Standard Chartered Bank v Loh Chong Yong Thomas: Striking Out Application & Bankrupt's Locus Standi
In Standard Chartered Bank v Loh Chong Yong Thomas, the Court of Appeal of Singapore heard an appeal by Standard Chartered Bank against Loh Chong Yong Thomas, a bankrupt, regarding a striking-out application. The bank sought to strike out Loh's suit for breach of contract, tort, and defamation, arguing he lacked locus standi due to his bankruptcy. The court allowed the appeal, holding that Loh required the Official Assignee's prior sanction to bring the suit, which he did not obtain, and that his claims for breach of contract and tort vested in the Official Assignee.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding a striking-out application. The court addressed whether a bankrupt had the right to sue without the Official Assignee's sanction.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Standard Chartered Bank | Appellant | Corporation | Appeal Allowed | Won | Patrick Ang, Chin Wei Lin, Jonathan Lee |
| Loh Chong Yong Thomas | Respondent | Individual | Appeal Dismissed | Lost | Andre Arul |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Sek Keong | Chief Justice | Yes |
| Andrew Phang Boon Leong | Justice of the Court of Appeal | Yes |
| V K Rajah | Justice of the Court of Appeal | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Patrick Ang | Rajah & Tann LLP |
| Chin Wei Lin | Rajah & Tann LLP |
| Jonathan Lee | Rajah & Tann LLP |
| Andre Arul | Arul Chew & Partners |
| Chan Wang Ho | Insolvency & Public Trustee's Office |
4. Facts
- The respondent, a lawyer, maintained bank accounts with the appellant, Standard Chartered Bank.
- The respondent's partner embezzled $413,000 from the firm's client account.
- The appellant commenced an action against the respondent to recover an outstanding debt.
- The respondent counterclaimed for negligence, alleging the appellant allowed unauthorized withdrawals.
- The respondent was made a bankrupt on 4 July 2003.
- The respondent commenced a District Court Suit against the appellant without prior sanction from the Official Assignee.
- The respondent alleged unauthorized transactions and wrongful dishonoring of cheques.
5. Formal Citations
- Standard Chartered Bank v Loh Chong Yong Thomas, Civil Appeal No 47 of 2009, [2010] SGCA 2
6. Timeline
| Date | Event |
|---|---|
| Lim Yee Kai embezzled funds from the firm's client account. | |
| Lim Yee Kai embezzled funds from the firm's client account. | |
| Standard Chartered Bank commenced an action against the respondent. | |
| First cheque dishonored. | |
| Second cheque dishonored. | |
| Third cheque dishonored. | |
| Settlement letter was signed. | |
| Loh Chong Yong Thomas was made a bankrupt. | |
| District Court Suit No 2018 of 2004 commenced. | |
| Writ served on the appellant. | |
| First amendment to statement of claim. | |
| Second amendment to statement of claim. | |
| Appellant's appeal dismissed by a district judge. | |
| Appellant obtained leave to appeal. | |
| Judgment reserved. |
7. Legal Issues
- Locus Standi of Bankrupt
- Outcome: The court held that the bankrupt lacked locus standi to bring the action without the Official Assignee's prior sanction, except for the defamation claim.
- Category: Procedural
- Sub-Issues:
- Right of bankrupt to maintain action without Official Assignee's sanction
- Vesting of property in Official Assignee upon bankruptcy
- Interpretation of 'Injury to Person'
- Outcome: The court held that defamation is not considered an injury to the person under s 131(1)(a) of the Bankruptcy Act.
- Category: Substantive
- Sub-Issues:
- Whether defamation constitutes injury to the person under bankruptcy law
- Retrospective Sanction
- Outcome: The court held that the Official Assignee's sanction must be obtained prior to commencing the action and cannot be granted retrospectively.
