UDL Marine v Jurong Town Corp: Lease Renewal Dispute over Waterfront Redevelopment

UDL Marine (Singapore) Pte Ltd sued Jurong Town Corporation (JTC) and Economic Development Board of Singapore (EDB) in the High Court of Singapore, alleging misrepresentation regarding the renewal of a lease for land at 3 Benoi Road. UDL claimed that EDB misrepresented that JTC would grant a 20-year lease extension, leading UDL to rescind a sale agreement. The court, presided over by Lee Seiu Kin J, dismissed UDL's claims against both JTC and EDB, finding that UDL failed to prove the alleged misrepresentations. The court allowed JTC's claim against UDL for double rent during the holding over period, rent for the reinstatement period, and reinstatement costs, totaling $1,109,419.76.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Jurong Town Corporation and Economic Development Board; UDL Marine's claims dismissed; JTC's claim allowed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

UDL Marine sues Jurong Town Corporation and Economic Development Board over a lease renewal dispute, alleging misrepresentation. The court dismissed UDL's claims and allowed JTC's claim for unpaid rent.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
UDL Marine (Singapore) Pte LtdPlaintiff, DefendantCorporationClaims DismissedLost
Jurong Town CorporationDefendant, PlaintiffStatutory BoardClaim AllowedWon
Economic Development Board of SingaporeDefendantStatutory BoardClaim DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Siraj OmarPremier Law LLC
See Chern YangPremier Law LLC
Dinesh DhillonAllen & Gledhill LLP
Cai ChengyingAllen & Gledhill LLP
Felicia TanAllen & Gledhill LLP

4. Facts

  1. UDL leased land from JTC under a lease agreement expiring on 31 December 2010.
  2. UDL intended to sell the lease to Kim Hock but rescinded the agreement.
  3. UDL claimed EDB represented that JTC would grant a 20-year lease extension.
  4. UDL submitted a lease renewal application to JTC, which was ultimately rejected.
  5. UDL failed to vacate the premises after the lease expired.
  6. UDL had unauthorised sub-lessees on the premises.
  7. An explosion occurred on a vessel on the premises after UDL handed over the keys.

5. Formal Citations

  1. UDL Marine (Singapore) Pte Ltd v Jurong Town Corporation and other suits, Suit No 502 of 2010, Suit No 98 of 2011 & Suit No 156 of 2011, [2013] SGHC 236

6. Timeline

DateEvent
Lease agreement signed between Jurong Town Corporation and UDL Shipbuilding (S) Pte Ltd.
UDL Shipbuilding went into receivership.
UDL secured an agreement with Oversea-Chinese Banking Corporation to purchase the interest under the mortgage and take over the Lease.
JTC gave in-principle approval to the proposed transfer of the lease.
Formal approval granted by JTC for the transfer of the lease.
Lease was to expire.
JTC made an offer to UDL to renew the Lease for a further term of nine years.
UDL wrote to JTC, confirming acceptance of the terms and conditions of the offer letter of 9 December 2002.
JTC wrote to inform UDL that the renewal of the Lease had been approved.
Conditional sale and purchase agreement for the Lease was entered into with Kim Hock Corporation.
UDL’s solicitors wrote to JTC requesting JTC’s approval for the sale to Kim Hock.
JTC carried out a site inspection of the Premises.
UDL wrote to JTC advising that the sale and purchase agreement between UDL and Kim Hock had been rescinded.
Sidat Senanayake from EDB sent an email to Leung Yat Tung regarding the lease extension.
UDL submitted its application to JTC for lease renewal.
JTC acknowledged receipt of the business plan and lease renewal application but informed UDL that the application could not be processed.
UDL applied to EDB for “Incentive for Redevelopment Plan” at the Premises.
UDL submitted its formal application for lease renewal to JTC.
JTC wrote to UDL to advise that its application was not successful.
JTC wrote to UDL to state that UDL’s application could not be granted.
UDL filed the writ in S502.
The Lease expired.
JTC commenced proceedings against certain unauthorised sublessees.
UDL handed over the keys to the Premises.
An explosion occurred on board a vessel which was situated on the Premises.
The three suits were consolidated pursuant to an order of court.
COSL’s lease of the Premises commenced.
Decision Date

7. Legal Issues

  1. Misrepresentation
    • Outcome: The court found that UDL failed to prove that EDB made the alleged representations.
    • Category: Substantive
  2. Breach of Lease
    • Outcome: The court found that UDL breached the lease by failing to deliver vacant possession and reinstate the premises.
    • Category: Substantive
  3. Double Rent
    • Outcome: The court ordered UDL to pay double rent for the holding over period.
    • Category: Substantive
    • Related Cases:
      • [2004] 2 MLJ 213

8. Remedies Sought

  1. Damages
  2. Specific Performance
  3. Declaration

9. Cause of Actions

  • Misrepresentation
  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Real Estate Law

11. Industries

  • Marine
  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Sarawak Machineries Trading Co & Anor v Sii Hing Kung & OrsHigh CourtYes[2004] 2 MLJ 213MalaysiaCited to determine whether double rent is based on the rent last paid by the tenant or the rent that the tenant would have to pay during the holdover period.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Jurong Town Corporation Act (Cap 150, 1998 Rev Ed)Singapore
Economic Development Board Act (Cap 85, 2012 Rev Ed)Singapore
Official Secrets Act (Cap 213, 2012 Rev Ed)Singapore
Rules of Court (Cap 322, R5, 2006 Rev Ed)Singapore
Civil Law Act (Cap 43, 1999 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Lease Renewal
  • Misrepresentation
  • Holding Over
  • Reinstatement Costs
  • Waterfront Redevelopment
  • Vacant Possession
  • Double Rent

15.2 Keywords

  • lease
  • renewal
  • misrepresentation
  • Jurong Town Corporation
  • Economic Development Board
  • UDL Marine
  • waterfront
  • redevelopment

17. Areas of Law

Area NameRelevance Score
Breach of Contract70
Contract Law70
Property Law60
Commercial Disputes50
Commercial Leasing50
Lease Agreement40
Estoppel30

16. Subjects

  • Real Estate
  • Lease Agreements
  • Governmental Relations