CIC Video v Forward International: Garnishee Order Appeal on Debt Repayment Discretion
In CIC Video International v Forward International Singapore Pte Ltd and Wo Kee Hong (Singapore) Pte Ltd, the High Court of Singapore heard an appeal by Wo Kee Hong (Singapore) Pte Ltd (the Garnishee) against a decision to make a garnishee order absolute in favor of CIC Video International (the Judgment Creditor) against Forward International Singapore Pte Ltd (the Judgment Debtor). The court dismissed the appeal, holding that a debt without fixed repayment terms is generally repayable at once without any previous demand.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding a garnishee order. The court decided that a debt without fixed repayment terms is repayable at once, dismissing the appeal.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| CIC Video International | Judgment Creditor, Respondent | Corporation | Garnishee order absolute granted | Won | |
| Forward International Singapore Pte Ltd | Judgment Debtor | Corporation | |||
| Wo Kee Hong (Singapore) Pte Ltd | Garnishee, Appellant | Corporation | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| S Rajendran | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Felicia Chua | Wong & Leow |
| Cavinder Bull | Drew & Napier |
4. Facts
- The judgment debtor was a subsidiary of the garnishee.
- The garnishee held 999,997 of the one million issued shares of the judgment debtor.
- The two companies shared premises and had a common management.
- The accounts of the garnishee showed that as at 31 December 1997, there was a sum of $1,930,242 'due to a subsidiary company'.
- The garnishee's accounts recorded a balance sum of S$1,816,191 owing to the Judgment Debtor as at 7 July 1999.
- The loan was described in the audited accounts as 'interest free, unsecured and had no fixed repayment term'.
5. Formal Citations
- CIC Video International v Forward International Singapore Pte Ltd, Suit 1111/1998, [2000] SGHC 15
6. Timeline
| Date | Event |
|---|---|
| Garnishee's accounts show $1,930,242 due to subsidiary company. | |
| Suit 1111/1998 filed | |
| Garnishee Order to Show Cause served on Garnishee. | |
| RA 382/1999 filed | |
| Appeal dismissed. |
7. Legal Issues
- Whether the debt was 'due and owing' at the time of the garnishee order
- Outcome: The court held that the debt was 'due and owing' because the loan had no fixed repayment terms and was therefore repayable at once.
- Category: Substantive
8. Remedies Sought
- Garnishee Order Absolute
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chitty | N/A | Yes | Chitty, 27th Ed. At 36-210 | N/A | Cited for the principle that a loan made without fixed repayment terms is generally repayable at once without any previous demand. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Garnishee Order
- Garnishee
- Judgment Debtor
- Judgment Creditor
- Due and Owing
- Subsidiary
- Holding Company
15.2 Keywords
- Garnishee Order
- Debt
- Subsidiary
- Singapore
- High Court
- Appeal
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Garnishee Proceedings | 95 |
| Company Law | 60 |
| Crossclaims | 50 |
| Contract Law | 30 |
16. Subjects
- Garnishee Proceedings
- Debt
- Civil Litigation