Avoidance Law in Judicial Management

17 Pages Posted: 14 Dec 2007

See all articles by Meng Seng Wee

Meng Seng Wee

National University of Singapore (NUS) - Faculty of Law; National University of Singapore (NUS) - Centre for Law & Business

Abstract

The recent case of Neo Corp Pte. Ltd. v. Neocorp Innovations Pte. Ltd. is, according to a leading insolvency practitioner, one which "all professionals who accept appointment as judicial managers (and all lawyers advising them) will have to firmly bear in mind, pending legislative reform of the judicial management regime." In that case, judicial managers of a company commenced an action under section 227T of the Companies Act against a secured creditor of the company claiming that a floating charge which the company granted to the creditor constituted an unfair preference or a transaction at an undervalue. Before the action was completed the company was wound up. The secured creditor argued that the liquidator of the company had no right to continue the action under section 227T, as the right belonged to the judicial managers only. Both Andrew Phang J.C. (as he then was) in the High Court and Chao Hick Tin J.A. (as he then was) and V. K. Rajah J. in the Court of Appeal agreed with this contention. The significance of the decision is clear. In addition, the case is interesting on a procedural point: whether a High Court judge is entitled to examine and set aside an order of another High Court judge where the issues in relation thereto were not argued before the latter. A brief introduction of the legislative scheme on avoidance provisions is in order before we proceed to the facts of the case and an analysis of the judgments.

Suggested Citation

Wee, Meng Seng, Avoidance Law in Judicial Management. Singapore Journal of Legal Studies, pp. 505-521, 2006, Available at SSRN: https://ssrn.com/abstract=1071389

Meng Seng Wee (Contact Author)

National University of Singapore (NUS) - Faculty of Law ( email )

469G Bukit Timah Road
Eu Tong Sen Building
Singapore, 259776
Singapore

National University of Singapore (NUS) - Centre for Law & Business ( email )

Eu Tong Sen Building
469G Bukit Timah Road
259776
Singapore

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