Lim Keng Teck v Official Assignee: Review of Monthly & Target Contribution under IRDA

In the matter of Lim Keng Teck, the High Court of Singapore heard an application by Mr. Lim Keng Teck to review the Official Assignee's determination of his monthly contribution (MC) and target contribution (TC) under the Insolvency, Restructuring and Dissolution Act 2018. The court allowed the application in part, adjusting the MC to $4,004.90 until 2 January 2025, to account for the claimant's existing tenancy agreement. The court emphasized that this adjustment was made to achieve justice and equity, not due to any deficiency in the Official Assignee's determination.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Application allowed in part

1.3 Case Type

Insolvency

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

The High Court reviewed the Official Assignee's determination of Lim Keng Teck's monthly and target contributions, adjusting the monthly contribution to account for existing rental obligations.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Official AssigneeRespondentGovernment AgencyDetermination variedPartial
Christopher Eng Chee Yang of Insolvency & Public Trustee’s Office
Lim Yew Jin of Insolvency & Public Trustee’s Office
Lim Keng TeckClaimantIndividualApplication allowed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Goh YihanJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Christopher Eng Chee YangInsolvency & Public Trustee’s Office
Lim Yew JinInsolvency & Public Trustee’s Office
Sim Puay Jain EdwinLexton Law Corporation
Faith Tan Fen YiLexton Law Corporation

4. Facts

  1. Lim Keng Teck was adjudged a bankrupt on 23 February 2023.
  2. The Official Assignee issued a Second Determination on 18 August 2023, setting Lim Keng Teck's monthly contribution at $7,630 and target contribution at $396,760.
  3. Lim Keng Teck applied to the court to review the Second Determination.
  4. Lim Keng Teck is employed as an independent consultant.
  5. Lim Keng Teck is in a tenancy agreement that cannot be terminated until 2 January 2025 without paying the full 24 months’ rent.
  6. Lim Keng Teck's spouse earns a monthly income of $2,800.

5. Formal Citations

  1. Re Lim Keng Teck, Bankruptcy No 206 of 2023 (Summons No 2771 of 2023), [2023] SGHC 287

6. Timeline

DateEvent
Claimant adjudged bankrupt
Official Assignee issued First Determination
Claimant filed SUM 1686
SUM 1686 allowed, Official Assignee directed to reassess MC and TC
Official Assignee issued Second Determination
Claimant filed application to review Second Determination
Judgment reserved
Judgment issued
Claimant's tenancy agreement expires
Claimant to inform OA of new rental arrangements

7. Legal Issues

  1. Review of Official Assignee's Determination of Monthly Contribution and Target Contribution
    • Outcome: The court allowed the application in part, adjusting the monthly contribution to account for the claimant's existing rental obligations.
    • Category: Substantive
    • Sub-Issues:
      • Consideration of bankrupt's income stability
      • Consideration of bankrupt's employment nature
      • Consideration of bankrupt's tenancy agreement
      • Consideration of spouse's contribution to family maintenance
  2. Power of Court to Vary Monthly Contribution and Target Contribution
    • Outcome: The court held that it had the power to vary the monthly contribution and target contribution if it was just and equitable to do so, and ordered a 'step-up MC plan' to account for the claimant's tenancy agreement.
    • Category: Substantive

8. Remedies Sought

  1. Review of Monthly Contribution
  2. Review of Target Contribution

9. Cause of Actions

  • Review of Official Assignee's Determination

10. Practice Areas

  • Bankruptcy
  • Insolvency
  • Restructuring

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Mirmohammadali Hadian v Ambika d/o Ramachandran (Official Assignee, non-party)High CourtYes[2023] SGHC 116SingaporeCited for the two-stage framework for reviewing the Official Assignee's determination of monthly contribution and target contribution under s 340(1) of the IRDA.

13. Applicable Rules

Rule Name
Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020
Rule 121(1) of the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020

14. Applicable Statutes

Statute NameJurisdiction
Insolvency, Restructuring and Dissolution Act 2018Singapore
Section 340 Insolvency, Restructuring and Dissolution Act 2018Singapore
Sections 341(1) and 341(2)(c) Insolvency, Restructuring and Dissolution Act 2018Singapore
Section 339(2) Insolvency, Restructuring and Dissolution Act 2018Singapore
Section 339(1)(a) Insolvency, Restructuring and Dissolution Act 2018Singapore
Section 342(1) Insolvency, Restructuring and Dissolution Act 2018Singapore
Section 342(2)(c) Insolvency, Restructuring and Dissolution Act 2018Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Monthly Contribution
  • Target Contribution
  • Official Assignee
  • Insolvency, Restructuring and Dissolution Act 2018
  • Bankruptcy
  • Tenancy Agreement
  • Step-up MC plan

15.2 Keywords

  • Bankruptcy
  • Insolvency
  • Monthly Contribution
  • Target Contribution
  • Official Assignee
  • Singapore
  • IRDA

17. Areas of Law

Area NameRelevance Score
Bankruptcy95
Insolvency Law95
Restructuring and Dissolution90
Civil Procedure40
Property Law30

16. Subjects

  • Bankruptcy
  • Insolvency
  • Restructuring
  • Civil Procedure