Zheng Hongfan v Singaravelu Murugan: Power of Attorney & Agent's Authority in Loan Agreement
In Zheng Hongfan v Singaravelu Murugan, the High Court of Singapore heard an application by Zheng Hongfan for a mandatory injunction against Singaravelu Murugan. The case concerned a loan agreement where Xingang Investment Pte Ltd loaned money to Emson Systems (S) Pte Ltd, guaranteed by Singaravelu Murugan. After Emson Systems defaulted, Zheng Hongfan, holding a Power of Attorney over Singaravelu Murugan's property, sought to sell the property. The court granted the injunction, ordering Singaravelu Murugan to provide access to the property for valuation and sale, and to bear the costs of the application.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Application granted.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiff sought a mandatory injunction to exercise power of attorney to sell property after loan default. Court granted the injunction, finding the power of attorney valid.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Zheng Hongfan | Plaintiff | Individual | Application granted | Won | Lim Tong Chuan, Pang Haoyu Samuel |
| Singaravelu Murugan | Defendant | Individual | Application dismissed | Lost | Cheryl Tan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lim Tong Chuan | Aquinas Law Alliance LLP |
| Pang Haoyu Samuel | Aquinas Law Alliance LLP |
| Cheryl Tan | Fernandez LLC |
4. Facts
- Xingang loaned Emson Systems S$350,000.
- The defendant and his wife guaranteed the loan.
- The defendant executed a Power of Attorney in favor of the plaintiff.
- Emson Systems defaulted on the loan agreement.
- The plaintiff sought to enforce the guarantee and exercise powers under the Power of Attorney.
- The plaintiff was unable to carry out the valuation of the property due to the defendant's actions.
5. Formal Citations
- Zheng Hongfan v Singaravelu Murugan, Originating Summons No 475 of 2019, [2019] SGHC 184
6. Timeline
| Date | Event |
|---|---|
| Power of Attorney dated | |
| Plaintiff's solicitors informed defendant of intent to exercise rights under Power of Attorney | |
| Valuation scheduled | |
| Zheng Hongfan Affidavit dated | |
| Summons for Injunction dated | |
| Hearing held | |
| Judgment issued |
7. Legal Issues
- Construction of agent’s authority
- Outcome: The court held that the Power of Attorney granted the plaintiff sufficient authority to access and sell the property.
- Category: Substantive
- Power of Attorney
- Outcome: The court found the Power of Attorney valid and enforceable, granting the plaintiff the right to sell the property.
- Category: Substantive
8. Remedies Sought
- Mandatory Injunction
- Costs
9. Cause of Actions
- Enforcement of Guarantee
- Exercise of Power of Attorney
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court Order 60 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Moneylenders Act (Cap 188, 2010 Rev Ed) s 2(e)(iii) | Singapore |
| Conveyancing and Law of Property Act (Chapter 61) Section 48 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Power of Attorney
- Loan Agreement
- Deed of Guarantee
- Mandatory Injunction
- Valuation
- Agreed Property Price
- Event of Default
15.2 Keywords
- Power of Attorney
- Loan Agreement
- Injunction
- Property
- Agency
16. Subjects
- Agency
- Contract Law
- Power of Attorney
17. Areas of Law
- Agency
- Construction Law
- Contract Law