Starluck Construction v HSS Engineering: Winding Up Order for Failure to Pay Debt
Starluck Construction Pte Ltd petitioned the High Court of Singapore to wind up HSS Engineering Pte Ltd, alleging the latter was unable to pay its debts. The High Court, presided over by Justice Chan Seng Onn, allowed the petition on April 1, 2013, finding that HSS Engineering failed to rebut the presumption of insolvency under s 254(2)(a) of the Companies Act, despite owing Starluck Construction $2,827,504.40. The court ordered costs to be taxed or agreed, and paid out of the assets of the Defendant to the Plaintiff.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Winding up petition allowed with costs to be taxed or agreed, and paid out of the assets of the Defendant to the Plaintiff.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Starluck Construction petitioned to wind up HSS Engineering for failure to pay a debt. The court allowed the petition, finding HSS Engineering insolvent.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| HSS Engineering Pte Ltd | Defendant | Corporation | Winding up order made | Lost | |
| Starluck Construction Pte Ltd | Plaintiff | Corporation | Winding up petition allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Seng Onn | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Thirumurthy Ayernaar Pambayan | Murthy & Co |
| Beh Eng Siew | Lee Bon Leong & Co |
4. Facts
- The Defendant owed the Plaintiff $2,827,504.40 as of 26 September 2012.
- The debt arose from a judgment dated 16 August 2012 for construction work done.
- The Plaintiff served a statutory demand on 26 September 2012.
- The Defendant failed to pay the sum within three weeks.
- The Defendant repaid $500,000 of the sum on 6 February 2013.
- The letter of offer from Maybank had already lapsed by 17 September 2010.
5. Formal Citations
- Starluck Construction Pte Ltd v HSS Engineering Pte Ltd, Companies Winding Up No 170 of 2012, [2013] SGHC 72
6. Timeline
| Date | Event |
|---|---|
| Debt due since July 2010 | |
| Maybank letter of offer for loan | |
| Maybank letter of offer lapsed | |
| Judgment awarded in favour of the Plaintiff | |
| Statutory demand served on the Defendant | |
| Adjournment of the matter | |
| Adjournment of the matter | |
| Adjournment of the matter | |
| Defendant repaid $500,000 of the Sum | |
| Adjournment of the matter | |
| Winding up petition allowed |
7. Legal Issues
- Insolvency
- Outcome: The court found that the Defendant failed to rebut the presumption of insolvency under s 254(2)(a) of the Companies Act and was therefore deemed to be unable to pay its debts under s 254(1)(e) of the same.
- Category: Substantive
8. Remedies Sought
- Winding up order
9. Cause of Actions
- Inability to pay debts
10. Practice Areas
- Winding Up
- Insolvency Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Companies Act (Cap 50, 2006 Rev Ed) | Singapore |
| s 254(1)(e) of the Companies Act | Singapore |
| s 254(2)(a) of the Companies Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Winding up
- Insolvency
- Statutory demand
- Presumption of insolvency
- Companies Act
15.2 Keywords
- Winding up order
- Insolvency
- Construction debt
- Companies Act
- Singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Winding Up | 95 |
| Insolvency Law | 70 |
| Company Law | 60 |
| Contract Law | 30 |
| Construction Law | 25 |
16. Subjects
- Insolvency
- Corporate Law