SME Care Pte Ltd v Jannie Chan: Guarantee, Settlement Agreement, and Consent Judgment Dispute
In SME Care Pte Ltd v Jannie Chan Siew Lee, the Singapore High Court addressed a dispute arising from a loan guarantee and subsequent settlement agreement. SME Care, a licensed moneylender, sued Jannie Chan, the guarantor of a loan to JASC Pte Ltd, after JASC defaulted. The parties entered a settlement agreement with a consent judgment clause, but Chan later withdrew her consent. Choo Han Teck J dismissed SME Care's appeal to enter judgment based on admission of facts but allowed them to enter the consent judgment under the settlement agreement.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff is at liberty to enter the consent judgment under the settlement agreement; appeal against refusal to allow judgment based on admission of facts dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving SME Care and Jannie Chan concerning a loan guarantee, a settlement agreement, and the enforceability of a consent judgment.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| SME Care Pte Ltd | Plaintiff, Appellant | Corporation | Appeal dismissed in part | Partial | N Sreenivasan SC, Rajaram Muralli Raja, Kyle Gabriel Peters |
| Jannie Chan Siew Lee | Defendant, Respondent | Individual | Consent judgment may be entered against her | Lost | Daryl Ong Hock Chye, Valerie Seow Wei-Li |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| N Sreenivasan SC | Straits Law Practice LLC |
| Rajaram Muralli Raja | Straits Law Practice LLC |
| Kyle Gabriel Peters | Straits Law Practice LLC |
| Daryl Ong Hock Chye | LawCraft LLC |
| Valerie Seow Wei-Li | LawCraft LLC |
4. Facts
- SME Care Pte Ltd granted a loan facility to JASC Pte Ltd for $500,000.
- The loan was secured by a mortgage of two properties owned by JASC and a personal guarantee by Jannie Chan.
- JASC is wholly owned by Jannie Chan, who is also its controlling director.
- JASC applied to the court to set aside the loans or revise the interest rate.
- The court revised the interest rate from 7% to 5.2% per month.
- Fresh demands for payment were made, but neither JASC nor Jannie Chan paid.
- The parties entered a settlement agreement with a consent judgment clause.
- Jannie Chan withdrew her consent to the consent judgment.
- The defendant received $150,000 bridging loan but did not fulfill her obligations under the settlement agreement.
5. Formal Citations
- SME Care Pte Ltd v Chan Siew Lee Jannie, HC/Suit No 995 of 2016, [2018] SGHC 96
6. Timeline
| Date | Event |
|---|---|
| Loan facility granted by SME Care Pte Ltd to JASC Pte Ltd. | |
| JASC Pte Ltd applied to the court to set aside the loans. | |
| Justice Chua Lee Ming revised the interest rates. | |
| Suit No 995 of 2016 filed by the plaintiff against the defendant. | |
| Defendant filed her defence and counter-claim. | |
| Plaintiff and defendant commenced negotiations to settle the action. | |
| Draft settlement agreement sent to Mr Bachoo Mohan Singh. | |
| Mr Singh confirmed he had instructions. | |
| Defendant filed a notice of intention to act in person. | |
| Settlement agreement and consent judgment signed by both parties. | |
| Trial fixed for hearing was vacated. | |
| Judgment reserved. | |
| Judgment delivered. |
7. Legal Issues
- Enforceability of Settlement Agreement
- Outcome: The court held that the settlement agreement is signed and sealed and neither party may vary its terms unilaterally. If the defendant claims that the settlement agreement should be rescinded, it is she who has to sue to set it aside.
- Category: Substantive
- Judgment on Admission of Facts
- Outcome: The court dismissed the plaintiff’s appeal against the AR’s refusal to allow its application to enter judgment based on admission of facts under O 27.
- Category: Procedural
- Consent Judgment
- Outcome: The court held that the plaintiff is at liberty to enter the consent judgment under the settlement agreement.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Guarantee
10. Practice Areas
- Commercial Litigation
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 332, R 5, 2014 Rev Ed), O 27 r 3 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Moneylenders Act (Cap 188, 2010 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Settlement Agreement
- Consent Judgment
- Loan Guarantee
- Moneylender
- Admission of Facts
- Bridging Loan
15.2 Keywords
- settlement agreement
- consent judgment
- loan guarantee
- moneylender
- admission of facts
16. Subjects
- Civil Procedure
- Contract Law
- Banking Law
17. Areas of Law
- Civil Procedure
- Contract Law
- Settlement Agreements
- Moneylenders Act