De Montfort University v Stanford Training Systems: Stay of Winding-Up Petition Due to Bona Fide Debt Dispute

De Montfort University filed a winding-up petition against Stanford Training Systems Pte Ltd, claiming a debt of £91,931.28. Stanford Training Systems applied to strike out or stay the petition, arguing a bona fide dispute over the debt and raising counterclaims. The High Court of Singapore, presided over by Justice Tay Yong Kwang, stayed the winding-up petition pending the outcome of Suit 432 of 2005, an action commenced by Stanford Training Systems and FTMS Consultants Pte Ltd against De Montfort University.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Winding-up Petition stayed pending the determination of Suit 432 of 2005.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Stay of winding-up petition sought by De Montfort University against Stanford Training Systems due to a bona fide dispute over the debt. The court stayed the petition pending the outcome of related suit.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
De Montfort UniversityPetitioner, DefendantCorporationWinding-up Petition StayedStayed
Stanford Training Systems Pte LtdRespondent, PlaintiffCorporationApplication to Stay Petition GrantedWon

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudgeYes

4. Counsels

Counsel NameOrganization
Chan Kia PhengKhattarWong
Shaun KohKhattarWong
Rajiv NairShook Lin and Bok
Felix LeeShook Lin and Bok

4. Facts

  1. De Montfort University served a statutory demand on Stanford Training Systems for £91,931.28.
  2. The debt claimed was for services rendered between June 2002 and December 2003.
  3. Stanford Training Systems claimed various counterclaims, including losses from failure to deliver programs.
  4. Stanford Training Systems and FTMS commenced Suit 432/2005 against De Montfort University.
  5. Stanford Training Systems claimed mistaken payments of fixed costs and excessive per capita costs.
  6. Stanford Training Systems claimed loss of profits due to the university's actions.
  7. A settlement deed was previously entered into regarding related disputes in Malaysia.

5. Formal Citations

  1. De Montfort University v Stanford Training Systems Pte Ltd, CWU 103/2005, SIC 3176/2005, [2005] SGHC 202

6. Timeline

DateEvent
Memorandum of Co-operation entered into by the parties.
De Montfort University allegedly obstructed the delivery of degree courses.
Settlement Deed entered into.
Supplemental Deed executed.
Statutory demand served on Stanford Training Systems.
21-day notice under the statutory demand expired.
Winding-up Petition filed by De Montfort University.
Suit 432/2005 commenced by Stanford Training Systems and FTMS Consultants Pte Ltd against De Montfort University.
Stanford Training Systems took out application to strike out or stay the petition.
Court decided to stay the Winding-up Petition pending the outcome of Suit 432/2005.
De Montfort University asked for further arguments to be made to the court.
Decision to stay the Winding-up Petition was made.

7. Legal Issues

  1. Whether winding-up petition should be stayed
    • Outcome: The court held that the winding-up petition should be stayed pending the determination of Suit 432 of 2005 due to a bona fide dispute over the debt.
    • Category: Procedural
    • Sub-Issues:
      • Bona fide dispute on debt
      • Counterclaims exceeding debt amount
    • Related Cases:
      • [1989] SLR 164
      • [1946] 2 All ER 197
      • (1880) 16 Ch D 246
      • [1980–1981] SLR 8
  2. Bona fide dispute on debt
    • Outcome: The court found that there was a bona fide dispute on the debt, supporting the decision to stay the winding-up petition.
    • Category: Substantive
    • Sub-Issues:
      • Existence of counterclaims
      • Mistake in payment of fixed costs
      • Overcharge of per capita costs
    • Related Cases:
      • [1989] SLR 164
      • (1880) 16 Ch D 246

8. Remedies Sought

  1. Stay of Winding-up Petition
  2. Striking Out of Winding-up Petition
  3. Damages

9. Cause of Actions

  • Breach of Contract
  • Mistake
  • Failure to Cooperate

10. Practice Areas

  • Commercial Litigation
  • Insolvency
  • Winding-Up

11. Industries

  • Education

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Re Sanpete Builders (S) Pte LtdHigh CourtYes[1989] SLR 164SingaporeCited for the principle that a winding-up petition should not be used to enforce payment of a debt which is bona fide disputed.
Re Welsh Brick Industries LtdN/AYes[1946] 2 All ER 197N/ACited regarding the weight to be given to an order granting unconditional leave to defend in determining whether a bona fide dispute exists.
Re Great Britain Mutual Life Assurance SocietyN/AYes(1880) 16 Ch D 246N/ACited for the principle that a respondent must bring forward a prima facie case to show there is something which ought to be tried.
Hong Fok Realty Pte Ltd v Bima Investment Pte LtdN/AYes[1993] 1 SLR 73SingaporeCited to support the argument that the respondent was not entitled to claim both loss of profits and expenses incurred at the same time.
Malayan Plant (Pte) Ltd v Moscow Narodny Bank LtdPrivy CouncilYes[1980–1981] SLR 8N/ACited for the principle that a serious dispute regarding indebtedness constitutes a proper ground to reject a winding-up petition.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Companies Act (Cap 50, 1994 Rev Ed) s 258Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Winding-up Petition
  • Statutory Demand
  • Bona Fide Dispute
  • Counterclaim
  • Settlement Deed
  • Academic Agreement
  • Fixed Costs
  • Per Capita Costs
  • Suit 432/2005

15.2 Keywords

  • winding up
  • insolvency
  • debt
  • dispute
  • stay
  • petition

17. Areas of Law

Area NameRelevance Score
Winding Up95
Insolvency Law90
Company Law50
Contract Law30

16. Subjects

  • Insolvency
  • Winding-Up
  • Debt Dispute