Seng Hock Heng Contractor v Hup Seng Bee Construction: Injunction Against Performance Bond Call

In Seng Hock Heng Contractor Pte Ltd v Hup Seng Bee Construction Pte Ltd, the High Court of Singapore heard an application by Seng Hock Heng Contractor Pte Ltd for an injunction to prevent Hup Seng Bee Construction Pte Ltd from receiving payment on a performance bond. The bond was issued after Hup Seng Bee Construction Pte Ltd terminated its sub-contract with Seng Hock Heng Contractor Pte Ltd for a Housing and Development Board (HDB) building project. The court, presided over by Judicial Commissioner Choo Han Teck, dismissed the application, finding that Seng Hock Heng Contractor Pte Ltd had not provided sufficient evidence of fraud or unconscionable conduct to justify the injunction. The court determined that the onus of proof lay with the plaintiff and that the evidence presented was inconclusive.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's application is dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Seng Hock Heng sought an injunction to prevent Hup Seng Bee from receiving payment on a performance bond. The court dismissed the application, finding insufficient evidence of unconscionability.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
AnotherDefendantOtherNeutralNeutral
Seng Hock Heng Contractor Pte LtdPlaintiffCorporationApplication dismissedLost
Hup Seng Bee Construction Pte LtdDefendantCorporationJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Dilip KumarJ Koh & Co
Karen QuekJ Koh & Co
Intekhab KhanJ Koh & Co
Chong Kuan KeongChong Chia & Lim LLC
Lawrence LimChong Chia & Lim LLC

4. Facts

  1. The first defendant is the main contractor for an HDB building project.
  2. The plaintiff was the main sub-contractor to the first defendant in the HDB project.
  3. The first defendant terminated its sub-contract with the plaintiff on 9 May 2002.
  4. On 10 May 2002 the first defendant called upon the performance bond for $1,295,000.
  5. The plaintiff commenced proceedings against the first defendant for breach of contract.
  6. The plaintiff sought an injunction against the second defendant from making payment on the bond, and the first defendant from receiving payment on the bond.
  7. The plaintiff's grounds for seeking an order restraining payment under the performance bond are based on unconscionability.

5. Formal Citations

  1. Seng Hock Heng Contractor Pte Ltd v Hup Seng Bee Construction Pte Ltd and Another, Suit 484/2002, SIC 1447/2002, 1448/2002, [2002] SGHC 151

6. Timeline

DateEvent
First defendant terminated its sub-contract with the plaintiff.
First defendant called upon the performance bond.
Judgment issued.

7. Legal Issues

  1. Unconscionability
    • Outcome: The court found insufficient evidence of unconscionability to grant the injunction.
    • Category: Substantive
  2. Breach of Contract
    • Outcome: The court did not make a determination on the breach of contract claim, as it was not directly relevant to the injunction application.
    • Category: Substantive

8. Remedies Sought

  1. Injunction

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Construction Law
  • Performance Bonds

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Sin Kian Contractor Pte Ltd v Lian Kok HongHigh CourtYes[1999] 3 SLR 732SingaporeCited for the proposition that even if the court is minded to refuse an injunction it may order part payment only.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Performance bond
  • Injunction
  • Unconscionability
  • Sub-contract
  • Liquidated damages
  • Retention sum
  • Progress payment

15.2 Keywords

  • Performance bond
  • Injunction
  • Construction
  • Singapore
  • Breach of contract
  • Unconscionability

17. Areas of Law

Area NameRelevance Score
Performance Bond90
Injunctions80
Unconscionability70
Contract Law60
Breach of Contract50
Construction Law40

16. Subjects

  • Construction Dispute
  • Banking Law
  • Contract Law