Devagi v Tommy Wong: Misuse of Funds in Neptune Court Owners’ Association Defamation Proceedings
In Devagi d/o Narayanan v Tommy Wong Poh Choy, the High Court of Singapore addressed the wrongful use of funds by the Management Committee (MC) of the Neptune Court Owners’ Association (NCOA). The plaintiffs, Devagi d/o Narayanan and Shaikh Anwar Ishak, sought an injunction, a declaration, an account, and a refund concerning the MC's use of NCOA funds to finance defamation proceedings against several NCOA members. The court found the MC's use of funds ultra vires and allowed the plaintiffs' claim, ordering a refund of the misspent monies.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Plaintiffs' claim allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court found the Neptune Court Owners’ Association MC's use of funds for defamation proceedings ultra vires, ordering a refund.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| DEVAGI D/O NARAYANAN @ DEVAKI NAIR | Plaintiff | Individual | Claim Allowed | Won | Tan Bar Tien, Sylvia Tan |
| SHAIKH ANWAR ISHAK | Plaintiff | Individual | Claim Allowed | Won | Tan Bar Tien, Sylvia Tan |
| TOMMY WONG POH CHOY @ WONG PAU CHOU | Defendant | Individual | Claim Dismissed | Lost | Christopher Anand Daniel, Elizabeth Chua, Au Thye Chuen, Carolyn Tan Beng Hui |
| LIM MUAN | Defendant | Individual | Claim Dismissed | Lost | Christopher Anand Daniel, Elizabeth Chua, Au Thye Chuen, Carolyn Tan Beng Hui |
| ALVINA KHOO LEA ING | Defendant | Individual | Claim Dismissed | Lost | Christopher Anand Daniel, Elizabeth Chua, Au Thye Chuen, Carolyn Tan Beng Hui |
| LEE KIM WOON MICHAEL | Defendant | Individual | Claim Dismissed | Lost | Christopher Anand Daniel, Elizabeth Chua, Au Thye Chuen, Carolyn Tan Beng Hui |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| George Wei | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Bar Tien | B T Tan & Company |
| Sylvia Tan | B T Tan & Company |
| Christopher Anand Daniel | Advocatus Law LLP |
| Elizabeth Chua | Advocatus Law LLP |
| Au Thye Chuen | Tan & Au LLP |
| Carolyn Tan Beng Hui | Tan & Au LLP |
4. Facts
- The defendants were members of the Management Committee (MC) of the Neptune Court Owners’ association (NCOA).
- The plaintiffs sought reliefs including an injunction and a declaration that the defendants’ use of the funds of the NCOA was wrongful.
- The plaintiffs are unit owners in Neptune Court and members of the NCOA.
- The NCOA is a registered society under the Societies Act and is governed by its constitution.
- The MC used the general funds of the NCOA to pay the legal fees and costs incurred in connection with the Defamation Proceedings.
- The MC claimed that the defendants in that case had defamed them in the 2012 Letters and the March 2012 Email.
- The MC commenced District Court Suit 3091/2012 against a total of 26 defendants, Neptune Court residents who had added their signatures in support of the Proposed 37th AGM Resolutions.
- The MC applied to the Court of Appeal for leave to appeal, which application was also dismissed on 17 March 2017.
5. Formal Citations
- Devagi d/o Narayanan (alias Devaki Nair) and another v Wong Poh Choy Tommy (alias Wong Pau Chou) and others, Originating Summons 913 of 2016, [2017] SGHC 147
6. Timeline
| Date | Event |
|---|---|
| Neptune Court built by the Singapore government. | |
| Tommy Wong Poh Choy became President of the MC. | |
| Lim Muan became Honorary Treasurer of the MC. | |
| Alvina Khoo Lea Ing became Honorary Assistant Treasurer of the MC. | |
| Michael Lee Kim Woon became a Committee Member of the MC. | |
| The MC raised the idea of privatising Neptune Court. | |
| Lim Muan became Honorary Treasurer of the MC. | |
| Alvina Khoo Lea Ing became Honorary Assistant Treasurer of the MC. | |
| The MOF was agreeable to the proposed privatisation. | |
| Messrs B T Tan & Co sent letters to the MC on behalf of nine unit owners. | |
| Messrs B T Tan & Co sent letters to the MC on behalf of nine unit owners. | |
| Mr. Seah Kim Bee sent a letter to the Honorary Secretary of the MC. | |
| Mr. Terh Chiew Kim sent an email to the MC. | |
| The MC agreed to use the NCOA funds to pay for the legal fees incurred for any legal proceedings. | |
| The 37th Annual General Meeting of the NCOA was scheduled. | |
| The members of the MC commenced District Court Suit 1545/2012/E against eight individuals. | |
| The members of the MC commenced District Court Suit 3091/2012 against a total of 26 defendants. | |
| Michael Lee Kim Woon became Honorary Treasurer of the MC. | |
| Alvina Khoo Lea Ing became a Committee Member of the MC. | |
| The Plaintiffs sent a letter stating that the use of funds was in breach of the Constitution. | |
| Lim Muan became a Committee Member of the MC. | |
| Alvina Khoo Lea Ing became the Honorary Treasurer of the MC. | |
| Michael Lee Kim Woon became the Honorary Assistant Treasurer of the MC. | |
| The 40th AGM of the NCOA convened. | |
| District Judge Loo Ngan Chor dismissed the claim in DC 3091. | |
| DCA 4 was dismissed by See Kee Oon JC. | |
| The 1st plaintiff’s Affidavit was dated. | |
| The Plaintiffs commenced the present proceedings. | |
| Exhibit DN1 of the 1st plaintiff’s Affidavit was dated. | |
| See JC dismissed the MC's application to the High Court for leave to appeal to the Court of Appeal. | |
| The 1st defendant’s Affidavit was dated. | |
| The 1st plaintiff’s Affidavit was dated. | |
| The 1st defendant filed an affidavit. | |
| The case was adjourned during the course of arguments. | |
| The MC's application to the Court of Appeal for leave to appeal was dismissed. | |
| The hearing resumed. | |
| The court granted the plaintiffs’ application and delivered brief oral grounds. | |
| The 42nd AGM of the NCOA was scheduled. | |
| The full grounds for the decision were set out. |
7. Legal Issues
- Ultra Vires
- Outcome: The court held that the use of the NCOA funds to pay for the legal fees of the Defamation Proceedings was ultra vires the objects of the NCOA.
