Chiap Seng Productions v Newspaper Seng Logistics: Landlord-Tenant Dispute over Service Agreement & Asset Disposal

In Chiap Seng Productions Pte Ltd v Newspaper Seng Logistics Pte Ltd, the High Court of Singapore ruled in favor of Chiap Seng Productions, a scaffolding company, in its claim against Newspaper Seng Logistics, a newspaper recycling company, for the unlawful disposal of assets stored at Newspaper Seng Logistics' premises. The court, presided over by Justice Tan Siong Thye, found that the Service Agreement between the parties was, in substance, a tenancy agreement, and that Newspaper Seng Logistics had breached both the COVID-19 Act and the Distress Act by intentionally disposing of Chiap Seng Productions' assets. The court dismissed Newspaper Seng Logistics' counterclaim for outstanding arrears.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Chiap Seng Productions sued Newspaper Seng Logistics over the disposal of assets stored on leased premises. The court found a landlord-tenant relationship and ruled in favor of Chiap Seng.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Newspaper Seng Logistics Pte LtdDefendantCorporationCounterclaim DismissedLost
Chiap Seng Productions Pte LtdPlaintiffCorporationClaim AllowedWon

3. Judges

Judge NameTitleDelivered Judgment
Tan Siong ThyeJudgeYes

4. Counsels

Counsel NameOrganization
Lim Bee LiChevalier Law LLC
Wong Zhen YangChevalier Law LLC
Loh Yik Ming MichaelClifford Law LLP

4. Facts

  1. Chiap Seng Productions and Newspaper Seng Logistics entered into a Service Agreement on 1 November 2019.
  2. Under the Service Agreement, Chiap Seng Productions was to store its assets at Newspaper Seng Logistics' premises for a monthly fee.
  3. On 24 September 2020, Newspaper Seng Logistics seized Chiap Seng Productions' assets due to arrears in monthly fees.
  4. On 5 October 2020, Newspaper Seng Logistics sold the assets for scrap to Yew Huat Scaffolding & Construction Pte Ltd for $42,800.
  5. Chiap Seng Productions claims damages arising from the intentional disposal of the assets.
  6. Newspaper Seng Logistics counterclaims for $6,750, the balance of outstanding arrears after the sale proceeds of the assets.
  7. The court found that the Service Agreement was in substance a tenancy agreement.

