Mona Computer Systems v Singaravelu Murugan: Breach of Fiduciary Duty & Account of Profits

In Mona Computer Systems (S) Pte Ltd v Singaravelu Murugan, the Singapore High Court addressed a claim by Mona Computer Systems against Singaravelu Murugan for breach of fiduciary duty. The plaintiff alleged that the defendant, while employed as a Systems Manager, diverted business to his own company, MN Computer Systems (S) Pte Ltd. The High Court, Choo Han Teck J, heard appeals from both parties regarding the assessment of damages. The court dismissed the plaintiff's appeal regarding director's fees, allowed in part the plaintiff's appeal for interest on the judgment debt, and dismissed the defendant's appeal regarding commissions and advertising costs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed in part and allowed in part.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court addressed a breach of fiduciary duty claim where Singaravelu Murugan diverted business from Mona Computer Systems to his own company. The court dismissed the appeal regarding director's fees but allowed interest on the judgment debt.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Singaravelu MuruganDefendant, AppellantIndividualAppeal dismissedLost
Mona Computer Systems (S) Pte LtdPlaintiff, RespondentCorporationAppeal dismissed in part and allowed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJYes

4. Counsels

Counsel NameOrganization
Cheong Aik ChyeA C Cheong & Co.
Cheong Yuen HeeA C Cheong & Co.
R KalamohanKalamohan & Co
Shanti Elavarasi d/o R KalamohanKalamohan & Co

4. Facts

  1. The defendant was the sole full-time employee of the plaintiff as a Systems Manager.
  2. The defendant formed MN Computer Systems (S) Pte Ltd while still employed by the plaintiff.
  3. MN Computer's principal business was the same as the plaintiff's.
  4. The defendant secured contracts for MN Computer while still under the plaintiff's employment.
  5. The defendant resigned from the plaintiff on 20 February 2009.
  6. The plaintiff sued the defendant for breach of fiduciary duty for diverting business.
  7. The defendant counterclaimed for unpaid commissions.

5. Formal Citations

  1. Mona Computer Systems (S) Pte Ltd v Singaravelu Murugan, Suit No 265 of 2009 (Registrar's Appeals No 12 and 13 of 2013), [2014] SGHC 49

6. Timeline

DateEvent
Plaintiff incorporated in Singapore
Defendant formed MN Computer Systems (S) Pte Ltd
Defendant resigned from plaintiff
Interest claimed from this date
Suit No 265 of 2009 commenced
Trial before Belinda Ang J
Assessment of damages before assistant registrar Elaine Chew
Registrar’s appeal hearing before Woo Bih Li J
Appeal to the Court of Appeal
Assessment of damages before assistant registrar Ruth Yeo
Judgment Reserved

7. Legal Issues

  1. Breach of Fiduciary Duty
    • Outcome: The court found the defendant liable for breach of fiduciary duty for diverting business to his own company.
    • Category: Substantive
    • Related Cases:
      • [2014] 1 SLR 847
  2. Account of Profits
    • Outcome: The court determined the account of profits should include commissions earned on specific contracts and disallowed subtraction of alleged advertising costs.
    • Category: Substantive
  3. Interest on Judgment Debt
    • Outcome: The court allowed interest on the judgment debt at a rate of 6% per annum from the date of judgment.
    • Category: Procedural

8. Remedies Sought

  1. Account of Profits
  2. Monetary Damages

9. Cause of Actions

  • Breach of Fiduciary Duty

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Information Technology

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Mona Computer Systems (S) Pte Ltd v Singaravelu MuruganCourt of AppealYes[2014] 1 SLR 847SingaporeThe Court of Appeal decision was referenced regarding the director's fees and the overall assessment of damages.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, 2006 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed)Singapore
Civil Law Act (Cap 43, 1999 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Fiduciary Duty
  • Account of Profits
  • Systems Manager
  • Commissions
  • Director's Fees
  • Judgment Debt
  • IT Consultancy
  • Information Technology

15.2 Keywords

  • fiduciary duty
  • account of profits
  • IT consultancy
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Fiduciary Duties95
Duty to Account70
Contract Law30
Commercial Disputes25
Business Litigation20
Business Law15

16. Subjects

  • Fiduciary Duty
  • Commercial Law
  • Civil Litigation