Kaki Bukit v Ng Man Heng: Forum Non Conveniens & Stay of Proceedings

In Kaki Bukit Industrial Park Pte Ltd v Ng Man Heng, the High Court of Singapore dismissed the defendants' appeal for a stay of proceedings, finding Singapore to be the appropriate forum. The plaintiff, Kaki Bukit Industrial Park Pte Ltd, now in liquidation, brought an action against the defendants for breach of trust and fiduciary duties related to payments made to third parties. The defendants argued that Malaysia was the more appropriate forum due to the location of key witnesses and the land involved in the transactions. The court, however, found that the connecting factors pointed to Singapore, including the plaintiff's incorporation, the location of its management and records, and the fact that the payments were made from Singapore bank accounts.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Defendants' appeal dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court denies stay of proceedings in a case involving breach of trust and fiduciary duties, finding Singapore to be the appropriate forum.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Kaki Bukit Industrial Park Pte LtdPlaintiffCorporationAppeal dismissedWon
Ng Man HengDefendant, AppellantIndividualAppeal dismissedLost
Puncak Maju Corporation Sdn BhdDefendant, AppellantCorporationAppeal dismissedLost
Syarikat Permata Gemilang Sdn BhdDefendant, AppellantCorporationAppeal dismissedLost
Syarikat Kesenangan Sdn BhdDefendant, AppellantCorporationAppeal dismissedLost

3. Judges

Judge NameTitleDelivered Judgment
MPH RubinJudgeYes

4. Counsels

Counsel NameOrganization
Oommen MathewTan Peng Chin and Partners
Christopher ChuahDrew and Napier
Lawrence TanDrew and Napier

4. Facts

  1. The plaintiff, Kaki Bukit Industrial Park Pte Ltd, is a Singapore-incorporated company now in compulsory liquidation.
  2. The liquidator found that approximately $107,781,100 had been paid out of the plaintiff's bank accounts between December 1997 and July 1999.
  3. $44.5 million was used to purchase shares in Syarikat Permata Gemilang Sdn Bhd (SPG), a Malaysian company.
  4. $63,281,100 was used to purchase two plots of land in Bentong, Pahang, from Deluxe Gain Sdn Bhd at RM183 million.
  5. The liquidator believed the payments were not legitimate and the price paid for the Bentong land was grossly inflated.
  6. The first defendant, Ng Man Heng, was a director of the plaintiff at the time of the payments.
  7. The first defendant argued that Malaysia was the appropriate forum because he is a Malaysian citizen with health issues preventing travel to Singapore.

5. Formal Citations

  1. Kaki Bukit Industrial Park Pte Ltd v Ng Man Heng and Others, Suit 509/2003, RA 420/2003, [2004] SGHC 60

6. Timeline

DateEvent
Winding up order made against the plaintiff by the High Court.
Payments made out of the plaintiff’s bank accounts to third parties began.
Payments made out of the plaintiff’s bank accounts to third parties ended.
Liquidator filed affidavit.
First defendant filed affidavit.
First defendant filed second affidavit.
Arguments heard in court.
Further arguments heard in court.
Decision delivered.

7. Legal Issues

  1. Forum Non Conveniens
    • Outcome: The court held that Singapore was the appropriate forum and dismissed the defendants' application for a stay of proceedings.
    • Category: Procedural
    • Related Cases:
      • [1987] AC 460

8. Remedies Sought

  1. Payment of sums
  2. Declarations
  3. Damages
  4. Tracing Orders

9. Cause of Actions

  • Breach of Trust
  • Breach of Fiduciary Duties
  • Knowing Receipt
  • Dishonest Assistance
  • Conspiracy

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Real Estate
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Spiliada Maritime Corporation v Cansulex LtdN/AYes[1987] AC 460England and WalesCited for the principles governing the granting of stay of proceedings on the ground of forum non conveniens.
The Vishva ApurvaHigh CourtYes[1992] 2 SLR 175SingaporeCited as reaffirming the Spiliada principles in the Singapore legal system.
Brinkerhoff Maritime Drilling Corp v PT Airfast Services IndonesiaHigh CourtYes[1992] 2 SLR 776SingaporeCited as reaffirming the Spiliada principles in the Singapore legal system.
Eng Liat Kiang v Eng Bak HernHigh CourtYes[1995] 3 SLR 97SingaporeCited as reaffirming the Spiliada principles in the Singapore legal system.
Oriental Insurance Co Ltd v Bhavani Stores Pte LtdHigh CourtYes[1998] 1 SLR 253SingaporeCited as reaffirming the Spiliada principles in the Singapore legal system.
Datuk Hamzah bin Mohd Noor v Tunku Ibrahim Ismail Ibni Sultan Iskandar Al-HajHigh CourtYes[2001] 4 SLR 396SingaporeCited as reaffirming the Spiliada principles in the Singapore legal system.
PT Hutan Domas Raya v Yue Xiu Enerprises (Holdings) LtdCourt of AppealYes[2001] 2 SLR 49SingaporeCited for the restatement of the Spiliada principles by the Court of Appeal.
Praptono Honggopati Tjitrohupojo v His Royal Highness Tunku Ibrahim Ismail Ibni Sultan Iskandar Al-HajHigh CourtYes[2002] 4 SLR 667SingaporeCited as reaffirming the Spiliada principles in the Singapore legal system.

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

  • Forum Non Conveniens
  • Stay of Proceedings
  • Liquidator
  • Breach of Trust
  • Fiduciary Duty
  • Bentong Land
  • Winding Up
  • Director's Duties

15.2 Keywords

  • forum non conveniens
  • stay of proceedings
  • breach of trust
  • fiduciary duty
  • Singapore
  • Malaysia
  • liquidator

17. Areas of Law

Area NameRelevance Score
Forum Non Conveniens80
Natural forum75
Jurisdiction75
Fiduciary Duties70
Civil Procedure65
Company Law60
Winding Up50
Liquidator45
Bankruptcy40

16. Subjects

  • Civil Procedure
  • Conflict of Laws
  • Forum Non Conveniens
  • Trust Law
  • Company Law