ANC Holdings v Bina Puri: Enforceability of Contract Involving Bribery for Saudi Housing Projects
In ANC Holdings Pte Ltd v Bina Puri Holdings Bhd, the Singapore High Court addressed a breach of contract claim where ANC Holdings sought commission from Bina Puri for assisting in securing Saudi Arabian housing construction projects. Bina Puri argued the contract was unenforceable due to the doctrine of ex turpi causa, alleging ANC Holdings intended to use bribery. The court, presided over by Justice Coomaraswamy, dismissed ANC Holdings' claim, finding that the common intention to use bribery rendered the contract unenforceable, regardless of whether bribery actually occurred.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's claim dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court case regarding the enforceability of a contract where the plaintiff allegedly bribed officials to secure housing projects.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| ANC Holdings Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Bina Puri Holdings Bhd | Defendant | Corporation | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Vinodh Coomaraswamy | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| P E Ashokan | KhattarWong LLP |
| Sheryl Cher | KhattarWong LLP |
| Chia Foon Yeow | Loo & Partners LLP |
4. Facts
- ANC Holdings agreed to assist Bina Puri's subsidiary in securing housing construction projects in Saudi Arabia.
- Bina Puri agreed to pay ANC Holdings a 5% commission of the value of secured projects.
- Bina Puri Saudi was awarded contracts for two projects by the Saudi General Housing Authority.
- Bina Puri Saudi failed to furnish performance bonds, leading to cancellation of the awards.
- ANC Holdings claimed commission of S$4,632,273.81 from Bina Puri.
- Bina Puri alleged the agreement involved bribery, invoking the ex turpi causa doctrine.
- The court found that both parties intended for ANC Holdings to use bribery to secure the projects.
5. Formal Citations
- ANC Holdings Pte Ltd v Bina Puri Holdings Bhd, Suit No 599 of 2011/D, [2013] SGHC 97
6. Timeline
| Date | Event |
|---|---|
| ANC Holdings Pte Ltd incorporated. | |
| Meeting between ANC Holdings and Bina Puri Holdings Bhd representatives. | |
| Meeting between Chan, Subri, Lee, Tee, and Wong Yee Hian in Kuala Lumpur. | |
| Meeting between Chan and representatives of Bina Puri Saudi in Riyadh. | |
| Written agreement signed between ANC Holdings and Bina Puri Holdings Bhd. | |
| Bina Puri Saudi submitted bid for the Tabuk Project. | |
| Bina Puri Saudi submitted bid for the Al Dawadmy Project. | |
| Authority awarded the Tabuk Project to Bina Puri Saudi. | |
| Authority awarded the Al Dawadmy Project to Bina Puri Saudi. | |
| Authority cancelled the awards of the Projects to Bina Puri Saudi. | |
| ANC Holdings commenced action against Bina Puri Holdings Bhd. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that while a contract existed, it was unenforceable due to illegality.
- Category: Substantive
- Ex Turpi Causa
- Outcome: The court held that the doctrine of ex turpi causa applied, rendering the contract unenforceable due to the parties' common intention to use bribery.
- Category: Substantive
- Effective Cause
- Outcome: The court found that the plaintiff was not the effective cause of Bina Puri Saudi securing the Projects.
