Asia Silk Stores v Lata Ashok Khemlani: Bankruptcy Appeal over DJ Hira Enterprise Debt
Asia Silk Stores appealed a decision to set aside a statutory demand against Lata Ashok Khemlani, the sole proprietor of DJ Hira Enterprise, for a debt of $49,933.15. The High Court, presided over by Choo Han Teck J, allowed the appeal, finding Khemlani liable for the debt incurred by DJ Hira Enterprise, despite her claims that her husband managed the business and incurred the debt without her knowledge. The court gave the defendant 21 days to comply with the statutory demand.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal Allowed
1.3 Case Type
Bankruptcy
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding a statutory demand for a debt owed by DJ Hira Enterprise. The court allowed the appeal, finding the defendant liable for the debt.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Asia Silk Stores | Plaintiff, Appellant | Corporation | Appeal Allowed | Won | |
| Lata Ashok Khemlani (trading as DJ Hira Enterprise) | Defendant, Respondent | Individual | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Satwant Singh s/o Sarban Singh | Satwant & Associates |
| Sarindar Singh | Singh & Co |
4. Facts
- The plaintiff sold textiles to DJ Hira Enterprise.
- The defendant is the registered sole proprietor of DJ Hira Enterprise.
- A trading debt of $49,933.15 was due by DJ Hira to the plaintiff.
- The plaintiff served a statutory demand on the defendant on 14 October 2018.
- The defendant claimed her husband carried out the transactions without her knowledge.
- The husband acknowledged the debt but claimed it was incurred without the defendant's knowledge.
- The invoices and goods were sent to DJ Hira, and payments were made by cheques from DJ Hira's account.
5. Formal Citations
- Asia Silk Stores v Lata Ashok Khemlani (trading as DJ Hira Enterprise), HC/Originating Summons (Bankruptcy) No 110 of 2018, [2019] SGHC 112
6. Timeline
| Date | Event |
|---|---|
| Personal protection order taken out by the defendant | |
| Statutory demand served on the defendant | |
| Defendant's affidavit sworn | |
| Husband's affidavit filed | |
| Appeal allowed | |
| Judgment date |
7. Legal Issues
- Statutory Demand
- Outcome: The court held that the statutory demand should not have been set aside.
- Category: Substantive
8. Remedies Sought
- Bankruptcy Order
- Payment of Debt
9. Cause of Actions
- Debt Claim
- Breach of Contract
10. Practice Areas
- Bankruptcy
- Commercial Litigation
11. Industries
- Textiles
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Act (Cap 20, 2009 Rev Ed) | Singapore |
| Rule 97(1)(a) of the Bankruptcy Act (Bankruptcy Rules, Cap 20, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Statutory Demand
- Sole Proprietor
- Trading Debt
- DJ Hira Enterprise
15.2 Keywords
- Bankruptcy
- Statutory Demand
- Debt
- Singapore
- Textiles
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Insolvency Law | 95 |
| Bankruptcy | 90 |
| Statutory Demand | 90 |
16. Subjects
- Bankruptcy
- Insolvency