Back-To-Back And Repudiation By Prolonged Non-Payment

In DSL Integrated Solution Pte Ltd v Triumph Electrical System Engineering Pte Ltd [2022] SGHC 221 (“DSL v Triumph”), the High Court addressed “back-to-back” contracts and found that a sub-sub-contractor was justified in stopping works as the sub-contractor had committed a repudiatory breach by failing to make payment.

Background. In DSL Integrated Solution Pte Ltd v Triumph Electrical System Engineering Pte Ltd [2022] SGHC 221 (“DSL v Triumph”), the plaintiff, DSL Integrated Solutions Pte Ltd (“DSL”), was engaged by the main contractor, Qianjian International (South Pacific) Group Development Co Pte Ltd (“CNQC”), to design, supply and install electrical works. The contract between DSL and CNQC shall be referred to as the “Main Contract”.