Thu Aung Zaw v Norb Creative Studio: Guarantee, Consideration, and Setting Aside Statutory Demand
In Thu Aung Zaw v Norb Creative Studio, the High Court of Singapore heard an appeal against the assistant registrar's decision to dismiss Thu Aung Zaw's application to set aside a statutory demand issued by Norb Creative Studio. The statutory demand was based on a guarantee provided by Zaw for a debt owed by Adlogic Asia LLP to Norb for printing services. The key legal issue was whether there was a substantial dispute regarding the debt, specifically whether consideration was provided for the guarantee. Lee Seiu Kin J allowed the appeal, finding that there were triable issues regarding the date the guarantee was signed and whether consideration was provided, thus the statutory demand was set aside.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Allowed
1.3 Case Type
Bankruptcy
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding the setting aside of a statutory demand. The court allowed the appeal, finding triable issues regarding consideration for the guarantee.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Thu Aung Zaw | Appellant | Individual | Appeal Allowed | Won | |
| Norb Creative Studio | Respondent | Corporation | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Alagappan s/o Arunasalam | A Alagappan Law Corporation |
| Adrian Tan Wen Cheng | Camford Law Corporation |
4. Facts
- Zaw provided a guarantee for a debt owed by Adlogic to Norb for printing services.
- Norb issued a statutory demand against Zaw based on the guarantee.
- Zaw applied to set aside the statutory demand, arguing lack of consideration for the guarantee.
- The date the guarantee was signed is disputed.
- Norb claimed consideration was a promise to continue supply, including namecards.
- Zaw denied ordering the namecards.
- The last of the booklets was supplied by end December 2011.
5. Formal Citations
- Thu Aung Zaw v Norb Creative Studio, Originating Summons (Bankruptcy) No 91 of 2013 (Registrar's Appeal No 427 of 2013), [2014] SGHC 67
6. Timeline
| Date | Event |
|---|---|
| Oral agreement entered into between Norb and Adlogic for printing of booklets. | |
| Adlogic made first payment of $4,000 to Norb. | |
| Guarantee dated. | |
| Alleged signing of guarantee (disputed). | |
| Booklets delivered to Adlogic in two batches. | |
| Adlogic made various payments to Norb. | |
| Adlogic made various payments to Norb. | |
| Action for Aids stopped Adlogic from selling the Booklets. | |
| Alleged signing of guarantee (disputed). | |
| Invoice for namecards dated. | |
| Statutory demand issued by Norb against Zaw. | |
| Zaw's affidavit of evidence-in-chief filed. | |
| Ku's affidavit of evidence-in-chief filed. | |
| Zaw's affidavit filed. | |
| Bankruptcy application heard before an AR. | |
| Appellant's Skeletal Arguments dated. | |
| Appeal allowed with costs. | |
| Norb filed a notice of appeal. | |
| Grounds of decision given. |
7. Legal Issues
- Consideration for Guarantee
- Outcome: The court found that there was a triable issue as to whether valid consideration was provided for the guarantee.
- Category: Substantive
- Sub-Issues:
- Past consideration
- Failure of consideration
- Related Cases:
- [2010] 2 SLR 703
- [2002] 2 SLR(R) 31
- [1998] 3 SLR(R) 219
- [2004] 4 SLR(R) 820
- Setting Aside Statutory Demand
- Outcome: The court allowed the appeal and set aside the statutory demand.
- Category: Procedural
- Related Cases:
- [2010] 2 SLR 703
- [2002] 2 SLR(R) 31
8. Remedies Sought
- Setting Aside of Statutory Demand
9. Cause of Actions
- Breach of Guarantee
10. Practice Areas
- Bankruptcy
- Commercial Litigation
11. Industries
- Printing
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tan Eng Joo v United Overseas Bank Ltd | Singapore Court of Appeal | Yes | [2010] 2 SLR 703 | Singapore | Cited for the standard of setting aside a statutory demand, which is the same as resisting an application for summary judgment. |
| Wong Kwei Cheong v ABN-AMRO Bank NV | Singapore High Court | Yes | [2002] 2 SLR(R) 31 | Singapore | Cited to define the role of the bankruptcy court in hearing an application to set aside a statutory demand. |
| Overseas Union Bank v Lew Keh Lam | Singapore High Court | Yes | [1998] 3 SLR(R) 219 | Singapore | Cited for the principle that a promise to continue to make advances or loans can be valid consideration for a guarantee. Distinguished on the facts. |
| Empire International Holdings Ltd v Mok Kwong Yue and another | Singapore High Court | Yes | [2004] 4 SLR(R) 820 | Singapore | Cited for the principle that a promise to advance additional funds may be consideration for a promise to guarantee the repayment of debts already incurred. Distinguished on the facts. |
13. Applicable Rules
| Rule Name |
|---|
| Bankruptcy Rules |
| Rule 97(1)(a) of the Bankruptcy Rules |
| Rule 97(3) of the Bankruptcy Rules |
| Rule 98(2)(b) of the Bankruptcy Rules |
| Rule 98(2)(e) of the Bankruptcy Rules |
| Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Statutory demand
- Guarantee
- Consideration
- Triable issue
- Bankruptcy
- Printing services
- Debt
15.2 Keywords
- Bankruptcy
- Guarantee
- Consideration
- Statutory Demand
- Singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Guarantee | 85 |
| Bankruptcy | 75 |
| Contract Law | 65 |
| Breach of Contract | 50 |
| Credit and Security | 40 |
| Civil Procedure | 30 |
16. Subjects
- Bankruptcy
- Contract Law
- Civil Procedure