Aliev v Kon: Liquidators' Rejection of Proof of Debt Dispute over Unpaid Salary and Benefits

In Aliev Firoudin v Kon Yin Tong & another, the Singapore High Court addressed a dispute between Mr. Firoudin Aliev and the liquidators of his former employer, Agrosin Private Limited, regarding the liquidators' rejection of Mr. Aliev's proof of debt. Mr. Aliev sought to overturn the rejection and have his claim of $1,126,468.88 accepted. The court found that Mr. Aliev's employment was terminated on 30 September 2007, and he was entitled to certain expenses and annual wage supplements up to that date. The court directed the liquidators to issue a revised Notice of Rejection reflecting these findings and awarded costs to Mr. Aliev.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

The court allowed the plaintiff's claim to the extent indicated and set aside the Notice of Rejection, directing the defendants to issue a varied Notice of Rejection reflecting the court's findings. The plaintiff was awarded costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

High Court case between Aliev Firoudin and Agrosin Private Limited's liquidators regarding the rejection of a proof of debt for unpaid salary and benefits.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Aliev FiroudinPlaintiffIndividualClaim allowed in partPartialDeborah Evaline Barker, Ang Keng Ling
Kon Yin TongDefendantIndividualClaim partially rejectedPartialNg Lip Chih
Aw Eng HaiDefendantIndividualClaim partially rejectedPartialNg Lip Chih

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Deborah Evaline BarkerKhattarWong LLP
Ang Keng LingKhattarWong LLP
Ng Lip ChihNLC Law Asia LLP

4. Facts

  1. The plaintiff was employed by Agrosin as its executive director cum general manager in January 1993.
  2. Agrosin faced severe financial problems from about 2005 onwards.
  3. In January 2006, Agrosin's directors resolved to adopt cost-cutting measures, including suspending the salaries of expatriate employees.
  4. Agrosin stopped paying the plaintiff's monthly salary from January 2006.
  5. Agrosin served a notice of termination on the plaintiff in August 2007, with employment ending on 30 September 2007.
  6. The plaintiff claimed that Agrosin retracted the 2007 termination notice, but the liquidators disputed this.
  7. A second termination notice was purportedly issued in August 2009, which the liquidators also disputed.
  8. The plaintiff assisted Agrosin in prosecuting a legal action against a former director, Mr. Igor Martynov.
  9. The plaintiff claimed unpaid salary, annual wage supplements, and unreimbursed expenses.
  10. The liquidators rejected a major portion of the plaintiff's claims in the Notice of Rejection.

5. Formal Citations

  1. Aliev Firoudin v Kon Yin Tong & another, Originating Summons No 1015 of 2011, [2013] SGHC 128

6. Timeline

DateEvent
Liquidators appointed for Agrosin Private Limited
Proof of Debt signed by the plaintiff
Proof of Debt submitted to the liquidators
Action started by the plaintiff
Notice of Rejection issued by the Liquidators
Judgment reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that Agrosin was in breach of contract by attempting to unilaterally impose cost-cutting measures without the plaintiff's consent. The court also found that the plaintiff was entitled to annual wage supplements as an implied term of his employment contract.
    • Category: Substantive
    • Sub-Issues:
      • Unilateral variation of contract terms
      • Failure to pay salary
      • Failure to pay annual wage supplement
      • Wrongful termination
  2. Termination of Employment
    • Outcome: The court found that the plaintiff's employment was terminated on 30 September 2007 and he was not reinstated thereafter.
    • Category: Substantive
    • Sub-Issues:
      • Retraction of termination notice
      • Validity of termination notice
  3. Proof of Debt Adjudication
    • Outcome: The court set aside the Notice of Rejection as issued and directed the defendants to issue a varied Notice of Rejection which reflects the court's findings herein.
    • Category: Procedural

8. Remedies Sought

  1. Setting aside the Notice of Rejection of Proof of Debt
  2. Acceptance of the Proof of Debt
  3. Variation of the Liquidators' decision

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Insolvency Litigation
  • Employment Dispute

11. Industries

  • Fertilizer Trading
  • Chemical Trading

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Mah Wand Hew v Ong Yew Huat and anotherHigh CourtYes[2003] 1 SLR(R) 859SingaporeCited to determine whether the plaintiff was employed by the defendant company based on control and direction.
Awang bin Dollah v Shun Shing Construction & Engineering Co LtdCourt of AppealYes[1997] 2 SLR(R) 746SingaporeCited in Mah Wand Hew v Ong Yew Huat and another [2003] 1 SLR(R) 859 regarding the fact of control and direction in determining employment.
Loh Siok Wah v American International Assurance Co LtdN/AYes[1998] 2 SLR(R) 245SingaporeCited regarding whether retrenchment benefits paid in the absence of any contractual or statutory provision were given on an ex-gratia basis and did not give rise to a legal obligation on the part of the employer to pay retrenchment benefits in all cases. Distinguished by the court.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Proof of Debt
  • Notice of Rejection
  • Liquidators
  • Termination notice
  • Annual Wage Supplement
  • Cost cutting measures
  • Employment contract
  • Reinstatement
  • Outstanding salary
  • Unconsumed annual leave

15.2 Keywords

  • employment
  • contract
  • salary
  • termination
  • proof of debt
  • liquidation
  • annual wage supplement
  • expenses
  • rejection
  • Agrosin

16. Subjects

  • Employment Dispute
  • Insolvency
  • Contractual Obligations

17. Areas of Law

  • Contract Law
  • Employment Law
  • Insolvency Law