- Category: Substantive
- Pleading of Illegality
- Outcome: The court held that the defendant was not precluded from relying on the ex turpi causa doctrine despite its failure to plead it.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Emporium Holdings (Singapore) Pte Ltd v Knight Frank Cheong Hock Chye & Baillieu (Property Consultants) Pte Ltd | Court of Appeal | Yes | [1994] SGCA 147 | Singapore | Cited for the principle that an agent is entitled to commission when their services are the effective cause of a future event occurring. |
| Edler v Auerbach | N/A | Yes | [1950] 1 KB 359 | England and Wales | Cited for propositions regarding the pleading of illegality in contract cases. |
| Koon Seng Construction Pte Ltd v Chenab Contractor Pte Ltd | N/A | Yes | [2008] 1 SLR(R) 375 | Singapore | Cited for restating the propositions in Edler v Auerbach regarding pleading illegality. |
| Sim Tony v Lim Ah Ghee (trading as Phil Real Estate & Building Services) | N/A | Yes | [1994] 2 SLR(R) 910 | Singapore | Cited for the principle that the court has a duty to take cognizance of illegality even if it is not pleaded. |
| Holman v Johnson | N/A | Yes | (1775) 1 Cowp 341 | England and Wales | Cited for the principle that no court will lend its aid to a man who founds his cause of action upon an immoral or an illegal act. |
| Hall v Hebert | N/A | Yes | (1993) 101 DLR (4th) 129 | Canada | Cited for the policy underlying the ex turpi causa doctrine. |
| United Project Consultants Pte Ltd v Leong Kwok Onn | N/A | Yes | [2005] 4 SLR 214 | Singapore | Cited for the principle that the ex turpi causa doctrine can be triggered by immoral acts. |
| Stone & Rolls Ltd (in liquidation) v Moore Stephens (a firm) | N/A | Yes | [2009] 1 AC 1391 | England and Wales | Cited for the principle that the plaintiff's behavior must involve turpitude or culpability to engage the ex turpi causa doctrine. |
| Tinsley v Milligan | N/A | Yes | [1994] 1 AC 340 | England and Wales | Discussed in relation to the principle of illegality and property rights. |
| St John Shipping Corporation v Joseph Rank Ltd | N/A | Yes | [1957] 1 QB 267 | England and Wales | Discussed in relation to the principle that a party is not precluded from suing on a contract, however lawful the contract may be, so long as the contract is performed in an illegal manner. |
| Ashmore, Benson, Pease & Co Ltd v A V Dawson Ltd | N/A | Yes | [1973] 1 WLR 828 | England and Wales | Discussed in relation to the principle that the plaintiff’s participation in the illegal performance of the contract precluded it from suing on the contract. |
| National Aerated Water Co Pte Ltd v Monarch Co, Inc | N/A | Yes | [2000] 1 SLR(R) 74 | Singapore | Cited for the principle that the court's ability to take cognisance of illegality that has not been pleaded should not depend on the characterisation of the illegality. |
| Nova Management Pte Ltd v Amara Hotel Properties Pte Ltd and another | N/A | Yes | [1992] 3 SLR(R) 918 | Singapore | Cited for the principle that a defendant who successfully raises the defence of illegality should not automatically be deprived of costs merely because of his reliance on illegality. |
| Bowmakers Ltd v Barnet Instruments Ltd | N/A | Yes | [1945] KB 65 | England and Wales | Cited in Stone & Rolls Ltd (in liquidation) v Moore Stephens (a firm) [2009] 1 AC 1391 at [21] in relation to the effect of illegality on title to property. |
| Alexander v Rayson | N/A | Yes | [1936] 1 KB 169 | England and Wales | Cited in Stone & Rolls Ltd (in liquidation) v Moore Stephens (a firm) [2009] 1 AC 1391 at [21] in relation to the principle that where the claim is to enforce a contract the claim will be defeated if the defendant shows that the contract was for an illegal purpose, even though the claimant does not assert the illegal purpose in making the claim. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 2006 Rev Ed) O 18 r 8 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Evidence Act (Cap 97, 1997 Rev Ed) | Singapore |
| Government Tenders and Procurement Law | Saudi Arabia |
15. Key Terms and Keywords
15.1 Key Terms
- Ex Turpi Causa
- Commission
- Bribery
- Effective Cause
- Saudi General Housing Authority
- Bina Puri Saudi
- Arranged Project
- Bid Bonds
- Performance Bond
15.2 Keywords
- Contract
- Commission
- Bribery
- Saudi Arabia
- Construction Projects
- Illegality
- Ex Turpi Causa
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 70 |
| Breach of Contract | 70 |
| Commercial Disputes | 60 |
| Ex Turpi Causa | 40 |
| Bribery | 30 |
| Collections | 30 |
| Summary Judgement | 20 |
| Inducement of Breach of Contract | 10 |
| Fraud and Deceit | 10 |
16. Subjects
- Contract Law
- Agency
- Illegality
- Construction Law