Societe Generale v Tai Kee Sing: Summary Judgment for Credit Facilities Dispute

In Societe Generale v Tai Kee Sing, the High Court of Singapore dismissed the defendant's appeal against a summary judgment ordering the defendant to pay US$4,845,066.92 plus interest to the plaintiff, Societe Generale, for monies disbursed under credit facilities. The court, presided over by Justice Tay Yong Kwang, found no issues of law or fact meriting a trial, rejecting the defendant's defenses of failure to notify of breaches, failure to dispose of securities expeditiously, illegality under Malaysian law, and the argument that there ought to be a trial. The judgment was delivered on 2003-11-26.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Defendant's appeal against summary judgment dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal against summary judgment for monies disbursed under credit facilities. The court dismissed the appeal, finding no triable issues.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Societe GeneralePlaintiff, RespondentCorporationAppeal dismissedWonEddie Ng, Angel Lum
Tai Kee Sing @ Tai Hean SingDefendant, AppellantIndividualAppeal dismissedLostSheela Lopez

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudgeYes

4. Counsels

Counsel NameOrganization
Eddie NgTan Kok Quan Partnership
Angel LumTan Kok Quan Partnership
Sheela LopezSheela Lopez and Company

4. Facts

  1. The plaintiff disbursed monies to the defendant under credit facilities.
  2. The credit facilities were granted via letters of 23 June 1995 and 24 January 1997.
  3. The defendant opened account number 43885 with the plaintiff.
  4. The defendant executed a memorandum of charge, a letter of set-off, and a charge over deposit(s).
  5. The defendant defaulted in repaying the amounts due under the credit facilities.
  6. The plaintiff issued a certificate of indebtedness dated 23 April 2002.
  7. The defendant alleged the plaintiff failed to notify him of breaches in collateral value.

5. Formal Citations

  1. Societe Generale v Tai Kee Sing @ Tai Hean Sing, Suit 666/2002, [2003] SGHC 296

6. Timeline

DateEvent
Credit facilities of up to US$5 million made available to the defendant.
Defendant executed a memorandum of charge, a letter of set-off and a charge over deposit(s).
Defendant executed a memorandum of deposit.
Credit facilities limit increased to US$7 million.
Margin breached.
Defendant informed of breach.
Defendant's solicitors offered additional security.
Interest rate applicable to the credit facilities was varied.
Defendant asked to top up security.
Plaintiff issued a certificate showing the amount of indebtedness as US$4,845,066.92.
Plaintiff's solicitors made a demand on him for the amount due.
Defendant's appeal against summary judgment dismissed with costs.

7. Legal Issues

  1. Summary Judgment
    • Outcome: The court held that the plaintiff was entitled to summary judgment as there were no triable issues.
    • Category: Procedural
  2. Breach of Contract
    • Outcome: The court found that the defendant had defaulted in repaying the amounts due under the credit facilities.
    • Category: Substantive
  3. Illegality of Contract
    • Outcome: The court held that the contract was not illegal under Malaysian law.
    • Category: Substantive
    • Related Cases:
      • [2000] 1 SLR 148
  4. Duty of Care
    • Outcome: The court found that the plaintiff had not failed in its duty to exercise reasonable care and skill.
    • Category: Substantive
    • Related Cases:
      • [1989] SLR 290
      • [1989] 1 HKC 155
      • [1999] 3 SLR 129

8. Remedies Sought

  1. Monetary Damages
  2. Summary Judgment

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Banking Litigation

11. Industries

  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Peh Teck Quee v Bayerische Landesbank GirozentraleHigh CourtYes[2000] 1 SLR 148SingaporeCited for the principle that the parties' expressed intention as to the governing law of the contract generally determines the proper law of the contract unless the choice was to evade the operation of the applicable law.
Hong Leong Finance Ltd v Datuk Mohd Salleh bin YusofCourt of AppealYes[1989] SLR 290SingaporeCited for the principle that a mortgagee, after the power of sale has arisen, is entitled to sell the shares at such time as it thinks fit and in selling the shares is under a duty to act in good faith and to obtain the true market value at the date or dates when they were sold.
China & South Sea Bank Ltd v Tan Soon Gin GeorgeJudicial Committee of the Privy CouncilYes[1989] 1 HKC 155Hong KongCited for the principle that a mortgagee is entitled to exercise a power of sale at such time as he deems fit and is not obliged to act immediately.
Teo Siew Har v Oversea-Chinese Banking Corporation LtdHigh CourtYes[1999] 3 SLR 129SingaporeCited for the principle that a mortgagee is entitled to exercise a power of sale at such time as he deems fit and is not obliged to act immediately.

13. Applicable Rules

Rule Name
Rules of Court O 14

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Credit Facilities
  • Standard Conditions Governing Share Financing/Trading Facility
  • Loan-to-Security Ratio
  • Minimum Aggregate Collateral Value
  • Memorandum of Charge
  • Memorandum of Deposit
  • Hold Mail Agreement
  • Conclusive Evidence Clause

15.2 Keywords

  • Summary Judgment
  • Credit Facilities
  • Breach of Contract
  • Banking
  • Singapore
  • Collateral
  • Illegality

16. Subjects

  • Banking
  • Finance
  • Civil Procedure
  • Contract Law

17. Areas of Law

  • Civil Procedure
  • Banking Law
  • Contract Law
  • Financial Law