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 Singapore

1.2 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 NameRoleTypeOutcomeOutcome TypeCounsels
Zheng HongfanPlaintiffIndividualApplication grantedWon
Singaravelu MuruganDefendantIndividualApplication dismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Pang Haoyu SamuelAquinas Law Alliance LLP
Lim Tong ChuanAquinas Law Alliance LLP
Cheryl TanFernandez LLC

4. Facts

  1. Xingang loaned Emson Systems S$350,000.
  2. The defendant and his wife guaranteed the loan.
  3. The defendant executed a Power of Attorney in favor of the plaintiff.
  4. Emson Systems defaulted on the loan agreement.
  5. The plaintiff sought to enforce the guarantee and exercise powers under the Power of Attorney.
  6. The plaintiff was unable to carry out the valuation of the property due to the defendant's actions.

5. Formal Citations

  1. Zheng Hongfan v Singaravelu Murugan, Originating Summons No 475 of 2019, [2019] SGHC 184

6. Timeline

DateEvent
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

  1. 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
  2. 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

  1. Mandatory Injunction
  2. 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 NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
Rules of Court Order 60

14. Applicable Statutes

Statute NameJurisdiction
Moneylenders Act (Cap 188, 2010 Rev Ed) s 2(e)(iii)Singapore
Conveyancing and Law of Property Act (Chapter 61) Section 48Singapore

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

17. Areas of Law

Area NameRelevance Score
Moneylenders Act90
Power of Attorney85
Agency Law75
Contract Law60
Trust Law30
Banking and Finance25
Mortgage Law20
Procedural Law15

16. Subjects

  • Agency
  • Contract Law
  • Power of Attorney