Sia Leng Yuen v Ko Chun Shun Johnson: Setting Aside Statutory Demand Due to Disputed Security Value
In Sia Leng Yuen v Ko Chun Shun Johnson, the Singapore High Court heard an application by Sia Leng Yuen to set aside a statutory demand by Ko Chun Shun Johnson for US$2,197,260.27 based on a promissory note secured by membership certificates. The court, finding that the creditor unfairly valued the security at nil without sufficient evidence and prejudiced the debtor, allowed Sia's application and set aside the statutory demand.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Applicant's application allowed and statutory demand set aside.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court set aside a statutory demand because the creditor undervalued security pledged by the debtor, unfairly demanding full debt payment.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Sia Leng Yuen | Applicant | Individual | Application Allowed | Won | Prakash P Mulani, Karen Quek |
| Ko Chun Shun Johnson | Respondent | Individual | Statutory Demand Set Aside | Lost | Rebecca Leong |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Prakash P Mulani | J Koh and Co |
| Karen Quek | J Koh and Co |
| Rebecca Leong | John Tan and Chan |
4. Facts
- Sia issued a promissory note to Ko for US$2 million.
- Sia pledged 50 membership certificates of the Blue Canyon Country Club as collateral.
- Ko served a statutory demand on Sia for US$2,197,260.27.
- The statutory demand stated the security was of nil value.
- Murex, the company owning BCCC, was under restructuring proceedings in Thailand.
- Sia disputed the valuation of the membership certificates as nil.
- Ko did not sell the membership certificates or return them to Sia.
5. Formal Citations
- Sia Leng Yuen v Ko Chun Shun Johnson, OSB No 600118/2001, [2002] SGHC 55
6. Timeline
| Date | Event |
|---|---|
| Promissory note dated | |
| Murex placed under Restructuring Proceeding | |
| Debt calculated at US$2,197,260.27 | |
| Affidavit filed by Amornwat Thirakrittaporn | |
| Sia’s application allowed and statutory demand set aside | |
| Decision Date |
7. Legal Issues
- Setting Aside Statutory Demand
- Outcome: The court set aside the statutory demand.
- Category: Substantive
- Sub-Issues:
- Failure to comply with Bankruptcy Rules
- Valuation of security
8. Remedies Sought
- Setting aside of statutory demand
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Bankruptcy
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Rules (Cap 20, R 1, 1996 Rev Ed) rr 98(2)(c) | Singapore |
| Bankruptcy Rules (Cap 20, R 1, 1996 Rev Ed) rr 98(2)(e) | Singapore |
| Bankruptcy Rules r 94(5) | Singapore |
| Bankruptcy Rules r 94(6) | Singapore |
| Bankruptcy Act s 62(a) | Singapore |
| Bankruptcy Act s 61(1)(c) | Singapore |
| Bankruptcy Act s 2 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Statutory demand
- Promissory note
- Security
- Membership certificates
- Bankruptcy Re-Organisation
- Valuation of security
15.2 Keywords
- Bankruptcy
- Statutory Demand
- Security
- Insolvency
- Singapore
16. Subjects
- Bankruptcy
- Insolvency
- Civil Procedure
17. Areas of Law
- Insolvency Law
- Bankruptcy Law