Rizvi v ING Bank: Setting Aside Statutory Demand for Debt Incurred Outside Singapore

In Rafat Ali Rizvi v Ing Bank NV Hong Kong Branch, the High Court of Singapore heard an appeal by Mr. Rizvi against the dismissal of his applications to extend time and set aside a statutory demand issued by ING Bank. The court, presided over by Justice Kan Ting Chiu, allowed the appeal on May 9, 2011, setting aside the statutory demand. The court found that the debt underlying the demand was incurred outside Singapore and therefore did not meet the requirements of Section 61(1)(d) of the Bankruptcy Act. The court granted the extension of time and set aside the statutory demand, awarding costs to Mr. Rizvi.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Allowed

1.3 Case Type

Bankruptcy

1.4 Judgment Type

Written Judgment

1.5 Jurisdiction

Singapore

1.6 Description

The High Court set aside a statutory demand against Rizvi, holding that the debt was incurred outside Singapore and thus did not meet Bankruptcy Act requirements.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Rafat Ali RizviAppellantIndividualAppeal AllowedWon
Ing Bank NV Hong Kong BranchRespondentCorporationAppeal DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Philip LingWong Tan & Molly Lim LLC
Rebecca ChewRajah & Tann LLP
Goh Su SianRajah & Tann LLP
Paul NgRajah & Tann LLP

4. Facts

  1. The plaintiff was served with a statutory demand issued by the defendant.
  2. The plaintiff disputed the validity of the statutory demand and sought to set it aside.
  3. The plaintiff was out of time to apply to set aside the statutory demand.
  4. The defendant had granted credit facilities to AAIL up to a maximum limit of US$180 million.
  5. The plaintiff had executed a continuing personal guarantee in favour of the defendant to secure the facilities.
  6. The defendant issued a statutory demand for sums owing under the facilities granted to AAIL.
  7. The debt was incurred outside Singapore.

5. Formal Citations

  1. Rafat Ali Rizvi v Ing Bank NV Hong Kong Branch, OSB No. 28 of 2009/D (Registrar's Appeal No.393 of 2009/W), [2011] SGHC 114

6. Timeline

DateEvent
Statutory demand issued by the defendant to the plaintiff
Plaintiff was in the United Kingdom
Plaintiff was in the United Kingdom
Plaintiff filed application to set aside statutory demand
Judgment delivered

7. Legal Issues

  1. Validity of Statutory Demand
    • Outcome: The court held that the statutory demand should be set aside because the debt was incurred outside Singapore and did not meet the requirements of s 61(1)(d) of the Bankruptcy Act.
    • Category: Substantive
    • Related Cases:
      • [2009] 2 SLR(R) 659
  2. Extension of Time to Apply to Set Aside Statutory Demand
    • Outcome: The court granted the extension of time to file the application to set aside the statutory demand.
    • Category: Procedural

8. Remedies Sought

  1. Order to extend time to set aside statutory demand
  2. Order to set aside statutory demand

9. Cause of Actions

  • Debt Recovery

10. Practice Areas

  • Commercial Litigation
  • Bankruptcy

11. Industries

  • Banking
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
AmBank (M) Bhd v Yong Kim Yoong RaymondCourt of AppealYes[2009] 2 SLR(R) 659SingaporeCited for guidance on implementing Section 61(1)(d) of the Bankruptcy Act and determining where a debt is incurred.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Bankruptcy Act (Cap 20. 2009 Rev Ed)Singapore
s 61(1) of the Bankruptcy ActSingapore
s 62 of the Bankruptcy ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Statutory demand
  • Bankruptcy
  • Debt incurred outside Singapore
  • Personal guarantee
  • Credit facilities

15.2 Keywords

  • Bankruptcy Act
  • Statutory Demand
  • Debt Incurred Outside Singapore
  • Extension of Time

17. Areas of Law

Area NameRelevance Score
Bankruptcy90
Statutory Demand70
Guarantee60
Civil Procedure50
Guarantees and indemnities50
Contract Law40
Jurisdiction30

16. Subjects

  • Bankruptcy
  • Debt
  • Statutory Demand