Slim Beauty House Co Ltd v MSB Beauty Pte Ltd: Winding Up Order and Allocation of Liquidation Costs

In the High Court of Singapore, Choo Han Teck J dismissed an application by the liquidator in the case of *Slim Beauty House Co Ltd v MSB Beauty Pte Ltd*, regarding the winding up of MSB Beauty Pte Ltd. Slim Beauty House Co Ltd had previously obtained a winding up order against MSB Beauty Pte Ltd. The liquidator sought an order for Mary Chia Beauty & Slimming Specialist Pte Ltd (MCB) to pay the costs of liquidation based on a prior arbitration award. The court dismissed the application, stating that MCB was not a party to the winding up proceedings and the matter should be pursued through enforcement of the arbitration award.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Application dismissed.

1.3 Case Type

Insolvency

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

The High Court addresses the allocation of liquidation costs in the winding up of MSB Beauty, dismissing an application to compel MCB to pay these costs.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Slim Beauty House Co LtdPlaintiffCorporationApplication dismissedLostTay Yong Seng, Alexander Yeo, Ang Ann Liang
MSB Beauty Pte LtdDefendantCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Chia Voon JietDrew & Napier LLC
Sim Bing WenDrew & Napier LLC
Tay Yong SengAllen & Gledhill LLP
Alexander YeoAllen & Gledhill LLP
Ang Ann LiangAllen & Gledhill LLP
Pradeep PillaiPRP Law LLC
Joycelyn LinPRP Law LLC
Jonas WongPRP Law LLC

4. Facts

  1. SBH obtained a winding up order against MSB on 20 August 2018.
  2. SBH and MCB were shareholders of MSB and were in a dispute that went to arbitration.
  3. The arbitrator ordered MCB to pay damages to SBH and bear all liquidation expenses.
  4. The liquidator applied for an order that MCB pay the costs of liquidation, including $72,500 incurred thus far.
  5. MCB was not a party in the winding up proceedings.
  6. The court previously ordered the costs of winding up to be paid from the assets of MSB.

5. Formal Citations

  1. Slim Beauty House Co Ltd v MSB Beauty Pte Ltd, , [2019] SGHC 194

6. Timeline

DateEvent
Arbitration award issued ordering MCB to pay damages to SBH and bear liquidation expenses.
Winding up order obtained against MSB Beauty Pte Ltd.
Companies Winding Up No 131 of 2018 commenced.
Judgment reserved.
Judgment issued.

7. Legal Issues

  1. Allocation of Liquidation Costs
    • Outcome: The court dismissed the application to compel MCB to pay the liquidation costs, holding that MCB was not a party to the winding up proceedings.
    • Category: Substantive
  2. Enforcement of Arbitral Award
    • Outcome: The court indicated that the plaintiff should enforce the arbitral award against MCB through the usual legal channels.
    • Category: Procedural

8. Remedies Sought

  1. Order for MCB to pay liquidation costs

9. Cause of Actions

  • Winding Up
  • Enforcement of Arbitration Award

10. Practice Areas

  • Winding Up
  • Commercial Litigation

11. Industries

  • Beauty

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
Order 88 rule 2(5)(b) of the Rules of Court (Cap 322, R 5, 2014 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Section 254(1)(a), (c), (e) and (i) of the Companies Act (Cap 50)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Winding up
  • Liquidation costs
  • Arbitration award
  • Liquidator
  • Contributory

15.2 Keywords

  • Winding up
  • liquidation
  • costs
  • arbitration
  • Singapore
  • High Court

16. Subjects

  • Insolvency
  • Winding Up
  • Civil Procedure

17. Areas of Law

  • Insolvency Law
  • Company Law
  • Civil Procedure