Yiong Kok Kong v Liu Chien Min: Sale of Property Under Court Order & Priority of Creditors in Bankruptcy
In Yiong Kok Kong, as the private trustee in bankruptcy of Goh Ming Hue Julius, v Liu Chien Min, the General Division of the High Court of Singapore, on 29 November 2022, granted the claimant's application to sell the bankrupt's property to pay off creditors. The court found that the interests of the creditors outweighed the hardship to the defendant, who jointly owned the property with the bankrupt. The application for priority of creditors was withdrawn.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Order for sale of property granted; application for priority of creditors withdrawn.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Trustee in bankruptcy sought to sell bankrupt's property. The court granted the sale order, prioritizing creditors' interests over the co-owner's hardship.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Yiong Kok Kong (as the private trustee in bankruptcy of the bankrupt estate of Goh Ming Hue Julius, a bankrupt) | Claimant | Individual | Order for sale of property granted, Application withdrawn | Won, Withdrawn | Lim Tong Chuan |
| Liu Chien Min | Defendant | Individual | Order for sale of property granted | Lost | Chung Ting Fai, Yuge Li |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Audrey Lim | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lim Tong Chuan | Excelsior Law Chambers LLC |
| Chung Ting Fai | Chung Ting Fai & Co |
| Yuge Li | Chung Ting Fai & Co |
4. Facts
- The Claimant is the trustee in bankruptcy of Julius Goh.
- The Bankrupt and Defendant jointly own a property, with the Bankrupt owning 99% and the Defendant 1%.
- The Bankrupt was directed to make a monthly contribution of $1,920 but had only contributed $4,900 as of May 2022.
- The property is charged to the Central Provident Fund Board and Standard Chartered Bank.
- The Defendant rejected the sale of the property, claiming it is the matrimonial home and would disrupt her daughter's schooling.
- The Bankrupt's only asset of substantial value is the Property.
- The couple had previously attempted to sell the property for $2.2m.
5. Formal Citations
- Yiong Kok Kong (as the private trustee in bankruptcy of the bankrupt estate of Goh Ming Hue Julius, a bankrupt) v Liu Chien Min, Originating Application No 144 of 2022, [2022] SGHC 297
6. Timeline
| Date | Event |
|---|---|
| Bankruptcy Order made | |
| Bankrupt directed to make monthly contribution | |
| Claimant appointed as private trustee in bankruptcy | |
| Claimant's solicitors wrote to Defendant's solicitors to enquire about sale of property | |
| Defendant rejected sale of property | |
| Application filed | |
| 27 proofs of debts filed | |
| First hearing | |
| Adjourned hearing | |
| Judgment issued | |
| Defendant and family allowed to reside in property until this date |
7. Legal Issues
- Sale of Property Under Court Order in Bankruptcy
- Outcome: The court ordered the sale of the property, finding that the interests of the creditors outweighed the hardship to the co-owner.
- Category: Substantive
- Sub-Issues:
- Balancing the interests of creditors and co-owners
- Sufficiency of sale proceeds to discharge debts
- Potential prejudice to co-owners
- Priority of Creditors in Bankruptcy
- Outcome: The application for priority of creditors was withdrawn as premature.
- Category: Substantive
- Sub-Issues:
- Distribution of assets to creditors
- Advantage to creditor who funded asset recovery
8. Remedies Sought
- Order to sell the property
- Order to pay out net proceeds to three creditors in priority
9. Cause of Actions
- Application for sale of property under court order
- Application for priority of creditors
10. Practice Areas
- Bankruptcy
- Insolvency
- Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ooi Chhooi Ngoh Bibiana v Chee Yoh Chuang (care of RSM Corporate Advisory Pte Ltd, as joint and several private trustees in bankruptcy of the bankruptcy estate of Freddie Koh Sin Chong, a bankrupt) | Court of Appeal | Yes | [2020] 2 SLR 1030 | Singapore | Cited for the principle that the High Court has the power to sell property in bankruptcy cases where it appears necessary or expedient, and the factors to consider in exercising this power. |
| Su Emmanuel v Emmanuel Priya Ethel Anne and another | Court of Appeal | Yes | [2016] 3 SLR 1222 | Singapore | Cited for the principle that perceived hardship and inconvenience to co-owners are not sufficient to prevent a sale order from being made. |
| Re Vanguard Energy Pte Ltd | High Court | Yes | [2015] 4 SLR 597 | Singapore | Cited for the interpretation of s 328(10) of the Companies Act (Cap 50, 2006 Rev Ed) (now s 204 of IRDA), which deals with the similar issue of funding by creditors in the case of a company winding up. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Supreme Court of Judicature Act 1969 | Singapore |
| Insolvency, Restructuring and Dissolution Act 2018 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Trustee in bankruptcy
- Bankruptcy order
- Matrimonial home
- Monthly contribution
- Creditors
- Sale proceeds
- CPF contributions
- Mortgage
- Proofs of debt
- Net proceeds
15.2 Keywords
- Bankruptcy
- Insolvency
- Property
- Sale of Property
- Creditors
- Trustee
- Singapore
16. Subjects
- Bankruptcy
- Insolvency
- Property Law
17. Areas of Law
- Insolvency Law
- Bankruptcy Law
- Property Law
- Civil Procedure