Rasmachayana Sulistyo v The Hongkong and Shanghai Banking Corp: Bankruptcy & Service of Statutory Demand
The High Court of Singapore heard appeals by Rasmachayana Sulistyo and others against a decision to grant bankruptcy petitions filed by The Hongkong and Shanghai Banking Corp Ltd. The debtors, former directors of Andover Pte Ltd, were subject to judgments for defaulting on a loan guaranteed by them. The key legal issue was whether the statutory demands and bankruptcy petitions were properly served, considering a contractual stipulation in the guarantee allowing service on a nominated forwarding agent. The court dismissed the appeals, finding that contractual service was permissible and the bankruptcy petitions were valid.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeals dismissed.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Bankruptcy case concerning service of a statutory demand and bankruptcy petition. The court considered whether contractual arrangements for service are valid.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Rasmachayana Sulistyo (alias Chang Whe Ming) | Appellant, Debtor | Individual | Appeal Dismissed | Lost | |
| The Hongkong and Shanghai Banking Corp Ltd | Respondent, Petitioning Creditor | Corporation | Appeal Won | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| V K Rajah | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Rodney Keong | Rodyk and Davidson |
| Andrew Chan | Allen and Gledhill |
| Desmond Ho | Allen and Gledhill |
4. Facts
- The petitioner extended banking facilities to Andover Pte Ltd.
- The debtors, as directors of Andover Pte Ltd, signed a Personal Guarantee and Undertaking.
- Andover Pte Ltd defaulted on its loan obligations.
- The petitioner commenced proceedings against the debtors to recover the outstanding amounts.
- Judgments were entered against the debtors.
- The debtors did not comply with the terms of the judgments.
- The petitioner initiated bankruptcy proceedings against the debtors.
5. Formal Citations
- Re Rasmachayana Sulistyo (alias Chang Whe Ming); ex parte The Hongkong and Shanghai Banking Corp Ltd and Other Appeals, B 115/2004, 116/2004, 117/2004, [2004] SGHC 281
6. Timeline
| Date | Event |
|---|---|
| Personal Guarantee and Undertaking signed | |
| Bankruptcy petitions filed | |
| Petitions first heard by assistant registrar | |
| Petitions for bankruptcy summarily granted | |
| Judgment reserved | |
| Appeals dismissed |
7. Legal Issues
- Service of Statutory Demand and Bankruptcy Petition
- Outcome: The court held that contractual service of the statutory demand and bankruptcy petition was permissible in this case.
- Category: Procedural
- Sub-Issues:
- Effectiveness of personal service
- Validity of contractual arrangements for service
- Interpretation of 'Proceedings' in Guarantee
- Outcome: The court held that steps in bankruptcy ought to be regarded as proceedings for the purposes of the Guarantee.
- Category: Substantive
- Sub-Issues:
- Scope of the term 'proceedings'
- Whether bankruptcy proceedings are 'proceedings' under the guarantee
8. Remedies Sought
- Bankruptcy Order
- Recovery of Debt
9. Cause of Actions
- Breach of Contract
- Debt Recovery
10. Practice Areas
- Commercial Litigation
- Bankruptcy
- Insolvency
11. Industries
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Unknown | High Court | Yes | [2004] SGHC 87 | Singapore | Cited as the decision of the Assistant Registrar that was appealed against. |
| Re Howes, ex parte Hughes | Queen's Bench | Yes | [1892] 2 QB 628 | England | Cited for the principle that bankruptcy proceedings involve quasi-penal consequences and require strict adherence to forms. |
| Re A Debtor | Chancery Division | Yes | [1939] 1 Ch 251 | England | Cited for the principle that the practice regarding service of writs is strictissimi juris and applies to bankruptcy petitions. |
| Re Griffin Securities Corporation | High Court | Yes | [1999] 3 SLR 346 | Singapore | Cited for the principle that rules of court relating to service of documents are for the protection of the party being served and do not preclude acceptance of service by other modes. |
| Re Fletcher Hunt (Bristol) Ltd | Unknown | Yes | [1989] BCLC 108 | England | Cited for the principle that solicitors can accept service on behalf of a company if properly instructed. |
| Re Lord Thurlow, ex parte Official Receiver | Unknown | Yes | [1895] 1 KB 724 | England | Cited for the principle that the Court of Bankruptcy should brush away mere technicalities in favor of what is fair and just. |
| Kenneth Allison Ltd v A E Limehouse & Co | House of Lords | Yes | [1992] 2 AC 105 | England | Cited for the principle that rules are the servants of the courts and should not forbid parties to litigation from acting reasonably. |
| Re A Debtor | Unknown | Yes | [1997] 2 WLR 57 | England | Cited to support the view that the word 'action' is to be viewed as having an extensive meaning and scope. |
| Sabah Shipyard (Pakistan) Ltd v Government of the Islamic Republic of Pakistan | Unknown | Yes | [2004] 3 SLR 184 | Singapore | Cited for the principle that the phrase 'arising out of or in connection with [the] Agreement' has a wide and generous meaning. |
| Re International Tin Council | Unknown | Yes | [1987] 1 Ch 419 | England | Cited for the principle that the winding up process is not a method of enforcing a judgment or arbitration award. |
13. Applicable Rules
| Rule Name |
|---|
| O 1 r 2(4) Rules of Court (Cap 322, R 5, 2004 Rev Ed) |
| O 62 r 3(2) Rules of Court (Cap 322, R 5, 2004 Rev Ed) |
| rr 96 Bankruptcy Rules (Cap 20, R 1, 2002 Rev Ed) |
| r 109(1) Bankruptcy Rules (Cap 20, R 1, 2002 Rev Ed) |
| r 110 Bankruptcy Rules (Cap 20, R 1, 2002 Rev Ed) |
| r 108 Bankruptcy Rules |
| r 278 Bankruptcy Rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Section 11 Bankruptcy Act (Cap 20, 2000 Rev Ed) | Singapore |
| Bankruptcy Act (Cap 20, 2000 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Statutory Demand
- Bankruptcy Petition
- Personal Guarantee
- Service of Process
- Contractual Service
- Proceedings
- Forwarding Agent
- Bankruptcy Rules
- Rules of Court
15.2 Keywords
- Bankruptcy
- Service of Statutory Demand
- Personal Guarantee
- Contractual Service
- Singapore Law
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Bankruptcy | 95 |
| Banking Law | 60 |
| Contract Law | 50 |
16. Subjects
- Bankruptcy
- Service of Process
- Contract Law
- Civil Procedure