Purwadi v Ung Hooi Leng: Setting Aside Default Judgment for $1.6 Million Cheque

In Purwadi v Ung Hooi Leng, the High Court of Singapore heard an appeal by Ung Hooi Leng to set aside a default judgment obtained by Purwadi for a dishonored cheque of $1.6 million. Purwadi had received the cheque from John Soh Chee Wen as part payment of a loan. After the cheque was dishonored, Purwadi commenced legal proceedings against Ung. Ung applied to set aside the default judgment, claiming she was not aware of the suit and had defenses on the merits. The court dismissed the appeal, finding that Ung had not shown sufficient merit in her defenses and had waived any irregularity in the service of the writ by seeking leave to file her defense.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Defendant's appeal dismissed with costs. Defendant's application dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal to set aside a default judgment over a dishonored $1.6 million cheque. The court dismissed the appeal, finding no merit in the defenses.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
PurwadiRespondent, PlaintiffIndividualJudgment upheldWonKesavan Nair
Ung Hooi LengAppellant, DefendantIndividualAppeal Dismissed, Application DismissedLost, LostLeslie Netto, S Magintharan

3. Judges

Judge NameTitleDelivered Judgment
S RajendranJudgeYes

4. Counsels

Counsel NameOrganization
Leslie NettoNetto Tan & S Magin
S MagintharanNetto Tan & S Magin
Kesavan NairDavid Lim & Partners

4. Facts

  1. Purwadi received a $1.6 million cheque from John Soh Chee Wen as part payment of a loan.
  2. The cheque was dishonored and returned to Purwadi marked “refer to drawer”.
  3. Purwadi commenced legal proceedings against Ung Hooi Leng to recover the amount of $1.6 million.
  4. Purwadi obtained leave of court to effect substituted service by publication.
  5. Ung applied to set aside the default judgment, claiming she was not aware of the suit.
  6. Ung admitted to signing blank cheques for Ho Seng Chuan to settle stock market losses.
  7. Ung initially denied being the judgment debtor in Suit 502/2003.

5. Formal Citations

  1. Purwadi v Ung Hooi Leng, Suit 502/2003, RA 291/2003, SIC 5481/2003, [2003] SGHC 211

6. Timeline

DateEvent
In September 2000, Purwadi received a cheque for $1.6 million from John Soh Chee Wen.
Cheque dated 15 September 2000.
Purwadi presented the cheque for payment, but it was dishonored.
Purwadi commenced legal proceedings against Ung to recover $1.6 million.
Court granted leave for substituted service.
Ung Hooi Leng, through her Kuala Lumpur solicitors, wrote to KEOA Securities.
Netto Tan & S Magin wrote to Purwadi’s solicitors.
Netto Tan applied to set aside the default judgment.
The application in SIC 4256/2003 was heard and dismissed by the Asst Registrar, Joyce Low.
Defendant’s appeal in RA 291/2003 dismissed with costs. Defendant’s application in SIC 5481/2003 dismissed with costs.

7. Legal Issues

  1. Setting aside default judgment
    • Outcome: The court found that the defendant had not shown sufficient merit in her defenses to warrant setting aside the default judgment.
    • Category: Procedural
    • Sub-Issues:
      • Irregularity in service
      • Merits of defence
  2. Substituted service of writ of summons
    • Outcome: The court found that the defendant had waived any irregularity in the service of the writ by seeking leave to file her defense/enter appearance.
    • Category: Procedural
    • Sub-Issues:
      • Irregular order
      • Waiver of irregularity

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Recovery of debt
  • Dishonored cheque

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Banking
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Development & Commercial Bank v AspatraN/AYes[1995] 3 MLJ 472N/ACited for the principle that a person cannot approbate and reprobate, and that taking a further step in an action after becoming aware of an irregularity of service waives the irregularity.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Bill of Exchange ActSingapore
s 30(1) of the Bill of Exchange ActSingapore
s 30(2) of the Bill of Exchange ActSingapore
s 29(3) of the Bill of Exchange ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Default judgment
  • Substituted service
  • Writ of summons
  • Dishonored cheque
  • Bill of exchange
  • Holder in due course
  • Waiver of irregularity

15.2 Keywords

  • default judgment
  • substituted service
  • cheque
  • bill of exchange
  • waiver
  • Singapore
  • High Court

16. Subjects

  • Civil Procedure
  • Contract Law
  • Banking Law

17. Areas of Law

  • Civil Procedure
  • Contract Law
  • Bills of Exchange Act