Tan Swee Wan v Lian Tian Yong Johnny: Striking Out Pleadings in Fraudulent Misrepresentation Claim
In Tan Swee Wan and Kelvin Low Keng Siang v Johnny Lian Tian Yong, the High Court of Singapore heard an appeal against the decision of the Assistant Registrar to dismiss the Defendant's application to strike out paragraph 26(d) of the Statement of Claim. The Plaintiffs claimed fraudulent misrepresentation related to a failed fundraising project. The court allowed the Defendant's appeal, finding that the disputed paragraph was irrelevant to proving the Defendant's state of mind and could unduly delay the proceedings.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding striking out a paragraph in the Statement of Claim related to fraudulent misrepresentation. The court allowed the appeal, finding the paragraph irrelevant and potentially prejudicial.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| TAN SWEE WAN | Plaintiff, Respondent | Individual | Appeal Allowed | Lost | Wendell Wong, Priscylia Wu, Lim Yao Jun |
| KELVIN LOW KENG SIANG | Plaintiff, Respondent | Individual | Appeal Allowed | Lost | Wendell Wong, Priscylia Wu, Lim Yao Jun |
| JOHNNY LIAN TIAN YONG | Defendant, Appellant | Individual | Appeal Allowed | Won | N Sreenivasan SC, Andrew Heng, Claire Tan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| George Wei | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Wendell Wong | Drew & Napier LLC |
| Priscylia Wu | Drew & Napier LLC |
| Lim Yao Jun | Drew & Napier LLC |
| N Sreenivasan SC | Straits Law Practice LLC |
| Andrew Heng | Straits Law Practice LLC |
| Claire Tan | Straits Law Practice LLC |
4. Facts
- Plaintiffs and Defendant were business partners in Tecbiz Frisman Pte Ltd.
- Parties agreed to develop a new computer software, Solvesam.
- Parties set up SSI Holdings Pte Ltd to develop and market Solvesam.
- Plaintiffs claimed Defendant was to source funds from Chinese investors.
- Plaintiffs resigned as directors and sold shares in SSI to Defendant.
- Plaintiffs claimed Defendant made fraudulent misrepresentations.
- Defendant was convicted of an offence under the Securities and Futures Act.
5. Formal Citations
- Tan Swee Wan and another v Lian Tian Yong Johnny, Suit No 1238 of 2015(Registrar’s Appeal No 131 of 2016), [2016] SGHC 206
6. Timeline
| Date | Event |
|---|---|
| 1st Plaintiff set up Tecbiz Frisman Pte Ltd | |
| SSI Holdings Pte Ltd set up | |
| Subscription agreement with investor from China | |
| Plaintiffs resigned as directors of SSI | |
| Plaintiffs resigned as directors of SSI | |
| Defendant convicted under s 82(1) of the Securities and Futures Act | |
| Plaintiffs commenced Suit No 1238 of 2015 | |
| Defendant filed Summons No 575 of 2016 | |
| Assistant Registrar dismissed Defendant’s application | |
| Hearing before George Wei J | |
| Defendant’s appeal allowed | |
| Judgment date | |
| Judgment date |
7. Legal Issues
- Striking Out Pleadings
- Outcome: The court allowed the appeal and ordered that paragraph 26(d) of the SOC be struck out.
- Category: Procedural
- Sub-Issues:
- Relevance of evidence
- Prejudice to fair trial
- Scandalous, frivolous or vexatious pleadings
- Abuse of process
- Fraudulent Misrepresentation
- Outcome: The court did not make a determination on the merits of the fraudulent misrepresentation claim, but focused on whether the pleaded particulars were relevant and admissible.
- Category: Substantive
- Sub-Issues:
- False representation
- Inducement
- Reliance
- Damages
8. Remedies Sought
- Damages in lieu of rescission
9. Cause of Actions
- Breach of Oral Agreement
- Fraudulent Misrepresentation
- Breach of Constructive Trust
10. Practice Areas
- Commercial Litigation
11. Industries
- Technology
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Gabriel Peter & Partners (suing as a firm) v Wee Chong Jin and others | High Court | Yes | [1997] 3 SLR(R) 649 | Singapore | Cited for the principle that striking out a pleading involves an action which does not even have some chance of success when only the allegations in the pleading are considered. |
| Lai Swee Lin Linda v AG | High Court | Yes | [2006] 2 SLR(R) 565 | Singapore | Cited for the definition of 'scandalous' in the context of striking out pleadings. |
| Christie v Christie | Court of Appeal | Yes | (1872-1873) LR 8 Ch App 499 | England and Wales | Cited for the definition of 'scandalous' in the context of striking out pleadings. |
| The “Bunga Melati 5” | High Court | Yes | [2012] 4 SLR 546 | Singapore | Cited for the definition of 'frivolous or vexatious' in the context of striking out pleadings. |
| The “Osprey” | High Court | Yes | [1999] 3 SLR(R) 1099 | Singapore | Cited for the principle that striking out should only be exercised in plain and obvious cases. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court O 18 r 19 |
| Rules of Court O 24 r 1(2) |
| Rules of Court O 24 r 5 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
| Securities and Futures Act (Cap 289, 2006 Rev Ed) s 82(1) | Singapore |
| Evidence Act (Cap 97, 1997 Rev Ed) ss 14 | Singapore |
| Evidence Act (Cap 97, 1997 Rev Ed) ss 15 | Singapore |
| Evidence Act (Cap 97, 1997 Rev Ed) ss 45 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Striking out
- Fraudulent misrepresentation
- Statement of Claim
- Securities and Futures Act
- Tecbiz Frisman Pte Ltd
- SSI Holdings Pte Ltd
- Solvesam project
- TECM
- Agreed Statement of Facts
- NASDAQ
15.2 Keywords
- Striking out
- Fraudulent misrepresentation
- Pleadings
- Singapore
- High Court
16. Subjects
- Civil Procedure
- Fraud
- Securities Law
17. Areas of Law
- Civil Procedure
- Fraudulent Misrepresentation
- Securities Law