Hin Leong Trading v Lim Oon Kuin: Disposition of Property under Insolvency Act

In Hin Leong Trading (Pte.) Ltd v Lim Oon Kuin, the General Division of the High Court of Singapore addressed applications by Hiew Wen Ji and Hiew Wen Li concerning a property purchase from Lim Oon Kuin and Lim Huey Ching. The Hiews sought declarations that directing purchase monies to MKC Holdings (Pte.) Ltd and LHC Pte. Ltd. would constitute a void disposition under the Insolvency, Restructuring and Dissolution Act, given Lim Oon Kuin's bankruptcy. Justice Philip Jeyaretnam dismissed the applications, finding that the direction did not constitute a void disposition of property and that the Hiews' solicitors had no reasonable grounds to refuse payment as directed. The court also dismissed the application to vary the Freezing Injunctions.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Applications dismissed.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court addresses whether directing purchase monies to third parties constitutes a void disposition under the Insolvency, Restructuring and Dissolution Act.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lim Oon KuinDefendant, ClaimantIndividualApplications dismissedLost
Goh Thien PhongPlaintiffIndividualNeutralNeutral
Chan Kheng TekPlaintiffIndividualNeutralNeutral
Hin Leong Trading (Pte.) Ltd (in compulsory liquidation)PlaintiffCorporationNeutralNeutral
Lim Chee MengDefendantIndividualNeutralNeutral
Lim Huey ChingDefendantIndividualNeutralNeutral
Hiew Wen JiNon-partyIndividualApplications dismissedLost
Hiew Wen LiNon-partyIndividualApplications dismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Philip JeyaretnamJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Suresh MenonHaridass Ho & Partners
Brian Larry KhooHaridass Ho & Partners
Chia Voon JietDrew & Napier LLC
Sim Bing WenDrew & Napier LLC
Belle Tan Ling YiDrew & Napier LLC
Christopher Anand s/o DanielAdvocatus Law LLP
Harjean KaurAdvocatus Law LLP
Shjoneman Tan Sze ErnAllen & Gledhill LLP
Lai Tze Chang StanleyAllen & Gledhill LLP
Yeo Alexander Lawrence Han TiongAllen & Gledhill LLP
Yeoh Tze NingAllen & Gledhill LLP

4. Facts

  1. The Lims put up their property for sale by public tender.
  2. The Hiews offered to purchase the property for $39,200,000.00.
  3. A sale-and-purchase agreement was concluded on 16 August 2024.
  4. The agreement included a clause requiring the Liquidators’ written consent to the payees and the manner of payment.
  5. The Lims directed payment of the balance purchase monies to two companies, MKC Holdings (Pte.) Ltd and LHC Pte. Ltd.
  6. Judgment by consent had been entered against both Mr Lim and Ms Lim on a joint and several basis in an amount of $3.5 billion.
  7. Mr Lim filed for his own bankruptcy on 11 October 2024.

5. Formal Citations

  1. Re Lim Oon Kuin (Hiew Wen Ji and Hiew Wen Li, non-parties), Suit No 805 of 2020 (Summons No 2946 of 2024), Bankruptcy No 3811 of 2024 (Summons No 2970 of 2024), [2024] SGHC 271

6. Timeline

DateEvent
Insolvency, Restructuring and Dissolution Act 2018 enacted
The Lims put up their property for sale by public tender.
The Hiews offered to purchase the Property for $39,200,000.00.
The Lims were prepared to accept the Hiews' offer.
Sale-and-purchase agreement concluded.
Judgment by consent entered against Mr Lim and Ms Lim for $3.5 billion.
The Lims’ solicitors directed that payment of the balance purchase monies be made to MKC Holdings (Pte.) Ltd and LHC Pte. Ltd.
Letter authorising payment arrangement issued by the Liquidators.
Mr Lim filed for his own bankruptcy.
Applications heard on an urgent basis.
Transaction fixed for completion.
Full grounds of decision issued.

7. Legal Issues

  1. Void disposition of property
    • Outcome: The court held that the direction to pay the SPVs was not a void disposition of property under s 328(1) IRDA.
    • Category: Substantive
  2. Reasonable grounds for refusal of payment
    • Outcome: The court found no reasonable grounds for the Hiews’ solicitors to refuse to make payment as directed.
    • Category: Procedural

8. Remedies Sought

  1. Declaration that the Lims’ directions and the Liquidators’ authorisation that the Hiews make payment to the SPVs would constitute void dispositions of property under s 328(1) IRDA
  2. Orders that the balance purchase monies be paid to the Lims
  3. Order that the Freezing Injunctions be varied to provide for the Hiews’ payment of the balance purchase monies to the Lims

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Insolvency Litigation
  • Real Estate Law

11. Industries

  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
N/AN/ANoN/AN/AN/A

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Insolvency, Restructuring and Dissolution Act 2018Singapore
Conveyancing and Law of Property (Conveyancing) Rules 2011Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Disposition of property
  • Insolvency, Restructuring and Dissolution Act
  • Bankruptcy
  • Purchase monies
  • Liquidators
  • Freezing Injunctions
  • Conveyancing and Law of Property (Conveyancing) Rules 2011
  • Reasonable grounds for refusal

15.2 Keywords

  • Insolvency
  • Property
  • Disposition
  • Bankruptcy
  • Singapore

17. Areas of Law

Area NameRelevance Score
Insolvency Law95
Restructuring and Dissolution90
Administration of Insolvent Estates85
Avoidance of transactions80
Conveyance70
Property Law60
Breach of Contract40

16. Subjects

  • Insolvency Law
  • Property Law