Sincere Watch v Bakery Mart: Garnishee Proceedings & Debt Repayable on Demand

Sincere Watch Limited obtained judgment against Bakery Mart Pte Ltd and sought to garnish a debt owed by Ng Yew Hong (NYH) to Bakery Mart. NYH appealed against the Garnishee Order Absolute, arguing that the debt was repayable on demand and could not be garnished without a prior demand. The High Court dismissed NYH's appeal, holding that a loan repayable on demand is liable to be garnished without prior demand. NYH's appeal to the Court of Appeal was also dismissed.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal of garnishee dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Garnishee proceedings where Sincere Watch sought to garnish a debt owed by Ng Yew Hong to Bakery Mart. The court dismissed the appeal, holding the debt was garnishable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Bakery Mart Pte LtdJudgment DebtorCorporationAppeal of garnishee dismissedNeutral
Sincere Watch LimitedJudgment CreditorCorporationAppeal of garnishee dismissedWon
Ng Yew HongGarnisheeIndividualAppeal dismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudgeYes

4. Counsels

Counsel NameOrganization
Ng Yeow KhoonShook Lin & Bok
Roland TongWong Tan & Molly Lim LLC
Ismail AtanGabriel Peter & Partners

4. Facts

  1. Sincere Watch obtained judgment against Bakery Mart for $1,971,264.11.
  2. Sincere Watch obtained a Garnishee Order To Show Cause against Ng Yew Hong (NYH).
  3. NYH was a director of Bakery Mart and owed Bakery Mart $707,431.
  4. NYH claimed a set-off of $300,000 for director’s fees.
  5. The Assistant Registrar made a Garnishee Order Absolute for $407,431.
  6. NYH appealed the Garnishee Order Absolute.
  7. NYH argued that the debt was repayable on demand and could not be garnished without prior demand.

5. Formal Citations

  1. Sincere Watch Limited v Bakery Mart Pte Ltd (Ng Yew Hong, Third Party), Suit 1057/2002, RA 58/2003, [2003] SGHC 85

6. Timeline

DateEvent
Judgment obtained by Sincere Watch against Bakery Mart for $1,971,264.11.
Garnishee Order To Show Cause obtained by Sincere Watch against Ng Yew Hong.
Lee Sung Fun signed affidavit.
Ng Yew Hong filed an affidavit.
Latest audited accounts of Bakery Mart purportedly signed.
Hearing before the Assistant Registrar.
AGM of Bakery Mart.
Appeal of garnishee dismissed.

7. Legal Issues

  1. Garnishee proceedings
    • Outcome: The court held that the debt was garnishable.
    • Category: Procedural
  2. Debt repayable on demand
    • Outcome: The court held that a loan repayable on demand is liable to be garnished without the need for a prior demand by the judgment debtor on the garnishee.
    • Category: Substantive

8. Remedies Sought

  1. Garnishee Order Absolute

9. Cause of Actions

  • Debt Recovery

10. Practice Areas

  • Commercial Litigation
  • Debt Recovery

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Rekstir v Severo Sibirsko Gosudarstvennoe Akcionernoe Obschestvo Komseverputj and The Bank for Russian Trade, LimitedKing's BenchYes[1933] 1 KB 47England and WalesCited for the principle that service of a Garnishee Order Nisi constitutes demand for monies in a current account.
Bagley v Winsome and National Provincial Bank, LtdCourt of AppealYes[1952] 2 QB 236England and WalesCited for the principle that service of a Garnishee Order Nisi constitutes demand for monies in a current account.
Arab Bank, Ltd v Barclays BankNot AvailableYes[1954] 2 All ER 226England and WalesCited for the principle that service of a Garnishee Order Nisi constitutes demand for monies in a current account.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Order 49 rule 1(3) of the Rules of CourtSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Garnishee Order
  • Garnishee Proceedings
  • Debt Repayable on Demand
  • Garnishee Order Nisi
  • Garnishee Order Absolute

15.2 Keywords

  • Garnishee
  • Debt
  • Demand
  • Singapore
  • Civil Procedure

17. Areas of Law

Area NameRelevance Score
Garnishee Proceedings90
Judgments and Orders75
Civil Procedure60
Summary Judgement30

16. Subjects

  • Civil Procedure
  • Debt Recovery
  • Banking Law