UOB v Loh Boon Hua: Mortgagee's Right to Rent After Mortgagor's Bankruptcy and Advance Rent Payment
In United Overseas Bank Ltd v Loh Boon Hua, the High Court of Singapore addressed whether a mortgagee, United Overseas Bank Ltd, could demand rent from a tenant, Mdm Ding Yilian, after the mortgagor, Mr. Loh Boon Hua, became bankrupt and had already received rent in advance. The court ruled that the mortgagee was only entitled to vacant possession of the property after the existing lease expired, as the tenant had already paid rent in advance to the mortgagor.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Mortgagee shall be entitled to enter into vacant possession of the Property starting from 1 August 2015, 12pm.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
UOB seeks vacant possession of mortgaged property. Court considers mortgagee's right to rent after mortgagor's bankruptcy and advance rent payment to tenant.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| United Overseas Bank Ltd | Plaintiff | Corporation | Partial | Partial | |
| Loh Boon Hua | Defendant | Individual | Lost | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Colin Seow | Assistant Registrar | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ng Yeow Khoon | KhattarWong LLP |
4. Facts
- Mr Loh Boon Hua mortgaged his property to United Overseas Bank Ltd.
- The property was leased to Mdm Ding Yilian under a tenancy agreement.
- The tenancy agreement stipulated monthly rent payments from August 1, 2013, to July 31, 2015.
- Mr Loh Boon Hua became bankrupt on June 26, 2014.
- UOB sought vacant possession of the property.
- The tenant had paid rent in advance to the mortgagor.
- The mortgagee's security interest in the Property should strictly be subject to the exact terms set out in the tenancy agreement.
5. Formal Citations
- United Overseas Bank Ltd v Loh Boon Hua, Originating Summons No 1193 of 2014, [2015] SGHCR 9
6. Timeline
| Date | Event |
|---|---|
| Tenancy agreement signed between Mr Loh Boon Hua and Mdm Ding Yilian. | |
| Mortgage granted to United Overseas Bank Limited. | |
| Mr Loh Boon Hua declared bankrupt. | |
| Letter of demand issued by Mortgagee's solicitors. | |
| Notices issued to Mortgagor and Occupiers to deliver possession. | |
| Notice for possession of the Property delivered to the Tenant. | |
| Notice for possession of the Property delivered to the Tenant. | |
| Mortgage action commenced. | |
| First hearing of the mortgage action. | |
| Second hearing of the mortgage action. | |
| Third hearing of the mortgage action. | |
| Hearing proceeded. | |
| Decision Date | |
| Mortgagee shall be entitled to enter into vacant possession of the Property. |
7. Legal Issues
- Mortgagee's Right to Possession
- Outcome: The court held that the mortgagee was only entitled to vacant possession after the lease expired.
- Category: Substantive
- Related Cases:
- (1779) Doug KB 279
- [1950] Ch 134
- (1881) 18 Ch D 229
- (1882) 19 Ch D 539
- [1971-1973] SLR(R) 511
- Mortgagee's Right to Rent
- Outcome: The court held that the mortgagee was not entitled to demand further rent from the tenant who had already paid rent in advance to the mortgagor.
- Category: Substantive
- Related Cases:
- (1779) Doug KB 279
- (1882) 19 Ch D 539
8. Remedies Sought
- Delivery of vacant possession of the Property to the Mortgagee
9. Cause of Actions
- Mortgage Action
- Claim for Possession
10. Practice Areas
- Mortgage Actions
- Real Estate Litigation
11. Industries
- Banking
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Moss v Gallimore | King's Bench | Yes | (1779) Doug KB 279 | England | Cited regarding a mortgagee's entitlement to rent after giving notice to a tenant, but distinguished as the present case involves rent paid in advance. |
| Kitchen’s Trustee v Madders and Another | Chancery Division | Yes | [1950] Ch 134 | England | Cited to support that Moss v Gallimore remained good law in England. |
| Mohamed Said bin Ali and others v Ka Wah Bank | Court of Appeal | Yes | [1989] 1 SLR(R) 689 | Singapore | Cited regarding joining a party to the action as a co-defendant. |
| Harlock v Ashberry | High Court | Yes | (1881) 18 Ch D 229 | England | Cited regarding the treatment to be accorded to receipts of rent. |
| Harlock v Ashberry | Court of Appeal | Yes | (1882) 19 Ch D 539 | England | Cited regarding the treatment to be accorded to receipts of rent and endorsed by the Singapore Court of Appeal. |
| Tan Hin Choon and others v Ban Hin Lee Bank Ltd | Singapore Court of Appeal | Yes | [1971-1973] SLR(R) 511 | Singapore | Endorsed and applied Jessel MR’s and Brett LJ’s judicial opinions in Harlock v Ashberry (CA). |
| Cockburn v Edwards | Court of Appeal | Yes | (1881) 18 Ch D 449 | England | Cited for the same effect as Jessel MR’s holding. |
13. Applicable Rules
| Rule Name |
|---|
| Order 83 of the Rules of Court (R 5, 2006 Rev Ed) |
| O 83 r 1 of the ROC |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Land Titles Act (Cap 157, 2004 Rev Ed) | Singapore |
| Land Titles Act (Cap 157, 2004 Rev Ed) section 75(2) | Singapore |
| Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) | Singapore |
| Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) section 24 | Singapore |
| Land Titles Act (Cap 157, 2004 Rev Ed) section 69(1) | Singapore |
| Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) section 29 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Mortgage
- Mortgagee
- Mortgagor
- Tenancy Agreement
- Vacant Possession
- Rent in Advance
- Bankruptcy
15.2 Keywords
- mortgage
- bankruptcy
- rent
- possession
- tenancy
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Mortgages | 90 |
| Property Law | 70 |
| Bankruptcy | 60 |
| Mortgage Actions | 60 |
| Landlord and Tenant Law | 50 |
| Contract Law | 40 |
16. Subjects
- Mortgages
- Landlord and Tenant
- Bankruptcy