Liew Kai Lung Karl v Ching Chiat Kwong: Setting Aside Statutory Demand in Bankruptcy Proceedings
In Liew Kai Lung Karl v Ching Chiat Kwong, the High Court of Singapore dismissed the plaintiff's appeal against the assistant registrar's decision to dismiss his application to set aside a statutory demand. The plaintiff, Liew Kai Lung Karl, sought to set aside the demand issued by the defendant, Ching Chiat Kwong, in bankruptcy proceedings. The court, presided over by Chan Seng Onn J, found that the statutory demand was validly served, there was no genuine triable issue regarding the debt, and sufficient details of the debt were provided. The court ordered the plaintiff to pay costs to the defendant.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed
1.3 Case Type
Bankruptcy
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court dismissed an appeal to set aside a statutory demand in bankruptcy proceedings, finding valid service and no genuine triable issue.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Liew Kai Lung Karl | Appellant | Individual | Appeal dismissed | Lost | |
| Ching Chiat Kwong | Respondent | Individual | Appeal dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Seng Onn | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Sim Kwan Kiat | Rajah & Tann Singapore LLP |
| Eugene Tan | Rajah & Tann Singapore LLP |
4. Facts
- The plaintiff was the director of Realm Capital Limited.
- The defendant served a statutory demand on the plaintiff for $2,209,863.01.
- The plaintiff applied to set aside the statutory demand.
- The plaintiff's application was dismissed by the assistant registrar.
- The plaintiff appealed the decision.
- The statutory demand was served on the plaintiff's solicitors.
- The plaintiff's solicitors confirmed they had instructions to accept service on behalf of the plaintiff.
5. Formal Citations
- Liew Kai Lung Karl v Ching Chiat Kwong, Originating Summons (Bankruptcy) No 15 of 2015 (Registrar's Appeal No 89 of 2015), [2015] SGHC 122
6. Timeline
| Date | Event |
|---|---|
| Statutory demand issued | |
| Statutory demand served on plaintiff's solicitors | |
| First hearing of Originating Summons (Bankruptcy) No 2552 of 2014 | |
| Plaintiff claimed to receive bankruptcy proceeding documents | |
| Plaintiff filed Originating Summons (Bankruptcy) No 15 of 2015 | |
| Appeal dismissed | |
| Deed of Settlement signed |
7. Legal Issues
- Validity of Service of Statutory Demand
- Outcome: The court found that there was valid service of the statutory demand under r 96 of the Bankruptcy Rules.
- Category: Procedural
- Related Cases:
- [2005] 1 SLR(R) 483
- [2002] 2 SLR(R) 31
- Genuine Triable Issue Regarding the Debt
- Outcome: The court found that there was no genuine triable issue relating to the debt.
- Category: Substantive
- Related Cases:
- [2014] 2 SLR 446
- Sufficiency of Details Provided in Statutory Demand
- Outcome: The court found that sufficient details of the debt were provided in the statutory demand to enable the plaintiff to identify the debt under r 94(4)(b) of the Bankruptcy Rules.
- Category: Procedural
- Extension of Time to Set Aside Statutory Demand
- Outcome: The court proceeded to hear the substantive merits of the plaintiff's application to set aside the statutory demand, finding that the granting of the extension was not material to its decision.
- Category: Procedural
- Related Cases:
- [2011] SGHC 114
- [2015] SGHC 1
- [2014] SGHC 67
8. Remedies Sought
- Setting aside the statutory demand
- Declaration that the statutory demand is irregular, invalid, null and void
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Bankruptcy
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Rafat Ali Rizvi v Ing Bank NV Hong Kong Branch | High Court | Yes | [2011] SGHC 114 | Singapore | Cited for the four factors to consider when granting an extension of time to set aside a statutory demand. |
| Oversea-Chinese Banking Corp Ltd v Ravichandran s/o Suppiah | High Court | Yes | [2015] SGHC 1 | Singapore | Cited for the principle that a delay of about a year does not disqualify a defendant from attempting to set aside a statutory demand. |
| Thu Aung Zaw v Norb Creative Studio | High Court | Yes | [2014] SGHC 67 | Singapore | Cited for the principle that the court may waive procedural irregularities and permit an application to set aside a statutory demand if no substantial injustice or prejudice is suffered. |
| Re Rasmachayana Sulistyo (alias Chang Whe Ming), ex parte The Hongkong and Shanghai Banking Corp Ltd and other appeals | High Court | Yes | [2005] 1 SLR(R) 483 | Singapore | Cited for the principle that service through the debtor's solicitors is sufficient to comply with the Bankruptcy Rules if there was a prior arrangement that such a manner of service was agreeable to the debtor. |
| Wong Kwei Cheong v ABN-AMRO Bank NV | High Court | Yes | [2002] 2 SLR(R) 31 | Singapore | Cited for the principle that notifying the debtor's solicitors of the statutory demand and inquiring whether they would accept service on behalf of the debtor is sufficient compliance with the Bankruptcy Rules. |
| Mohd Zain bin Abdullah v Chimbusco International Petroleum (Singapore) Pte Ltd and another appeal | Court of Appeal | Yes | [2014] 2 SLR 446 | Singapore | Cited for the principle that the court is not obliged to set aside a statutory demand where there is a genuine triable issue but it would only normally do so. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Rules (Cap 20, s 166, 2006 Rev Ed) r 97(1)(a) | Singapore |
| Bankruptcy Rules r 97(3) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 61(1)(d) | Singapore |
| Bankruptcy Rules r 96(2) | Singapore |
| Bankruptcy Rules r 96 | Singapore |
| Bankruptcy Rules r 98(2)(b) | Singapore |
| Bankruptcy Rules r 94(4)(b) | Singapore |
| Bankruptcy Act s 62 | Singapore |
| Bankruptcy Act s 61(1)(c) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Statutory demand
- Bankruptcy proceedings
- Balance Principal
- Deed of Settlement
- Settlement Payments
- Extension of time
15.2 Keywords
- Bankruptcy
- Statutory Demand
- Service
- Debt
- Extension of Time
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Bankruptcy | 90 |
| Civil Procedure | 40 |
| Contract Law | 30 |
16. Subjects
- Bankruptcy
- Civil Procedure