HSBC Bank v Ong Chee Han Jeremy: Annulment of Bankruptcy Order Against Deceased Debtor
In HSBC Bank (Singapore) Ltd v Ong Chee Han Jeremy, the General Division of the High Court of Singapore addressed the issue of whether a bankruptcy application can be made against a deceased debtor. The court, presided over by AR Randeep Singh Koonar, held that such an application is not permissible under the Bankruptcy Act. The court annulled the bankruptcy order previously made against Ong Chee Han Jeremy, who had passed away before the application was filed, but directed that the Private Trustees in Bankruptcy (PTIBs) conclude the administration of the estate and distribute the assets according to the proposed distribution.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Bankruptcy Order annulled on the condition that the Defendant’s property is to vest in the Private Trustees in Bankruptcy who are to distribute the property in accordance with the Proposed Distribution.
1.3 Case Type
Bankruptcy
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court annulled a bankruptcy order against Ong Chee Han Jeremy, made after his death, directing distribution of assets by trustees.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| HSBC Bank (Singapore) Ltd | Plaintiff | Corporation | Orders made in respect of Summons 1730 and Summons 2841 | Neutral | Michael Moey Chin Woon |
| Ong Chee Han Jeremy | Defendant | Individual | Bankruptcy Order annulled | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Randeep Singh Koonar | Assistant Registrar | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Michael Moey Chin Woon | Moey & Yuen |
| Christopher Eng Chee Yang | Insolvency & Public Trustee’s Office |
| Angela Lee | Insolvency & Public Trustee’s Office |
4. Facts
- The bankruptcy application was filed on 6 January 2017.
- The Defendant died on 23 July 2016, before the bankruptcy application was made.
- The Plaintiff was unaware of the Defendant’s death.
- The main asset was a property which was sold by the mortgagee for $1,250,000.
- After deducting the outstanding mortgage, the net sale proceeds were $112,570.52.
- Proofs of debt were filed by nine creditors and were admitted by the Private Trustees in Bankruptcy in the sum of $158,198.04.
- The Private Trustees in Bankruptcy intended to declare a first and final dividend.
5. Formal Citations
- HSBC Bank (Singapore) Ltd v Ong Chee Han Jeremy, , [2022] SGHCR 10
6. Timeline
| Date | Event |
|---|---|
| Defendant died | |
| Bankruptcy Application filed | |
| First hearing of the Bankruptcy Application | |
| Official Assignee found the Defendant unsuitable for the Debt Repayment Scheme | |
| Bankruptcy order made against the Defendant | |
| Notice of intended first and final dividend was published | |
| Creditors’ meeting was held to approve the Private Trustees in Bankruptcy’s fees | |
| Private Trustees in Bankruptcy applied for a discharge of the Bankruptcy Order | |
| First hearing of Summons 1730 | |
| Official Assignee took the position that the Bankruptcy Order was irregular and should be annulled | |
| Private Trustees in Bankruptcy filed Summons 2841 | |
| Hearing of Summons 1730 and Summons 2841 | |
| Judgment reserved |
7. Legal Issues
- Whether a bankruptcy application can be made against a deceased debtor
- Outcome: The court held that a bankruptcy application cannot be made against a deceased debtor under the Bankruptcy Act.
- Category: Substantive
- Whether the Bankruptcy Order should be annulled forthwith, or whether the Court should allow the administration of the bankruptcy estate to conclude before the Bankruptcy Order is annulled
- Outcome: The court found that the Bankruptcy Order should be annulled on the condition that the Defendant’s property is to vest in the Private Trustees in Bankruptcy who are to distribute the property in accordance with the Proposed Distribution.
- Category: Procedural
8. Remedies Sought
- Annulment of bankruptcy order
- Discharge of bankruptcy order
- Appointment of administrators of the deceased Defendant’s estate in bankruptcy
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Bankruptcy
- Insolvency
11. Industries
- Banking
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ex parte Geisel, In re Stanger | English Court of Appeal | Yes | (1882) 22 Ch D 436 | England and Wales | Cited for the proposition that a bankruptcy application cannot be made against a deceased debtor. |
| Tang Yong Kiat Rickie v Sinesinga Sdh Bhd (transferee to part of the assets of United Merchant Finance Bhd) and others | High Court of Singapore | Yes | [2014] SGHCR 6 | Singapore | Cited Stanger for the proposition that a bankruptcy order ought not to be made if the debtor was dead at the time proceedings were commenced. |
| Tan Teck Guan v Mapletree Trustee Pte Ltd (trustee of Mapletree Industrial Trust) | Court of Appeal | Yes | [2011] 3 SLR 1031 | Singapore | Cited regarding the effect of an annulment and exceptions to the general rule. |
| Bailey v Johnson | Court of Exchequer | Yes | (1872) 7 Exch 263 | England and Wales | Cited regarding the effect of s. 81 of the UK BA 1869, which is identically worded to s 123(3) of the Bankruptcy Act. |
| West v Baker | Court of Exchequer Division | Yes | (1875) 1 Ex D 44 | England and Wales | Cited regarding the court's power to order that the property of the debtor shall vest in such person as the Court may appoint. |
| In re Chidley, In re Lennard | Court of Appeal | Yes | (1875) 1 Ch D 177 | England and Wales | Cited regarding the court's power to order the bankrupt’s property to be assigned to the trustee in bankruptcy. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 60(1) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 61(1) | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 71 | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 148 | Singapore |
| Bankruptcy Act (Cap 20, 2009 Rev Ed) s 123 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Bankruptcy application
- Bankruptcy order
- Annulment
- Deceased debtor
- Private Trustees in Bankruptcy
- Official Assignee
- Administration order
- Proposed Distribution
15.2 Keywords
- Bankruptcy
- Annulment
- Deceased Debtor
- Singapore
- Insolvency
16. Subjects
- Bankruptcy
- Insolvency
- Civil Procedure
17. Areas of Law
- Insolvency Law
- Bankruptcy Law
- Civil Procedure