Re Voluntary Arrangement by Lek Kee Meng: Creditors' Rights in Bankruptcy Interim Order Application

In the High Court of Singapore, Choo Han Teck JC dismissed an appeal by Lek Kee Meng regarding an interim order application under s 45 of the Bankruptcy Act. The court held that all relevant matters, including the views of creditors such as Malayan Banking Bhd, Fraser Securities Pte Ltd, Newton Advertising, and UOB Kay Hian, should be considered when deciding on an interim order. The court found that r 72 of the Bankruptcy Rules does not restrict who may be heard and that the wide effect of an interim order under s 47 necessitates considering creditors' views.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court dismissed an appeal, holding that all relevant matters, including creditors' views, should be considered when deciding on an interim order under the Bankruptcy Act.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Malayan Banking BhdRespondentCorporationNeutralNeutral
Fraser Securities Pte LtdRespondentCorporationNeutralNeutral
Lek Kee MengAppellant, ApplicantIndividualAppeal dismissedLost
Newton AdvertisingRespondentCorporationNeutralNeutral
UOB Kay HianRespondentCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Gavin OoiShook Lin & Bok
Andrew OngRajah & Tann
Kirpal SinghKirpal Singh & Co
Melvin ChanWong Partnership
Tan Yee HongWong Partnership

4. Facts

  1. The appellant applied for an interim order under s 45 of the Bankruptcy Act.
  2. The object was to appoint a nominee to act in relation to making a private arrangement to settle his debts.
  3. Counsel for various creditors attended the hearing.
  4. The senior assistant registrar ordered the appellant to serve the application and supporting affidavit on the creditors.
  5. The creditors were given 14 days to reply to the affidavit.
  6. The appellant appealed against that order.

5. Formal Citations

  1. Re Voluntary Arrangment by Lek Kee Meng, , [2001] SGHC 180

6. Timeline

DateEvent
Application went before the senior assistant registrar
Appeal dismissed

7. Legal Issues

  1. Right of creditors to be heard
    • Outcome: The court held that all relevant matters, including the views of the creditors, ought to be placed at its disposal.
    • Category: Procedural
    • Sub-Issues:
      • Restriction on who may be heard

8. Remedies Sought

  1. Interim order under s 45 of the Bankruptcy Act

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Insolvency
  • Bankruptcy

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
Bankruptcy Rules (Cap 20, R 1, 1996 Ed)
r 72 Bankruptcy Rules (Cap 20, R 1, 1996 Ed)

14. Applicable Statutes

Statute NameJurisdiction
Bankruptcy Act (Cap 20, 2000 Ed)Singapore
s 45 Bankruptcy Act (Cap 20, 2000 Ed)Singapore
s 47 Bankruptcy Act (Cap 20, 2000 Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Interim order
  • Voluntary arrangement
  • Bankruptcy petition
  • Creditors' rights
  • Locus standi

15.2 Keywords

  • Bankruptcy
  • Insolvency
  • Interim Order
  • Creditors
  • Singapore

17. Areas of Law

Area NameRelevance Score
Insolvency Law90
Bankruptcy85
Civil Procedure40

16. Subjects

  • Bankruptcy
  • Insolvency
  • Civil Procedure