Leong Quee Ching Karen v Lim Soon Huat: Interlocutory Injunction for Minority Oppression

In Leong Quee Ching Karen v Lim Soon Huat and others, the General Division of the High Court of Singapore heard an application for an interim injunction by Leong Quee Ching Karen against Lim Soon Huat, Lim Soon Heng, Lim Kim Chong Investments Pte Ltd, Sin Soon Lee Realty Company (Private) Limited, Lim Yong Yeow, Thomas, and Seng Lee Holdings Pte Ltd. The claimant sought to restrain the transfer of properties pending the determination of a minority oppression claim. Justice Goh Yihan dismissed the application, holding that the claimant lacked the necessary proprietary interest in the properties to seek such an injunction. The judgment was delivered on 29 December 2023.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Application dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

The High Court dismissed an application for an interim injunction to restrain property transfers, finding no proprietary interest by the claimant in a minority oppression case.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Goh YihanJudge of the High CourtYes

4. Counsels

4. Facts

  1. The claimant sought interim injunctions to restrain the transfer of two properties.
  2. The claimant alleged minority oppression by the majority shareholders of Seng Lee Holdings Pte Ltd.
  3. The first to third defendants are the majority shareholders in Seng Lee Holdings Pte Ltd.
  4. The claimant, the first defendant, and the second defendant are some of the children of the late Dato Lim Kim Chong.
  5. The claimant argued that the diversion or dissipation of company assets can amount to oppression.
  6. The first defendant had requisitioned SSLRC to hold an EGM to vote on the transfer of the Properties.
  7. The resolutions pertaining to the proposed transfer of the Properties were withdrawn.

5. Formal Citations

  1. Leong Quee Ching Karen v Lim Soon Huat and others, Originating Claim No 158 of 2022 (Summons No 2781 of 2022), [2023] SGHC 359

6. Timeline

DateEvent
Dato Lim and his children entered into a Deed of Family Arrangement.
The members of the Lim family entered into an Amending and Restating Deed of Family Arrangement.
Claimant sent a letter to the defendants regarding the transfer of the Properties.
Claimant commenced OC 158 against the majority shareholders of SLH for minority oppression.
Claimant applied for interim injunctions without notice to the defendants.
Claimant was directed to proceed with the application with notice to the defendants.
The first defendant issued an undertaking to the court to postpone dealing with the resolutions pertaining to the transfer of the Properties.
During the EGM, the resolutions pertaining to the proposed transfer of the Properties were withdrawn.
The first defendant presented a written offer to the claimant.
The defendants applied to strike out OC 158.
The claimant applied to strike out certain without prejudice e-mails.
The first defendant commenced HC/OA 738/2023 for an order granting the transfer of the Geylang Property to the first defendant and the Tamarind Road Property to the fifth defendant.
The second defendant commenced HC/OA 739/2023 for the same.
An Assistant Registrar granted the claimant’s application in HC/SUM 2633/2023 and HC/SUM 2642/2023 to convert the originating applications into originating claims.
Judgment reserved.
Judgment delivered.

7. Legal Issues

  1. Interim Injunction
    • Outcome: The court held that the claimant did not have the proprietary interest to seek the interim injunctions and that the balance of convenience did not lie in favor of granting the injunctions.
    • Category: Procedural
    • Sub-Issues:
      • Proprietary interest
      • Balance of convenience
      • Delay in application
    • Related Cases:
      • [2017] 2 SLR 997
      • [1975] AC 396
      • [2020] 1 SLR 950
      • [2015] 5 SLR 558
  2. Minority Oppression
    • Outcome: The court did not make a determination on the merits of the minority oppression claim, as it was not the serious question to be tried for the interim injunction application.
    • Category: Substantive
    • Related Cases:
      • [2018] 2 SLR 333
      • [2021] 2 SLR 262

