Beng Tiong Trading v Maria Janda: Setting Aside Default Judgment on Property Rights
In Beng Tiong Trading, Import and Export (1988) Pte Ltd v Maria Janda Achmad Bin Abdullah Wachdin Basharahil alias Maria and Others, the Singapore High Court heard an application by the 1st, 9th, 10th, and 12th defendants to set aside a default judgment. The default judgment declared that the plaintiffs were entitled to the rights, interests, benefits, and entitlements of the defendants in certain immovable properties. The court allowed the application, setting aside the order of court to the extent that it referenced the applicants, based on arguments concerning the nature of the beneficiaries agreement and the applicability of section 35 of the Conveyancing and Law of Property Act.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application allowed; order of court set aside to the extent that references in paragraphs 1, 2 and 5 therein are made to the applicants.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case regarding an application to set aside a default judgment concerning rights to immovable properties. The court allowed the application.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Beng Tiong Trading, Import and Export (1988) Pte Ltd | Plaintiff | Corporation | Order of court set aside to the extent that references in paragraphs 1, 2 and 5 therein are made to the applicants | Lost | Stanley Wong Hoong Hooi |
| Maria Janda Achmad Bin Abdullah Wachdin Basharahil alias Maria | Defendant, Applicant | Individual | Application allowed | Won | George Lim Teong Jin |
| Abd Rahim bin Awad bin Achmad Abdullah Wachdin Basharahil alias abd. Rahim Awad Wachdin | Defendant | Individual | Neutral | ||
| Abd. Rachman bin Ali bin Achmad Abdullah Wachdin Basharahil alias Abd. Rachman ali Wachdin | Defendant | Individual | Neutral | ||
| Salim bin Hasan bin Achmad Abdullah Wachdin Basharahil alias Salim Hasan W | Defendant | Individual | Neutral | ||
| Ishak Bin Saad Bin Achmad Abdullah Wachdin Basharahil alias Ishak Wachdin Be | Defendant | Individual | Neutral | ||
| Quresh bin Muchsin bin Achmad Abdullah Wachdin Basharahil alias Quraisj Wahidin S.H. alias Quresh Muchsin Wachdin | Defendant | Individual | Neutral | ||
| Abubakar bin Achmad bin Abdullah Wachdin Basharahil alias Abubakar Wahdin | Defendant | Individual | Neutral | ||
| Abd Azis bin Achmad bin Abdullah Wachdin Basharahil alias abd. Aziz Wahdin | Defendant | Individual | Neutral | ||
| Wachin bin Achmad bin Abdullah Wachdin Basharahil alias Dr. H. Wachdin Achman | Defendant, Applicant | Individual | Application allowed | Won | George Lim Teong Jin |
| Harith bin Achmad bin Abdullah Wachdin Basharahil alias Harits Ahmad Wahdin | Defendant, Applicant | Individual | Application allowed | Won | George Lim Teong Jin |
| Abd. Malik Muhammad Wachdin alias H. Abdul Malik Dr. | Defendant | Individual | Neutral | ||
| Futum binti Achmad bin Abdullah Wachdin Basharahil alias Futum | Defendant, Applicant | Individual | Application allowed | Won | George Lim Teong Jin |
| The Public Trustee of Singapore | Defendant | Government Agency | Neutral | ||
| Jak Alhadad & Co Pte Ltd | Defendant | Corporation | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Dawn Tan Ly-Ru AR | AR | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| George Lim Teong Jin | Wee, Tay & Lim |
| Stanley Wong Hoong Hooi | Jing Quee & Chin Joo |
4. Facts
- The applicants sought to set aside an order of court declaring the plaintiffs entitled to their rights in immovable properties.
- The applicants are beneficiaries of an estate under a will dated 3 September 1938.
- In August 1993, the beneficiaries entered into an agreement with the plaintiffs to sell the properties for $8.26 million.
- The beneficiaries received $240,000 as consideration.
- The beneficiaries applied to appoint private trustees, but later sought to repudiate the agreement.
- The plaintiffs instituted an action claiming specific performance of the beneficiaries agreement.
- A declaratory judgment in default of appearance was entered against eight beneficiaries on 19 July 1999.
5. Formal Citations
- Beng Tiong Trading, Import and Export (1988) Pte Ltd v Maria Janda Achmad Bin Abdullah Wachdin Basharahil alias Maria and Others, Suit 1255/1996, [2003] SGHC 232
6. Timeline
| Date | Event |
|---|---|
| Will dated | |
| Shaik Ahmad passed away | |
| Public Trustee appointed sole trustee of the will | |
| Agreement dated | |
| Beneficiaries entered into an agreement with the plaintiffs | |
| Meeting with some of the beneficiaries | |
| Declaratory judgment in default of appearance was entered | |
| Originating Summons No 1030 of 2000 | |
| Plaintiffs’ appeal vide registrars’ appeal 600020 of 2003 was dismissed | |
| Decision Date |
7. Legal Issues
- Setting Aside Default Judgment
- Outcome: The court allowed the application to set aside the default judgment to the extent that references in paragraphs 1, 2 and 5 therein are made to the applicants.
