Lim Oon Kuin v Official Assignee: Appointment of Private Trustees in Bankruptcy Dispute

The Singapore High Court heard applications for bankruptcy orders against Lim Oon Kuin, Lim Chee Meng, and Lim Huey Ching. The primary issue was the appointment of private trustees in bankruptcy. The claimants nominated Mr. Tam Chee Chong and Ms. Oon Su Sun, while the non-parties (creditors) initially proposed Mr. Sam Kok Weng and Mr. Tham Chee Soon, later replaced by Mr. Chee Yoh Chuang and Ms. Yap Hui Li, and Mr. Leow Quek Shiong and Ms. Seah Roh Lin. The court granted the bankruptcy orders and appointed the BDO Nominees (Mr. Leow Quek Shiong and Ms. Seah Roh Lin) as the claimants’ private trustees in bankruptcy, citing the preferences of the majority creditors and concerns regarding the independence of the initial nominees.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Bankruptcy orders granted; BDO Nominees appointed as the claimants’ private trustees in bankruptcy.

1.3 Case Type

Bankruptcy

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court judgment regarding the appointment of private trustees in bankruptcy for Lim Oon Kuin, Lim Chee Meng, and Lim Huey Ching.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lim Oon KuinClaimantIndividualBankruptcy order grantedLost
Official AssigneeOfficial AssigneeGovernment AgencyNeutralNeutral
Jeffrey Yip of Independent Practitioner
Goh Thien PhongNon-partyIndividualNeutralNeutral
Chan Kheng TekNon-partyIndividualNeutralNeutral
Hin Leong Trading (Pte.) Ltd (in compulsory liquidation)Non-partyCorporationNeutralNeutral
Lim Chee MengClaimantIndividualBankruptcy order grantedLost
Lim Huey ChingClaimantIndividualBankruptcy order grantedLost
The Hongkong and Shanghai Banking Corporation LimitedNon-partyCorporationNeutralNeutral
Crédit Agricole Corporate & Investment BankNon-partyCorporationNeutralNeutral
Societe GeneraleNon-partyCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Philip JeyaretnamJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Pillai Pradeep GPRP Law LLC
Lin Shuling JoycelynPRP Law LLC
Lee Lidie LydiaPRP Law LLC
Jeffrey YipIndependent Practitioner
Vergis S Abraham SCProvidence Law Asia LLC
Alston YeongProvidence Law Asia LLC
Huang Xinli DanielProvidence Law Asia LLC
Jamal Siddique PeerShook Lin & Bok LLP
Chu Shao Wei JeremyShook Lin & Bok LLP
Lim Jie Hao SampsonAllen & Gledhill LLP
Teo Yu Ping SarahJWS Asia Law Corporation

4. Facts

  1. Lim Oon Kuin, Lim Chee Meng, and Lim Huey Ching filed for bankruptcy.
  2. The claimants and non-parties proposed different nominees for private trustees in bankruptcy.
  3. The non-parties (creditors) objected to the claimants' nominees.
  4. 92.9% of the claimants’ creditors objected to the appointment of the Claimants’ Nominees.
  5. The claimants raised concerns about the independence of the non-parties' primary nominees.
  6. The claimants did not raise substantive objections to the BDO Nominees.
  7. The creditors were overwhelmingly in favor of the Non-Parties’ Alternative Nominees.

5. Formal Citations

  1. Re Lim Oon Kuin and other matters, Bankruptcy No 3811 of 2024, Bankruptcy No 3812 of 2024, Bankruptcy No 3859 of 2024, [2024] SGHC 328

6. Timeline

DateEvent
Lim Oon Kuin filed for bankruptcy
Lim Oon Kuin's affidavit in HC/B 3811/2024
Lim Huey Ching filed for bankruptcy
First Hearing
Non-parties proposed alternative candidates
Second Hearing
Judgment issued

7. Legal Issues

  1. Appointment of Private Trustee in Bankruptcy
    • Outcome: The court appointed the BDO Nominees as the claimants’ private trustees in bankruptcy.
    • Category: Procedural
    • Related Cases:
      • [2023] 3 SLR 1604
      • [2024] 3 SLR 1228
      • [2022] SGHC 209
      • [2004] BCC 315
      • [2024] 5 SLR 1006
      • [2023] 5 SLR 1153
      • [2021] 4 SLR 139
      • [2007] FMCA 533
      • [1984] 55 ALR 578
      • [1996] 1 SLR(R) 81

