RHB Bank Berhad v Koon Hoe & Company Pte Ltd: Breach of Settlement Agreement & Guarantor Liability

In RHB Bank Berhad v Koon Hoe & Company Pte Ltd, the High Court of Singapore dismissed the Defendants’ appeal against the decision to enter judgment against them under Order 14 of the Rules of Court. RHB Bank Berhad, as successors-in-title of Sime Bank Berhad, sued Koon Hoe & Company Pte Ltd, Tan Sioh Lwee, Nam Wing Fiegh, and Nam Wen Kai Paul for breach of a settlement agreement related to a prior debt. The court found that the Defendants breached the agreement by failing to provide statutory declarations and undertakings by the agreed deadline, entitling RHB Bank Berhad to demand the full outstanding amount.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

RHB Bank Berhad sued Koon Hoe & Company Pte Ltd for breaching a settlement agreement. The court found in favor of RHB Bank Berhad.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
RHB Bank BerhadPlaintiffCorporationJudgment for PlaintiffWon
Koon Hoe & Company Pte LtdDefendantCorporationClaim DismissedLost
Tan Sioh LweeDefendantIndividualClaim DismissedLost
Nam Wing FieghDefendantIndividualClaim DismissedLost
Nam Wen Kai PaulDefendantIndividualClaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Chan Kia PengKhattar Wong & Partners
P SelvaduraiRodyk & Davidson
MuralitherapanyRodyk & Davidson

4. Facts

  1. Plaintiffs and Defendants entered into a settlement agreement on 9 March 2000.
  2. The settlement agreement required the Defendants to provide statutory declarations and undertakings.
  3. The Defendants failed to provide the statutory declarations and undertakings by the deadline.
  4. The Plaintiffs sent a letter demanding the statutory declarations and undertakings by 28 March 2000.
  5. The Defendants did not provide the documents by the deadline.
  6. The Plaintiffs terminated the settlement agreement due to the breach.
  7. The Defendants argued that the Plaintiffs had waived the requirement for timely delivery of the documents.

5. Formal Citations

  1. RHB Bank Berhad v Koon Hoe & Company Pte Ltd, Suit 146/2000/J, RA 5/2000, [2000] SGHC 216

6. Timeline

DateEvent
Sime Bank Berhad commenced Suit No. 945 of 1999 against the Defendants
Plaintiffs substituted as the Plaintiffs in Suit No. 945 of 1999
Plaintiffs sent Letter of Offer to the First Defendant
First Defendant accepted Letter of Offer
First Defendant paid $50,000 to the Plaintiffs
Plaintiffs liquidated fixed deposit account of Nam Wing Fiegh
Plaintiffs’ solicitors wrote to the Defendants’ solicitors regarding the Letter of Offer
Defendants’ solicitors replied to Plaintiffs’ solicitors
Plaintiffs’ solicitors informed Defendants’ solicitors of the requirements for the Statutory Declaration
Plaintiffs’ solicitors gave ultimatum for Statutory Declarations
Plaintiffs’ solicitors accepted First Defendant’s breach of contract
Defendants’ solicitors responded to Plaintiffs’ solicitors
Defendants’ solicitors faxed draft statutory declarations to the Plaintiffs’ solicitors
Plaintiffs’ solicitors replied to Defendants’ solicitors
Court dismissed the Defendants’ appeal
Decision Date

7. Legal Issues

  1. Breach of Settlement Agreement
    • Outcome: The court held that the First Defendant breached the settlement agreement by failing to deliver the requisite documents by the deadline.
    • Category: Substantive
    • Sub-Issues:
      • Failure to provide statutory declarations
      • Failure to provide undertakings
  2. Waiver
    • Outcome: The court held that while strict compliance with the settlement agreement had been waived, delivery of the documents was never waived.
    • Category: Substantive
  3. Estoppel
    • Outcome: The court found that the Plaintiffs could rely on Clause 19 of the Standard Terms and Conditions to overcome any contention on estoppel.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Specific Performance
  3. Declaration that the notices were wrongful

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Banking Litigation

11. Industries

  • Banking

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Chitty on ContractsN/AYesChitty on Contracts (27th Edition, 1994)N/ACited for principles on waiver and forbearance in contract law.

13. Applicable Rules

Rule Name
Order 14 of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Settlement Agreement
  • Statutory Declaration
  • Undertaking
  • Breach of Contract
  • Waiver
  • Estoppel
  • Letter of Offer
  • Guarantor
  • Default
  • Indulgence

15.2 Keywords

  • settlement agreement
  • breach of contract
  • banking
  • statutory declaration
  • guarantee

17. Areas of Law

Area NameRelevance Score
Breach of Contract90
Contract Law80
Guarantee70
Debt Recovery60
Settlement Agreement50
Estoppel40
Summary Judgement30

16. Subjects

  • Contract Dispute
  • Banking
  • Settlement Agreement
  • Breach of Contract