Societe Generale v Anwar Agus: Mistake in Mortgage Agreement & Personal Guarantee
In Societe Generale Bank & Trust, Singapore Branch v Anwar Agus and Others, the High Court of Singapore heard a claim by Societe Generale Bank & Trust, Singapore Branch ('the Plaintiff') against Anwar Agus's sons, Patrick Adrian Anwar and Andrew Francis Anwar ('the Defendants'), regarding mortgage agreements and deeds of assignment. The Plaintiff sought to enforce payment from the Defendants based on covenants in the mortgages and deeds of assignment, where the Defendants agreed to pay sums owed by their father, Anwar Agus, to the Plaintiff. The Defendants raised a defense of mistake, claiming they did not intend to be personally liable for their father's debts. The High Court allowed the appeal and granted final judgment in favor of the Plaintiff, finding the defense of mistake unmeritorious.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Societe Generale sues Anwar Agus's sons for defaulting on mortgage agreements. The court found no mistake in the agreements and ruled in favor of the bank.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Societe Generale Bank & Trust, Singapore Branch | Plaintiff | Corporation | Judgment for Plaintiff | Won | Nair Suresh Sukumaran, Murali Rajaram |
| Anwar Agus | Defendant | Individual | Judgment in Default | Lost | Eddee Ng, Emmeline Lim |
| Patrick Adrian Anwar | Defendant, Appellant | Individual | Appeal Lost | Lost | Eddee Ng, Emmeline Lim |
| Andrew Francis Anwar | Defendant, Appellant | Individual | Appeal Lost | Lost | Eddee Ng, Emmeline Lim |
| Scotts Skyline Trust Pte Ltd | Defendant | Corporation | Judgment in Default | Lost | |
| Scotts Island Trust Pte Ltd | Defendant | Corporation | Judgment in Default | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Steven Chong | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Nair Suresh Sukumaran | Allen & Gledhill LLP |
| Murali Rajaram | Allen & Gledhill LLP |
| Eddee Ng | Tan Kok Quan Partnership |
| Emmeline Lim | Tan Kok Quan Partnership |
4. Facts
- Societe Generale Bank & Trust extended credit facilities to Anwar Agus.
- Anwar Agus defaulted on payments, leading to termination of credit facilities.
- The bank agreed to forbear from legal proceedings under a Forbearance Agreement.
- The Forbearance Agreement required mortgages from Anwar Agus's sons.
- The mortgages included provisions for the sons to pay all sums due from their father.
- Anwar Agus's sons signed the Forbearance Agreement and executed mortgages.
- Anwar Agus defaulted on his obligations under the Forbearance Agreement.
5. Formal Citations
- Societe Generale Bank & Trust, Singapore Branch v Anwar Agus and Others, Suit 365/2009, RA 316/2009, [2009] SGHC 271
6. Timeline
| Date | Event |
|---|---|
| Investment account opened | |
| Credit facilities extended | |
| Credit facilities terminated | |
| Forbearance Agreement dated | |
| Letter of demand sent | |
| Judgment in default entered against first, fourth and fifth defendants | |
| Sum due from the defendants was $17,232,552.56 | |
| Unconditional leave to defend given to second and third defendants | |
| Appeal allowed and final judgment granted in favour of the bank |
7. Legal Issues
- Mistake
- Outcome: The court found that the defence of mistake was not borne out by the objective evidence or the defendants' affidavits.
- Category: Substantive
- Sub-Issues:
- Unilateral Mistake
- Common Mistake
- Mutual Mistake
- Related Cases:
- [2005] 1 SLR 502
- Breach of Contract
- Outcome: The court found that the defendants were liable for breach of contract under the terms of the mortgages and deeds of assignment.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Enforcement of Guarantee
9. Cause of Actions
- Breach of Contract
- Enforcement of Mortgage
10. Practice Areas
- Commercial Litigation
- Banking Litigation
11. Industries
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chwee Chin Keong v Digilandmall.com Pte Ltd | Court of Appeal | Yes | [2005] 1 SLR 502 | Singapore | Cited for the principle that for a defence of unilateral mistake to succeed, it is incumbent on the party alleging mistake to show that the other party had actual or 'Nelsonian' knowledge of their mistake. |
| L’Estrange v F. Graucob, Limited | King's Bench | Yes | [1934] 2 KB 394 | England and Wales | Cited for the general principle that a party is bound by the terms of a contract which he signs and cannot avoid the contractual obligations by claiming that he did not read or understand it. |
| Royal Bank of Scotland plc v Etridge | House of Lords | Yes | [2001] 3 WLR 1021 | England and Wales | Cited regarding the issue of undue influence and the requirements for establishing a presumption of undue influence in cases involving special relationships. |
| Motor Oil Hellas (Corinth) Refineries SA v Shipping Corporation of India (The Kanchenjunga) | N/A | Yes | [1990] 1 Lloyd’s Rep 391 | N/A | Cited for the elements required for a defence of promissory estoppel to succeed, including the need for an unequivocal representation that a party would not enforce its legal rights. |
| Peekay Intermark Ltd v Australia and New Zealand Banking Group Ltd | English Court of Appeal | Yes | [2006] 2 Lloyd’s Report 511 | England and Wales | Cited regarding the principle that a party is bound by the documents they sign, even if there was a prior misrepresentation, if the terms of the documents clearly contradict the misrepresentation and the party had the opportunity to read and understand them. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Mortgage
- Forbearance Agreement
- Personal Guarantee
- Credit Facilities
- Mistake
- Deeds of Assignment
- Unilateral Mistake
- Mutual Mistake
- Common Mistake
15.2 Keywords
- Mortgage
- Mistake
- Guarantee
- Contract
- Singapore
- Bank
- Societe Generale
16. Subjects
- Contract Law
- Banking Law
- Mortgages
- Civil Procedure
17. Areas of Law
- Contract Law
- Mistake
- Mortgages
- Banking Law