Dovechem Holdings Pte Ltd v Dovechem Holdings: Liquidators' Remuneration & Taxation of Costs

The liquidators of Dovechem Holdings Pte Ltd sought remuneration for their work during the company's liquidation. The majority shareholders opposed the bill of costs, leading to a review by the High Court of Singapore. Judith Prakash J. addressed the accuracy and reasonableness of the bill, the value contributed by the liquidators, and the appropriateness of their charging methods. The court allowed the liquidators' application for review in part, increasing the awarded amount to $750,000, and dismissed the majority shareholders' application.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Liquidators' application for review allowed in part; Majority Shareholders' application dismissed. The amount awarded to the liquidators was increased to $750,000.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Liquidators sought remuneration for their work. The court reviewed the bill of costs, addressing accuracy, value, and reasonableness of charges.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
COSIMO BORRELLI, Liquidator of Dovechem Holdings Pte Ltd (in compulsory liquidation)Applicant, RespondentIndividualApplication allowed in partPartial
HAMISH ALEXANDER CHRISTIE, Liquidator of Dovecham Holdings Pte Ltd (in compulsory liquidation)Applicant, RespondentIndividualApplication allowed in partPartial
JASON ALEKSANDER KARDACHI, Liquidator of Dovechem Holdings Pte Ltd (in compulsory liquidation)Applicant, RespondentIndividualApplication allowed in partPartial
DOVECHEM HOLDINGS PTE LTD (in compulsory liquidation)Respondent, ApplicantCorporationApplication dismissedDismissed
NG JOO SOON alias NGA JU SOONOtherIndividualNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Keith TneeTan Kok Quan Partnership
Marina ChinTan Kok Quan Partnership
Kannan Ramesh SCTan Kok Quan Partnership
Denis TanToh Tan LLP
Thomas NgToh Tan LLP

4. Facts

  1. Dovechem Holdings Pte Ltd was placed in liquidation in September 2011.
  2. Messrs Cosimo Borrelli, Hamish Alexander Christie, and Jason Aleksander Kardachi were appointed as liquidators.
  3. The liquidators presented a bill of costs for their work between September 2011 and March 2013.
  4. The majority shareholders of Dovechem Holdings opposed the bill.
  5. The Assistant Registrar reduced the bill by 45%.
  6. Both the liquidators and the majority shareholders applied for review of the Assistant Registrar's decision.
  7. The company was the holding company of businesses in the chemical and paint industries.
  8. Disputes arose between the Majority Shareholders and Ng Joo Soon in 2008, leading to legal actions.

5. Formal Citations

  1. Liquidators of Dovechem Holdings Pte Ltd v Dovechem Holdings Pte Ltd (in compulsory liquidation), Bill of Costs No 101 of 2013 (Summonses Nos 1561 and 1577 of 2014), [2015] SGHC 167

6. Timeline

DateEvent
Dovechem Holdings Pte Ltd placed in liquidation
Liquidators appointed
In-principle settlement reached between Majority Shareholders and Ng Joo Soon
End date for liquidators' work claimed in bill of costs
Liquidators filed bill of costs
Hearing of challenges before the Assistant Registrar began
Hearing of challenges before the Assistant Registrar concluded
Judgment reserved

7. Legal Issues

  1. Reasonableness of Liquidators' Remuneration
    • Outcome: The court determined a fair and reasonable remuneration for the liquidators, considering various factors.
    • Category: Substantive
    • Sub-Issues:
      • Accuracy of time records
      • Value of contributions
      • Necessity of work undertaken
      • Appropriateness of hourly charge-out rates
      • Overmanning
    • Related Cases:
      • [2004] 2 SLR(R) 264
  2. Taxation of Costs
    • Outcome: The court reviewed the Assistant Registrar's decision on the taxation of costs.
    • Category: Procedural

8. Remedies Sought

  1. Review of Assistant Registrar's Decision
  2. Reduction of Liquidators' Fees
  3. Re-instatement of Liquidators' Adjusted Fee

9. Cause of Actions

  • Review of Taxation of Costs

10. Practice Areas

  • Liquidation
  • Commercial Litigation

11. Industries

  • Chemical
  • Paint

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Re Econ Corp Ltd (in provisional liquidation)High CourtYes[2004] 2 SLR(R) 264SingaporeCited as the leading case in Singapore on the remuneration of liquidators.
Mirror Group Newspapers plc v Maxwell (No 2)N/AYes[1998] 1 BCLC 638EnglandCited for the test of whether a reasonably prudent man would lay out or hazard his own money in doing what the liquidators have done.
Re Trustees Executors & Agency Co LtdN/AYes(1984) 9 ACLR 497AustraliaCited for observations on the taxation process in relation to a liquidator.
IMO Traditional Values Management Limited (in liq)N/AYes[2012] VSC 650AustraliaCited as a case where hourly rates charged by employees of a liquidator were accepted.
Lin Jian Wei v Lim Eng Hock PeterCourt of AppealYes[2011] 3 SLR 1052SingaporeCited for observations made by the Court of Appeal on charge out rates.
Conlan v AdamsN/AYes[2008] WASCA 61AustraliaCited for the principle that the court should not infer a systemic problem on the basis of failures to establish discrete parts of a claim.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Liquidation
  • Liquidators
  • Bill of Costs
  • Remuneration
  • Taxation
  • Majority Shareholders
  • Time Costs
  • Overmanning
  • Charge-out Rates

15.2 Keywords

  • liquidation
  • liquidators
  • remuneration
  • taxation
  • costs
  • Dovechem
  • insolvency

17. Areas of Law

Area NameRelevance Score
Winding Up95
Insolvency Law90
Liquidation90
Assessment of Legal Costs70
Costs60
Company Law50

16. Subjects

  • Insolvency
  • Company Law
  • Civil Procedure
  • Remuneration of Liquidators