Lim Lye Hiang v Official Assignee: CPF Nomination, Bankruptcy & Vesting of Assets
In Re Lim Lye Hiang, ex parte the Official Assignee, the High Court of Singapore addressed whether Central Provident Fund (CPF) monies nominated to Mdm Lim Lye Hiang (LLH) before her discharge from bankruptcy, but received by the Official Assignee after her discharge, were divisible among her creditors. The court dismissed LLH's appeal, holding that the entitlement to withdraw the nominated CPF monies constituted property that devolved on LLH before her discharge and was therefore divisible among her creditors under the Bankruptcy Act.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed.
1.3 Case Type
Bankruptcy
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court held that CPF monies nominated to a bankrupt before discharge, but received after, are divisible among creditors.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Official Assignee | Respondent | Government Agency | Order Granted | Won | Lim Yew Jin of Official Assignee |
| Lim Lye Hiang | Appellant | Individual | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Seng Onn | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lim Yew Jin | Official Assignee |
| Foo Soon Yien | Bernard & Rada Law Corporation |
4. Facts
- A bankruptcy order was made against Lim Lye Hiang on 9 January 1998.
- Lim Lye Hiang was nominated to receive CPF monies and Singtel discounted shares of her late sister, Mdm Lim Lye Keow.
- Mdm Lim Lye Keow passed away on 14 March 2008.
- Lim Lye Hiang was discharged from bankruptcy on 13 November 2009.
- The Official Assignee received $102,614.84 from the CPF Board on 2 March 2010.
- The Official Assignee sought an order for the CPF monies to be divisible among Lim Lye Hiang's creditors.
5. Formal Citations
- Re Lim Lye Hiang, ex parte the Official Assignee, Bankruptcy No 2066 of 1997 (Registrar's Appeal No 600001 of 2010), [2010] SGHC 299
6. Timeline
| Date | Event |
|---|---|
| Bankruptcy order made against Lim Lye Hiang. | |
| Mdm Lim Lye Keow passed away. | |
| CPF Board sent a letter to Lim Lye Hiang informing her of CPF monies and Singtel discounted shares nomination. | |
| CPF Board sent an email to the Official Assignee requesting instructions on the transfer of Lim Lye Hiang’s nominated CPF monies. | |
| Lim Lye Hiang was discharged by an order of court. | |
| CPF Board emailed the Official Assignee requesting instructions to transfer Lim Lye Hiang’s nominated CPF monies. | |
| Monies transferred to the Official Assignee. | |
| Official Assignee filed a summons seeking an order for the monies to be divisible among her creditors. | |
| Hearing before the assistant registrar. | |
| Judgment reserved. |
7. Legal Issues
- Vesting of Property in Bankruptcy
- Outcome: The court held that the entitlement to withdraw nominated CPF monies constituted property that devolved on LLH before her discharge and was therefore divisible among her creditors.
- Category: Substantive
- Sub-Issues:
- Devolution of property before discharge
- Definition of property under Bankruptcy Act
- Central Provident Fund Nomination
- Outcome: The court held that the CPF nomination became effective upon the death of the nominating member and the entitlement to withdraw the nominated CPF monies constituted property divisible among creditors.
- Category: Substantive
- Sub-Issues:
- Entitlement to withdraw nominated CPF monies
- Effect of CPF nomination on bankruptcy
- Effect of Discharge from Bankruptcy
- Outcome: The court held that the Official Assignee's functions continue after discharge and the unconditional discharge did not bar the Official Assignee from claiming property that devolved on the bankrupt before discharge.
- Category: Substantive
- Sub-Issues:
- Unconditional discharge
- Official Assignee's functions after discharge
- Related Cases:
- [2005] 3 SLR(R) 546
8. Remedies Sought
- Order for CPF monies to be divisible among creditors
9. Cause of Actions
- Bankruptcy
10. Practice Areas
- Insolvency
- Bankruptcy Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Central Provident Fund Board v Lau Eng Mui | High Court | Yes | [1995] 2 SLR(R) 826 | Singapore | Cited to establish that a nomination made under s 25(1) of the CPF Act becomes effective upon the death of the nominating member, and s 15(5) thereafter comes into operation. |
| How Yew Hock (Executor of the estate of Yee Sow Thoo, deceased) v Lembaga Kumpulan Wang Simpanan Pekerja | Federal Court | Yes | [1996] 2 MLJ 474 | Malaysia | Cited with approval for the passage from Mellows, The Law of Succession, which elucidates the legal nature of nominations. |
| Re Barnes, Ashenden v Heathe | Chancery Division | Yes | [1940] Ch 267 | United Kingdom | Cited to support the proposition that a document executed to effect the nomination of a recipient of monies deposited in a society has the characteristics of a testamentary document. |
| Chong Chee Keong v Official Assignee | High Court | Yes | [2005] 3 SLR(R) 546 | Singapore | Cited by the appellant for the proposition that a certificate of discharge wipes the slate clean for the bankrupt. Distinguished by the court on the facts. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 124 | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 78(1) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 76(1)(a) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 2 | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 75(a) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 75(b) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 127(1) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 128 | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 15(5) | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 25(1) | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 24(4) | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 20(1) | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 24(3A) | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 26(2) | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 26(3) | Singapore |
| Central Provident Fund Act (Cap 36, 2001 Rev Ed) s 26(4) | Singapore |
| Central Provident Fund Act (Cap 36, 1991 Rev Ed) s 26(1) | Singapore |
| Central Provident Fund Act s 7 | Singapore |
| Central Provident Fund Act s 13B | Singapore |
| Central Provident Fund Act s 12(2)(a) | Singapore |
| Central Provident Fund Act s 2(1) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Central Provident Fund
- CPF nomination
- Bankruptcy discharge
- Vesting of property
- Official Assignee
- Bankruptcy Act
- CPF Act
- Nominated CPF monies
15.2 Keywords
- Bankruptcy
- CPF
- Nomination
- Vesting
- Official Assignee
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Bankruptcy | 95 |
| Central Provident Fund Law | 80 |
| Estate Administration | 60 |
| Succession Law | 50 |
| Banking and Finance | 30 |
16. Subjects
- Bankruptcy
- Central Provident Fund
- Property Law