Harmonious Coretrades v United Integrated Services: Setting Aside Final Garnishee Order Under SOPA

Harmonious Coretrades Pte Ltd (HCPL) appealed against the High Court's decision to set aside a final garnishee order obtained against United Integrated Services Pte Ltd (UIS). The Court of Appeal allowed the appeal, restoring the final garnishee order, holding that the debt underlying the order was not extinguished by a subsequent adjudication determination. The court found that UIS owed a debt to Civil Tech Pte Ltd (CTPL) under the Building and Construction Industry Security of Payment Act (SOPA).

1. Case Overview

1.1 Court

Court of Appeal of the Republic of Singapore

1.2 Outcome

Appeal Allowed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal concerning setting aside a final garnishee order. The court allowed the appeal, holding that the debt underlying the order was not extinguished.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Harmonious Coretrades Pte LtdAppellantCorporationAppeal AllowedWon
United Integrated Services Pte LtdRespondentCorporationAppeal DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudge of AppealYes
Belinda Ang Saw EanJudgeNo
Quentin LohJudgeNo

4. Counsels

Counsel NameOrganization
Lynette ChewHolborn Law LLC
Grace LuHolborn Law LLC
Lee Mei Yong DebbieMillennium Law LLC
Wong Qiao Ling SharonMillennium Law LLC

4. Facts

  1. HCPL obtained a final garnishee order against UIS.
  2. UIS applied to set aside the final garnishee order.
  3. UIS argued that the underlying debt was extinguished by a second adjudication determination (AD2).
  4. The High Court granted UIS's application to set aside the order.
  5. HCPL appealed the High Court's decision.
  6. The Court of Appeal allowed the appeal and restored the final garnishee order.
  7. The court found that the debt underlying the final garnishee order was not extinguished.

5. Formal Citations

  1. Harmonious Coretrades Pte Ltd v United Integrated Services Pte Ltd, Civil Appeal No 126 of 2019, [2019] SGCA 77

6. Timeline

DateEvent
HCPL obtained an adjudication determination against CTPL.
HCPL commenced Originating Summons No 1113 of 2018.
Court granted HCPL leave to enforce the adjudication determination.
HCPL commenced garnishee proceedings against UIS.
Provisional garnishee order made against UIS.
Provisional garnishee order served on UIS and CTPL.
Provisional garnishee order made final.
UIS filed Original Summons No 1433 of 2018 and Summons No 5522 of 2018.
AD2 was rendered.
UIS applied to set aside the Final Garnishee Order.
Judge made orders regarding stay of enforcement of AD1.
Judge varied order regarding stay of enforcement of AD1.
CTPL was ordered to be wound up.
Leave was granted to withdraw OS 1433.
Judge released grounds of decision in SUM 5522.
Judge heard RA 79.
Judge issued written judgment allowing UIS’ appeal in RA 79 and setting aside the Final Garnishee Order.
HCPL filed a notice of appeal.
Court of Appeal heard the appeal.
Court of Appeal delivered the grounds of decision.

7. Legal Issues

  1. Setting Aside Garnishee Order
    • Outcome: The court held that it has the inherent power to set aside a garnishee order to prevent injustice, but the circumstances of the case did not warrant the exercise of such power.
    • Category: Procedural
    • Sub-Issues:
      • Inherent powers of the court
      • Prevention of injustice
  2. Enforceability of Adjudication Determinations
    • Outcome: The court held that adjudication determinations do not supersede one another but are each enforceable independently unless impugned under the SOPA.
    • Category: Substantive
    • Sub-Issues:
      • Temporary finality of adjudication determinations
      • Superseding of adjudication determinations

8. Remedies Sought

  1. Setting Aside of Final Garnishee Order
  2. Restoration of Final Garnishee Order

9. Cause of Actions

  • Enforcement of Adjudication Determination
  • Setting Aside Garnishee Order

10. Practice Areas

  • Commercial Litigation
  • Construction Litigation
  • Arbitration

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Ong Cher Keong v Goh Chin Soon RickyHigh CourtYes[2001] 1 SLR(R) 213SingaporeCited for the three circumstances in which a court may set aside a judgment or order of court.
Sunny Daisy Ltd v WBG Network (Singapore) Pte LtdHigh CourtYes[2008] 4 SLR(R) 769SingaporeCited for the three circumstances in which a court may set aside a judgment or order of court.
United Integrated Services Pte Ltd v Civil Tech Pte Ltd and anotherHigh CourtYes[2019] 3 SLR 1426SingaporeCited for the Judge's reasoning that only the final adjudication determination is enforceable.
Management Corporation Strata Title Plan No 301 v Lee Tat Development Pte LtdCourt of AppealYes[2011] 1 SLR 998SingaporeCited to support the view that the court has inherent jurisdiction to reopen and rehear an issue decided in breach of natural justice.
Wee Soon Kim Anthony v Law Society of SingaporeCourt of AppealYes[2001] 2 SLR(R) 821SingaporeCited for the principle that the court's inherent power should be exercised judiciously and that an essential touchstone is that of 'need'.
W Y Steel Construction Pte Ltd v Osko Pte LtdCourt of AppealYes[2013] 3 SLR 380SingaporeCited for the principle that Section 21 of the SOPA provides for the temporary finality of adjudication determinations and the scheme of the SOPA.
Civil Tech Pte Ltd v Hua Rong Engineering Pte LtdCourt of AppealYes[2018] 1 SLR 584SingaporeCited for the principle that the SOPA promotes cash flow by facilitating prompt payments down the chain of contractors involved in any given construction project.
Industrial Floor & Systems Pte Ltd v Civil Tech Pte LtdHigh CourtYes[2019] SGHC 50SingaporeCited as the case where CTPL was ordered to be wound up.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)Singapore
Building and Construction Industry Security of Payment Act, s 21(1)Singapore
Rules of Court (Cap 322, R 5, 2014 Rev Ed), O 92 r 4Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Garnishee Order
  • Adjudication Determination
  • Building and Construction Industry Security of Payment Act
  • SOPA
  • Inherent Powers
  • Temporary Finality
  • Cash Flow
  • Set-off
  • Winding Up

15.2 Keywords

  • garnishee order
  • adjudication
  • SOPA
  • construction
  • payment
  • Singapore

17. Areas of Law

Area NameRelevance Score
Building and Construction Industry Security of Payment Act90
Garnishee Proceedings90
Inherent Power of the Court80
Civil Practice75
Civil Procedure75
Construction Law40
Contract Law30
Administrative Law30

16. Subjects

  • Construction Dispute
  • Civil Procedure
  • Arbitration
  • Security of Payment