Wong Ser Wan v Ng Bok Eng Holdings: Fraudulent Conveyance & Creditor's Rights
In Wong Ser Wan v Ng Bok Eng Holdings Pte Ltd, the High Court of Singapore addressed the issue of whether an individual creditor, Mdm Wong Ser Wan, could bring an action under Section 73B of the Conveyancing and Law of Property Act to annul the sale and transfer of assets by her ex-husband, Mr. Ng Cheong Ling, to Ng Bok Eng Holdings Pte Ltd and Bian Bee Company Pte Ltd, after Mr. Ng was declared bankrupt. Judith Prakash J. dismissed the defendant's application, holding that Mdm Wong was entitled to bring the action in her own name and granting her leave to do so.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendants' application dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Wong Ser Wan sues to annul the transfer of assets by her ex-husband to Ng Bok Eng Holdings. The court considers whether an individual creditor can bring such an action after the debtor's bankruptcy.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Wong Ser Wan | Plaintiff | Individual | Application allowed | Won | |
| Ng Bok Eng Holdings Pte Ltd | Defendant | Corporation | Application dismissed | Lost | |
| Bian Bee Company Pte Ltd | Defendant | Corporation | Application dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
4. Facts
- Mdm Wong sought to annul the sale and transfer of assets by her ex-husband, Mr. Ng Cheong Ling, to the defendants.
- The assets in question were the Mountbatten property and 60,000 ordinary shares in Ng Bok Eng Holdings Pte Ltd.
- Mr. Ng transferred the Mountbatten property to the first defendant on 27 June 1998.
- Mr. Ng transferred the shares to the second defendant on 26 September 1998.
- Mr. Ng was made a bankrupt on 11 October 2002.
- Mr. Loke Poh Keun was appointed the trustee in bankruptcy of Mr. Ng’s estate on 14 October 2002.
- Mdm Wong was a creditor of Mr. Ng, having filed a proof of debt of $1,402,072.71.
5. Formal Citations
- Wong Ser Wan v Ng Bok Eng Holdings Pte Ltd, Suit 310/2003, SIC 2069/2004, [2004] SGHC 197
6. Timeline
| Date | Event |
|---|---|
| Suit started by Mdm Wong Ser Wan. | |
| Mr. Ng transferred the Mountbatten property to the first defendant. | |
| Mr. Ng transferred the shares to the second defendant. | |
| Mr. Ng was made a bankrupt. | |
| Mr. Loke Poh Keun was appointed the trustee in bankruptcy of Mr. Ng’s estate. | |
| First creditors’ meeting was held. | |
| First creditors’ committee meeting was held. | |
| Second creditors’ committee meeting was held. | |
| Mr. Loke issued a notice for a second creditors’ meeting to be held on 12 March. | |
| Mr. Loke informed Mdm Wong that he had resigned as trustee in bankruptcy. | |
| Second creditors’ meeting was held. | |
| The Official Assignee attended the pre-trial conference. | |
| Defendants applied for orders to determine if Mdm Wong is the correct plaintiff. | |
| Judgment delivered in [2004] SGHC 181. | |
| Judgment reserved. |
7. Legal Issues
- Locus Standi
- Outcome: The court held that an individual creditor can commence an action under s 73B notwithstanding the debtor's bankruptcy, as long as the creditor does not seek to keep the fruits of the action for themselves alone.
- Category: Procedural
- Sub-Issues:
- Right of individual creditor to commence action after debtor's bankruptcy
- Related Cases:
- Re Crossley [1954] 3 All ER 296
- Doe d. Grimsby v Ball (1843) II M&W 531; 152 ER 916
- Ex parte Butters. In re Harrison (1880) 14 Ch D 265
- Ex parte Russell. In re Butterworth (1882) 19 Ch D 588
- Ex parte Kearsley. In Re Genese (1886) 17 QBD 1
- Fraudulent Conveyance
- Outcome: The court did not make a determination on whether the conveyance was fraudulent, but addressed the issue of who had the right to bring the action.
- Category: Substantive
8. Remedies Sought
- Annulling the sale and transfer of assets
9. Cause of Actions
- Fraudulent Conveyance
10. Practice Areas
- Commercial Litigation
- Insolvency Law
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Wong Ser Wan v Ng Bok Eng Holdings Pte Ltd | High Court | Yes | [2004] SGHC 181 | Singapore | Refers to the earlier judgment that sets out the full facts of the case. |
| Re Crossley | Not specified | Yes | Re Crossley [1954] 3 All ER 296 | England | Cited by the defendants to support the proposition that only the trustee in bankruptcy can challenge dispositions of property by a bankrupt debtor. The court distinguishes this case. |
| Doe d. Grimsby v Ball | Court of Exchequer | Yes | Doe d. Grimsby v Ball (1843) II M&W 531; 152 ER 916 | England | Discusses the right of the assignee of an insolvent debtor to recover land fraudulently conveyed by the debtor. The court notes that this case does not prohibit an individual creditor from taking action. |
| Ex parte Butters. In re Harrison | Court of Appeal | Yes | Ex parte Butters. In re Harrison (1880) 14 Ch D 265 | England | Deals with the jurisdiction of the Court of Bankruptcy to entertain questions under the Elizabethan Statute. The court notes that this case does not prohibit an individual creditor from commencing proceedings. |
| Ex parte Russell. In re Butterworth | Court of Appeal | Yes | Ex parte Russell. In re Butterworth (1882) 19 Ch D 588 | England | Deals with whether a settlement could be set aside under the Elizabethan Statute. The court notes that the action was started by the trustee and no question of the right of any individual creditor to bring the action arose. |
| Ex parte Kearsley. In Re Genese | Queen's Bench Division | Yes | Ex parte Kearsley. In Re Genese (1886) 17 QBD 1 | England | Deals with the proper course for creditors when the trustee refuses to act. The court notes that creditors must apply to the Court for leave to use the name of the trustee. |
| Overseas Union Bank v Lew Keh Lam | Not specified | Yes | Overseas Union Bank v Lew Keh Lam [1999] 3 SLR 393 | Singapore | Cited for the principle that the court can make orders that have retrospective effect. |
13. Applicable Rules
| Rule Name |
|---|
| Order 14 Rule 12 of the Rules of Court (Cap 322, R 5, 2004 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Section 73B Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Fraudulent conveyance
- Locus standi
- Trustee in bankruptcy
- Creditor
- Section 73B Conveyancing and Law of Property Act
- Official Assignee
15.2 Keywords
- fraudulent conveyance
- creditor's rights
- bankruptcy
- locus standi
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Fraudulent Conveyance | 80 |
| Property Law | 75 |
| Bankruptcy | 70 |
| Locus Standi | 60 |
| Contract Law | 30 |
| Administrative Law | 20 |
16. Subjects
- Conveyancing
- Bankruptcy
- Civil Procedure