Deorukhkar Sameer Vinay v Quek Chin Kheam: Collective Sale Dispute under Land Titles (Strata) Act

The plaintiffs, authorised representatives of The Albracca's collective sale committee, applied for an order to allow the sale of The Albracca to SL Capital (5) Pte Ltd. The defendant, a subsidiary proprietor, opposed the sale. The High Court of Singapore, on 27 July 2018, quashed the Stop Order imposed by the Strata Titles Board and allowed the collective sale to proceed, finding that the collective sale committee had acted in good faith.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Stop Order imposed by STB quashed; collective sale allowed to proceed.

1.3 Case Type

Civil

1.4 Judgment Type

Oral Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Collective sale dispute involving The Albracca. The court quashed the Stop Order imposed by STB and allowed the collective sale to proceed.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Deorukhkar Sameer VinayPlaintiffIndividualApplication GrantedWon
Andrew LeePlaintiffIndividualApplication GrantedWon
Lee Teck HarPlaintiffIndividualApplication GrantedWon
Quek Chin KheamDefendantIndividualApplication DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Tan Siong ThyeJudgeYes

4. Counsels

Counsel NameOrganization
Jason Lim Chen ThorDe Souza Lim & Goh LLP
Kevin De SouzaDe Souza Lim & Goh LLP
Geena Liaw Jin YiDe Souza Lim & Goh LLP

4. Facts

  1. The Albracca is a 10-storey residential development with 11 units.
  2. The Strata Titles Board issued a Stop Order on the sale of The Albracca.
  3. The defendant opposed the sale, arguing it was not made in good faith.
  4. Nine out of 11 SPs signed the CSA as of 8 June 2017.
  5. The CSC awarded the tender to Sustained Land Pte Ltd for $69,119,000.
  6. The method of apportionment of the sale proceeds was calculated at one-third share value, one-third strata area and one-third current market value.

5. Formal Citations

  1. Deorukhkar Sameer Vinay and others v Quek Chin Kheam, Originating Summons No 28 of 2018, [2018] SGHC 171

6. Timeline

DateEvent
CSC appointed at EGM
De Souza Lim & Goh LLP appointed as solicitor
Jones Lang Lasalle Property Consultants Pte Ltd appointed as marketing agent
Terms of collective sale agreement and initial reserve price approved at EGM
Public tender launched
Tender closed
Letter of Nomination received from Sustained Land Pte Ltd
CSC applied to the STB for an Order for Collective Sale
Defendant filed objections before the STB
Mediation session held by STB
Mediation session held by STB
STB issued a Stop Order
Plaintiffs filed application
Judgment reserved
Judgment issued

7. Legal Issues

  1. Good Faith in Collective Sale
    • Outcome: The court found that the collective sale committee had acted in good faith.
    • Category: Substantive
    • Sub-Issues:
      • Conflict of interest
      • Fairness of method of apportionment
      • Independence of valuation report
      • Even-handedness in agreements
  2. Conflict of Interest
    • Outcome: The court found no conflict of interest in the appointment of David Lee to the CSC.
    • Category: Substantive
  3. Fairness of Method of Apportionment
    • Outcome: The court found that the method of apportionment (1/3 SV – 1/3 SA – 1/3 CMV) was arrived at in good faith and was fair to all subsidiary proprietors.
    • Category: Substantive
  4. Independence of Valuation Report
    • Outcome: The court found that the CSC acted in good faith when it accepted the valuation report prepared by Savills.
    • Category: Substantive
  5. Duty to Act Even-Handedly
    • Outcome: The court found that the terms of appointment of solicitors and the sale and purchase agreement were fair and in line with the CSC’s duty to act even-handedly.
    • Category: Substantive

8. Remedies Sought

  1. Order to allow the sale of The Albracca

9. Cause of Actions

  • Application for an Order for Collective Sale under s 84A(1) of the Land Titles (Strata) Act

10. Practice Areas

  • Real Estate Law
  • Property Law
  • Collective Sales

11. Industries

  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appealCourt of AppealYes[2009] 3 SLR(R) 109SingaporeCited to define the scope of the word 'transaction' in s 84A(9)(a)(i) of the LTSA and the duties of the CSC as a fiduciary agent.
Dynamic Investments Pte Ltd v Lee Chee Kian Silas and othersHigh CourtYes[2008] 1 SLR(R) 729SingaporeCited to define 'good faith' in the context of s 84A(9) of the Land Titles (Strata) Act as 'honesty or absence of bad faith'.

13. Applicable Rules

Rule Name
Order 100 of the Rules of Court (Cap 322)

14. Applicable Statutes

Statute NameJurisdiction
Land Titles (Strata) Act (Cap 158)Singapore
s 84A(1) of the Land Titles (Strata) Act (Cap 158, 2009 Rev Ed)Singapore
s 84A(6A) of the Land Titles (Strata) ActSingapore
s 84A(9)(a)(i) of the Land Titles (Strata) ActSingapore
s 84A(1A)Singapore
s 84A(2A)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Collective sale
  • Strata titles
  • Good faith
  • Method of apportionment
  • Share value
  • Strata area
  • Current market value
  • Stop Order
  • Subsidiary proprietor
  • Collective sale committee

15.2 Keywords

  • Collective sale
  • Strata titles
  • Land Titles (Strata) Act
  • Good faith
  • Method of apportionment

17. Areas of Law

Area NameRelevance Score
Strata Title Law95
Collective Sales90
Real Estate75
Contract Law50

16. Subjects

  • Real Estate
  • Collective Sales
  • Property Law