Bank of East Asia v Sudha Natrajan: Deed of Assignment Dispute

In The Bank of East Asia Limited v Sudha Natrajan, the High Court of Singapore ruled in favor of The Bank of East Asia Limited, finding that Sudha Natrajan had signed a Deed of Assignment of Proceeds, making her jointly and severally liable for the debts of Tecnomic Processors Pte Ltd. The central legal issue was whether Sudha Natrajan had indeed signed the Deed on 10 January 2014. The court found that she had, based on the evidence presented and an adverse inference drawn from the defendant's failure to call a key witness.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court ruled Sudha Natrajan signed a Deed of Assignment, making her liable for Tecnomic's debt to Bank of East Asia. The central issue was the authenticity of her signature.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
The Bank of East Asia LimitedPlaintiffCorporationJudgment for PlaintiffWonChua Beng Chye, Tan Shu Ying, Cherie
Sudha NatrajanDefendantIndividualClaim DismissedLostNg Lip Chih, Tan Jieying

3. Judges

Judge NameTitleDelivered Judgment
Kannan RameshJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Chua Beng ChyeRajah & Tann Singapore LLP
Tan Shu Ying, CherieRajah & Tann Singapore LLP
Ng Lip ChihNLC Law Asia LLC
Tan JieyingNLC Law Asia LLC

4. Facts

  1. The Plaintiff, Bank of East Asia, granted banking facilities to Tecnomic Processors Pte Ltd.
  2. The Defendant, Sudha Natrajan, is the joint owner of a property with her husband, Rajan Natrajan.
  3. Rajan Natrajan was a major shareholder and principal director of Tecnomic.
  4. Tecnomic defaulted on payments under the Banking Facilities.
  5. The Plaintiff claimed the Defendant executed a Deed of Assignment of Proceeds.
  6. The Defendant denied signing the Deed.
  7. Rajan was adjudicated a bankrupt prior to the commencement of the action.

5. Formal Citations

  1. The Bank of East Asia Limited v Sudha Natrajan, Suit No 751 of 2014, [2015] SGHC 328

6. Timeline

DateEvent
Letter of offer for Banking Facilities issued
Guarantee executed by Rajan and Suresh
Tecnomic defaulted on payment
Tecnomic defaulted on payment
Letter of demand sent to Tecnomic
Banking Facilities terminated
Winding-up proceedings commenced against Tecnomic
First copies of Deed returned by Rajan
Tecnomic ordered to be wound up
Second copies of Deed returned by Rajan
Caveat lodged against the Property
Liquidator of Tecnomic sent notice of winding up proceedings
Plaintiff notified of winding-up proceedings against Tecnomic
Bankruptcy application filed against Rajan
Letter demanding payment sent to Defendant
Rajan made a bankrupt
Interest on the sum from this date
Action commenced
Service of process effected on Defendant
Police Report filed by Defendant
Judgment reserved

7. Legal Issues

  1. Validity of Deed of Assignment
    • Outcome: The court held that the Defendant did sign the Deed of Assignment and was therefore bound by its terms.
    • Category: Substantive
    • Sub-Issues:
      • Forgery of signature
      • Absence of consideration
    • Related Cases:
      • [1997] 2 SLR(R) 774
      • [2003] SGHC 42
      • [1999] 2 SLR(R) 166
      • [2004] 1 SLR(R) 628
      • [2010] 3 SLR 143
      • [1998] 5 PIQR P324
      • [2008] 2 SLR(R) 491
  2. Adverse Inference
    • Outcome: The court drew an adverse inference against the Defendant for failing to call her husband, Rajan, as a witness.
    • Category: Procedural
    • Sub-Issues:
      • Failure to call material witness
    • Related Cases:
      • [2004] 1 SLR(R) 628
      • [2010] 3 SLR 143
      • [1998] 5 PIQR P324

8. Remedies Sought

  1. Monetary Damages
  2. Interest
  3. Costs on a full indemnity basis

9. Cause of Actions

  • Breach of Contract
  • Enforcement of Deed of Assignment

10. Practice Areas

  • Commercial Litigation
  • Banking Litigation

11. Industries

  • Banking
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Yogambikai Nagarajah v Indian Overseas Bank and another appealCourt of AppealYes[1997] 2 SLR(R) 774SingaporeCited for the high standard of proof required to prove forgery.
Bayerische Landesbank Girozentrale v Khaw Hock SeangHigh CourtYes[2003] SGHC 42SingaporeCited for applying Yogambikai regarding the standard of proof for forgery.
R Mahendran and another v R ArumuganathanCourt of AppealYes[1999] 2 SLR(R) 166SingaporeCited for the approach to be adopted in assessing the opinions of handwriting experts.
Robson and Wakefield v RockeN/AYes(1824) 2 Add 53N/ACited regarding the fallibility of handwriting expert evidence.
Cheong Ghim Fah and another v Murugian s/o RangasamyN/AYes[2004] 1 SLR(R) 628SingaporeCited for the circumstances when an adverse inference might be drawn under s 116(g) of the Evidence Act.
Thio Keng Poon v Thio Syn Pyn and others and another appealCourt of AppealYes[2010] 3 SLR 143SingaporeCited for approving Cheong Ghim Fah regarding adverse inferences.
Wisniewski v Central Manchester Health AuthorityN/AYes[1998] 5 PIQR P324EnglandCited for the principles regarding drawing adverse inferences from the absence of a witness.
Pacific Recreation Pte Ltd v S Y Technology Inc and another appealCourt of AppealYes[2008] 2 SLR(R) 491SingaporeCited regarding the qualifications of an expert witness.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Evidence Act (Cap 97, 1997 Rev Ed)Singapore
Land Titles Act (Cap 157, 2004 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Deed of Assignment of Proceeds
  • Banking Facilities
  • Guarantee
  • Winding-up
  • Forgery
  • Adverse Inference
  • Caveat
  • Matrimonial Home

15.2 Keywords

  • Deed of Assignment
  • Forgery
  • Banking Facilities
  • Guarantee
  • Adverse Inference
  • Singapore High Court

16. Subjects

  • Contract Law
  • Banking
  • Civil Litigation
  • Assignment

17. Areas of Law

  • Contract Law
  • Civil Procedure
  • Evidence Law
  • Banking Law