A case study of W Y Steel Construction Pte Ltd v Tycoon Construction Pte Ltd (in liquidation) [2016] SGHC 80
Overview
The issue before the High Court was whether leave should be
granted to the plaintiff to proceed with an action for breach of
contract against an insolvent defendant. The court held that in
deciding whether leave should be granted, it must balance the
collective interest of the defendant's general body of
creditors against the relative hardship and injustice which may be
experienced by the plaintiff. As the liquidator had only about
S$200,000 available prior to the hearing of the leave application,
whereas the plaintiff's claim amounted to more than S$18
million, the court found that allowing the plaintiff to proceed
with its claim would exhaust the insolvent defendant's funds
even before the claim was concluded. The detriment caused to the
general body of creditors would thus far exceed the hardship to the
plaintiff. Consequently, the court refused
