Merchant Ventures v Chin Bay Ching: Mandatory Injunction & Defamation in Zhuhai Golf Course Project

In Merchant Ventures Pte Ltd v Chin Bay Ching, the High Court of Singapore addressed an application by Merchant Ventures Pte Ltd for a mandatory injunction against Chin Bay Ching, requiring him to retract letters sent to Chinese authorities that allegedly led to the revocation of a land usage right grant for a golf course project in Zhuhai, China. The plaintiff, in which the defendant was once an investor, claimed the letters were defamatory and sought the injunction to mitigate further losses. The court granted the injunction, finding that damages would not be an adequate remedy and that the balance of convenience favored the plaintiff.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

I granted an order in terms of the above prayers of the application.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court grants mandatory injunction for letter retraction in Zhuhai golf course dispute, addressing defamation and project grant revocation.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Merchant Ventures Pte LtdPlaintiffCorporationInjunction GrantedWonKenny Khoo
Chin Bay ChingDefendantIndividualInjunction Granted AgainstLostMak Kok Weng

3. Judges

Judge NameTitleDelivered Judgment
Lai Siu ChiuJYes

4. Counsels

Counsel NameOrganization
Kenny KhooAscentsia Law Corporation
Mak Kok WengMak and Partners

4. Facts

  1. Plaintiff invested in a golf course project in Zhuhai, China.
  2. Defendant was an investor in the plaintiff.
  3. Defendant sent letters to Chinese authorities prompting revocation of a grant.
  4. Plaintiff sought a mandatory injunction for withdrawal of the letters.
  5. The Grant was subsequently revoked by the Chinese authorities in January 2003.
  6. The defendant had assigned his rights under the settlement to Chuah Chong Eu.

5. Formal Citations

  1. Merchant Ventures Pte Ltd v Chin Bay Ching, Suit 97/2004, SIC 3183/2004, [2004] SGHC 262

6. Timeline

DateEvent
Plaintiff entered into a joint venture with Zhuhai City Jin Xing Industry & Commerce Company to develop the project.
Defendant's solicitors issued the first letter to the Mayor.
The Grant was revoked by the Chinese authorities.
The first suit was amicably settled between the defendant and Tan.
Defendant’s second set of solicitors sent the second letter to the Chinese authorities.
Defendant executed a deed of assignment with Chuah Chong Eu.
Notice of the assignment was given to Tan.
Chuah commenced proceedings against Tan and Anchorage for the assigned debt in Suit No 1070 of 2003.
Writ of Summons filed.
Final judgment was entered against Tan and Anchorage in the second suit.
Appeal to a judge in chambers was dismissed.
Defence filed.
Plaintiff demanded that the defendant retract the second letter.
Reply filed.
The Club sent a letter to the plaintiff regarding the prejudicial effect of the two letters.
Plaintiff filed Summons in Chambers No 3183 of 2004.
The defendant’s application for a stay of the orders I had made was granted.
Decision Date

7. Legal Issues

  1. Mandatory Injunction
    • Outcome: The court granted the mandatory injunction, finding that damages would not be an adequate remedy and that the balance of convenience favored the plaintiff.
    • Category: Substantive
    • Sub-Issues:
      • Adequacy of damages as a remedy
      • Risk of injustice in withholding the injunction
      • Prejudice to the defendant resulting from the injunction
    • Related Cases:
      • [1992] 2 SLR 729
      • [1987] 1 WLR 670
      • [1986] 1 WLR 657
      • [1971] Ch 340
      • [1988] SLR 862
      • [1994] 3 SLR 151
  2. Defamation
    • Outcome: The court considered the defense of justification but ultimately granted the injunction, noting that subsequent events had overtaken the defendant's dispute.
    • Category: Substantive
    • Sub-Issues:
      • Justification for sending the letters
      • Preservation of own interest as a defense

8. Remedies Sought

  1. Mandatory Injunction
  2. Damages

9. Cause of Actions

  • Injunction
  • Defamation

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Construction
  • Real Estate
  • Hospitality

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Chuan Hong Petrol Station Pte Ltd v Shell Singapore (Pte) LtdCourt of AppealYes[1992] 2 SLR 729SingaporeCited for the principles for the granting of a mandatory injunction.
Films Rover International Ltd v Cannon Film Sales LtdN/AYes[1987] 1 WLR 670EnglandCited for the principle that the court should take whichever course appears to carry the lower risk of injustice.
Locabail International Finance Ltd v AgroexportCourt of AppealYes[1986] 1 WLR 657EnglandCited for the principle that the exercise of the discretion to grant a mandatory injunction in interlocutory proceedings should be approached with caution.
Shepherd Homes Ltd v SandhamN/AYes[1971] Ch 340EnglandCited regarding the caution required when granting mandatory injunctions.
Heysek v Boyden World CorpN/AYes[1988] SLR 862SingaporeCited for applying the principles in English cases regarding mandatory injunctions.
Singapore Press Holdings Ltd v Brown Noel Trading Pte LtdCourt of AppealYes[1994] 3 SLR 151SingaporeCited for applying the principles in Chuan Hong regarding mandatory injunctions.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Mandatory Injunction
  • Defamation
  • Land Usage Right Grant
  • Zhuhai
  • Revocation
  • Settlement
  • Assignment
  • Malice

15.2 Keywords

  • injunction
  • defamation
  • golf course
  • China
  • Zhuhai
  • grant revocation

16. Subjects

  • Injunctions
  • Defamation
  • Contract Law

17. Areas of Law

  • Injunctions
  • Tort
  • Defamation