Invest-Ho Properties v Karuppiah Tanapalan: Striking Out Pleadings & Legal Profession Disciplinary Procedures
In a dispute between Invest-Ho Properties Pte Ltd (Plaintiff) and Karuppiah Tanapalan and Vimala Devi d/o Selvadurai (Defendants), the Singapore High Court considered the Defendants' application to strike out the Plaintiff's Statement of Claim in Suit 843. The application was based on the grounds that the claim was scandalous, frivolous, or vexatious, or alternatively, an abuse of the process of the court. The High Court struck out the Statement of Claim, finding that allowing the matter to proceed to trial would serve no useful purpose, given the prior findings of illegality by the Court of Three Judges in related disciplinary proceedings against the parties' solicitor.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Statement of Claim struck out.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court struck out Invest-Ho Properties' claim for specific performance, finding it an abuse of process given prior findings of illegality in related disciplinary proceedings.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Invest-Ho Properties Pte Ltd | Plaintiff, Respondent | Corporation | Claim Dismissed | Dismissed | Irving Choh, Melissa Kor |
| Karuppiah Tanapalan | Defendant, Applicant | Individual | Application Granted | Won | Vangadasalam Suriamurthi |
| Vimala Devi d/o Selvadurai | Defendant, Applicant | Individual | Application Granted | Won | Vangadasalam Suriamurthi |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Justin Yeo | Assistant Registrar | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Irving Choh | Optimus Chambers LLC |
| Melissa Kor | Optimus Chambers LLC |
| Vangadasalam Suriamurthi | V Suria & Co |
4. Facts
- The Defendants owned a property and entered into an Option to Purchase with the Plaintiff.
- The Defendants discharged their solicitor and stated the Agreement was tainted with illegality.
- The Plaintiff commenced Suit 843 for specific performance of the sale and purchase.
- The parties reached a settlement and recorded a consent judgment, which was later set aside.
- The Defendants lodged a complaint against the solicitor, Ms. Leong, for aiding unlicensed moneylending.
- The Court of Three Judges found that the transaction involved unlicensed moneylending.
- The Court of Three Judges found that Mr. Ho and the Plaintiff were in a business of moneylending.
5. Formal Citations
- Invest-Ho Properties Pte Ltd v Karuppiah Tanapalan and another, Suit No 843 of 2013 (Summons No 3684 of 2017), [2017] SGHCR 20
6. Timeline
| Date | Event |
|---|---|
| Defendants discharged Ms Leong from acting as their solicitor. | |
| Defendants wrote to the Plaintiff to state that the Agreement was tainted with illegality. | |
| A deed revoking the Power of Attorney was filed in the High Court. | |
| Plaintiff commenced Suit No 843 for specific performance. | |
| Parties reached a settlement in Suit 843 and recorded a consent judgment. | |
| Court of Three Judges rendered its decision in Law Society of Singapore v Leong Pek Gan. | |
| Aedit Abdullah JC set aside the Consent Judgment. | |
| Hearing date | |
| Judgment reserved. | |
| Judgment date |
7. Legal Issues
- Abuse of Process
- Outcome: The court found that the Statement of Claim amounted to an abuse of process and struck it out.
- Category: Procedural
- Sub-Issues:
- Manifestly groundless claim
- Claim without foundation
- Claim serving no useful purpose
- Striking Out Pleadings
- Outcome: The court found the Statement of Claim to be frivolous and vexatious and struck it out.
- Category: Procedural
- Sub-Issues:
- Scandalous pleadings
- Frivolous pleadings
- Vexatious pleadings
- Legally unsustainable claim
- Factually unsustainable claim
- Illegality of Contract
- Outcome: The court relied on the findings of the Court of Three Judges that the transaction involved unlicensed moneylending, rendering the contract illegal and unenforceable.
- Category: Substantive
- Sub-Issues:
- Unlicensed moneylending
- Contract unenforceable under the Moneylenders Act
- Issue Estoppel
- Outcome: The court found that issue estoppel did not apply because the parties in the disciplinary proceedings were not identical to the parties in the present suit, and a decision of the Court of Three Judges is not a decision of the High Court.
