Daewoo Singapore v CEL Tractors: Contractual Interest Dispute Over Late Payment for Heavy Machinery

Daewoo Singapore Pte Ltd sued CEL Tractors Pte Ltd in the High Court of Singapore on March 31, 2003, claiming contractual interest for late payment of heavy machinery and equipment parts. Daewoo argued that CEL Tractors defaulted on payments, incurring default interest. CEL Tractors contended there was no agreement to pay default interest. The court, presided over by Justice Belinda Ang Saw Ean, dismissed Daewoo's claim, finding no agreement to pay contractual default interest.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's action is dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Daewoo Singapore sued CEL Tractors for contractual interest on late payments for heavy machinery. The court dismissed the claim, finding no agreement on default interest.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Daewoo Singapore Pte LtdPlaintiffCorporationClaim DismissedLost
CEL Tractors Pte LtdDefendantCorporationJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
Tan Cheng YewTan JinHwee, Eunice & Lim ChooEng
Zarina SaniTan JinHwee, Eunice & Lim ChooEng
David ChanShook Lin & Bok
Vinodh CoomaraswamyShook Lin & Bok

4. Facts

  1. Daewoo Singapore claimed contractual interest for late payment of goods sold to CEL Tractors.
  2. Daewoo alleged CEL Tractors defaulted on payments, incurring US$274,687.72 in default interest.
  3. Daewoo's Confirmation Orders included a clause requiring the buyer to pay interest on late payments.
  4. CEL Tractors argued there was no agreement to pay default interest or a specific interest rate.
  5. The principal debt was previously compromised in a Scheme of Arrangement.
  6. Daewoo claimed default interest was outside the scope of the Scheme of Arrangement.
  7. CEL Tractors contended that any claim for default interest was discharged by the Scheme of Arrangement.

5. Formal Citations

  1. Daewoo Singapore Pte Ltd v CEL Tractors Pte Ltd, Suit 20/2002, [2003] SGHC 72

6. Timeline

DateEvent
Plaintiff sued the Defendant for the principal debt.
Scheme of Arrangement sanctioned by the High Court.
Scheme of Arrangement affirmed on appeal by the Court of Appeal.
Judgment issued.

7. Legal Issues

  1. Agreement to Pay Default Interest
    • Outcome: The court found that there was no agreement to pay contractual default interest.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Heavy Machinery

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Civil Law Act (Cap. 43)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Default interest
  • Confirmation Order
  • Scheme of Arrangement
  • Principal debt
  • Overdue invoices

15.2 Keywords

  • Contract
  • Interest
  • Late Payment
  • Heavy Machinery
  • Singapore
  • Daewoo
  • CEL Tractors

17. Areas of Law

Area NameRelevance Score
Contract Law90
Default Interest70
Scheme of Arrangement60
Bankruptcy40
Banking and Finance30
Company Law30

16. Subjects

  • Contract Dispute
  • Interest
  • Late Payment