Introduction
In CCM Industrial Pte Ltd (in liquidation) v Chan Pui
Yee [2016] SGHC 231 (CCM Industrial), the liquidators of CCM
Industrial Pte Ltd (the Company) brought a claim for the recovery
of certain payments (the Payments) to the defendant, Madam Chan Pui
Yee, in the lead up to the Company's liquidation. The defendant
attempted a defence which was discussed by the court in three
paragraphs and although dismissed as "an afterthought and a
non-starter", such defence may have practical implications
which might affect unsecured lenders and borrowers and thus, may
impact on the purpose clauses in lending agreements.
Quistclose trust
The Quistclose trust is essentially a principle that is derived
from the decision in Barclays Bank Ltd v Quistclose
Investments [1970] AC 567 – namely, that moneys advanced
by a lender to a borrower for a specific purpose were impressed
with a trust for that purpose and does not become part of the
borrower's estate. The lender is
