Lim Hun Joo v Kok Yin Chong: Collective Sale of Goodluck Garden - Land Titles (Strata) Act
In Originating Summons No 841 of 2018, Lim Hun Joo, Awe Ying Fatt, and Chan Keng Siang Gregory, representing the collective sale committee, applied to the High Court of Singapore for an order to approve the collective sale of Goodluck Garden under Section 84A(1) of the Land Titles (Strata) Act. Kok Yin Chong and other subsidiary proprietors objected to the sale. Justice Woo Bih Li granted the order for the collective sale, finding that despite procedural missteps, the plaintiffs had proven the transaction was in good faith.
1. Case Overview
1.1 Court
High Court of Singapore1.2 Outcome
Order granted for the collective sale of the property.
1.3 Case Type
Civil
1.4 Judgment Type
Oral Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Collective sale application for Goodluck Garden. Court approves sale despite procedural missteps, finding no bad faith in the transaction.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Kok Yin Chong | Defendant | Individual | Objection Dismissed | Lost | |
| Ng Yuen Yau Olivia | Defendant | Individual | Objection Dismissed | Lost | |
| Ng Khee Shen | Defendant | Individual | Objection Dismissed | Lost | |
| Michelle Ang Suan Choo | Defendant | Individual | Objection Dismissed | Lost | |
| Lim Choo Hwee | Defendant | Individual | Objection Dismissed | Lost | |
| Poon Meng Mee | Defendant | Individual | Objection Dismissed | Lost | |
| Tan Thiam Yee | Defendant | Individual | Objection Dismissed | Lost | |
| Goh Lay Hoon (Wu Lifen) | Defendant | Individual | Objection Dismissed | Lost | |
| Gan Seng Hong | Defendant | Individual | Objection Dismissed | Lost | |
| Toh Wai Ling, Kathleen (Zhuo Weiling, Kathleen) | Defendant | Individual | Objection Dismissed | Lost | |
| Ang Ann Kiat | Defendant | Individual | Objection Dismissed | Lost | |
| Wong Lai Fun | Defendant | Individual | Objection Dismissed | Lost | |
| Lim Hun Joo | Plaintiff | Individual | Application Granted | Won | |
| Awe Ying Fatt | Plaintiff | Individual | Application Granted | Won | |
| Chan Keng Siang Gregory | Plaintiff | Individual | Application Granted | Won | |
| Chong Chiah Joo | Defendant | Individual | Objection Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
4. Facts
- Plaintiffs commenced action for collective sale of Goodluck Garden.
- Defendants are subsidiary proprietors who objected to the sale.
- Lim and Chan had associates who owned units in the property.
- Approvals for sale proceeds and CSA terms were not given at a general meeting.
- Knight Frank provided estimates of the development charge (DC).
- URA reply indicated no DC was payable.
- Colliers valued the property at $542m; AAA valued it at $637m.
5. Formal Citations
- Lim Hun Joo and others v Kok Yin Chong and others, Originating Summons No 841 of 2018, [2018] SGHC 256
6. Timeline
| Date | Event |
|---|---|
| Property launched for sale by way of public tender. | |
| URA sent a reply stating that no DC was payable. | |
| Tender box opened; Colliers valued the Property at $542m. | |
| Tender awarded to joint-bidders. | |
| Subsidiary proprietors informed about the new information at a meeting. | |
| Stop Order issued by the Strata Titles Boards. | |
| Hearing commenced. | |
| Hearing concluded. | |
| Oral judgment rendered. | |
| Belated valuation by Asian Assets Allianz Pte Ltd valued the Property at $637m. |
7. Legal Issues
- Conflict of Interest
- Outcome: The court held that the mere fact that an associate owns another unit does not necessarily mean that there is an actual or potential conflict of interest.
- Category: Substantive
- Sub-Issues:
- Failure to declare conflict of interest
- Associate's ownership of property
- Validity of Approvals
- Outcome: The court found a breach of paras 7(1)(b) and 7(1)(c) of the Third Schedule because the approvals of the apportionment of sale proceeds and of the terms and conditions of the CSA were not given at a general meeting of the management corporation.
