DBS Bank v M.U. Industrial: Winding Up Application for Failure to Pay Debt

DBS Bank Ltd initiated a winding up application in the High Court of Singapore against M.U. Industrial Pte Ltd due to the latter's failure to repay a debt of S$1,603,373.19. After serving a statutory demand and setting off fixed deposits, the outstanding debt remained at S$1,407,243.50. The court, satisfied with the compliance of relevant provisions and the absence of opposition from the defendants, granted the winding up order on 14 August 2014 and appointed Mr Chee Yoh Chuang and Mr Abuthahir Abdul Gafoor as liquidators.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Order for the defendants to be wound up on the basis that the company was unable to pay its debts.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

DBS Bank applied to wind up M.U. Industrial for failure to pay a debt. The court granted the winding up order and appointed liquidators.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
DBS Bank LtdPlaintiffCorporationWonWon
M.U. Industrial Pte LtdDefendantCorporationLostLost

3. Judges

Judge NameTitleDelivered Judgment
Chan Seng OnnJudgeYes

4. Counsels

Counsel NameOrganization
Yap Chun PinHarry Elias Partnership LLP
Udeh Kumar s/o SethurajuS K Kumar Law Practice LLP

4. Facts

  1. DBS Bank Ltd provided banking facilities of S$1,700,000 to M.U. Industrial Pte Ltd.
  2. M.U. Industrial Pte Ltd became indebted to DBS Bank Ltd for S$1,603,373.19 as of 4 May 2014.
  3. DBS Bank Ltd served a statutory demand on M.U. Industrial Pte Ltd on 6 May 2014.
  4. M.U. Industrial Pte Ltd did not pay the debt within 21 days of the statutory demand.
  5. Fixed deposits of S$200,500 were set off, leaving an outstanding debt of S$1,407,243.50 as of 30 May 2014.
  6. DBS Bank Ltd applied for a winding up order against M.U. Industrial Pte Ltd on 10 June 2014.
  7. M.U. Industrial Pte Ltd did not oppose the winding up application.

5. Formal Citations

  1. DBS Bank Ltd v M.U. Industrial Pte Ltd, Companies Winding Up No 107 of 2014, [2014] SGHC 162

6. Timeline

DateEvent
DBS Bank Ltd provided banking facilities to M.U. Industrial Pte Ltd.
M.U. Industrial Pte Ltd was indebted to DBS Bank Ltd in the sum of S$1,603,373.19.
DBS Bank Ltd served a statutory demand on M.U. Industrial Pte Ltd.
Outstanding debt of M.U. Industrial Pte Ltd was S$1,407,243.50 after setting off fixed deposits.
DBS Bank Ltd applied for a winding up order against M.U. Industrial Pte Ltd.
M.U. Industrial Pte Ltd was served with the winding up application and supporting affidavit.
Notice of the winding up application and the hearing date was published in the Government Gazette and advertised in The Straits Times and Lianhe ZaoBao.
Consent of Mr Chee Yoh Chuang and Mr Abuthahir Abdul Gafoor to act as liquidators was filed in court.
Hearing for the winding up application was held.
Order for M.U. Industrial Pte Ltd to be wound up was made.

7. Legal Issues

  1. Inability to Pay Debts
    • Outcome: The court found that the defendant was unable to pay its debts.
    • Category: Substantive

8. Remedies Sought

  1. Winding up order

9. Cause of Actions

  • Winding Up

10. Practice Areas

  • Winding Up
  • Commercial Litigation

11. Industries

  • Banking

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
Companies (Winding Up) Rules (Cap 50, R 1, 2006 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Companies Act (Cap 50, 2006 Rev Ed) s 254(1)(e)Singapore
Companies Act (Cap 50, 2006 Rev Ed) s 254(2)(a)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Winding up
  • Statutory demand
  • Banking facilities
  • Debt
  • Liquidator

15.2 Keywords

  • Winding up application
  • Insolvency
  • Debt
  • Companies Act
  • Singapore

17. Areas of Law

Area NameRelevance Score
Winding Up95
Insolvency Law80
Company Law60

16. Subjects

  • Insolvency
  • Corporate Law