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

In United Integrated Services Pte Ltd v Harmonious Coretrades Pte Ltd, the High Court of Singapore addressed an appeal regarding a final garnishee order. United Integrated Services Pte Ltd (the garnishee) sought to set aside the order, which required them to pay Harmonious Coretrades Pte Ltd (the judgment creditor) a sum owed by Civil Tech Pte Ltd (the judgment debtor). The court, presided over by Justice Chan Seng Onn, allowed the application, invoking its inherent powers to prevent injustice, given that the underlying debt was stayed and the judgment debtor was insolvent.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Final garnishee order set aside.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Appeal to set aside a final garnishee order. The court allowed the application, invoking its inherent powers to prevent injustice.

1.7 Decision Date

14 May 2019

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
Harmonious Coretrades Pte Ltd	Respondent, Judgment Creditor	Corporation	Appeal Dismissed	Lost	Lynette Chew of Holborn Law LLC Lu Huiru Grace of Holborn Law LLC
United Integrated Services Pte Ltd	Appellant, Garnishee	Corporation	Appeal Allowed	Won	Lee Mei Yong Debbie of ECYT Law LLC
Civil Tech Pte Ltd	Judgment Debtor	Corporation

3. Judges

Judge Name	Title	Delivered Judgment
Chan Seng Onn	Judge	Yes

4. Counsels

Counsel Name	Organization
Lynette Chew	Holborn Law LLC
Lu Huiru Grace	Holborn Law LLC
Lee Mei Yong Debbie	ECYT Law LLC

4. Facts

The judgment debtor owed the judgment creditor $1,261,096.71 under an adjudication determination.
The judgment creditor commenced garnishee proceedings to attach debt due from the garnishee to the judgment debtor.
The garnishee had no objections to the garnishee application because the judgment debtor obtained a separate adjudication against the garnishee.
A second adjudication determination determined that no amount was payable by the garnishee to the judgment debtor.
The garnishee obtained an unconditional stay of enforcement of the first adjudication determination.
The judgment debtor is insolvent.

5. Formal Citations

United Integrated Services Pte LtdvHarmonious Coretrades Pte Ltd, Originating Summons 1113 of 2018 (Registrar’s Appeal No 79 of 2019), [2019] SGHC 126

6. Timeline

Date	Event
2018-08-31	Adjudication determination ordered the judgment debtor to pay the judgment creditor $1,261,096.71.
2018-09-07	Deadline for payment of adjudication determination.
2018-10-23	Judgment debtor obtained an adjudication determination against the garnishee.
2018-11-02	Garnishee to show cause hearing; garnishee had no objections to the garnishee application.
2018-11-23	Second adjudication determination determined that no amount was payable by the garnishee to the judgment debtor.
2019-04-15	Hearing date.
2019-05-15	Judgment reserved.

7. Legal Issues

Setting Aside Garnishee Order
- Outcome: The court allowed the application to set aside the final garnishee order.
- Category: Procedural
- Related Cases:
  - [2001] 1 SLR(R) 213
  - [2014] 2 SLR 693
  - [2015] SGHCR 18
  - [2003] 2 SLR(R) 353
  - [2001] 2 SLR(R) 821
  - [1905] 1 Ch 432
  - [1966] 2 QB 746
  - [2019] SGHC 32
Inherent Powers of the Court
- Outcome: The court invoked its inherent powers to prevent injustice.
- Category: Jurisdictional
- Related Cases:
  - [2003] 2 SLR(R) 353
  - [2001] 2 SLR(R) 821