- Category: Procedural
- Sub-Issues:
- Failure to serve order of court
- Lack of understanding of legal proceedings
- Delay in challenging the order of court
- Related Cases:
- [2000] 4 SLR 559
- [1986] 2 Lloyd’s Rep 221
- [1995] 1 SLR 484
- [2000] 2 SLR 233
- [2002] 4 SLR 578
- [1960] MLJ 47
- [1987] 2 MLJ 37
- [1982] 1 MLJ 242
- [1992] 2 SLR 254
- Interpretation of Beneficiaries Agreement
- Outcome: The court found that there was a real prospect of success in arguing that the subject of the beneficiaries agreement was the sale of properties and not inheritance rights.
- Category: Substantive
- Sub-Issues:
- Sale of properties versus conveyance of personal inheritance rights
- Condition precedent regarding appointment of trustees
- Enforceability of the agreement
- Related Cases:
- [2000] 4 SLR 559
- Applicability of Section 35 of the Conveyancing and Law of Property Act
- Outcome: The court found that there was a real prospect of success in arguing that section 35 of the Conveyancing and Law of Property Act applied and the proposed sale would never have received court sanction.
- Category: Substantive
- Sub-Issues:
- Court sanction for the sale of property
- Fairness of the sale price
8. Remedies Sought
- Setting aside the order of court
- Declaration of rights
- Specific performance of the beneficiaries agreement
9. Cause of Actions
- Specific Performance
10. Practice Areas
- Commercial Litigation
- Trusts and Estates
- Real Estate Law
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lee Siong Kee v Beng Tiong Trading, Import and Export (1988) Pte Ltd | Court of Appeal | Yes | [2000] 4 SLR 559 | Singapore | Cited for background facts and the Court of Appeal's statement that the proposed sale of the properties by the estate to the plaintiffs was “fatally impinged.” |
| Alpine Bulk Transport Co Inc v Saudi Eagle Shipping Co, Inc; The Saudi Eagle | CA | Yes | [1986] 2 Lloyd’s Rep 221 | England and Wales | Cited for the principle that the court's discretionary power to set aside a default judgment is unfettered and that the strength of the putative defence should be balanced against the excusability of the defendant’s conduct. |
| Abdul Gaffer v Chua Kwang Yong | N/A | Yes | [1995] 1 SLR 484 | Singapore | Followed Alpine Bulk Transport Co Inc v Saudi Eagle Shipping Co, Inc; The Saudi Eagle regarding the principles for setting aside a default judgment. |
| Zulkifli Baharudin v Koh Lam Son | N/A | Yes | [2000] 2 SLR 233 | Singapore | Followed Alpine Bulk Transport Co Inc v Saudi Eagle Shipping Co, Inc; The Saudi Eagle regarding the principles for setting aside a default judgment. |
| Oversea-Chinese Banking Corp Ltd v Measurex Corp Bhd | N/A | Yes | [2002] 4 SLR 578 | Singapore | Applied Alpine Bulk Transport (supra) and stated that it was not sufficient for the applicants to show that they had an “arguable” defence: they must go further and show that the defence had a “real prospect of success” and “carried some degree of conviction.” |
| Aberfoyle Plantations Ltd v Cheng | N/A | Yes | [1960] MLJ 47 | N/A | Cited as the locus classicus for the definition of a condition precedent. |
| Chiang Hong (Pte) Ltd v Ong Boon Pok Realty (Pte) Ltd | N/A | Yes | [1987] 2 MLJ 37 | N/A | Applied the holding of Aberfoyle Plantations Ltd v Cheng regarding condition precedent. |
| Chiang Hong (Pte) Ltd v Ong Boon Pok Realty (Pte) Ltd | N/A | Yes | [1982] 1 MLJ 242 | N/A | Reversed in [1987] 2 MLJ 37. |
| Singapore Gems Co v The Personal Representatives for Akber Ali (dec’d) | N/A | Yes | [1992] 2 SLR 254 | Singapore | Cited for the principle that the absence of good reasons for allowing judgment to go by default would entail a more rigorous examination of the merits of the defence. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court Order 13 rule 8 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Conveyancing and Law of Property Act (Cap. 61) | Singapore |
| Conveyancing and Law of Property Act (Cap. 61) s 35 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Beneficiaries agreement
- Default judgment
- Condition precedent
- Personal inheritance rights
- Immovable properties
- Public Trustee
- Trustees
- Estate
- Conveyancing
- Originating summons
15.2 Keywords
- default judgment
- property rights
- beneficiaries agreement
- setting aside
- trustees
- estate
- conveyancing
16. Subjects
- Civil Procedure
- Trusts
- Property Law
- Setting Aside Default Judgment
17. Areas of Law
- Civil Procedure
- Trust Law
- Property Law