SVM International Trading v Liew Kum Chong: Sham Transaction & Illegal Moneylending Dispute
In SVM International Trading Pte Ltd and others v Liew Kum Chong, the Court of Appeal of Singapore heard an appeal regarding a High Court decision where Liew Kum Chong sought repayment of loans from SVM International Trading Pte Ltd, Feasto Pte Ltd, Mizimegah Pte Ltd, and Scarlett Merida Xi Wei Yuan as guarantor. The appellants argued the loans were sham transactions and violated the Moneylenders Act. The Court of Appeal dismissed the appeal, affirming the High Court's findings that the loans were not sham transactions and did not infringe the Moneylenders Act. The court ordered the appellants to pay costs to the respondent.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeals dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Ex Tempore Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal addressed whether loans were sham transactions and infringed the Moneylenders Act. The court dismissed the appeal, affirming the High Court's findings.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| SVM International Trading Pte Ltd | Appellant, Defendant | Corporation | Appeal dismissed | Lost | |
| Feasto Pte Ltd | Appellant, Defendant | Corporation | Appeal dismissed | Lost | |
| Mizimegah Pte Ltd | Appellant, Defendant | Corporation | Appeal dismissed | Lost | |
| Scarlett Merida Xi Wei Yuan | Appellant, Defendant | Individual | Appeal dismissed | Lost | |
| Liew Kum Chong | Respondent, Plaintiff | Individual | Judgment for Plaintiff | Won | |
| Pan Jiaying | Defendant | Individual | Action discontinued | Dismissed |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tay Yong Kwang | Judge of Appeal | Yes |
| Belinda Ang Saw Ean | Judge | No |
| Quentin Loh | Judge | No |
4. Counsels
4. Facts
- The respondent sought repayment of the balance outstanding on three loans.
- One loan was given to each of the three appellant companies.
- The loan amounts were $400,000, $200,000 and $200,000 respectively.
- Half of each of the three loan amounts had been repaid, leaving a total of $400,000 still outstanding.
- The respondent also sued the fourth appellant and Pan Jiaying jointly and severally as guarantors for the said loans.
- The appellants raised the defence that the loans to the three companies were sham transactions and the true borrower was Pan.
- The appellants raised the defence that the loans and the guarantee were not enforceable because of the Moneylenders Act.
5. Formal Citations
- SVM International Trading Pte Ltd and others v Liew Kum Chong, Civil Appeal No 88 of 2019, [2020] SGCA 63
6. Timeline
| Date | Event |
|---|---|
| Action against Pan Jiaying deemed discontinued. | |
| Judgment delivered. |
7. Legal Issues
- Sham Transaction
- Outcome: The court held that the loans were not sham transactions.
- Category: Substantive
- Illegal Moneylending
- Outcome: The court held that the loans and guarantee were enforceable and did not infringe the Moneylenders Act.
- Category: Substantive
8. Remedies Sought
- Repayment of Loan
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Enforcement of Guarantee
10. Practice Areas
- Commercial Litigation
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Moneylenders Act (Cap 188, 2010 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Sham transaction
- Moneylenders Act
- Guarantee
- Unconscionability
- Non est factum
- Loan agreement
- Options to purchase
- Security for loans
15.2 Keywords
- Loan
- Moneylender
- Contract
- Guarantee
- Singapore
- Appeal
17. Areas of Law
16. Subjects
- Contract Law
- Banking Law
- Finance Law