5. Formal Citations

  1. Chiap Seng Productions Pte Ltd v Newspaper Seng Logistics Pte Ltd, Suit No 1028 of 2020, [2022] SGHC 202

6. Timeline

DateEvent
Service Agreement signed between Chiap Seng Productions and Newspaper Seng Logistics.
Singapore Government announced "Circuit Breaker" measures.
Newspaper Seng Logistics issued Statement of Accounts as at 30 April 2020 in the sum of $54,912.
Newspaper Seng Logistics issued two credit notes of $1,400 and $5,992.
Newspaper Seng Logistics issued its Statement of Accounts stating that the outstanding amount owed by Chiap Seng Productions was $57,150.
Newspaper Seng Logistics' solicitors sent a letter of demand to Chiap Seng Productions for arrears in rental from December 2019 to June 2020 amounting to $57,150.
CHBC Integrated Builders Pte Ltd issued a letter to Newspaper Seng Logistics informing them that subletting the Premises to Chiap Seng Productions was not authorised.
Newspaper Seng Logistics’ solicitors sent Chiap Seng Productions a letter of demand for $37,120 in arrears as at June 2020.
Newspaper Seng Logistics’ solicitors sent Chiap Seng Productions a reminder copy of the 3rd LOD.
Newspaper Seng Logistics’ solicitors sent Chiap Seng Productions a letter of demand for the sum of $37,120 in arrears.
Assets began to be transported out of the Premises.
Newspaper Seng Logistics’ solicitors sent Chiap Seng Productions a letter informing them that Newspaper Seng Logistics had removed the Assets from the Premises and sold them.
Chiap Seng Productions sent numerous e-mails to Newspaper Seng Logistics containing, inter alia, Chiap Seng Productions’ creditor statement and a letter informing Newspaper Seng Logistics that it had unlawfully trespassed against Chiap Seng Productions’ property.
Chiap Seng Productions arranged for its employees to retrieve the remainder of the Assets from the Premises, but Mr Patrick refused to allow them to do so.
Chiap Seng Productions’ employees witnessed a transport company removing the remainder of the Assets from the Service Area.
Newspaper Seng Logistics issued its Statement of Accounts as at 30 September 2020.
Inland Revenue Authority of Singapore issued a letter to Newspaper Seng Logistics with the title “NOTICE OF CASH GRANT AND RENTAL WAIVER (RENTAL RELIEF FRAMEWORK)”.
Trial began.
Judgment reserved.
Judgment issued.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the defendant breached the Service Agreement, which was in substance a tenancy agreement, by unlawfully disposing of the plaintiff's assets.
    • Category: Substantive
  2. Wrongful Disposal of Assets
    • Outcome: The court held that the defendant's disposal of the plaintiff's assets was wrongful under both the COVID-19 Act and the Distress Act.
    • Category: Substantive
  3. Tenancy Agreement vs. Service Agreement
    • Outcome: The court ruled that the 'Service Agreement' was, in substance, a tenancy agreement, establishing a landlord-tenant relationship between the parties.
    • Category: Substantive

8. Remedies Sought

  1. Damages
  2. Restitution
  3. Declaration of Ownership
  4. Order for Delivery of Assets
  5. Indemnity

9. Cause of Actions

  • Breach of Contract
  • Trespass
  • Unlawful Disposal of Assets

10. Practice Areas

  • Commercial Litigation
  • General Litigation

11. Industries

  • Construction
  • Recycling

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Ritzland Investment Pte Ltd v Grace Management & Consultancy Services Pte LtdHigh CourtYes[2014] 2 SLR 1342SingaporeCited to differentiate between a contract conferring personal rights and an actual lease or license granting proprietary rights.
Re Tan Tye, deceased; Tan Lian Chye v British & Malayan Trustees LtdFederal CourtYes[1965–1967] SLR(R) 226SingaporeCited regarding the determination of the relationship between parties based on law, not labels.
NTUC Foodfare Co-operative Ltd v SIA Engineering Co Ltd and anotherCourt of AppealYes[2018] 2 SLR 588SingaporeCited for the definition of exclusive possession in tenancy agreements.
RDC Concrete Pte Ltd v Sato Kogyo (S) Pte Ltd and another appealCourt of AppealYes[2007] 4 SLR(R) 413SingaporeCited for the framework setting out the situations that entitle an innocent party to terminate a contract at common law.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
COVID-19 (Temporary Measures) Act 2020 (Act 14 of 2020)Singapore
Distress Act (Cap 84, 2013 Rev Ed)Singapore
Land Titles Act 1993 (2020 Rev Ed)Singapore
Evidence Act 1893 (2020 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Service Agreement
  • Tenancy Agreement
  • Assets
  • Premises
  • Rental Arrears
  • COVID-19 Act
  • Distress Act
  • Subletting
  • Exclusive Possession
  • Repudiation
  • Moratorium
  • Writ of Distress

15.2 Keywords

  • Landlord
  • Tenant
  • Service Agreement
  • COVID-19 Act
  • Distress
  • Assets
  • Singapore
  • High Court
  • Lease
  • Rental
  • Eviction

17. Areas of Law

Area NameRelevance Score
Landlord and Tenant Law95
Agreements for leases80
Creation of tenancy75
Contract Law70
Illegal distress65
Distress for Rent60
Capacity to grant tenancies50
Company Law30
Estoppel20
Evidence20
Civil Procedure20
Damages20
Insolvency Law15

16. Subjects

  • Landlord and Tenant Law
  • Contract Law
  • COVID-19 Act
  • Distress Act