- Category: Substantive
- Sub-Issues:
- Misapplication of funds
- Breach of constitution
- Related Cases:
- [2016] SGCA 34
- [2017] 3 SLR 234
- (1843) 2 Hare 461
- [1985] IRLR 99
- Locus Standi
- Outcome: The court held that the Plaintiffs had the requisite standing to bring this action to seek both injunctive and declaratory relief and to seek a refund of the misused funds.
- Category: Procedural
- Related Cases:
- (1843) 2 Hare 461
- [1985] IRLR 99
- Estoppel by Acquiescence
- Outcome: The court held that the Plaintiffs were not estopped from bringing this action.
- Category: Substantive
- Related Cases:
- [1999] 2 SLR(R) 817
- Interpretation of Constitution
- Outcome: The court found that Rules 14, 32 and 35 did not have the effect of giving the MC broad discretion to approve any use of the NCOA’s funds without having to comply with the other Rules of the NCOA Constitution, including Rule 18(a).
- Category: Substantive
- Sub-Issues:
- Rules of association
- Committee's discretion
- Related Cases:
- [1997] 2 SLR(R) 1
- [2017] 1 SLR 219
8. Remedies Sought
- Injunction
- Declaration
- Account of Funds
- Refund of Monies
9. Cause of Actions
- Breach of Constitution
- Misappropriation of Funds
10. Practice Areas
- Civil Litigation
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chee Hock Keng v Chu Sheng Temple | Singapore Court of Appeal | Yes | [2016] SGCA 34 | Singapore | Cited for the principle that the law governing an unincorporated association is premised on a contractual bargain encapsulated by the constitution of the association. |
| Tan Boon Hai v Tan Kia Kok and another | Unknown | Yes | [2017] 3 SLR 234 | Singapore | Cited for the principle that the law governing an unincorporated association is premised on a contractual bargain encapsulated by the constitution of the association. |
| Foss v Harbottle | Unknown | Yes | (1843) 2 Hare 461 | England and Wales | Cited for the rule that the proper plaintiff to seek a refund of funds would be the association itself, but the court found that the rule did not apply in this case. |
| Taylor v National Union of Mineworkers | Unknown | Yes | [1985] IRLR 99 | England and Wales | Cited for the proposition that the rule in Foss v Harbottle does not bar the right of an individual member to maintain an action against the officers of an unincorporated association claiming that a particular application of funds by the officers was ultra vires. |
| Tommy Wong Poh Choy & ors v Seah Kim Bee & ors | Singapore District Court | Yes | [2016] SGDC 85 | Singapore | The grounds of decision of the defamation case were cited to show that the District Judge found that the Proposed 37th AGM Resolutions were not defamatory and, in any event, the defences of qualified privilege and fair comment were applicable to the claim. |
| Nasaka Industries (S) Pte Ltd v Aspac Aircargo Services Pte Ltd | Unknown | Yes | [1999] 2 SLR(R) 817 | Singapore | Cited for the elements of estoppel by acquiescence. |
| Citicorp Investment Bank (Singapore) Ltd v Wee Ah Kee | Unknown | Yes | [1997] 2 SLR(R) 1 | Singapore | Cited for the principle that a contract should be construed as a whole, with no words being ignored, omitted or glossed over. |
| Yap Son On v Ding Pei Zhen | Unknown | Yes | [2017] 1 SLR 219 | Singapore | Cited for the principle that the words of a contract cannot be given a meaning which they cannot reasonably bear. |
| Keppel Tatlee Bank Ltd v Teck Koon Investment Pte Ltd and others | Unknown | Yes | [2000] 1 SLR(R) 355 | Singapore | Cited for the principle that it has to be shown that the party estopped simply stood by knowing full well that an innocent part was labouring under a mistake as to his rights. |
| Yongnam Development Pte Ltd v Somerset Development Pte Ltd | Singapore Court of Appeal | Yes | [2004] SGCA 35 | Singapore | Cited for the principle that it has to be shown that the party estopped simply stood by knowing full well that an innocent part was labouring under a mistake as to his rights. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Societies Act (Cap 311, 2014 Rev Ed) | Singapore |
| Supreme Court of Judicature Act (Cap 322) | Singapore |
| Land Titles (Strata) Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Neptune Court Owners’ Association
- Management Committee
- Defamation Proceedings
- NCOA Constitution
- Privatisation
- Ultra Vires
- Locus Standi
- Estoppel by Acquiescence
- AGM
- Societies Act
15.2 Keywords
- unincorporated association
- defamation
- misappropriation
- funds
- constitution
- privatisation
- Singapore
- High Court
16. Subjects
- Unincorporated Associations
- Defamation
- Civil Procedure
- Misappropriation of Funds
17. Areas of Law
- Unincorporated Associations and Trade Unions
- Constitutional Law
- Civil Procedure