8. Remedies Sought

Setting aside the final garnishee order

9. Cause of Actions

No cause of actions

10. Practice Areas

Commercial Litigation
Construction Disputes

11. Industries

Construction

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
Ong Cher Keong v Goh Chin Soon Ricky	High Court	Yes	[2001] 1 SLR(R) 213	Singapore	Cited for the three circumstances in which an order may be set aside.
Airtrust (Singapore) Pte Ltd v Kao Chai-Chau Linda	High Court	Yes	[2014] 2 SLR 693	Singapore	Cited for the principle that the court retains a residual discretion to vary its terms where this is necessary to prevent injustice.
Sentosa Building Construction Pte Ltd v DJ Builders & Contractors Pte Ltd	Singapore High Court	Yes	[2015] SGHCR 18	Singapore	Cited for the principle that the court retains a residual discretion to vary the terms of an order where this is necessary to prevent injustice.
Roberto Building Material Pte Ltd & others v Overseas-Chinese Banking Corp Ltd and another	Court of Appeal	Yes	[2003] 2 SLR(R) 353	Singapore	Cited for the principle that the inherent jurisdiction of the court should only be exercised in special circumstances where the justice of the case so demands.
Re Nalpon Zero Geraldo Mario	Court of Appeal	Yes	[2013] 3 SLR 258	Singapore	Cited to clarify the difference between inherent jurisdiction and inherent powers.
Wee Soon Kim Anthony v Law Society of Singapore	Court of Appeal	Yes	[2001] 2 SLR(R) 821	Singapore	Cited for the principle that the inherent powers of the court should not be circumscribed by rigid criteria or tests.
Marshall v James	English High Court	Yes	[1905] 1 Ch 432	England and Wales	Cited as an example where the English High Court invoked its inherent powers to set aside a final garnishee order when none of the three circumstances were present.
Moore v Peachey	N/A	Yes	(1892) 66 L.T. 198	N/A	Cited as authority for remedying injustice done by a garnishee order.
UMCI Ltd v Tokio Marine & Fire Insurance Co (Singapore) Pte Ltd	N/A	Yes	[2006] 4 SLR(R) 95	Singapore	Cited for the approach to necessity in the context of the court’s inherent jurisdiction.
Powercore Pte Ltd v D+B Projects Pte Ltd (United Overseas Bank Limited, garnishee)	Singapore District Court	Yes	[2017] SGDC 157	Singapore	Cited for considerations in ensuring the judicious exercise of the court’s inherent powers.
In re General Horticultural Co, ex p. Whitehouse	N/A	Yes	(1886) 32 Ch.D. 512	N/A	Cited for the principle that a judgment creditor can only obtain what the judgment debtor could honestly give him.
W Y Steel Construction Pte Ltd v Osko Pte Ltd	N/A	Yes	[2013] 3 SLR 380	Singapore	Cited for the temporary finality of a SOPA adjudication determination.
Hale v Victoria Plumbing Co Ltd and another	English Court of Appeal	Yes	[1966] 2 QB 746	England and Wales	Cited as an example where the court deemed it appropriate to set aside the final garnishee order.
United Integrated Services Pte Ltd v Civil Tech Pte Ltd and another	High Court	Yes	[2019] SGHC 32	Singapore	Cited for the stay of enforcement of 1AD and the insolvency of the judgment debtor.
Glegg v Bromley	N/A	Yes	[1912] 3 KB 474	N/A	Cited for the principle that a garnishee order is a parasitic order.
Sunny Daisy Ltd v WBG Network (Singapore) Pte Ltd	N/A	Yes	Sunny Daisy Ltd v WBG Network (Singapore) Pte Ltd	Singapore	Cited for the three circumstances in which an order may be set aside.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)	Singapore
O 92 r 4 of the Rules of Court (Cap 322, R5, 2014 Ed)	Singapore

15. Key Terms and Keywords

15.1 Key Terms

Garnishee order
Adjudication determination
Inherent powers
Stay of enforcement
Insolvency
Building and Construction Industry Security of Payment Act

15.2 Keywords

garnishee order
SOPA
inherent powers
construction
Singapore

17. Areas of Law

Area Name	Relevance Score
Garnishee Proceedings	90
Inherent Power of the Court	85
Civil Practice	75
Building and Construction Industry Security of Payment Act	70
Construction Law	40
Administrative Law	30
Contract Law	25
Jurisdiction	20

16. Subjects

Civil Procedure
Construction Law