- Category: Procedural
- Sub-Issues:
- Approval of apportionment of sale proceeds
- Approval of terms and conditions of collective sale agreement
- Good Faith
- Outcome: The court concluded that although the conduct of the CSC, Knight Frank, and the lawyers for the CSC was wanting in various respects, there was no bad faith after taking into account the sale price.
- Category: Substantive
- Sub-Issues:
- Best price reasonably obtainable
- Improper motives
- Unfairness towards subsidiary proprietors
- Deficit in the transaction
- Development Charge Verification
- Outcome: The court found that the DC verification was material and that the CSC should have extended the closing date of the tender and informed/consulted the subsidiary proprietors about this material information.
- Category: Substantive
- Sub-Issues:
- Materiality of development charge
- Timing of obtaining verification
- Extension of tender closing date
- Valuation Flaws
- Outcome: The court found that Colliers' valuation was not flawed and that AAA's valuation was flawed because it was based on a possibility of achieving a higher GPR.
- Category: Substantive
- Sub-Issues:
- Gross plot ratio
- URA Master Plan
- Development charge baseline
8. Remedies Sought
- Order for Collective Sale
9. Cause of Actions
- Application for Collective Sale Order
10. Practice Areas
- Real Estate Law
- Collective Sales
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lim Li Meng Dominic and others v Ching Pui Sim Sally and another and another matter | Court of Appeal | Yes | [2015] 5 SLR 989 | Singapore | Distinguished; cited regarding the requirement for authorised representatives to act jointly in bringing a collective sale application. |
| Ramachandran Jayakumar and another v Woo Hon Wai and others and another matter | Court of Appeal | Yes | [2017] 2 SLR 413 | Singapore | Cited for the meaning of 'good faith' under s 84A(9)(a)(i) of the Land Titles (Strata) Act, particularly in the context of collective sales. |
| Ng Eng Ghee and others v Mamata Kapildev Dave and others (Horizon Partners Pte Ltd, intervener) and another appeal | Court of Appeal | Yes | [2009] 3 SLR(R) 109 | Singapore | Cited as the starting point for the test of good faith in collective sales, emphasizing the importance of the sale price being the best price reasonably obtainable. |
| Tsai Jean v Har Mee Lee and others | High Court | Yes | [2009] 2 SLR(R) 1 | Singapore | Mentioned as a High Court case that the plaintiffs relied on, but the Court stated that the test of good faith should start with the Court of Appeal cases of Ng Eng Ghee and Ramachandran Jayakumar. |
| Woo Hon Wai and others v Ramachandran Jayakumar and others | High Court | Yes | [2017] 4 SLR 74 | Singapore | Cited regarding the burden of proof in establishing the absence of good faith, but the court distinguished it based on the Court of Appeal's decision in Horizon Towers. |
| Ngui Gek Lian Philomene and others v Chan Kiat and others (HSR International Realtors Pte Ltd, intervener) | High Court | Yes | [2013] 4 SLR 694 | Singapore | Cited regarding the grounds of objections that can be relied upon in court, specifically referencing s 84A(4A) of the Land Titles (Strata) Act. |
13. Applicable Rules
| Rule Name |
|---|
| Order 100 Rules 2 and 4 of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Land Titles (Strata) Act (Cap 158, 2009 Rev Ed) | Singapore |
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
| Evidence Act (Cap 97, 1997 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Collective Sale
- Subsidiary Proprietors
- Good Faith
- Development Charge
- Gross Plot Ratio
- Valuation
- Conflict of Interest
- Strata Titles
- Sale and Purchase Agreement
- Collective Sale Committee
15.2 Keywords
- Collective Sale
- Strata Titles
- Good Faith
- Land Titles Act
- Singapore
- Property Law
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Strata Title Law | 90 |
| Collective Sales | 85 |
| Real Estate | 75 |
| Civil Procedure | 60 |
| Contract Law | 50 |
16. Subjects
- Real Estate
- Collective Sales
- Strata Title Law