Law Society of Singapore v Thirumurthy Ayernaar Pambayan: Professional Misconduct & Breach of Legal Profession Rules

In Law Society of Singapore v Thirumurthy Ayernaar Pambayan, the Court of Three Judges heard an application by the Law Society of Singapore against Thirumurthy Ayernaar Pambayan, a solicitor, for breaching r 33(a) of the Legal Profession (Professional Conduct) Rules by borrowing money from a client. The court found Pambayan guilty of professional misconduct and imposed a two-month suspension, balancing the need for deterrence with the mitigating circumstances of the case.

1. Case Overview

1.1 Court

Court of Three Judges

1.2 Outcome

Respondent suspended for two months.

1.3 Case Type

Regulatory

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Solicitor Thirumurthy Ayernaar Pambayan faced disciplinary action for breaching Legal Profession Rules by borrowing from a client. The court imposed a two-month suspension.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Law Society of SingaporeApplicantStatutory BoardApplication grantedWon
Thirumurthy Ayernaar PambayanRespondentIndividualSuspension imposedLost

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJudge of AppealYes
Andrew Phang Boon LeongJudge of AppealNo
Judith PrakashJudgeNo

4. Counsels

4. Facts

  1. The Respondent, a solicitor, requested two loans from his client in January and June 2012.
  2. The total amount of the loans was at least $11,000.
  3. The Respondent was in financial difficulties due to his children's studies, mortgage repayments, and law firm expenses.
  4. The Complainant demanded a usurious interest of $5,000 for the second loan.
  5. The Respondent had substantially repaid the sums even before the complaint was made.
  6. The Complainant continued to engage the respondent as solicitor for three further matters after the loans had been made.

5. Formal Citations

  1. Law Society of Singapore v Thirumurthy Ayernaar Pambayan, Originating Summons No 3 of 2015, [2016] SGHC 87

6. Timeline

DateEvent
Respondent admitted to the bar.
Respondent requested a loan from the Complainant.
Respondent requested a second loan from the Complainant.
Complaint filed with the Law Society of Singapore.
Legal Profession (Professional Conduct) Rules 2015 came into effect.
Hearing date.
Grounds of decision delivered.
Term of suspension to commence.

7. Legal Issues

  1. Breach of Legal Profession Rules
    • Outcome: The court found that the Respondent breached r 33(a) of the 2010 Rules by obtaining loans from his client.
    • Category: Substantive
    • Sub-Issues:
      • Prohibited borrowing transactions
      • Conflict of interest
      • Breach of fiduciary duty

8. Remedies Sought

  1. Disciplinary Action
  2. Suspension

9. Cause of Actions

  • Breach of Legal Profession Act
  • Professional Misconduct

10. Practice Areas

  • Regulatory Law
  • Professional Responsibility

11. Industries

  • Legal Services

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Law Society of Singapore v Yap Bock Heng ChristopherCourt of AppealYes[2014] 4 SLR 877SingaporeCited as precedent for the seriousness of breaching r 33 of the 2010 Rules and the potential consequences for solicitors who engage in prohibited borrowing transactions with clients.
Law Society of Singapore v Uthayasurian SidambaramCourt of AppealYes[2009] 4 SLR(R) 674SingaporeCited for the principle that one of the key purposes of the disciplinary process is precisely to uphold the norms of fiduciary conduct.
Law Society of Singapore v Devadas NaiduCourt of AppealYes[2001] 1 SLR(R) 65SingaporeCited as a precedent where a term of suspension was imposed on a solicitor for a prohibited borrowing transaction, but distinguished due to aggravating factors present in that case but absent in the present case.

13. Applicable Rules

Rule Name
Legal Profession (Professional Conduct) Rules (Cap 161, r 1, 2010 Rev Ed)
r 33(a) of the Legal Profession (Professional Conduct) Rules (Cap 161, r 1, 2010 Rev Ed)
Legal Profession (Professional Conduct) Rules 2015) (Cap 161, s 706/2015)
r 23(1) of the Legal Profession (Professional Conduct) Rules 2015) (Cap 161, s 706/2015)

14. Applicable Statutes

Statute NameJurisdiction
Legal Profession Act (Cap 161, 2009 Rev Ed)Singapore
s 98(1) of the Legal Profession Act (Cap 161, 2009 Rev Ed)Singapore
s 83(1) of the Legal Profession Act (Cap 161, 2009 Rev Ed)Singapore
s 83(2)(b) of the Legal Profession ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Prohibited borrowing transactions
  • Fiduciary duty
  • Professional misconduct
  • Disciplinary proceedings
  • Solicitor
  • Client
  • Loan

15.2 Keywords

  • Legal Profession
  • Professional Conduct
  • Breach
  • Disciplinary Proceedings
  • Solicitor
  • Client
  • Loan

17. Areas of Law

16. Subjects

  • Legal Ethics
  • Professional Discipline