Hsing Mei Construction v Lim Check Meng: Default Judgment, Setting Aside, and Loan Dispute

In Hsing Mei Construction Pte Ltd v Lim Check Meng, the High Court of Singapore heard an appeal by Lim Check Meng against a decision of the Senior Assistant Registrar, who had dismissed Lim's application to set aside a default judgment obtained by Hsing Mei Construction. Hsing Mei Construction had sued Lim Check Meng for progress payments and an alleged loan. The court partially allowed Lim's appeal, setting aside the judgment in respect of the loan claim but upholding the judgment regarding the progress payments. The court found that Lim had a plausible defense regarding the loan but not regarding the progress payments.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Allowed in Part

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court partially allowed Lim Check Meng's appeal, setting aside part of a default judgment related to a loan dispute with Hsing Mei Construction.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Hsing Mei Construction Pte LtdPlaintiffCorporationJudgment for Plaintiff in partPartial
Lim Check MengDefendant, AppellantIndividualAppeal Allowed in PartPartial

3. Judges

Judge NameTitleDelivered Judgment
Lai Siu ChiuJudgeYes

4. Counsels

Counsel NameOrganization
JeyabalenJeyabalen & Partners
Justin ChiaHarry Elias Partnership
Subramanian A PillaiHarry Elias Partnership

4. Facts

  1. Hsing Mei Construction entered into two agreements with Lim Check Meng to construct houses.
  2. The agreements were standard form contracts prescribed by the Singapore Institute of Architects.
  3. The architect issued certificates of payments for sums of $11,500 and $52,800.
  4. Hsing Mei claimed Lim Check Meng borrowed $159,520 from it.
  5. Lim Check Meng claimed the sums paid to him were repayment of a loan he made to Hsing Mei.
  6. The defendant applied to set aside the judgment in default against him.
  7. The defendant claimed he was justified in withholding the progress payments to Hsing Mei.

5. Formal Citations

  1. Hsing Mei Construction Pte Ltd v Lim Check Meng, Suit 326/1999, [2000] SGHC 75

6. Timeline

DateEvent
Hsing Mei commenced construction works for the Jalan Pari Burong property.
Hsing Mei commenced construction works for the Mariam Close houses.
Lim Check Meng made a loan of $300,000 to Hsing Mei Construction Pte Ltd.
Lim Check Meng made a loan of $300,000 to Hsing Mei Construction Pte Ltd.
Hsing Mei advanced $63,000 to Lim Check Meng.
Hsing Mei advanced $40,000 to Lim Check Meng.
Hsing Mei advanced $50,000 to Lim Check Meng.
Hsing Mei advanced $6,520 to Lim Check Meng.
Scheduled completion date for the Mariam Close houses.
Architect issued certificate of payment for $11,500 for work done at Jalan Pari Burong.
Architect issued Delay Certificate.
Scheduled completion date for the Jalan Pari Burong house.
Architect issued Delay Certificate.
Architect issued certificate of payment for $52,800 for the houses at Mariam Close.
Hsing Mei sent reminders to Lim Check Meng for payments.
Meeting held between Tan, Lim Check Meng, and Lim Puay Kwang regarding extension of time.
Architect issued Termination of Delay Certificates.
Lim Check Meng allegedly terminated the contracts with Hsing Mei.
Hsing Mei sent reminders to Lim Check Meng for payments.
Tan spoke to Lim Check Meng about the draft Termination of Delay Certificates.
Memoranda concerning the projects were sent to both Hsing Mei and Lim Check Meng.
Hsing Mei sent reminders to Lim Check Meng for payments.
Hsing Mei issued a writ claiming $194,300.
Hsing Mei obtained judgment in default of appearance for $353,820.
Lim Check Meng found out that judgment had been entered against him.
Lim Check Meng applied to set aside the judgment.
High Court allowed Lim Check Meng's appeal in part.

7. Legal Issues

  1. Setting Aside Default Judgment
    • Outcome: The court set aside part of the default judgment, finding that the defendant had a plausible defence regarding the loan claim.
    • Category: Procedural
    • Sub-Issues:
      • Meritorious defence
      • Real prospect of success
    • Related Cases:
      • [1937] AC 473
      • [1986] 2 Lloyd’s Rep 221
      • [1992] 1 SLR 205
      • [1994] 2 SLR 645
  2. Breach of Contract
    • Outcome: The court upheld the judgment regarding the progress payments, finding that the defendant did not have a reasonable prospect of successfully defending the claim.
    • Category: Substantive
    • Sub-Issues:
      • Failure to make progress payments
      • Liquidated damages
      • Extension of time
  3. Loan Agreement
    • Outcome: The court set aside the judgment regarding the loan claim, finding that the defendant had a plausible defence.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Recovery of Debt

10. Practice Areas

  • Construction Disputes
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Evans v BartlamHouse of LordsYes[1937] AC 473United KingdomCited as the leading case on the court's discretion to set aside judgments obtained in default.
Alpine Bulk Transport Co Inc v Saudi Eagle Shipping Co IncEnglish Court of AppealYes[1986] 2 Lloyd’s Rep 221United KingdomCited for the principle that a defendant must show a meritorious defence with a real prospect of success to set aside a default judgment.
Hong Leong Finance Ltd v Tay Keow Neo & AnorHigh CourtYes[1992] 1 SLR 205SingaporeCited for accepting the principles in Evans v Bartlam and Alpine Bulk Transport Co Inc v Saudi Eagle Shipping Co Inc regarding setting aside default judgments.
Abdul Gaffar v Chua Kwang YongHigh CourtYes[1994] 2 SLR 645SingaporeCited for reaffirming the principles in Hong Leong Finance Ltd v Tay Keow Neo & Anor regarding setting aside default judgments.

13. Applicable Rules

Rule Name
Order 13 Rule 8 of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Liquidated damages
  • Progress payments
  • Retention sums
  • Extension of time
  • Termination of Delay Certificates
  • Delay Certificates
  • Friendly loan
  • Default judgment
  • Architect's certificate

15.2 Keywords

  • construction
  • contract
  • default judgment
  • loan
  • Singapore

17. Areas of Law

Area NameRelevance Score
Contract Law80
Breach of Contract75
Construction Law65
Building Contracts50
Summary Judgement50
Liquidated Damages40
Evidence30
Mistake30
Estoppel25

16. Subjects

  • Construction Dispute
  • Contract Law
  • Civil Procedure