CEQ v CER: Stay of Enforcement of Adjudication Determination Pending Appeal and Arbitration
In CEQ v CER, the High Court of Singapore heard an application by CEQ for a stay of enforcement of an adjudication determination previously awarded to CER under the Building and Construction Industry Security of Payment Act. The application was made pending appeal of the court's earlier decision and the disposal of proceedings in the Singapore International Arbitration Centre arbitration. Lee Seiu Kin J granted the stay and ordered a partial release of S$500,000 to CEQ's solicitors to be used for CER's legal fees and disbursements in the appeal and arbitration.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Application allowed; stay of enforcement of adjudication determination granted.
1.3 Case Type
Building and Construction Law
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Application for stay of enforcement of adjudication determination. Court granted stay and ordered partial release of funds for legal fees.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| CEQ | Applicant | Corporation | Application allowed | Won | Ng Hweelon, Valliappan Subramaniam |
| CER | Respondent | Corporation | Partial Release of Funds | Partial | Chong Chi Chuin Christopher, Kelvin Teo, Josh Samuel Tan Wensu |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ng Hweelon | Veritas Law Corporation |
| Valliappan Subramaniam | Veritas Law Corporation |
| Chong Chi Chuin Christopher | Drew & Napier LLC |
| Kelvin Teo | Drew & Napier LLC |
| Josh Samuel Tan Wensu | Drew & Napier LLC |
4. Facts
- Applicant sought a stay of enforcement of an adjudication determination.
- The adjudication determination was made pursuant to the Building and Construction Industry Security of Payment Act.
- Applicant argued the Respondent was insolvent and a shell company.
- Respondent argued it is a going concern with ongoing work and receivables.
- The court found the evidence insufficient to establish actual present insolvency.
- The court found the Respondent acted evasively in proving its viability as a company.
- The court granted the stay of enforcement and ordered a partial release of funds.
5. Formal Citations
- CEQ v CER, Originating Summons No 1412 of 2019, [2020] SGHC 192
- CEQ v CER, , [2020] SGHC 70
6. Timeline
| Date | Event |
|---|---|
| Employment relationship terminated by the Applicant. | |
| Respondent began serving payment claims on a monthly basis. | |
| Payment Claim 25 lodged for S$3,262,740.23. | |
| Applicant's application to set aside adjudication determination dismissed. | |
| Hearing of the application for stay of enforcement. | |
| Judgment issued granting stay of enforcement. |
7. Legal Issues
- Stay of Execution
- Outcome: Stay of enforcement of the adjudication determination was granted.
- Category: Procedural
- Sub-Issues:
- Insolvency of claimant
- Risk of non-recovery
- Partial Release of Monies
- Outcome: Partial release of S$500,000 of the sums held in court solely for the purpose of legal fees in pursuing the arbitration and the appeal was granted.
- Category: Procedural
8. Remedies Sought
- Stay of execution of the adjudication determination
- Partial release of monies held in court
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Construction Law
- Arbitration
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| CEQ v CER | High Court | Yes | [2020] SGHC 70 | Singapore | Previous decision involving the same parties, related to the application to set aside the adjudication determination. |
| W Y Steel Construction Pte Ltd v Osko Pte Ltd | Court of Appeal | Yes | [2013] 3 SLR 380 | Singapore | Sets forth the situations in which a stay of enforcement of an adjudication determination should be granted. |
| Lau Fook Hoong Adam v GTH Engineering & Construction Pte Ltd | High Court | Yes | [2015] 4 SLR 615 | Singapore | Confirms that the successful claimant will be entitled to the adjudication amount that was paid into court pursuant to s 27(5) of the Act. |
| Farrelly (M & E) Building Services Ltd v Byrne Bros (Formwork) Ltd | N/A | Yes | [2013] Bus LR 1413 | England | Cited for the proposition that there is no general obligation on a party when seeking enforcement to disclose confidential financial information. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Adjudication determination
- Stay of enforcement
- Building and Construction Industry Security of Payment Act
- Insolvency
- Partial release
- Arbitration
- Legal fees
15.2 Keywords
- Adjudication
- Stay of Execution
- Construction
- Singapore
- Arbitration
16. Subjects
- Building and Construction Law
- Civil Procedure
- Arbitration
17. Areas of Law
- Building and Construction Law
- Civil Procedure