Low Eng Chai v Ishak bin Mohamed Basheere: Misrepresentation & Conspiracy in Sour Investments
Low Eng Chai and Low Eng Chuan sued Ishak bin Mohamed Basheere and Neil Hutton in the General Division of the High Court of Singapore, alleging misrepresentation and unlawful means conspiracy related to investments in Asia Strategic Mining Corporation Pte Ltd (ASMC). The plaintiffs claimed that the defendants induced them to invest and then fraudulently induced them to refrain from taking legal action while funds were diverted. The court, presided over by S Mohan J, dismissed all claims against the second defendant, Neil Hutton, finding insufficient evidence of misrepresentation, conspiracy, or resulting damages. The claim against the first defendant was struck out earlier.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Plaintiffs' claims dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Investors in ASMC sue for misrepresentation and conspiracy after promised returns cease. The court dismisses the claims against the second defendant.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Low Eng Chai | Plaintiff | Individual | Claim Dismissed | Lost | |
| Low Eng Chuan | Plaintiff | Individual | Claim Dismissed | Lost | |
| Ishak bin Mohamed Basheere | Defendant | Individual | Final judgment entered against defendant | Lost | |
| Neil Hutton | Defendant | Individual | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| S Mohan | Judge of the High Court | Yes |
4. Counsels
4. Facts
- Plaintiffs invested in Asia Strategic Mining Corporation Pte Ltd (ASMC) and were promised monthly returns.
- The first plaintiff entered into five funding agreements with ASMC between November 2016 and June 2017.
- ASMC initially made monthly payments, but these ceased from September 2018.
- The plaintiffs claim the second defendant made misrepresentations to induce them to forbear from taking legal action.
- The first plaintiff commenced HC/S 189/2019 against ASMC and obtained summary judgment.
- The plaintiffs allege the second defendant conspired with the first defendant to dissipate ASMC's funds.
- The second defendant was employed by ASMC as a Manager of Public Relations and Customer Services.
5. Formal Citations
- Low Eng Chai and another v Ishak bin Mohamed Basheere and another, Suit No 535 of 2019, [2022] SGHC 207
6. Timeline
| Date | Event |
|---|---|
| First plaintiff entered into funding agreement number ASFE975SG with ASMC | |
| First plaintiff entered into funding agreement number ASFE1023SG with ASMC | |
| First plaintiff entered into funding agreement number ASFE1024SG with ASMC | |
| First plaintiff entered into funding agreement number ASFE1077SG with ASMC | |
| First plaintiff entered into funding agreement number ASFF0074SG with ASMC | |
| Second defendant employed by ASMC | |
| ASMC ceased monthly payments to the second plaintiff | |
| Second plaintiff and second defendant met at Concorde Hotel, Singapore | |
| First plaintiff's former solicitors sent a letter of demand to ASMC | |
| First plaintiff commenced HC/S 189/2019 against ASMC | |
| Present suit commenced | |
| First plaintiff applied for summary judgment in HC/S 189/2019 | |
| Summary judgment granted in favor of first plaintiff | |
| Second defendant resigned from ASMC | |
| First defendant's Statement of Defence struck out | |
| Trial began | |
| Judgment reserved |
7. Legal Issues
- Misrepresentation
- Outcome: The court found that the plaintiffs did not adduce sufficient evidence to prove that the representations were false at the time they were made, nor did they prove reliance on the representations.
- Category: Substantive
- Unlawful Means Conspiracy
- Outcome: The court found that the plaintiffs did not establish that there was a combination between the first and second defendants to unlawfully dissipate funds from ASMC, nor that there was any intent to cause injury on the part of the second defendant.
