Lachman's Emporium Pte Ltd v Kang Tien Kuan: Application for Leave to Appeal on Frustration of Tenancy Agreement due to COVID-19 Measures

Lachman's Emporium Pte Ltd (LE) applied for leave to appeal against a decision dismissing their application for summary judgment against Kang Tien Kuan (Kang) for unpaid rent. The High Court dismissed the leave application, finding that the judge below did not err in law by holding that Kang had a bona fide defense of frustration of the tenancy agreement due to COVID-19 measures. The court noted that LE may still pursue the claim for the reduced sum at trial.

1. Case Overview

1.1 Court

Appellate Division of the High Court

1.2 Outcome

Leave application dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Application for leave to appeal regarding a tenancy agreement dispute. The court dismissed the application, finding no error of law in the lower court's decision regarding frustration of contract due to COVID-19 measures.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lachman’s Emporium Pte LtdApplicant, PlaintiffCorporationLeave application dismissedLost
Kang Tien KuanRespondent, DefendantIndividualLeave application dismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudge of the Appellate DivisionYes
Chua Lee MingJudge of the High CourtNo

4. Counsels

Counsel NameOrganization
Roy Paul MukkamDL Law Corporation
Ng Yuan ShengDL Law Corporation
Lim TeanCarson Law Chambers

4. Facts

  1. Lachman’s Emporium Pte Ltd and Kang Tien Kuan entered into a tenancy agreement on 26 December 2019.
  2. Lachman’s Emporium Pte Ltd claimed unpaid rent from Kang Tien Kuan for March 2020 and August 2020 to April 2021.
  3. Kang Tien Kuan argued that the tenancy agreement was frustrated due to COVID-19 measures.
  4. Regulations prohibiting public entertainment outlets from operating came into force on 26 March 2020.
  5. Lachman’s Emporium Pte Ltd applied for summary judgment for the full sum of rental arrears and interest.
  6. The judge below dismissed the summary judgment application, finding a bona fide defense of frustration.
  7. Lachman's Emporium Pte Ltd sought leave to appeal the judge's decision.

5. Formal Citations

    6. Timeline

    DateEvent
    Tenancy agreement signed between Lachman’s Emporium Pte Ltd and Kang Tien Kuan.
    Start of period for which Lachman's Emporium Pte Ltd claims unpaid rent.
    Kang Tien Kuan claims business was badly affected by the COVID-19 outbreak.
    Regulations prohibiting public entertainment outlets from operating came into force.
    Kang Tien Kuan filed Defence.
    Kang Tien Kuan filed affidavit opposing summary judgment application.
    M J Lalwani filed affidavit in support of summary judgment application.
    Kang Tien Kuan filed second submissions below.
    Judge dismissed summary judgment application.
    Lachman’s Emporium Pte Ltd filed leave application to appeal.
    Hearing date.
    Judgment date.

    7. Legal Issues

    1. Frustration of Contract
      • Outcome: The court found that the judge below did not err in holding that Kang had a bona fide defense of frustration of the tenancy agreement due to COVID-19 measures.
      • Category: Substantive
    2. Leave to Appeal
      • Outcome: The court dismissed the application for leave to appeal.
      • Category: Procedural

    8. Remedies Sought

    1. Unpaid Rent
    2. Interest

    9. Cause of Actions

    • Breach of Contract

    10. Practice Areas

    • Commercial Litigation

    11. Industries

    • Hospitality

    12. Cited Cases

    Case NameCourtAffirmedCitationJurisdictionSignificance
    Lachman’s Emporium Pte Ltd v Kang Tien Kuan (trading as Lookers Music Café, a sole proprietorship)High CourtYes[2022] SGHC 19SingaporeThe current judgment is an appeal of the decision in this case, which dismissed the applicant's summary judgment application based on the defense of frustration.

    13. Applicable Rules

    Rule Name
    Rules of Court (2014 Rev Ed)

    14. Applicable Statutes

    Statute NameJurisdiction
    Supreme Court of Judicature Act 1969Singapore
    COVID-19 (Temporary Measures) Act 2020Singapore
    Frustrated Contracts Act 1959Singapore

    15. Key Terms and Keywords

    15.1 Key Terms

    • Tenancy Agreement
    • Frustration
    • COVID-19 Measures
    • Summary Judgment
    • Leave to Appeal
    • Rental Arrears
    • Public Entertainment

    15.2 Keywords

    • tenancy agreement
    • frustration
    • covid-19
    • summary judgment
    • appeal
    • rent
    • singapore

    17. Areas of Law

    Area NameRelevance Score
    Frustration of Contract85
    Appellate Practice80
    Leave to Appeal80
    Civil Procedure75
    Summary Judgment70
    Tenancy Agreement70
    Landlord and Tenant Law70
    Contract Law60
    Breach of Contract60

    16. Subjects

    • Contract Law
    • Civil Procedure
    • Tenancy Agreement
    • Frustration of Contract