by him to HDB with respect to the resale flat or any of HDB’s properties.
The HDB’s positionIf any person listed in the Application Form has any outstanding debts due and owing to HDB, such person shall be required to settle such debts and pay an administrative charge to be determined at HDB’s discretion before the application can be considered.
The position that the HDB has taken in respect of the sale of the Property is contained in the letter dated 11 March 2010, which was mentioned earlier at
We refer to the resale of your flat in which the first appointment was on 13/10/2009.
...
The Vendors then received a second letter from the HDB dated 23 June 2010, which stated that...
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