Foo Yong Siang Victor v Tan Heng Khoon: Summary Judgment & Unlicensed Moneylending Dispute
In Foo Yong Siang Victor v Tan Heng Khoon, the High Court of Singapore dismissed the defendant's appeal against the Assistant Registrar's decision to grant summary judgment in favor of the claimant for $451,089. The defendant, Tan Heng Khoon, argued that the sum of $288,000 owed under a repayment agreement arose from unlicensed moneylending by the claimant, Foo Yong Siang Victor, which is prohibited under the Moneylenders Act. The court, however, found that the claimant was not in the business of moneylending and affirmed the summary judgment.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Appeal dismissed; summary judgment affirmed in favor of the claimant.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Summary judgment granted to claimant Foo Yong Siang Victor against defendant Tan Heng Khoon. The case involved a dispute over unlicensed moneylending.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Foo Yong Siang Victor | Claimant, Respondent | Individual | Appeal dismissed; summary judgment affirmed | Won | David Nayar |
| Tan Heng Khoon | Defendant, Appellant | Individual | Appeal Dismissed | Lost | Koh Weijin Leon, Elsie Lim Yan, Chng He Han |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kwek Mean Luck | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| David Nayar | David Nayar and Associates |
| Koh Weijin Leon | Xu Weijin |
| Elsie Lim Yan | Lin Yan |
| Chng He Han | N S Kang |
4. Facts
- The defendant is the sole director and shareholder of 360 Holdings Pte Ltd.
- The claimant invested various sums with the defendant from June 2020 to July 2021.
- The parties entered into a repayment agreement on 22 June 2022.
- The agreement stated that the defendant had borrowed $288,000 before 2022 and would be requesting a further $120,000.
- The defendant delivered post-dated cheques totaling $409,000 to the claimant.
- The defendant made partial repayment of $38,000.
- Most of the post-dated cheques were either dishonored or could not be cashed.
5. Formal Citations
- Foo Yong Siang Victor v Tan Heng Khoon, Originating Claim No 462 of 2023 (Registrar’s Appeal No 27 of 2024), [2024] SGHC 101
6. Timeline
| Date | Event |
|---|---|
| Originating Claim No 462 of 2023 filed | |
| Claimant’s Written Submissions for RA 27 dated | |
| Defendant’s Written Submissions dated | |
| Mr Tan Pheng Khoon’s affidavit dated | |
| Judgment delivered | |
| Judgment date |
7. Legal Issues
- Unlicensed Moneylending
- Outcome: The court held that the claimant was not in the business of moneylending and the Moneylenders Act did not apply.
- Category: Substantive
- Sub-Issues:
- Whether the claimant was carrying on the business of moneylending
- Whether the loans arose out of an unlicensed moneylending business
- Applicability of presumption under section 3 of the Moneylenders Act
- Related Cases:
- [2014] 3 SLR 524
- [1991] 1 SLR(R) 164
- [2003] 4 SLR 338
- [1995] 2 SLR(R) 900
- Summary Judgment
- Outcome: The court affirmed the grant of summary judgment, finding that the defendant's defenses were wholly unsustainable.
- Category: Procedural
- Sub-Issues:
- Threshold of triable issues
- Whether the defendant has a real or bona fide defence
- Related Cases:
- [2015] 1 SLR 325
- [2022] 1 SLR 434
8. Remedies Sought
- Monetary Damages
- Interest
- Debt collector service fees
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Debt Recovery
11. Industries
- Finance
- Automotive
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| M2B World Asia Pacific Pte Ltd v Matsumura Akihiko | High Court | Yes | [2015] 1 SLR 325 | Singapore | Cited for the principles governing summary judgment applications, specifically the burden on the claimant to show a prima facie case and the defendant to show a fair or reasonable probability of a real defence. |
| Lim Oon Kuin and others v Ocean Tankers (Pte) Ltd (interim judicial managers appointed) | Court of Appeal | Yes | [2022] 1 SLR 434 | Singapore | Cited for the principle that leave to defend should be granted where there are triable issues or questions militating in favor of a full evaluation of the evidence and arguments. |
| City Hardware Pte Ltd v Kenrich Electronics Pte Ltd | High Court | Yes | [2005] 1 SLR(R) 733 | Singapore | Cited for the purpose of the Moneylenders Act as social legislation designed to regulate rapacious and predatory conduct by unscrupulous unlicensed moneylenders. |
| Sheagar s/o T M Veloo v Belfield International (Hong Kong) | Court of Appeal | Yes | [2014] 3 SLR 524 | Singapore | Cited for the framework for considering claims that a contract is unenforceable under the Moneylenders Act. |
| Subramaniam Dhanapakiam v Ghaanthimathi | High Court | Yes | [1991] 1 SLR(R) 164 | Singapore | Cited for the principle that the Moneylenders Act prohibits the business of moneylending, not merely the act of moneylending. |
| Mak Chik Lun and others v Loh Kim Her and others and another action | High Court | Yes | [2003] 4 SLR 338 | Singapore | Cited for the requirement of system and continuity to distinguish the business of moneylending from the act of moneylending. |
| Edgelow v MacElwee | King's Bench Division | Yes | [1918] 1 KB 205 | England and Wales | Cited for the principle that the loan must be part of an ongoing and routine series of transactions made by the alleged moneylender. |
| Ng Kum Peng v PP | High Court | Yes | [1995] 2 SLR(R) 900 | Singapore | Cited for indicators of an organised scheme of moneylending, such as fixed rates and the rate of interest being dependent on the creditworthiness and past conduct of the borrower. |
| Ochroid Trading Ltd and another v Chua Siok Lui (trading as VIE Import & Export) and another | Court of Appeal | Yes | [2018] 3 SLR 617 | Singapore | Cited for indicators of an organised scheme of moneylending, such as fixed rates and the rate of interest being dependent on the creditworthiness and past conduct of the borrower. |
| Agus Anwar v Orion Oil Ltd | High Court | Yes | [2010] SGHC 6 | Singapore | Cited for the alternative test of whether the alleged moneylender is one who is ready and willing to lend to all and sundry, provided that they are from his point of view eligible. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Moneylenders Act 2008 (2020 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Summary judgment
- Moneylenders Act
- Unlicensed moneylending
- Profit sharing program
- Repayment agreement
- Post-dated cheques
- Triable issues
- Business of moneylending
- System and continuity
15.2 Keywords
- summary judgment
- moneylending
- unlicensed
- contract
- singapore
16. Subjects
- Credit and Security
- Money and Moneylending
- Civil Procedure
17. Areas of Law
- Credit and Security
- Money and Moneylenders
- Loans of Money
- Illegal Moneylending
- Civil Procedure
- Summary Judgment