- Category: Substantive
- Damages for Loss of Chance
- Outcome: The court found that the plaintiffs had not proven that they suffered any loss as a result of reliance on the representations.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Performance bond by BNP Paribas
9. Cause of Actions
- Misrepresentation
- Unlawful Means Conspiracy
10. Practice Areas
- Commercial Litigation
11. Industries
- Mining
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Panatron Pte Ltd and another v Lee Cheow Lee and another | Court of Appeal | Yes | [2001] 2 SLR(R) 435 | Singapore | Cited for the elements required for a claim in fraudulent misrepresentation. |
| Yong Khong Yoong Mark and others v Ting Choon Meng and another | High Court | Yes | [2021] SGHC 246 | Singapore | Cited for the elements required for a successful claim in negligent misrepresentation. |
| IM Skaugen SE and another v MAN Diesel & Turbo SE and another | High Court | Yes | [2018] SGHC 123 | Singapore | Cited for the elements required for a successful claim in negligent misrepresentation. |
| Deutsche Bank AG v Chang Tse Wen | High Court | Yes | [2013] 1 SLR 1310 | Singapore | Cited for the principle that a statement of future intention is still actionable if it can be re-characterised as a statement implying honest belief or reasonable grounds. |
| KLW Holdings Ltd v Straitsworld Advisory Ltd and another | High Court | Yes | [2017] 5 SLR 184 | Singapore | Cited for the principle that a statement of future intention is still actionable if it can be re-characterised as a statement implying honest belief or reasonable grounds. |
| iVenture Card Ltd and others v Big Bus Singapore City Sightseeing Pte Ltd and others | Court of Appeal | Yes | [2022] 1 SLR 302 | Singapore | Cited for the general rule that parties are bound by their pleadings. |
| Columbia Asia Healthcare Sdn Bhd and another v Hong Hin Kit Edward and another and other suits | High Court | Yes | [2014] 3 SLR 87 | Singapore | Cited to demonstrate that a party will likely be precluded from claiming damages for the loss of a chance, if its pleaded case is one for a general claim for damages. |
| Tembusu Growth Fund Ltd v ACTAtek, Inc and others | High Court | Yes | [2018] 4 SLR 1213 | Singapore | Cited to illustrate that the court may depart from the general rule that a party is bound by its pleadings, in very limited circumstances. |
| Allied Maples Group Ltd v Simmons & Simmons (a firm) | Court of Appeal | Yes | [1995] 1 WLR 1602 | England and Wales | Cited for the test for whether a loss of chance has been proven. |
| Asia Hotel Investments Ltd v Starwood Asia Pacific Management Pte Ltd and another | High Court | Yes | [2005] 1 SLR(R) 661 | Singapore | Cited for the test for whether a loss of chance has been proven. |
| EFT Holdings, Inc and another v Marinteknik Shipbuilders (S) Pte Ltd and another | Court of Appeal | Yes | [2014] 1 SLR 860 | Singapore | Cited for the elements for a tort of unlawful means conspiracy. |
| Visionhealthone Corp Pte Ltd v HD Holdings Pte Ltd and others and another appeal | Court of Appeal | Yes | [2013] SGCA 47 | Singapore | Cited for the observation that the requirements of a “combination” and “unlawful act” in practice often have to be considered together. |
| Esben Finance Ltd and others v Wong Hou-Lianq Neil | Court of Appeal | Yes | [2021] 3 SLR 82 | Singapore | Cited for the principle that whether an adverse inference should be drawn in any given case ultimately depends on the circumstances of the case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Misrepresentation Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Asia Strategic Mining Corporation Pte Ltd
- ASMC
- Funding agreements
- Misrepresentation
- Unlawful means conspiracy
- Forbearance
- Dissipation of funds
- Banking issues
- Performance bond
- Early redemption
15.2 Keywords
- Misrepresentation
- Conspiracy
- Investments
- Mining
- Contract
- Singapore
- Civil Litigation
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Misrepresentation | 80 |
| Contract Law | 75 |
| Fraud and Deceit | 70 |
| Conspiracy by Unlawful Means | 65 |
| Measure of Damages | 60 |
| Evidence | 50 |
16. Subjects
- Contract Law
- Tort Law
- Civil Procedure
- Investments