Toh Khim Eak v United Overseas Bank: Validity of Joint Statutory Demand under Bankruptcy Act
In Toh Khim Eak v United Overseas Bank Limited and Another, the High Court of Singapore heard an appeal regarding the validity of a joint statutory demand issued by United Overseas Bank Limited and another creditor to Toh Khim Eak. The deputy registrar had set aside the joint statutory demand. Lee Seiu Kin JC dismissed the appeal, holding that a joint letter issued by two or more creditors to demand different debts owed to each of them is not a valid statutory demand under Section 62 of the Bankruptcy Act.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding the validity of a joint statutory demand by two creditors. The court held that a joint demand for separate debts is not a valid statutory demand under the Bankruptcy Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| United Overseas Bank Limited | Appellant | Corporation | Appeal Dismissed | Lost | |
| Another | Appellant | Other | Appeal Dismissed | Lost | |
| Toh Khim Eak | Respondent | Individual | Appeal Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Chee Yong En | William Lai & Alan Wong |
4. Facts
- The respondents jointly issued a single letter to the applicant demanding a total of $14,650.80.
- The amount comprised $9,708.53 owed to the first respondent and $4,942.27 owed to the second respondent.
- The deputy registrar held that the joint statutory demand was irregular because it combined two different debts owing to two different creditors in a single letter.
- The applicant did not dispute owing the sums claimed at the time of the demand.
5. Formal Citations
- Toh Khim Eak v United Overseas Bank Limited and Another, B 119/2000, [2001] SGHC 6
6. Timeline
| Date | Event |
|---|---|
| Decision Date |
7. Legal Issues
- Validity of Statutory Demand
- Outcome: The court held that a joint letter issued by two or more creditors to demand different debts owed to each of them is not a valid statutory demand under s 62 of the Bankruptcy Act.
- Category: Substantive
- Related Cases:
- The Straits Times Press (1975) Ltd v Wong Chee Kok
8. Remedies Sought
- Bankruptcy Order
9. Cause of Actions
- Bankruptcy
10. Practice Areas
- Bankruptcy
- Commercial Litigation
11. Industries
- Banking
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Straits Times Press (1975) Ltd v Wong Chee Kok | High Court | Yes | The Straits Times Press (1975) Ltd v Wong Chee Kok | Singapore | Distinguished; cited regarding whether a statutory demand could contain more than one debt owed to the same creditor, but not applicable to joint statutory demands by different creditors. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Act (Cap 20) ss 2 | Singapore |
| Bankruptcy Act (Cap 20) ss 57 | Singapore |
| Bankruptcy Act (Cap 20) ss 61 | Singapore |
| Bankruptcy Act (Cap 20) ss 62 | Singapore |
| Interpretation Act s 2 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Statutory Demand
- Creditor's Petition
- Joint Statutory Demand
- Bankruptcy Act
15.2 Keywords
- Bankruptcy
- Statutory Demand
- Joint Statutory Demand
- Insolvency
- Singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Bankruptcy | 90 |
| Insolvency Law | 90 |
16. Subjects
- Bankruptcy
- Insolvency