Ng Shu Yi v. Tan Yew Wei: Bankruptcy Application Dismissed Due to Debt Below Statutory Threshold

In the case of Ng Shu Yi (alias Wu Shuyi) v. Tan Yew Wei, before the General Division of the High Court of Singapore on August 2, 2021, the court dismissed a bankruptcy application filed by Ng Shu Yi against Tan Yew Wei. The application was based on a debt of $20,612.50 arising from a costs order. The court found that Tan Yew Wei had made a part payment of $6,500, reducing the debt below the $15,000 threshold required for a bankruptcy application. The court held that the creditor, Ng Shu Yi, could not reject this payment to maintain the debt above the threshold, and therefore dismissed the bankruptcy application.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Bankruptcy Application Dismissed

1.3 Case Type

Bankruptcy

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Bankruptcy application dismissed as debt fell below $15,000 threshold due to part payment. Court found creditor improperly rejected payment to maintain threshold.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Ng Shu Yi (alias Wu Shuyi)PlaintiffIndividualBankruptcy Application DismissedLost
Tan Yew WeiDefendantIndividualObjections SustainedWon

3. Judges

Judge NameTitleDelivered Judgment
Randeep Singh KoonarAssistant RegistrarYes

4. Counsels

Counsel NameOrganization
Diana FooTan See Swan & Co.
Liew Tuck Yin DavidDavid Liew Law Practice

4. Facts

  1. High Court ordered Defendant to pay Plaintiff costs of $20,612.50 on 3 March 2021.
  2. Plaintiff issued a statutory demand for $20,612.50, served on Defendant on 29 March 2021.
  3. Defendant transferred $6,500 to Plaintiff's bank account on 4 May 2021 as part payment.
  4. Plaintiff filed the Bankruptcy Application on 10 May 2021.
  5. Plaintiff transferred $6,500 back to Defendant on 1 June 2021.
  6. The Defendant's principal objection was that the debt had been reduced to $14,112.50 at the date the bankruptcy application was filed.

5. Formal Citations

  1. Ng Shu Yi (alias Wu Shuyi) v Tan Yew Wei, Bankruptcy No 1124 of 2021, [2021] SGHCR 6

6. Timeline

DateEvent
High Court ordered Defendant to pay Plaintiff costs of $20,612.50.
Plaintiff issued a statutory demand for $20,612.50.
Initial Statutory Demand served on the Defendant.
Defendant transferred $6,000 to Plaintiff's bank account.
Defendant's solicitors alleged the Initial Statutory Demand was defective.
Plaintiff rejected Defendant's part payment and transferred $6,000 back to the Defendant.
Plaintiff issued a fresh statutory demand against the Defendant.
Statutory Demand was served on the Defendant.
Defendant transferred $6,500 to the Plaintiff’s bank account.
Plaintiff filed the Bankruptcy Application.
Defendant’s solicitors informed Plaintiff of $6,500 part payment.
Plaintiff rejected part payment and transferred $6,500 back to Defendant.
Defendant filed a notice of objection to the Bankruptcy Application.
Oral judgment delivered dismissing the Bankruptcy Application.
Detailed grounds of decision set out.

7. Legal Issues

  1. Bankruptcy Threshold
    • Outcome: The court held that the debt was part-paid, and the remaining debt was below the $15,000 threshold, thus the bankruptcy application was dismissed.
    • Category: Substantive
    • Sub-Issues:
      • Part payment effect on statutory threshold
      • Rejection of part payment by creditor
  2. Presumption of Insolvency
    • Outcome: The court did not make a definitive view on whether the presumption of insolvency arises against an individual debtor when part payment results in the debt falling below the minimum sum for filing of a bankruptcy application.
    • Category: Procedural
    • Sub-Issues:
      • Effect of part payment on presumption of insolvency
    • Related Cases:
      • [2021] SGCA 60

8. Remedies Sought

  1. Bankruptcy Order

9. Cause of Actions

  • Bankruptcy Application

10. Practice Areas

  • Bankruptcy
  • Insolvency

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
HSBC Bank (Singapore) Ltd v Shi YuzhiHigh CourtYes[2017] 5 SLR 859SingaporeCited for the principle that the requirements under s 311(1) of the IRDA must be satisfied at the time the application is made.
Bombay Talkies (S) Pte Ltd v United Overseas Bank LtdCourt of AppealYes[2016] 2 SLR 875SingaporeCited to distinguish the difference between compounding a debt and part payments of a debt.
Sun Electric Power Pte Ltd v RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd)Court of AppealYes[2021] SGCA 60SingaporeCited for the legislative intent behind the $10,000 threshold prescribed by the since repealed s 254(2)(a) of the Companies Act (Cap 50, 2006 Rev Ed) to serve a statutory demand on a company for the purpose of winding up proceedings.
RCMA Asia Pte Ltd v Sun Electric Power Pte Ltd (Energy Market of Singapore, non-party)High CourtYes[2020] SGHC 205SingaporeCited as the High Court decision for the Sun Electric Power Pte Ltd v RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd) case.

13. Applicable Rules

Rule Name
r 91 of the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020 (S 585/2020)
r 88 of the PIR
r 99(a) of the PIR

14. Applicable Statutes

Statute NameJurisdiction
Bankruptcy Act (Cap 20, 2009 Rev Ed)Singapore
Insolvency, Restructuring and Dissolution Act (Act 40 of 2018)Singapore
s 311(1) of the IRDASingapore
s 312(a) of the IRDASingapore
s 9A(1) of the Interpretation Act (Cap 1, 2002 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Bankruptcy Application
  • Statutory Demand
  • Part Payment
  • Debt Threshold
  • Presumption of Insolvency
  • Rejection of Part Payment

15.2 Keywords

  • bankruptcy
  • insolvency
  • statutory demand
  • part payment
  • debt threshold

17. Areas of Law

Area NameRelevance Score
Bankruptcy95
Insolvency Law95
Jurisdiction50

16. Subjects

  • Bankruptcy
  • Insolvency Law
  • Civil Procedure