Finebuild Systems v Transbilt Engineering: Garnishee Order & Winding Up in Insolvency Law
In Finebuild Systems Pte Ltd v Transbilt Engineering Pte Ltd (in liquidation), the High Court of Singapore, presided over by Judith Prakash J, addressed the issue of whether Finebuild could proceed with garnishee proceedings against Transbilt, despite Transbilt entering creditors’ voluntary liquidation. Finebuild had obtained a judgment against Transbilt and sought to enforce it through a garnishee order. The court allowed Finebuild’s application, granting leave to proceed with the garnishee proceedings notwithstanding the liquidation.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Finebuild’s application to proceed with its garnishee proceedings notwithstanding the liquidation of the company was allowed.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Finebuild sought to enforce a judgment against Transbilt via garnishee proceedings. The court considered whether to allow the proceedings despite Transbilt's liquidation.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Transbilt Engineering Pte Ltd (in liquidation) | Respondent, Defendant | Corporation | Application Denied | Lost | |
| Finebuild Systems Pte Ltd | Applicant, Plaintiff | Corporation | Application Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Gong Chin Nam | T M Hoon and Co |
| A Rajandran | A Rajandran Joseph and Nayar |
4. Facts
- Finebuild obtained a judgment against Transbilt for $82,876.73, costs of $3,500 and interest.
- Transbilt applied for a scheme of arrangement, which was dismissed.
- Finebuild obtained an attachment order and served it on Kim Seng Heng Engineering Construction (Pte) Ltd.
- Transbilt went into creditors’ voluntary liquidation on 31 May 2004.
- The liquidator stated that the decision to liquidate was made to stop the finalisation of the garnishee order.
- Mr. Yang, a director, was the major creditor of the company, owed $6,015,461.97.
5. Formal Citations
- Finebuild Systems Pte Ltd v Transbilt Engineering Pte Ltd (in liquidation), OS 954/2004, [2005] SGHC 17
6. Timeline
| Date | Event |
|---|---|
| Finebuild commenced action in the District Court to recover moneys owing to it by the company. | |
| Finebuild obtained a judgment against the company. | |
| The company applied to the High Court for leave to convene a creditors’ meeting. | |
| Finebuild obtained an attachment order and served it on the proposed garnishee. | |
| Finebuild obtained an attachment order. | |
| The company went into liquidation. | |
| Show cause action was fixed for hearing. | |
| Creditors’ meeting was held. | |
| Judgement Date |
7. Legal Issues
- Whether creditor entitled to retain benefit of attachment order
- Outcome: The court allowed the creditor to retain the benefit of the attachment order.
- Category: Substantive
- Whether court should exercise discretion to set aside rights of liquidator
- Outcome: The court exercised its discretion to set aside the rights of the liquidator in favour of the creditor.
- Category: Procedural
- Related Cases:
- [1949] 2 All ER 948
8. Remedies Sought
- Leave to proceed with garnishee proceedings
9. Cause of Actions
- Debt Recovery
10. Practice Areas
- Commercial Litigation
- Insolvency Law
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Pritchard v Westminster Bank Ltd | N/A | Yes | [1969] 1 WLR 547 | N/A | Cited for the principle that a garnishee order ought not to be made absolute after the commencement of bankruptcy as it gives one creditor preference over all other creditors of a bankrupt debtor. |
| Re Grosvenor Metal Co Ltd | N/A | Yes | [1949] 2 All ER 948 | N/A | Relied on for the proposition that the court has a wide discretion to do what is right and fair in the circumstances of the case when deciding whether to set aside the rights of the liquidator. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Section 334 Companies Act (Cap 50, 1994 Rev Ed) | Singapore |
| Section 299 of the Companies Act (Cap 50, 1994 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Garnishee order
- Liquidation
- Attachment order
- Creditors’ voluntary winding up
- Scheme of arrangement
- Provisional liquidator
15.2 Keywords
- garnishee
- winding up
- insolvency
- liquidation
- creditor
- debt
- attachment
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Winding Up | 95 |
| Insolvency Law | 90 |
| Garnishee Proceedings | 80 |
| Company Law | 60 |
16. Subjects
- Insolvency
- Garnishee Proceedings
- Winding Up