- Category: Procedural
- Sub-Issues:
- Validity of Official Assignee's sanction obtained after commencement of action
8. Remedies Sought
- General Damages
- Exemplary Damages
9. Cause of Actions
- Breach of Contract
- Negligence
- Defamation
10. Practice Areas
- Commercial Litigation
- Insolvency Law
11. Industries
- Banking
- Legal Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Law Society of Singapore v Lim Yee Kai | High Court | Yes | [1998] 2 SLR(R) 895 | Singapore | Cited for the finding that the respondent had adopted a cavalier attitude towards the firm's accounts. |
| Ord v Upton | English Court of Appeal | Yes | [2000] Ch 352 | England | Cited to determine the meaning of 'property' in the context of bankruptcy and what vests in the Official Assignee. |
| Daniel Beckham v William Walker Drake and John Surgey | House of Lords | Yes | 2 HL Cas 579 | England | Cited for the principle that actions for damages to the body, mind, or character of a bankrupt do not vest in the trustee. |
| Heath v Tang | Unspecified | Yes | [1993] 1 W.L.R. 1421 | England | Cited for the principle that certain causes of action personal to the bankrupt do not vest in his trustee. |
| Wilson v United Counties Bank, Limited | House of Lords | Yes | [1920] A.C. 102 | England | Cited for the principle that claims for damage to the person or reputation of the bankrupt remain vested in the bankrupt. |
| Goh Eng Hwa v M/s Laksamana Realty Sdn Bhd | Malaysian Court of Appeal | Yes | [2004] 3 MLJ 97 | Malaysia | Cited regarding whether the Official Assignee's sanction requires an assignment of property back to the bankrupt. |
| K Ismail Ganey Rowther v M A Abdul Kader and The Official Assignee of the Property of K P Peer Mohamed, a Bankrupt | Court of Appeal of the Federated Malay States | Yes | [1933] MLJ 98 | Malaysia | Cited regarding whether the Official Assignee's sanction divests the property vested in him. |
| Overseas Union Bank v Lew Keh Lam | Court of Appeal | Yes | [1998] 3 SLR(R) 219 | Singapore | Cited for the interpretation of 'leave of the court' in the context of bankruptcy legislation. |
| Loh Chong Yong Thomas v Standard Chartered Bank | District Court | Yes | [2007] SGDC 82 | Singapore | Cited as the decision under appeal. |
| Sharifah Aini binte Syed Jaafar v Karangkraf Sdn Bhd | Unspecified | Yes | [1989] 2 CLJ 1269 | Malaysia | Cited as a Malaysian defamation case that took the same position as K Ismail. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Legal Profession Act (Cap 161, 1994 Rev Ed) s 27A | Singapore |
| Legal Profession (Solicitors’ Accounts) Rules (Cap 161, R 8, 1990 Rev Ed) | Singapore |
| Bankruptcy Act (Cap 20, 2000 Rev Ed) s 131(1)(a) | Singapore |
| Bankruptcy Act (Cap 20, 2000 Rev Ed) s 76(1)(a)(i) | Singapore |
| Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed) s 34(2)(d) | Singapore |
| Insolvency Act 1986 (c 45) (UK) s 436 | United Kingdom |
| Bankruptcy Act 1967 (Act 360, 1988 Rev Ed) (M’sia) s 38(1)(a) | Malaysia |
| Bankruptcy Ordinance 1888 (SS Ord No 2 of 1888) s 33(1)(a) | Singapore |
| Bankruptcy Enactment 1912 (No 2 of 1912) (FMS) s 33(i)(a) | Malaysia |
| Bankruptcy Act 1995 (Act 15 of 1995) | Singapore |
| Bankruptcy Act (Cap 20, 1996 Rev Ed) s 76(1)(c)(ii) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Bankruptcy
- Official Assignee
- Locus Standi
- Choses in Action
- Sanction
- Defamation
- Injury to Person
- Retrospective Sanction
15.2 Keywords
- Bankruptcy
- Official Assignee
- Locus Standi
- Defamation
- Injury to Person
- Singapore
- Court of Appeal
16. Subjects
- Bankruptcy
- Civil Procedure
- Banking Law
- Defamation
17. Areas of Law
- Bankruptcy Law
- Civil Procedure
- Defamation Law
- Contract Law
- Tort Law