UOB v Pereira: Stay of Execution in Mortgage Action & Guarantor's Obligations

In United Overseas Bank Ltd v Pereira, Dennis John Sunny and Faridah Binte V Abdul Lattif, the High Court of Singapore heard an appeal by Mr. Pereira against the Assistant Registrar's decision to dismiss his application for a further stay of execution of an order for possession of a mortgaged property. UOB had brought a mortgage action against Mr. Pereira and his wife, Mdm Faridah, seeking possession of two properties mortgaged as security for loans to the defendants and guarantees furnished by Mr. Pereira for his company's loan facilities. The court dismissed the appeal, finding no basis to grant a further stay of execution.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Appeal dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

UOB sought possession of mortgaged properties. The court dismissed an appeal for a further stay of execution, enforcing guarantor obligations.

1.7 Decision Date

30 March 2017

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
United Overseas Bank Limited	Plaintiff, Respondent	Corporation	Appeal Allowed	Won	Seah Zhen Wei Paul of Tan Kok Quan Partnership Kang Weisheng of Tan Kok Quan Partnership Geraint Edward of Tan Kok Quan Partnership
Pereira, Dennis John Sunny	Defendant, Appellant	Individual	Appeal Dismissed	Lost	Chong Xin Yi of Yang Meilin Joseph Ignatius of Ignatius J & Associates Yeo Mui Lin of Yang Meilin
Faridah Binte V Abdul Lattif	Defendant	Individual	Claim Dismissed	Lost

3. Judges

Judge Name	Title	Delivered Judgment
Hoo Sheau Peng	Judicial Commissioner	Yes

4. Counsels

Counsel Name	Organization
Seah Zhen Wei Paul	Tan Kok Quan Partnership
Kang Weisheng	Tan Kok Quan Partnership
Geraint Edward	Tan Kok Quan Partnership
Chong Xin Yi	Yang Meilin
Joseph Ignatius	Ignatius J & Associates
Yeo Mui Lin	Yang Meilin

4. Facts

The defendants mortgaged two properties to UOB as security for housing loans and guarantees for company loans.
The company failed to pay monthly installments due to UOB under the loan facilities.
The defendants defaulted on the payment of the monthly installments due under the two housing loans.
UOB's solicitors issued letters of demand to the defendants for the outstanding sum.
UOB commenced a mortgage action seeking possession of the properties.
Mr. Pereira applied for a further stay of execution of the order for possession.
The Assistant Registrar dismissed the application for a stay of execution.

5. Formal Citations

United Overseas Bank Ltd v Pereira, Dennis John Sunny and another, Originating Summons No 619 of 2016(Registrar’s Appeal No 2 of 2017), [2017] SGHC 66

6. Timeline

Date	Event
2016-03-01	Company failed to pay monthly instalments due to UOB under the two loan facilities.
2016-03-01	Defendants started to default on the payment of the monthly instalments due under the two housing loans.
2016-03-14	UOB’s solicitors issued letters of demand to the defendants demanding payment of the outstanding sum.
2016-04-25	UOB’s solicitors served on the defendants a notice pursuant to s 75(2) of the Land Titles Act.
2016-05-30	UOB’s solicitors sent a second letter to the defendants requesting that the defendants deliver possession of the Properties to UOB.
2016-06-07	UOB applied for the Company to be placed under judicial management.
2016-06-21	UOB commenced the present mortgage action in respect of the Properties.
2016-07-01	JM order was made.
2016-08-24	The AR granted the orders for delivery of possession of the Properties sought by UOB.
2016-11-09	JTC sent a letter stating that JTC was prepared to consider allowing the Company to extend the approved use.
2016-11-30	UOB’s solicitors wrote to the defendants and their solicitors to notify them that UOB would take the necessary actions to enforce the order for possession.
2016-11-30	Mr Pereira’s solicitors wrote to UOB’s solicitors to request an extension of one month for the delivery of possession of the Toh Crescent Property to UOB.
2016-12-13	UOB’s solicitors filed a writ of possession in respect of the Toh Crescent Property.
2016-12-23	The Sheriff, together with representatives of UOB and its solicitors, attempted to execute the writ of possession.
2016-12-23	The application for stay of execution was lodged.
2016-12-27	Extension of the JM order being granted by the court.
2017-01-04	Hearing for the application for stay of execution before the AR.
2017-02-01	Letter from Meds Offshore Group Sdn Bhd to Mr Pereira.
2017-02-06	Hearing before me.
2017-03-31	Judgment Date

7. Legal Issues

Stay of Execution
- Outcome: The court found no basis to grant a further stay of execution of the order for possession.
- Category: Procedural
- Sub-Issues:
  - Grounds for granting a stay of execution
  - Matters occurring since the date of the order
- Related Cases:
  - [1987] SLR(R) 303
  - [1999] 1 SLR(R) 755
  - [2016] 3 SLR 239
Enforcement of Guarantees
- Outcome: The court held that UOB was entitled to proceed against Mr Pereira as the guarantor for the Company’s debt, regardless of the Company’s prospects of being able to satisfy its debt to UOB.
- Category: Substantive
- Sub-Issues:
  - Creditor's right to proceed against guarantor
  - Guarantor's obligation to pay
- Related Cases:
  - [2016] 3 SLR 239

8. Remedies Sought

Order for Possession
Monetary payment

9. Cause of Actions

Mortgage Action
Enforcement of Guarantee

10. Practice Areas

Mortgage Actions
Commercial Litigation
Banking Law

11. Industries

Banking
Finance

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
SAL Leasing (Pte) Ltd v Hendmaylex Pte Ltd and others	High Court	No	[1987] SLR(R) 303	Singapore	Cited for the principle that a party seeking a stay of execution based on matters occurring after the order must show that those matters would have prevented the order or led to a stay if they had occurred earlier.
Hong Leong Finance Ltd v Tan Gian Huay and another	High Court	No	[1999] 1 SLR(R) 755	Singapore	Cited for the proposition that the court has jurisdiction to grant a stay of execution of an order for possession, considering whether there is a reasonable prospect of the debt being satisfied.
Chan Siew Lee Jannie v Australia and New Zealand Banking Group Ltd	Court of Appeal	Yes	[2016] 3 SLR 239	Singapore	Cited for the principle that a creditor is entitled to elect whether to enforce its claim against the principal debtor or against the guarantor.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R 5, 2014 Rev Ed)

14. Applicable Statutes

Statute Name	Jurisdiction
Land Titles Act (Cap 157, 2004 Rev Ed)	Singapore
Companies Act (Cap 50, 2006 Rev Ed)	Singapore

15. Key Terms and Keywords

15.1 Key Terms

Stay of Execution
Mortgage
Guarantee
Judicial Management
Order for Possession
Guarantor
Creditor
Debtor
Mortgaged Properties

15.2 Keywords

mortgage
stay of execution
guarantee
UOB
Pereira
Singapore
High Court
mortgage action

17. Areas of Law

Area Name	Relevance Score
Stay of Execution	90
Guarantees and indemnities	80
Credit and Security	75
Civil Procedure	70
Mortgage	60
Summary Judgement	30
Costs	20

16. Subjects

Civil Procedure
Mortgage Law
Banking Law
Contract Law