Tong Seak Kan v Jaya Sudhir: Contract Dispute over Liquefied Natural Gas Project
Tong Seak Kan and Kensington Park Holdings Limited sued Jaya Sudhir a/l Jayaram in the High Court of Singapore, claiming US$8,630,000 and HK$618,000 for breach of contract related to a failed liquefied natural gas (LNG) project and other dealings. The court, presided over by Justice Hoo Sheau Peng, ruled in favor of the plaintiffs, finding Sudhir liable for the claimed amounts, plus interest and costs. The court rejected Sudhir's defenses of sham, illegality, and illegal moneylending.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiffs
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Plaintiffs Tong Seak Kan and Kensington Park Holdings Limited sued Jaya Sudhir for breach of contract related to a failed LNG project. The court allowed the claim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tong Seak Kan | Plaintiff | Individual | Judgment for Plaintiff, Judgment for Plaintiff, Judgment for Plaintiff, Judgment for Plaintiff | Won, Won, Won, Won | Harish Kumar, Jonathan Toh, Josephine Chee |
| Kensington Park Holdings Limited | Plaintiff | Corporation | Judgment for Plaintiff | Won | Harish Kumar, Jonathan Toh, Josephine Chee |
| Jaya Sudhir a/l Jayaram | Defendant | Individual | Claim Dismissed | Lost | Tan Teng Muan, Loh Li Qin |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Hoo Sheau Peng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Harish Kumar | Rajah & Tann Singapore LLP |
| Jonathan Toh | Rajah & Tann Singapore LLP |
| Josephine Chee | Rajah & Tann Singapore LLP |
| Tan Teng Muan | Mallal & Namazie |
| Loh Li Qin | Mallal & Namazie |
4. Facts
- Tong and Kensington claimed against Sudhir for sums of money paid to him, his corporate vehicles, and his associates.
- Sudhir allegedly agreed to be liable for the payments.
- The payments were related to a liquefied natural gas (LNG) project and other dealings.
- Sudhir contested the enforceability of the repayment documents and denied liability.
- The court allowed the plaintiffs’ claim in the total sum of US$8,630,000 and HK$618,000.
- Sudhir signed a series of documents acknowledging liability for 18 of the payments.
- The plaintiffs relied on a formal agreement dated 30 December 2010 and a document dated 3 March 2010.
5. Formal Citations
- Tong Seak Kan and another v Jaya Sudhir a/l Jayaram, Suit No 724 of 2014, [2019] SGHC 190
6. Timeline
| Date | Event |
|---|---|
| Macau Natural Gas Company Limited incorporated in Macau | |
| Tong met with Mohamed Nazim Bin Tun Razak | |
| Kensington Park Holdings Limited incorporated in the British Virgin Islands | |
| Lam Weng Ian Cecilia transferred US$100,000 to Hesselink Investments Limited | |
| Tong transferred US$180,000 to Hesselink Investments Limited | |
| Tong transferred US$400,000 to Al-Rafidian Holdings Pte Ltd | |
| Consultancy Agreement entered into between Kensington and Firstfield | |
| Kensington transferred US$720,000 to Al-Rafidian Holdings Pte Ltd | |
| Kensington transferred US$500,000 to Al-Rafidian Holdings Pte Ltd | |
| Kensington transferred US$450,000 to Al-Rafidian Holdings Pte Ltd | |
| Tong advanced HK$308,000 to Sudhir | |
| Tong advanced HK$300,000 to Sudhir | |
| Kensington transferred US$180,000 to Al-Rafidian Holdings Pte Ltd | |
| Kensington transferred US$1,642,000 to Petunia Venture Corp | |
| Kensington transferred US$600,000 to Al-Rafidian Holdings Pte Ltd | |
| Kensington transferred US$350,000 to Al-Rafidian Holdings Pte Ltd | |
| 11,000,000 ordinary shares in Ocean King Limited transferred by Petunia to Tong | |
| Tong transferred US$350,000 to Al-Rafidian Holdings Pte Ltd | |
| Tong transferred HK$10,000 to Cynthia Jacinto | |
| Tong transferred US$60,000 to Al-Rafidian Holdings Pte Ltd | |
| Loan agreement signed for Payment 16 | |
| Tong transferred US$120,000 to Al-Rafidian Holdings Pte Ltd | |
| Tong transferred US$250,000 to Rianto Sutjipto Ronny | |
| Kensington transferred US$250,000 to Al-Rafidian Holdings Pte Ltd | |
| Sudhir acknowledged indebtedness for Payments 1 to 18 | |
| Tong paid US$500,000 to Rianto | |
| Tong paid US$1,000,000 to Abiyoso Soetjipto | |
| Formal agreement signed recording Sudhir’s liability for Payments 6, 9 and 10 | |
| Statement signed by the parties | |
| Two formal agreements made with Kensington | |
| Suit No 724 of 2014 filed | |
| Trial began | |
| Sudhir was absent from trial | |
| Sudhir was absent from trial | |
| Closing submissions filed | |
| Judgment issued | |
| Grounds of Decision issued |
7. Legal Issues
- Breach of Contract
- Outcome: The court found the defendant liable for breach of contract.
- Category: Substantive
- Enforceability of Repayment Documents
- Outcome: The court found the repayment documents to be enforceable.
- Category: Substantive
- Illegality
- Outcome: The court rejected the illegality defense.
- Category: Substantive
- Moneylending
- Outcome: The court rejected the illegal moneylending defense.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Energy
- Oil and Gas
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Subramaniam Dhanapakiam v Ghaanthimathi | N/A | Yes | [1991] 1 SLR(R) 164 | Singapore | Cited for the test for carrying on a business of moneylending. |
| Sheagar s/o T M Veloo v Belfield International (Hong Kong) Ltd | N/A | Yes | [2014] 3 SLR 524 | Hong Kong | Cited for the test for carrying on a business of moneylending. |
| Airtrust (Hong Kong) Ltd v PH Hydraulics & Engineering Ptd Ltd | N/A | Yes | [2016] 5 SLR 103 | Hong Kong | Cited for the principle that indemnity costs may be awarded where a party’s conduct in the course of proceedings is dishonest, abusive or improper. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Moneylenders Act (Cap 188, 1985 Rev Ed) | Singapore |
| Moneylenders Act 2008 (Act 31 of 2008) | Singapore |
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Liquefied Natural Gas (LNG)
- LNG Project
- Repayment Documents
- Consultancy Agreement
- Heads of Agreement (HOA)
- Sale and Purchase Agreement (SPA)
- Escrow Agent
- Ocean King Limited (OKL)
- Sand Project
- Moneylenders Act (MLA)
15.2 Keywords
- contract
- liquefied natural gas
- lng
- singapore
- breach of contract
- moneylender
16. Subjects
- Contract Dispute
- Breach of Contract
- Moneylending
17. Areas of Law
- Contract Law
- Illegality and Public Policy
- Credit and Security
- Moneylenders Act