Re Lim Wee Beng Eddie: Application for Interim Order under Bankruptcy Act
Lim Wee Beng Eddie applied for an interim order under Section 45 of the Bankruptcy Act to propose a voluntary arrangement with his creditors. The High Court dismissed the appeal against the Deputy Registrar's decision to discharge the interim order, finding the proposed scheme not serious or viable. Coutts Bank (Schweiz) AG held a watching brief.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed.
1.3 Case Type
Bankruptcy
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Application for an interim order under Section 45 of the Bankruptcy Act. The court dismissed the appeal, affirming the discharge of the interim order.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lim Wee Beng Eddie | Applicant | Individual | Application Dismissed | Lost | |
| Courts Bank (Schweiz) AG | Respondent | Corporation | Appeal Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tay Yong Kwang | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Robert Yoong | Yoong & Co |
| Ng Hwee Chong | Rodyk & Davidson |
4. Facts
- Lim Wee Beng Eddie applied for an interim order to propose a voluntary arrangement.
- Coutts Bank presented a bankruptcy petition against Lim Wee Beng Eddie.
- The Deputy Registrar initially granted an interim order, which was later extended.
- A nominee was appointed but later discharged due to potential conflict of interest.
- The applicant had difficulty finding a new nominee.
- The Deputy Registrar discharged the interim order due to lack of positive results.
- The applicant appealed against the discharge of the interim order.
5. Formal Citations
- Re Lim Wee Beng Eddie, OS No 110 of 2000, [2001] SGHC 103
6. Timeline
| Date | Event |
|---|---|
| Coutts Bank presented a Bankruptcy Petition against the applicant. | |
| Applicant gave written notice of his proposal to Mr. Ho Wah Onn. | |
| Application filed under Section 45 of the Bankruptcy Act. | |
| Deputy Registrar granted an interim order. | |
| Mapor Commercial Loan Fee/Compensation Agreement signed. | |
| Copy of proposed scheme and notice of meeting sent to creditors. | |
| Robert Yoong filed an affidavit on behalf of the Nominee. | |
| Deputy Registrar extended the interim order to 6 November 2000. | |
| The Nominee filed an affidavit. | |
| Deputy Registrar extended the interim order by another two weeks to 20 November 2000. | |
| Meeting of the creditors held. | |
| Deputy Registrar extended the interim order by another week to 27 November 2000. | |
| Deputy Registrar discharged the Nominee and extended the interim order to 4 December 2000. | |
| The Nominee filed an affidavit. | |
| The Applicant filed an affidavit. | |
| Court granted the Applicants solicitors request for more time and extended the interim order to 8 January 2000. | |
| The Applicants solicitor requested another four weeks and the interim order was extended by another four weeks to 5 February 2001. | |
| The Applicant filed an affidavit stating that Ms Winifred Gomez, an Advocate and Solicitor, had consented to act as Nominee. | |
| Deputy Registrar discharged the interim order. | |
| Hearing of the appeal. | |
| Parties attended court to present further arguments. | |
| The Applicant filed another affidavit to inform the Court of the status of the various aspects of his proposed scheme. | |
| Hearing adjourned to this date. | |
| Decision Date |
7. Legal Issues
- Discharge of Interim Order
- Outcome: The court affirmed the Deputy Registrar's decision to discharge the interim order.
- Category: Procedural
- Voluntary Arrangement
- Outcome: The court found the proposed scheme of voluntary arrangement not serious and viable.
- Category: Substantive
8. Remedies Sought
- Interim Order
- Stay of Bankruptcy Petition
9. Cause of Actions
- Application for Interim Order under Section 45 of the Bankruptcy Act
10. Practice Areas
- Insolvency
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Hook v. Jewson Ltd | N/A | Yes | [1997] 1 B.C.L.C. 664 | United Kingdom | Cited for the principle that the court must be satisfied of the seriousness and bona fides of the application for an interim order. |
| Re A Debtor (Cooper v. Fearnley) (1 of 1994) | N/A | Yes | [1997] B.P.I.R. 20 | United Kingdom | Cited for the principle that judges must be careful not to allow applications for interim orders simply to become a means of postponing the making of bankruptcy orders. |
| Knowles v. Coutts & Co. | N/A | Yes | [1998] B.P.I.R. 96 | United Kingdom | Cited for the principle that it is not a good ground for refusing to make an interim order that the return to creditors will be small; it is for the creditors themselves to decide on its adequacy. |
13. Applicable Rules
| Rule Name |
|---|
| Bankruptcy Rules |
| Rule 71 (1) of the Bankruptcy Rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Act | Singapore |
| Section 45 of the Bankruptcy Act | Singapore |
| Section 46 of the Bankruptcy Act | Singapore |
| Section 48 of the Bankruptcy Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Interim Order
- Voluntary Arrangement
- Nominee
- Bankruptcy Petition
- Scheme of Arrangement
- Creditors
- Insolvent Debtor
15.2 Keywords
- bankruptcy
- voluntary arrangement
- interim order
- insolvency
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Restructuring and Insolvency | 85 |
| Insolvency Law | 80 |
| Bankruptcy | 75 |
| Winding Up | 65 |
| Company Law | 40 |
| Contract Law | 30 |
| Guarantee | 25 |
| Guarantees and indemnities | 20 |
| Guarantor | 20 |
16. Subjects
- Bankruptcy
- Voluntary Arrangements
- Civil Procedure