Energy Resource Investment Pte Ltd v International Golf Resorts Pte Ltd: Winding Up Application & Disputed Debt
In the General Division of the High Court of Singapore, Energy Resource Investment Pte Ltd sought to wind up International Golf Resorts Pte Ltd based on the latter's inability to pay debts arising from three loans. The court, presided over by Aedit Abdullah J, dismissed the winding-up application, finding that triable issues existed regarding the first and third loans, and that the defendant demonstrated the ability to pay the second loan when it becomes due in August 2022.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Winding-up application dismissed.
1.3 Case Type
Insolvency
1.4 Judgment Type
Brief Remarks
1.5 Jurisdiction
Singapore
1.6 Description
Winding up application dismissed due to disputed debts and the defendant's ability to pay the second loan when due. Triable issues raised.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Energy Resource Investment Pte Ltd | Plaintiff | Corporation | Application Dismissed | Dismissed | Davinder Singh SC, Hanspreet Singh Sachdev, Jaspreet Singh Sachdev, Waverly Seong |
| International Golf Resorts Pte Ltd | Defendant | Corporation | Winding-up Application Dismissed | Won | Vikram Nair, Foo Xian Fong, Glenna Liew, Mazie Tan, Ashwin Menon |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Aedit Abdullah | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Davinder Singh SC | Davinder Singh Chambers LLC |
| Hanspreet Singh Sachdev | Davinder Singh Chambers LLC |
| Jaspreet Singh Sachdev | Davinder Singh Chambers LLC |
| Waverly Seong | Davinder Singh Chambers LLC |
| Vikram Nair | Rajah & Tann Singapore LLP |
| Foo Xian Fong | Rajah & Tann Singapore LLP |
| Glenna Liew | Rajah & Tann Singapore LLP |
| Mazie Tan | Rajah & Tann Singapore LLP |
| Ashwin Menon | Rajah & Tann Singapore LLP |
4. Facts
- Energy Resource Investment Pte Ltd sought to wind up International Golf Resorts Pte Ltd.
- The winding-up application was based on three loans made to the Defendant.
- The first loan was novated to the Plaintiff from Mr. Low.
- The Defendant argued the first and third loans were subject to an arbitration clause or gave rise to triable issues.
- The second loan was payable in August 2022.
- The Defendant argued it was able to make payment on the second loan when due.
- The court found triable issues had been raised regarding the first and third loans.
5. Formal Citations
- Energy Resource Investment Pte Ltd v International Golf Resorts Pte Ltd, Companies Winding Up No 66 of 2022, [2022] SGHC 134
6. Timeline
| Date | Event |
|---|---|
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Disputed Debt
- Outcome: The court found that triable issues existed regarding the first and third loans, and therefore the debts were disputed.
- Category: Substantive
- Sub-Issues:
- Existence of arbitration agreement
- Triable issues raised
- Insolvency
- Outcome: The court found that the Plaintiff had not proven that the Defendant would be unable to repay its debts as they fall due.
- Category: Substantive
8. Remedies Sought
- Winding-up order
9. Cause of Actions
- Winding up
10. Practice Areas
- Winding Up
- Commercial Litigation
11. Industries
- Hospitality
- Golf Resorts
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Sun Electric Power Pte Ltd v RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd) | High Court | Yes | [2021] 2 SLR 478 | Singapore | Cited for the cash flow test to assess a company's ability to meet its debts as and when they fall due. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Insolvency, Restructuring and Dissolution Act 2018 (2020 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Winding up
- Disputed debt
- Triable issue
- Arbitration clause
- Novation
- Insolvency
- Cash flow test
- Understanding
- Estoppel
15.2 Keywords
- Winding up
- Insolvency
- Disputed debt
- Arbitration
- Singapore
- Companies Act
16. Subjects
- Insolvency
- Companies
- Winding Up
17. Areas of Law
- Insolvency Law
- Companies Law
- Arbitration Law