Poh Choon Kia v Lim Hoe Heng: Specific Performance of HDB Flat Sale
In Poh Choon Kia and another v Lim Hoe Heng and another, the High Court of Singapore addressed the plaintiffs' claim against the first defendant for specific performance of an option to purchase a Housing Development Board (HDB) flat. The plaintiffs also sought an order for the second defendant to withdraw her caveat lodged against the flat. Tay Yong Kwang J granted the orders sought by the plaintiffs, directing the sale to be completed within three months, awarding late completion interest, and ordering the second defendant to withdraw her caveat. The court found the first defendant in breach of contract for failing to facilitate the sale, and the second defendant for wrongfully lodging a caveat.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiffs
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiffs sought specific performance of an option to purchase an HDB flat. The court ordered specific performance and late completion interest.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Poh Choon Kia | Plaintiff | Individual | Judgment for Plaintiff | Won | A. Thamilselvan |
| Lim Hoe Heng | Defendant | Individual | Judgment against Defendant | Lost | Jimmy Yap |
| Lim Hoe Heng's wife | Defendant | Individual | Order to withdraw caveat | Lost | Nirmal Singh |
| Poh Choon Kia's co-plaintiff | Plaintiff | Individual | Judgment for Plaintiff | Won | A. Thamilselvan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tay Yong Kwang | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| A. Thamilselvan | Subra TT Law LLC |
| Jimmy Yap | Jimmy Yap & Co |
| Nirmal Singh | S K Kumar Law Practice LLP |
4. Facts
- Plaintiffs entered into an option to purchase an HDB flat from the first defendant.
- The second defendant, wife of the first defendant, lodged a caveat against the flat.
- The HDB required the second defendant’s written consent to the sale.
- The first defendant failed to obtain the second defendant's consent.
- The HDB initially scheduled completion for 8 April 2011.
- The plaintiffs sold their flat and incurred rental expenses for alternative accommodation.
- The HDB waived the requirement of spousal consent on 31 May 2011.
5. Formal Citations
- Poh Choon Kia and another v Lim Hoe Heng and another, Originating Summons No 767 of 2011, [2012] SGHC 88
6. Timeline
| Date | Event |
|---|---|
| Plaintiffs started looking for a matrimonial home. | |
| Plaintiffs viewed the flat. | |
| Plaintiffs and first defendant went to the HDB branch office. | |
| Option to purchase the flat was given by the first defendant. | |
| Plaintiffs exercised the option. | |
| HDB fixed the first appointment for the sale and purchase of the flat. | |
| Second defendant lodged a caveat against the flat. | |
| HDB informed the plaintiffs that it would be cancelling the intended sale. | |
| Plaintiffs rented a flat in Geylang. | |
| Electrical circuit in the Geylang flat caught fire. | |
| Plaintiffs sought the assistance of their member of parliament. | |
| Plaintiffs' bank lodged a caveat. | |
| Plaintiffs lodged a caveat. | |
| HDB waived the requirement of spousal consent to the sale of the flat. | |
| First defendant claimed that he and the second defendant had agreed to the removal of the caveat. | |
| Plaintiffs returned to the Geylang flat. | |
| Second plaintiff filed an affidavit. | |
| First hearing. | |
| Further arguments heard on the issue of the late completion interest. | |
| First defendant filed an appeal. | |
| Decision Date |
7. Legal Issues
- Specific Performance
- Outcome: The court ordered specific performance of the contract for the sale of the flat.
- Category: Substantive
- Breach of Contract
- Outcome: The court found the first defendant in breach of contract for failing to facilitate the sale.
- Category: Substantive
- Late Completion Interest
- Outcome: The court ordered late completion interest at 10% per annum to be paid by the first defendant to the plaintiffs.
- Category: Substantive
- Caveat
- Outcome: The court ordered the second defendant to withdraw her caveat.
- Category: Substantive
8. Remedies Sought
- Specific Performance
- Late Completion Interest
- Damages
- Order for withdrawal of caveat
9. Cause of Actions
- Breach of Contract
- Specific Performance
10. Practice Areas
- Real Estate Litigation
- Contract Litigation
- Specific Performance
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Hasham v Zenab | Privy Council | Yes | [1960] 1 A.C. 316 | N/A | Cited for the principle that the right to sue for specific performance does not equate to a cause of action, and that circumstances justifying intervention by a court of equity must be shown. |
| Panjacharam Raveentheran v Mooka Pillai Rajagopal | N/A | Yes | [1997] 2 SLR(R) 700 | Singapore | Cited to support the argument that failure to remove a caveat constitutes a default. |
| Oakacre Ltd v Claire Cleaners (Holdings) Ltd | N/A | Yes | [1982] 1 Ch. 197 | N/A | Cited to support the argument that entitlement to liquidated damages cannot be disputed. |
| Toh Teck Sun v Mandarin Gardens Pte Ltd | N/A | Yes | [1988] 1 SLR(R) 294 | Singapore | Cited to define 'default' as a breach of some duty owed to another. |
| In re Bayley-Worthington & Cohen’s Contract | N/A | Yes | [1909] 1 Ch 648 | N/A | Cited to define 'default' as a breach of some duty owed to another. |
| Lim Kaling v Hangche Valerie | High Court | Yes | [2003] 2 SLR(R) 377 | Singapore | Cited to support the argument that the caveat was wrongfully lodged as no divorce proceedings had been commenced at the time of lodging. |
| Tan Huat Soon v Lee Mee Leng | High Court | Yes | [2009] SGHC 199 | Singapore | Cited to support the argument that the caveat was wrongfully lodged as no divorce proceedings had been commenced at the time of lodging. |
| Alrich Development Pte Ltd v Rafiq Jumabhoy | N/A | Yes | [1993] 1 SLR(R) 598 | Singapore | Cited to support the argument that the caveat effectively operated as a statutory injunction. |
| Tan Yow Kon v Tan Swat Ping | N/A | Yes | [2006] 3 SLR(R) 881 | Singapore | Cited to support the argument that, based on a balance of convenience, an order to remove the caveat should be given. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Housing and Development Act (Cap 129) | Singapore |
| Land Titles Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Specific Performance
- HDB Flat
- Option to Purchase
- Caveat
- Late Completion Interest
- Spousal Consent
- Completion Date
15.2 Keywords
- HDB
- Housing Development Board
- Specific Performance
- Caveat
- Property
- Real Estate
- Contract
- Singapore
16. Subjects
- Contract Law
- Real Estate
- Housing
- Caveats
- Specific Performance
17. Areas of Law
- Contract Law
- Property Law
- Real Estate Law
- Housing Law
- Civil Procedure