Lim Ah Neu v Tan Tiow Jin: Breach of Contract for Sale of Shares in Family Company

In the High Court of Singapore, Lim Ah Neu sued her son, Tan Tiow Jin, for breach of contract, seeking the return of 30,500 shares in Tan Gin Huat Holdings Pte Ltd, which she claimed she sold to him for $500,000 in July 2004. The plaintiff alleged that the defendant failed to pay the purchase price. The court found in favor of the plaintiff, ordering the return of the shares, as the defendant failed to provide satisfactory evidence of payment.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Lim Ah Neu sued her son, Tan Tiow Jin, for breach of contract regarding the sale of shares. The court ruled in favor of Lim Ah Neu, ordering the return of shares.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lim Ah NeuPlaintiffIndividualJudgment for PlaintiffWon
Tan Tiow JinDefendantIndividualClaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Vincent YeohVincent Yeoh & Co
Tan Kay KhengWong Partnership
Melvin SeeWong Partnership

4. Facts

  1. Plaintiff claimed she sold 30,500 shares to her son, the defendant, for $500,000 in July 2004.
  2. The shares were in Tan Gin Huat Holdings Pte Ltd, a family company.
  3. Defendant allegedly promised to deposit the purchase price into the plaintiff's savings account.
  4. A Citibank cheque dated 22 July 2004 for $500,000 was shown to the accountant Low Tin Kee.
  5. The plaintiff alleged that no money was deposited into her account and no cheque was given to her.
  6. Defendant tendered payment of $500,000 in three casher's orders in September 2006.
  7. Plaintiff claimed she was misled into affixing her thumbprint on a letter accepting the casher's orders.

5. Formal Citations

  1. Lim Ah Neu v Tan Tiow Jin, Suit 656/2006, [2007] SGHC 99

6. Timeline

DateEvent
Alleged sale of shares by plaintiff to defendant for $500,000.
Citibank cheque for $500,000 allegedly issued to plaintiff.
Execution of share transfer witnessed by Low Tin Kee.
Plaintiff's solicitors sent a letter of demand asking for the return of her shares.
Plaintiff shown a letter at the defendant's house.
Defendant brought the plaintiff to Mr Teo Eng Leong.
Plaintiff appeared to execute a memorandum accepting payment by 8 September 2006.
Plaintiff's solicitors' letter accepting breach and terminating the sale agreement.
Plaintiff's rescission of the contract.
Defendant tendered payment of $500,000 in three casher’s orders.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the defendant breached the contract by failing to provide consideration for the shares.
    • Category: Substantive
    • Sub-Issues:
      • Failure of consideration
  2. Failure of Consideration
    • Outcome: The court found that there was a total failure of consideration as the plaintiff was not paid for her shares.
    • Category: Substantive

8. Remedies Sought

  1. Return of Shares

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

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

  • Shares
  • Breach of Contract
  • Consideration
  • Family Company
  • Memorandum
  • Cashier's Orders

15.2 Keywords

  • breach of contract
  • shares
  • family company
  • singapore
  • high court

17. Areas of Law

Area NameRelevance Score
Failure of consideration90
Breach of Contract85
Contract Law70
Company Law60
Commercial Disputes50
Shares40
Estoppel30

16. Subjects

  • Contract Law
  • Share Sales
  • Family Business