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In the high court of the republic of singapore
[2020] SGHC 111
Originating Summons No 1190 of 2019
In the matter of Sections 16 and 18 and Schedule 1 of the Supreme Court of Judicature Act (Cap 322)
And
In the matter of Order 92, Rule 4 of the Rules of Court
And
In the matter of Section 48 of the Conveyancing and Law of Property Act (Cap 61)
And
In the matter of the eleven (11) Sale and Purchase Agreements dated 27th May 2008, dated 22nd July 2008, dated 31st July 2010, dated 29th April 2011, dated 24th March 2012, dated 29th July 2012, dated 24th May 2014, dated 24th May 2014, dated 4th March 2009, dated 22nd May 2009, dated 16th August 2009 entered into between TOK EE CHENG and JARDIN SMITH INTERNATIONAL PTE LTD (collectively “the Agreements”)
And
In the matter of the Powers of Attorney and Irrevocable Powers of Attorney given by way of security executed by TOK EE CHENG pursuant to the Agreements (collectively “the Corresponding Powers of Attorney”)
Between
TOK EE CHENG
… Plaintiff
And
JARDIN SMITH INTERNATIONAL PTE LTD
… Defendant
grounds of decision
[Agency] — [construction of agent’s authority] — [Powers of attorney]
This judgment is subject to final editorial corrections approved by the court and/or redaction pursuant to the publisher’s duty in compliance with the law, for publication in LawNet and/or the Singapore Law Reports.
Tok Ee Cheng
v
Jardin Smith International Pte Ltd
[2020] SGHC 111
High Court — Originating Summons No 1190 of 2019
Lee Seiu Kin J
17 March 2020, 20 March 2020
26 May 2020
Lee Seiu Kin J:
Introduction
1 In this originating summons, the plaintiff (“Tok”) applied for a declaration that certain powers of attorney that she purportedly executed were null, void and of no effect.
Foot Note 1
Plaintiff’s Further Submissions (“PFS”) p 17 para 23(1)
On 20 March 2020, after hearing counsel for the parties, I dismissed the application. On 6 April 2020, Tok appealed against my decision. I now give the grounds for my decision.
Facts
The parties
2 Tok purchased 14 plots of land in the United Kingdom through 11 sale and purchase agreements over approximately six years.
Foot Note 2
Defendant’s Bundle of Documents (“DBD”) p1 – p 231
These were purchased from Jardin Smith International Pte Ltd (“Jardin”) for investment purposes.
3 Jardin purchases land, sub-divides it into plots, and sells these plots as investments. A profit is made when the land is eventually developed or acquired for a higher price. To facilitate this, all buyers of the subdivided plots appoint Jardin as the managing agent of the entire property, tasking it with developing the land and increasing its value. The buyers delegate certain managerial powers to Jardin through powers of attorney. The powers of attorney signed by Tok (“the POAs”) were the subject of this dispute.
Background to the dispute
4 Each of the 11 sale and purchase agreements executed by Tok were accompanied by two POAs and one TP1 Form from land registry.
Foot Note 3
Tok Ee Cheng’s 1st Affidavit dated 24th September 2019 (“TEC1”) p 8 paras 11 – 12; Richard Gerald Sheridan’s Affidavit dated 7th November 2019 (“RGS”) p 5 para 10
The two POAs were for use in Singapore and the United Kingdom respectively while the TP1 Forms were administrative documents from the English Land Registry used in transferring registered titles.
Foot Note 4
RGS p 5 para 10
While the sale and purchase agreements were duly executed by both parties and witnessed by Jardin’s employees, the execution of the POAs and the TP1 Forms were not signed by anyone who had been physically present when Tok signed them.
Foot Note 5
TEC1 p 10 para 15(3); RGS p 6 para 11
However each POA contained a declaration signed by a person purporting to have witnessed it.
Foot Note 6
TEC1 p 11 paras 20 – 21; RGS p 6 para 11
5 Jardin’s explanation was that “as a matter of practice”,
Foot Note 7
RGS p 6 para 11
its employees would not sign off as witnesses on the POAs. Its understanding was that “attestations as witness should be signed off by a witness unrelated to and not under [its] employ”.
Foot Note 8
RGS p 6 para 11
Instead, Jardin would keep the POAs and the TP1 forms and have a third party sign them as a witness before sending them to the United Kingdom to facilitate the land transfers.
Foot Note 9
Raihainah Binte Ramlee’s Affidavit date 7th November 2019 (“RBR”) p 4 para 9
This was explained to Tok who was given to understand that this was the “usual procedure”
Foot Note 10
TEC1 p 11 para 17
and “normal for all investors”.
Foot Note 11
TEC1 p 11 para 16
6 There were no complaints from Tok initially. Then in January 2012, plans for a rail development in the UK were announced.
Foot Note 12
RGS p 7 para 15
This involved the compulsory acquisition of four of Tok’s plots (along with plots belonging to other investors) to make way for the said railway. Tok began making various complaints ranging from fraud and mismanagement of her assets
Foot Note 13
RGS p 438, 22 Jan 2015 Email
to “[un]satisfactory answers or updates”
Foot Note 14
TEC1 p 13 para 30
about her investments and consequent to that, uncertainty about Jardin’s “legal responsibility as a Managing Agent as far as [the compulsory acquisition was] concerned”.
Foot Note 15
RGS p 450
With regard to the POAs specifically, Tok alleged that there were material misrepresentations made by Jardin about the POAs at the time of execution,
Foot Note 16
TEC1 p 18 para 57(1)
that she had never received confirmed copies of the POAs,
Foot Note 17
TEC1 p 19 para 57 (5)
and that she had never intended to confer authority on Jardin to negotiate on her behalf regarding the compulsory acquisition.
