Watchdata Technologies v Kamalraj Johnson: Guarantee Deed Dispute over SIM Card Supply Debt

In Watchdata Technologies Pte Ltd v Kamalraj Johnson and Hephzibha Joybell Kamalraj, the High Court of Singapore ruled in favor of Watchdata Technologies, ordering the defendants, Kamalraj Johnson and Hephzibha Joybell Kamalraj, to pay US$1,623,346.60 plus interest. The case concerned a claim by Watchdata for a sum allegedly owed under a deed of guarantee related to the supply of Subscriber Identity Module (SIM) cards. The court found the defendants liable as guarantors for the debt owed by Sharon Global Solutions Private Limited to Watchdata.

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

Watchdata Technologies sued Kamalraj Johnson over a guarantee deed for a SIM card supply debt. The court ruled in favor of Watchdata, finding the defendants liable for US$1,623,346.60.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Watchdata Technologies Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
Kamalraj JohnsonDefendantIndividualClaim DismissedLost
Hephzibha Joybell KamalrajDefendantIndividualClaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Lai Siu ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Noelle SeetKhattarWong
R NandakumarKhattarWong
Elengovan s/o V KrishnanP Suppiah & Co
P SuppiahP Suppiah & Co

4. Facts

  1. Watchdata Technologies Pte Ltd claimed US$1,623,346.40 from Kamalraj Johnson and Hephzibha Joybell Kamalraj under a deed of guarantee.
  2. The defendants are directors and majority shareholders of Sharon Global Solutions Private Limited, which supplies services to telecommunications operators in India.
  3. The defendants are also majority shareholders and directors of Sharon Solutions (India) Private Limited.
  4. Sharon Global Solutions Private Limited issued purchase orders for Subscriber Identity Module cards to Watchdata Technologies Pte Ltd.
  5. The defendants signed a deed of guarantee to cover Sharon Global Solutions Private Limited's liabilities to Watchdata Technologies Pte Ltd.
  6. Watchdata Technologies Pte Ltd claimed that Sharon Global Solutions Private Limited failed to extinguish its liability by the agreed date.
  7. The defendants argued that they were only liable for supplies made under a specific supply agreement and that the debt had been fully paid.

5. Formal Citations

  1. Watchdata Technologies Pte Ltd v Kamalraj Johnson and Another, Suit 571/2007, [2009] SGHC 113

6. Timeline

DateEvent
First Sharon Global Solutions Private Limited Purchase Order issued
Supply Agreement signed
Uma Maheswari became director and shareholder of Sharon Solutions (India) Private Limited
Supply Agreement expired
Agreement to settle outstanding issues signed
Personal Guarantee signed
Memorandum of Understanding signed
Cooperation Agreement signed
Letter of demand issued
Writ of summons filed
Judgment issued

7. Legal Issues

  1. Liability under a Deed of Guarantee
    • Outcome: The court found the defendants liable as guarantors for the debt owed by Sharon Global Solutions Private Limited to Watchdata Technologies Pte Ltd.
    • Category: Substantive
    • Sub-Issues:
      • Consideration for guarantee
      • Discharge of guarantor's liability
      • Validity of guarantee
    • Related Cases:
      • [1893] AC 313
  2. Agency Relationship
    • Outcome: The court found insufficient evidence to prove that Sharon Global Solutions Private Limited acted as an agent for Sharon Solutions (India) Private Limited.
    • Category: Substantive
    • Sub-Issues:
      • Authority to act as agent
      • Disclosure of agency

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Guarantee

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Technology
  • Telecommunications

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Commercial Bank of Tasmania v JonesPrivy CouncilNo[1893] AC 313United KingdomCited for the principle that acceptance of another person as full debtor, constituting novation of the principal debt, operates as an absolute release of the guarantor of the principal debt.

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

  • Deed of Guarantee
  • Subscriber Identity Module cards
  • SIM cards
  • Purchase Orders
  • Supply Agreement
  • Outstanding Debt
  • Personal Guarantee
  • Agency
  • Guarantor
  • Principal Debtor

15.2 Keywords

  • guarantee
  • SIM cards
  • debt
  • contract
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Contract Law90
Guarantee90
Personal Guarantee80
Deeds of Guarantee70
Commercial Law60
Evidence Law50
Breach of Contractual Terms50
Estoppel40
Civil Procedure30
Misrepresentation30

16. Subjects

  • Contract Law
  • Commercial Law
  • Debt Recovery