8. Remedies Sought

  1. Interim Prohibitory Injunction
  2. Restraint of Property Transfer

9. Cause of Actions

  • Minority Oppression

10. Practice Areas

  • Commercial Litigation
  • Injunctions

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Leong Quee Ching Karen v Lim Soon Huat and othersHigh CourtYes[2023] 4 SLR 1133SingaporeProcedural history of the case.
Leong Quee Ching Karen v Lim Soon Huat and othersHigh CourtYes[2023] SGHC 234SingaporeProcedural history of the case.
Lim Soon Huat v Lim Teong Huat and others and another matterHigh CourtYes[2023] SGHC 356SingaporeProcedural history of the case.
Tay Long Kee Impex Pte Ltd v Tan Beng Huwah (trading as Sin Kwang Wah)Court of AppealYes[2000] 1 SLR(R) 786SingaporeDefines the terms “interim injunction” and “interlocutory injunction”.
RGA Holdings International Inc v Loh Choon Phing Robin and anotherCourt of AppealYes[2017] 2 SLR 997SingaporeSets out the test for interim injunctions.
Chuan Hong Petrol Station Pte Ltd v Shell Singapore (Pte) LtdCourt of AppealYes[1992] 2 SLR(R) 1SingaporeExplains the fundamental principle behind the test for interim injunctions.
Maldives Airports Co Ltd and another v GMR Malé International Airport Pte LtdCourt of AppealYes[2013] 2 SLR 449SingaporeExplains the principle behind assessing the balance of convenience at an early stage.
NCC International AB v Alliance Concrete Singapore Pte LtdCourt of AppealYes[2008] 2 SLR(R) 565SingaporeSets out the higher threshold for granting interim mandatory injunctions.
American Cyanamid Co v Ethicon LtdHouse of LordsYes[1975] AC 396England and WalesSets out the test for a serious question to be tried.
Smith v Grigg LtdEnglish Court of AppealYes[1924] 1 KB 655England and WalesDiscusses the previous test for an interim injunction.
Chen Mingxing and others v Zhang Jian and othersHigh CourtYes[2021] SGHC 3SingaporeIllustrates the threshold for finding a serious question to be tried.
Sang Cheol Woo v Charles Choi Spackman and othersHigh CourtYes[2021] SGHC 42SingaporeIllustrates when a claimant fails to establish a serious question to be tried.
Ernest Ferdinand Perez De La Sala v Compañía De Navegación Palomar, SA and othersCourt of AppealYes[2020] 1 SLR 950SingaporeDefines a proprietary injunction.
Bouvier, Yves Charles Edgar and another v Accent Delight International Ltd and another and another appealCourt of AppealYes[2015] 5 SLR 558SingaporeDiscusses proprietary injunctions and freezing injunctions.
Derby & Co Ltd v Weldon (No 1)English Court of AppealYes[1990] Ch 48England and WalesSets out the test for a serious question to be tried in relation to proprietary interest.
CLM v CLN and othersHigh CourtYes[2022] 5 SLR 273SingaporeCharacterisation of an injunction prohibiting dealing with assets as a proprietary injunction.
Gazelle Ventures Pte Ltd v Lim Yong Sim and othersGeneral Division of the High CourtYes[2023] SGHC 328SingaporeDiscusses the issue of whether there can ever be a “freestanding” injunction.
Wolverhampton City Council and others v London Gypsies and Travellers and othersUK Supreme CourtYes[2023] UKSC 47United KingdomDiscusses the issue of whether there can ever be a “freestanding” injunction.
Janesh s/o Rajkumar v Unknown Person (“CHEFPIERRE”)High CourtYes[2023] 3 SLR 1191SingaporeApplication for a proprietary injunction prohibiting the defendant from dealing with the Bored Ape NFT.
Re Mountforest LtdN/AYes[1993] BCC 565England and WalesInjunction restraining shareholders from acting on resolutions proposed to be passed.
Re Ravenhart Service (Holdings) LtdN/AYes[2004] 2 BCLC 376England and WalesInjunction restraining the making of payments by way of remuneration.
Miao Weiguo v Tendcare Medical Group Holdings Pte Ltd (formerly known as Tian Jian Hua Xia Medical Group Holdings Pte Ltd) (in judicial management) and anotherCourt of AppealYes[2022] 1 SLR 884SingaporeA shareholder owns no interest in any of the company’s assets by virtue of holding shares in the company.
Ho Yew Kong v Sakae Holdings Ltd and other appeals and other mattersCourt of AppealYes[2018] 2 SLR 333SingaporeA claimant suing on an oppression claim must show how the breach is not merely a corporate wrong, but instead, a wrong they suffer qua shareholder.
Ong Heng Chuan v Ong Teck Chuan and othersCourt of AppealYes[2021] 2 SLR 262SingaporeA claimant suing on an oppression claim must show how the breach is not merely a corporate wrong, but instead, a wrong they suffer qua shareholder.
Challenger Technologies Ltd v Courts (Singapore) Pte LtdHigh CourtYes[2015] 5 SLR 679SingaporeRelevant factors at the second stage of determining the balance of convenience include the risk of irreparable damage.
Reed Exhibitions Pte Ltd v Khoo Yak Chuan Thomas and anotherCourt of AppealYes[1995] 3 SLR(R) 383SingaporeRelevant factors at the second stage of determining the balance of convenience include the potential hardship an injunction may bring to the party enjoined.
Re Posgate & Denby (Agencies) LtdN/AYes[1987] BCLC 8England and WalesIn the context of an oppression action, the inquiry should be whether there is an adequate remedy for the claimant.
Pringle and others v CallardEnglish Court of AppealYes[2008] 2 BCLC 505England and WalesIn the context of an oppression action, the inquiry should be whether there is an adequate remedy for the claimant.
Hong Leong Singapore Finance Ltd v United Overseas Bank LtdHigh CourtYes[2007] 1 SLR(R) 292SingaporeIn order to prevent a person from receiving equitable relief, the undesirable behaviour must be more than general depravity.
Meespierson NV v Industrial and Commercial Bank of VietnamHigh CourtYes[1998] 1 SLR(R) 287SingaporeA delay of nine months before an application for a Mareva injunction was made indicated that there was no real risk of dissipation.
JSC BTA Bank v Ablyazov and othersEnglish High CourtYes[2009] EWHC 2840 (Comm)England and WalesThe delay of five months was a point worthy of consideration because delay in seeking a Freezing Order can indicate that there is no real risk of dissipation.

13. Applicable Rules

Rule Name
Rules of Court 2021

14. Applicable Statutes

Statute NameJurisdiction
Civil Law Act 1909Singapore
Supreme Court of Judicature Act 1969Singapore
Companies Act 1967Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Interim Injunction
  • Proprietary Injunction
  • Minority Oppression
  • Balance of Convenience
  • Proprietary Interest
  • Geylang Property
  • Tamarind Road Property
  • Deed of Family Arrangement
  • Seng Lee Holdings Pte Ltd
  • Sin Soon Lee Realty Company (Private) Limited

15.2 Keywords

  • injunction
  • minority oppression
  • property transfer
  • Singapore
  • High Court

17. Areas of Law

16. Subjects

  • Civil Procedure
  • Injunctions
  • Corporate Law