Dongah Geological Engineering v Jungwoo E&C: SOPA Adjudication, Fraud Allegations & Stay of Enforcement

In Dongah Geological Engineering Co Ltd v Jungwoo E&C Pte Ltd, the General Division of the High Court of Singapore addressed an application by Dongah Geological Engineering to set aside an adjudication determination (AD) and an enforcement order, alleging fraud under the Security of Payment Act (SOPA). The dispute arose from a subcontract for Land Transport Authority project where Dongah Geological Engineering failed to pay Jungwoo E&C for completed works. Jungwoo E&C obtained an AD for $2,428,690.04, which Dongah Geological Engineering contested, claiming Jungwoo E&C misrepresented market rates for additional light grouting works. Tan Siong Thye J dismissed the application to set aside the AD but granted a partial stay of enforcement, ordering the release of $1,205,565.01 to Jungwoo E&C while retaining the remainder pending arbitration.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Plaintiff's claim allowed in part. The court ordered a partial stay of enforcement of the adjudication determination.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court addresses setting aside an adjudication determination under SOPA due to alleged fraud and considers a stay of enforcement.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Dongah Geological Engineering Co LtdPlaintiffCorporationClaim Allowed in PartPartial
Jungwoo E&C Pte LtdDefendantCorporationPartial Stay of Enforcement GrantedPartial

3. Judges

Judge NameTitleDelivered Judgment
Tan Siong ThyeJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Campos Conrad MelvilleRHTLaw Asia LLP
Chong Jia HaoRHTLaw Asia LLP
Michelle Lim Ann NeeRHTLaw Asia LLP
S MagintharanEssex LLC
Liew Boon Kwee JamesEssex LLC

4. Facts

  1. Dongah Geological Engineering Co Ltd and Jungwoo E&C Pte Ltd entered into a subcontract on 1 September 2019.
  2. The subcontract was for ground improvement works or deep soil mixing for an LTA project.
  3. Jungwoo E&C Pte Ltd served a payment claim on Dongah Geological Engineering Co Ltd on 20 April 2021 for $2,501,551.45.
  4. An adjudicator rendered his adjudication determination on 15 July 2021, holding Dongah Geological Engineering Co Ltd liable to pay Jungwoo E&C Pte Ltd $2,428,690.04.
  5. Dongah Geological Engineering Co Ltd commenced arbitration proceedings against Jungwoo E&C Pte Ltd on 9 July 2021.
  6. Dongah Geological Engineering Co Ltd applied to set aside the adjudication determination and the enforcement order on the ground of fraud.

5. Formal Citations

  1. Dongah Geological Engineering Co Ltd v Jungwoo E&C Pte Ltd, Originating Summons No 831 of 2021, [2021] SGHC 239

6. Timeline

DateEvent
Subcontract signed between Dongah Geological Engineering Co Ltd and Jungwoo E&C Pte Ltd.
Jungwoo E&C Pte Ltd served a payment claim on Dongah Geological Engineering Co Ltd.
Jungwoo E&C Pte Ltd commenced Adjudication Application No. SOP/AA 108 of 2021.
Dongah Geological Engineering Co Ltd commenced arbitration proceedings against Jungwoo E&C Pte Ltd in SIAC Arbitration No 210 of 2021.
Adjudicator rendered his adjudication determination in Adjudication Application No. SOP/AA 108 of 2021.
Jungwoo E&C Pte Ltd applied to enforce the adjudication determination in Originating Summons No 781 of 2021.
Assistant Registrar granted Jungwoo E&C Pte Ltd's application to enforce the adjudication determination in HC/ORC 4359/2021.
Hearing date.
Judgment date.

7. Legal Issues

  1. Fraud
    • Outcome: The court found that the plaintiff did not prove that the adjudication determination should be set aside on the ground of fraud.
    • Category: Substantive
  2. Stay of Enforcement
    • Outcome: The court ordered a partial stay of enforcement of the adjudication determination pending the disposal of the proceedings in ARB 210.
    • Category: Procedural
  3. Injunction against winding up application
    • Outcome: The court made no order for an injunction against the defendant to prevent it from commencing a winding up application.
    • Category: Procedural

8. Remedies Sought

  1. Setting aside of adjudication determination
  2. Stay of enforcement of adjudication determination
  3. Injunction to restrain winding up application

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Facade Solution Pte Ltd v Mero Asia Pacific LtdCourt of AppealYes[2020] 2 SLR 1125SingaporeCited for the two-step test for setting aside an adjudication determination on the ground of fraud.
W Y Steel Construction v Osko Pte LtdCourt of AppealYes[2013] 3 SLR 380SingaporeCited for the conditions under which a stay of enforcement of an adjudication determination may be justified.
CEQ v CERHigh CourtYes[2020] SGHC 192SingaporeCited for clarification that the two limbs of the W Y Steel test are disjunctive.

13. Applicable Rules

Rule Name
O 95 r 3 of the Rules of Court (2014 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)Singapore
s 10 of the Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)Singapore
s 27(6)(h) of the SOPASingapore
s 27(5) of the SOPASingapore
ss 27(1) and 27(2) of the SOPASingapore
s 15(3) of the SOPASingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Adjudication Determination
  • Security of Payment Act
  • Stay of Enforcement
  • Fraud
  • Subcontract
  • Deep Soil Mixing
  • Payment Claim
  • Adjudicated Sum
  • Light Grouting Works
  • Arbitration

15.2 Keywords

  • adjudication
  • construction
  • SOPA
  • fraud
  • stay of enforcement
  • Singapore

17. Areas of Law

Area NameRelevance Score
Adjudication80
Construction Law75
Arbitration60
Civil Litigation50
Injunctions40
Contract Law40
Administrative Law30

16. Subjects

  • Construction Dispute
  • Adjudication
  • Contract Law
  • Civil Procedure