- Category: Procedural
8. Remedies Sought
- Specific Performance
9. Cause of Actions
- Specific Performance
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Re Nalpon Zero Geraldo Mario | High Court | No | [2013] 3 SLR 258 | Singapore | Cited to support the argument that the Court of Three Judges is a specially constituted court to oversee disciplinary proceedings, and is not the High Court. |
| Howe v Institute of Chartered Accountants of Ontario | Ontario District Court | No | [1994] OJ No 2907 | Canada | Cited for the principle that the decision of a disciplinary committee would be granted some deference in civil actions, but would not be binding. |
| Wing Joo Loong Ginseng Hong (Singapore) Co Pte Ltd v Qinghai Xinyuan Foreign Trade Co Ltd and another and another appeal | Court of Appeal | Yes | [2009] 2 SLR(R) 814 | Singapore | Cited for the requirements to establish issue estoppel. |
| Lee Tat Development Pte Ltd v Management Corporation of Strata Title Plan No 301 | Court of Appeal | Yes | [2005] 3 SLR(R) 157 | Singapore | Cited for the requirements to establish issue estoppel. |
| Chee Siok Chin v Minister for Home Affairs | High Court | Yes | [2006] 1 SLR(R) 582 | Singapore | Cited for the principle that a proceeding can be struck out on the basis of abuse of process if it is manifestly groundless, or without foundation, or serves no useful purpose. |
| Bosch Corp (Japan) v Wiedson International (S) Pte Ltd and others and another suit | High Court | Yes | [2013] 2 SLR 700 | Singapore | Cited for the principle that a proceeding can be struck out on the basis of abuse of process if it is manifestly groundless, or without foundation, or serves no useful purpose. |
| Law Society of Singapore v Leong Pek Gan | Court of Three Judges | Yes | [2016] 5 SLR 1091 | Singapore | Central to the decision; the findings in this case regarding the illegality of the transaction were the basis for striking out the Statement of Claim. |
| Law Society of Singapore v Leong Pek Gan | Court of Three Judges | Yes | [2016] 5 SLR 1131 | Singapore | Cited for the term of suspension imposed on Ms. Leong. |
| The Law Society of Singapore v Leong Pek Gan | Disciplinary Tribunal | Yes | [2015] SGDT 4 | Singapore | Cited for the Disciplinary Tribunal's findings regarding Ms. Leong's conduct and Mr. Ho's testimony. |
| Law Society of Singapore v Wan Hui Hong James | Court of Three Judges | Yes | [2013] 3 SLR 221 | Singapore | Cited for the standard of proof in disciplinary proceedings. |
| Wong Keng Leong Rayney v Law Society of Singapore | Court of Appeal | Yes | [2007] 4 SLR(R) 377 | Singapore | Cited for the standard of proof in disciplinary proceedings. |
| The Bunga Melati 5 | Court of Appeal | Yes | [2012] 4 SLR 546 | Singapore | Cited for the definition of 'frivolous or vexatious' proceedings. |
13. Applicable Rules
| Rule Name |
|---|
| O 18 r 19(1)(b) of the Rules of Court (Cap 322, R 5, 2014 Rev Ed) |
| O 18 r 19(1)(d) of the Rules of Court (Cap 322, R 5, 2014 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Moneylenders Act (Cap 188, 2010 Rev Ed) | Singapore |
| Legal Profession Act (Cap 161, 2009 Rev Ed) | Singapore |
| Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap 65A, 2000 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Specific performance
- Illegality
- Unlicensed moneylending
- Abuse of process
- Striking out
- Consent judgment
- Option to Purchase
- Power of Attorney
- Disciplinary proceedings
- Court of Three Judges
15.2 Keywords
- Striking out
- Abuse of process
- Illegality
- Specific performance
- Moneylending
- Singapore
- High Court
16. Subjects
- Civil Procedure
- Contract Law
- Legal Profession
- Moneylending
17. Areas of Law
- Civil Procedure
- Pleadings
- Striking Out
- Legal Profession
- Disciplinary Procedures
- Contract Law
- Moneylenders Act