8. Remedies Sought

  1. Appointment of private trustee in bankruptcy

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Bankruptcy
  • Insolvency

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Wang Aifeng v Sunmax Global Capital Fund 1 Pte Ltd and anotherHigh CourtYes[2023] 3 SLR 1604SingaporeCited to support the argument that the functions of a private trustee in bankruptcy and those of a liquidator in a company’s liquidation are essentially the same.
Re X Diamond Capital Pte Ltd (Metech International Ltd, non-party)High CourtYes[2024] 3 SLR 1228SingaporeCited for the factors a court considers when appointing a judicial manager: choice of largest creditor, independence of nominees, and skill/expertise of judicial managers.
Re Hodlnaut Pte LtdHigh CourtYes[2022] SGHC 209SingaporeCited for the principle that the appointment of a judicial manager is a fact-sensitive exercise.
Fielding v Seery & AnorUnknownYes[2004] BCC 315UnknownCited to argue that majority vote of creditors will normally prevail, but creditors do not have an absolute right as to the choice of liquidator.
Re Medora Xerxes Jamshid (in his capacity as the private trustee in bankruptcy of Tan Han Meng) (Planar One & Associates Pte Ltd (in liquidation), non-party)UnknownYes[2024] 5 SLR 1006SingaporeCited for the principle that the bankruptcy regime is directed not only at securing the repayment of a bankrupt’s debts, but also at giving bankrupts themselves a chance at a fresh start.
Mirmohammadali Hadian v Ambika d/o Ramachandran (Official Assignee, non-party)UnknownYes[2023] 5 SLR 1153SingaporeCited for the principle that the bankruptcy regime is directed not only at securing the repayment of a bankrupt’s debts, but also at giving bankrupts themselves a chance at a fresh start.
Zhang Hong En Jonathan v Private Trustee in Bankruptcy of Zhang Hong’En JonathanUnknownYes[2021] 4 SLR 139SingaporeCited for the principle that the court's primary concern is to balance fairness to the bankrupt, the interests of creditors, and the need to allow private trustees to do their jobs.
Boral Montoro Pty Ltd v McLachlanFederal Court of AustraliaYes[2007] FMCA 533AustraliaCited for the principle that a trustee in bankruptcy must be scrupulously careful to ensure that he never allows himself to be placed in a position of conflict between various duties or between duty and interests; nor must he ever allow the situation to arise where he may be seen to be in that position of conflict or potential conflict. A registered trustee must not only be impartial; he must be seen to impartial.
Re Lamb; Ex Parte Registrar In BankruptcyUnknownYes[1984] 55 ALR 578AustraliaCited for the principle that a trustee plays a central role in the administration of estates under the Act and is under a general duty to exercise the powers committed to him in such a fashion that the objects of the Act, including those of equality between creditors and fairness to bankrupts and debtors, are served. The objects of the Act are of public importance and it is of great importance to the community that the role given by the legislature to a trustee is fulfilled only by persons who are, and who are seen to be, completely independent.
Re Halley’s Departmental Store Pte LtdHigh CourtYes[1996] 1 SLR(R) 81SingaporeCited for the principle that a judicial manager is an independent officer of the court.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Insolvency, Restructuring and Dissolution Act 2018Singapore
s 36(1) of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 36 of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 37 of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 89(2) of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 89(4) of the IRDASingapore
s 44(1) of the Insolvency, Restructuring and Dissolution Act 2018Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Private trustee in bankruptcy
  • Bankruptcy order
  • Licensed insolvency practitioner
  • Creditor preferences
  • Independence
  • Conflict of interest
  • Majority creditor support

15.2 Keywords

  • Bankruptcy
  • Insolvency
  • Private Trustee
  • Singapore
  • Creditors
  • Debtors

17. Areas of Law

Area NameRelevance Score
Bankruptcy95
Insolvency Law95
Restructuring and Dissolution80

16. Subjects

  • Insolvency
  • Bankruptcy
  • Appointment of Trustees