Citiwall Safety Glass v Mansource Interior: SOPA Adjudication Response Deadline Dispute

Citiwall Safety Glass Pte Ltd appealed against the Judge’s decision in favor of Mansource Interior Pte Ltd, concerning an adjudication determination under the Building and Construction Industry Security of Payment Act (SOPA). The central issue was whether the Adjudication Response was filed on time. The Court of Appeal allowed the appeal, holding that the Singapore Mediation Centre's (SMC) rule regarding document lodgement deadlines was valid and that the Adjudicator was correct to reject the late response. The court also addressed the issue of interest on the judgment sum.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal Allowed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding an adjudication determination under the SOPA. The court held that the SMC's rule on document lodgement deadlines was valid.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Mansource Interior Pte LtdRespondentCorporationAppeal DismissedLost
Citiwall Safety Glass Pte LtdAppellantCorporationAppeal AllowedWon
A Rajandran of A Rajandran

3. Judges

Judge NameTitleDelivered Judgment
Sundaresh MenonChief JusticeNo
Chao Hick TinJustice of the Court of AppealYes
Steven ChongJudgeNo

4. Counsels

4. Facts

  1. The Respondent awarded the Appellant a subcontract for construction works valued at $1,252,750.
  2. The Appellant served a Payment Claim on the Respondent for $322,536.65.
  3. The Respondent provided a Payment Response for only $93,732.10, resulting in a disputed sum of $228,804.55.
  4. The Appellant lodged an Adjudication Application with the Singapore Mediation Centre.
  5. The Respondent lodged its Adjudication Response two minutes after the official closing hours of the SMC.
  6. The Adjudicator rejected the Adjudication Response as it was filed out of time.
  7. The Judge allowed the Respondent’s appeal, setting aside the Adjudication Determination.

5. Formal Citations

  1. Citiwall Safety Glass Pte Ltd v Mansource Interior Pte Ltd, Civil Appeal No 39 of 2014, [2015] SGCA 42
  2. Mansource Interior Pte Ltd v Citiwall Safety Glass Pte Ltd, , [2014] 3 SLR 264

6. Timeline

DateEvent
Respondent awarded the Appellant a subcontract.
Appellant served a Payment Claim on the Respondent.
Respondent provided the Appellant with a Payment Response.
Appellant lodged an Adjudication Application with the Singapore Mediation Centre.
Adjudication Application was served on the Respondent.
Respondent lodged its Adjudication Response with the Singapore Mediation Centre.
Date from which interest on the judgment sum is disputed.
Date until which interest on the judgment sum is disputed.
Appeal allowed.

7. Legal Issues

  1. Validity of Singapore Mediation Centre Rules
    • Outcome: The court held that Rule 2.2 of the SMC Rules is consistent with the SOPA and is therefore not ultra vires.
    • Category: Substantive
  2. Compliance with SOPA Timelines
    • Outcome: The court held that timelines under the SOPA have to be strictly complied with.
    • Category: Procedural
  3. Applicability of De Minimis Rule
    • Outcome: The court held that there was no place for the de minimis rule to apply in this case.
    • Category: Substantive
  4. Interest on Judgment Sum
    • Outcome: The court held that the Respondent was liable to pay interest on the judgment sum for the disputed period.
    • Category: Substantive

8. Remedies Sought

  1. Setting aside of Adjudication Determination
  2. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Litigation
  • Commercial Litigation
  • Arbitration

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Mansource Interior Pte Ltd v Citiwall Safety Glass Pte LtdUnspecifiedYes[2014] 3 SLR 264SingaporeThe judgment being appealed from.
Thomas & Betts (SE Asia) Pte Ltd v Ou Tin Joon and anotherHigh CourtYes[1998] 1 SLR(R) 380SingaporeCited regarding the strict construction of empowering provisions where authorities enact rules inconsistent with primary legislation.
Augustine Zacharia Norman and another v Goh Siam YongCourt of AppealYes[1992] 1 SLR(R) 746SingaporeCited regarding the strict construction of empowering provisions where authorities enact rules inconsistent with primary legislation.
Lines International Holding (S) Pte Ltd v Singapore Tourist Promotion Board and anotherHigh CourtYes[1997] 1 SLR(R) 52SingaporeCited regarding the principle that an authority entrusted with discretion must exercise that discretion itself and cannot abrogate this responsibility.
Peake v Automotive Products LtdUnspecifiedYes[1977] 3 WLR 853England and WalesCited regarding the application of the de minimis rule.
SEF Construction Pte Ltd v Skoy Connected Pte LtdHigh CourtYes[2010] 1 SLR 733SingaporeCited regarding the purpose of the SOPA to provide speedy and temporary relief and the court's role in setting aside adjudication determinations.
W Y Steel Construction Pte Ltd v Osko Pte LtdCourt of AppealYes[2013] 3 SLR 380SingaporeCited regarding the strict compliance with timelines under the SOPA.
Nitrate Producers Steamship Co Ltd v Short Bros LtdUnspecifiedYes[1922] All ER 710England and WalesCited regarding the principle that where a first instance judgment is reversed and subsequently restored, the first instance judgment is restored from the date it was given.
Crédit Agricole Indosuez v Banque Nationale de ParisHigh CourtYes[2001] 1 SLR(R) 609SingaporeCited regarding the court's equitable jurisdiction in awarding interest on judgment sums and seeking to do justice to the parties.
Singapore Airlines Ltd and another v Fujitsu Microelectronics (Malaysia) Sdn Bhd and othersHigh CourtYes[2001] 1 SLR(R) 38SingaporeCited regarding the court's equitable jurisdiction in awarding interest on judgment sums and seeking to do justice to the parties.
Borthwick v The Elderslie Steamship Company Limited (No 2)UnspecifiedYes[1905] KB 516England and WalesCited regarding the principle that interest is only payable on a judgment sum when there is a contract or where the principal money has been wrongly withheld.
Caledonian Railway v CarmichaelHouse of LordsYes(1870) LR 2 HL Sc 56ScotlandCited regarding the principle that interest can only be demanded by virtue of a contract or where the principal money has been wrongfully withheld.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 10(1)(a)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 11(1)(a)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 13(1)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 13(4)(a)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 15(1)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 16(2)(b)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 16(3)(c)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 28(4)(e)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 37Singapore
Interpretation Act (Cap 1, 2002 Rev Ed) s 50(a)Singapore
Interpretation Act (Cap 1, 2002 Rev Ed) s 48A(1)Singapore
Companies Act (Cap 50, 2006 Rev Ed) s 387Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Adjudication Determination
  • Adjudication Response
  • Singapore Mediation Centre
  • Building and Construction Industry Security of Payment Act
  • SOPA
  • Payment Claim
  • Payment Response
  • Ultra Vires
  • De Minimis

15.2 Keywords

  • SOPA
  • Adjudication
  • Construction
  • Singapore Mediation Centre
  • Timelines

17. Areas of Law

16. Subjects

  • Construction Dispute
  • Adjudication
  • Civil Procedure