Foot Note 18
TEC1 p 20 para 61(2)
There were also complaints of procedural irregularities in the execution of the POAs.
Foot Note 19
TEC1 p 18 para 57(2) – p 19 para 57(4)
These alleged procedural defects were the subject of the present application.
Foot Note 20
PWS pp 38 - 41
Issues to be determined
7 The application itself was narrowly framed. As noted by Tok herself, the only issue was a matter “of law (and not of facts)”.
Foot Note 21
PWS p 20 para 41(3)(c)(i)
The question was whether there were any procedural irregularities that invalidated the POAs. Therefore, I did not consider matters such as Jardin’s supposed mismanagement of Tok’s assets, the scope of the powers conferred by the POAs and the alleged misrepresentations made by Jardin concerning the POAs.
8 The alleged procedural irregularities were that:
(a) The execution of the POAs had not been attested by a Commissioner for Oaths or Notary Public.
Foot Note 22
TEC1 p 18 para 57(2)
(b) The POAs had not been registered with the Supreme Court.
Foot Note 23
TEC1 p 18 para 57(3)
(c) The execution of the POAs had not been properly witnessed.
Foot Note 24
TEC1 p 19 para 57(4)
9 However, this being an application for declaratory relief, the preliminary question was whether the requirements for declaratory relief had been satisfied. The key requirement and the focus of my decision was whether there was a practical purpose to granting the relief sought. I found that there was none. On that basis alone, I saw it fit to dismiss the application.
My decision
10 In exercising its discretion to grant declaratory relief, the courts look to whether there is any useful or practical purpose for doing so: Scott Latham v Credit Suisse First Boston [1999] SGHC 302 at [59], affirmed on appeal by Latham Scott v Credit Suisse First Boston [2000] 2 SLR(R) 30 at [77]. When queried as to what utility a declaration would achieve, Tok submitted three reasons.
11 Firstly, she suggested that the declaration would “[clarify] the effect of the deeds of power of attorney she [had] signed”.
Foot Note 25
PFS p 17 para 23(1)
I rejected this entirely. Declaratory relief must be directed to the determination of legal controversies and not to answering abstract or hypothetical questions: Salijah bte Ab Latef v Mohd Irwan bin Abdullah Teo [1996] 2 SLR(R) 80 at [58] citing Ainsworth v Criminal Justice Commission (1992) 66 ALJR 271 at [278]. Clarity, though a happy by-product of many judicial determinations, is not reason enough to justify declaratory relief.
12 Secondly, Tok claimed that the declaration was necessary to “[remedy] the defective instruments” and a failure to address these defects “[would] definitely prejudice her [i]nvestments”.
Foot Note 26
PFS p 17 para 23(2)
This was a bare assertion and no explanation was given of how the allegedly defective instruments would have prejudiced her investments. The truth was, her investments had dropped in value due to other factors and not on account of the validity or otherwise of the POAs. As noted by Jardin, the compulsory acquisition was “likely to mean that owners of the affected … plots … would not recover their full investment”.
Foot Note 27
DWS p 16 para 26
The only question was who was entitled to the compensation that ordinarily accompanies such compulsory acquisitions and how much of it they were entitled to. The declaration that Tok sought would not have addressed that matter at all.
13 Third, Tok contended that she “[would] or may [be exposed] to potential litigation in the future over whether the Defendant [was] authorized”
Foot Note 28
PFS p 17 para 23(3)
to manage her properties in relation to the compulsory acquisition. Again, this was purely speculative. It was uncertain if such litigation would visit her and what form it would take if it did. Indeed, upon perusal of Tok’s communications with the High Speed Two (HS2) Ltd, the body overseeing the compulsory acquisition (“HS2”), it was clear that the only disputes were those that existed between Tok and Jardin. HS2 had no quarrel with Tok. In HS2’s words, “[t]he compulsory purchase of the land will continue irrespective of the legal position regarding ownership”.
Foot Note 29
TEC1 p 481
It was not hostile or seeking legal action. If anything, it offered “legal processes … to ensure that the compensation [was] protected until there [was] certainty [about who was entitled to the land compensation]”.
Foot Note 30
TEC1 p 481
Hence, I could not accept that there was even a possibility of litigation that required some sort of anticipatory declaration with regard to the validity or otherwise of the POAs.
14 It seemed to me that Tok’s real grievance was the fact that her investments would result in a loss. But that had nothing to do with the issue of whether the POAs were valid or otherwise. Furthermore, if the POAs had been invalid due to Jardin’s fault and this had caused any loss to Tok, she would have been entitled to recover such loss in contract, or possibly negligence. But that was not the case and Tok wanted, for reasons best known to her, a bare declaration that did not make any difference to her financial position.
Conclusion
15 For these reasons, I found that there was no purpose in granting the declaratory relief sought. Put another way, a declaration would not have granted any “relief” in a real sense: Diora Ace Ltd and others v Management Corporation Strata Title Plan No 3661 and another [2015] 3 SLR 620 at [45]. I therefore dismissed the application but ordered parties to bear their own costs.
Lee Seiu Kin
Judge
Liew Tuck Yin David (David Liew Law Practice) for the plaintiff;
Choo Ching Yeow Collin and Goh Guan Hui Felix (Tan Peng Chin LLC) for the defendant.
This judgment text has undergone conversion so that it is mobile and web-friendly. This may have created formatting or alignment issues. Please refer to the PDF copy for a print-friendly version.