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Marine Accomm Pte Ltd v Western Tug & Barge Company Pty Ltd
[1995] SGHC 13
Suit 1537/1992
Lim Teong Qwee JC
19 January 1995
1
Judgment:
2 Coram: Lim Teong Qwee JC
3 GROUNDS OF JUDGMENT
4
5 "2. On or around 26 December 1991 the Defendants
requested the Plaintiffs to enter into an agreement with < SKS
> to .
6 Particulars
7 The Defendants through their representatives, one Koh Chye
Heng and one Vinod K Shah, entered into an oral agreement with
the Plaintiffs (hereinafter referred to as the `Owner's
Agreement'), that in consideration of the Plaintiffs entering
into the abovestated agreement with < SKS > , the
Defendants would pay or otherwise indemnify the Plaintiffs in
respect of the contract sums relating to the said agreement with
< SKS > .
8 3. In consequence and in furtherance of the Owner's Agreement
with the Defendants, and in consideration of the Defendants'
promise to pay such contract sums that would be due and/or owing
by < SKS > , the Plaintiffs entered into an agreement with
< SKS > on or about 2 January 1992 (hereinafter referred to
as the `Shipyard Agreement') for a contract sum of $460,000.00.
...."
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13 The oral agreement
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18 Tan said in his affidavit that on or about 26 December 1991 he
went to the shipyard of SKS to see Toh and together they saw Koh
at the owner's representative's office at the shipyard. He went
on to say that he voiced his concern as to the financial
condition of SKS and that "the only reason that we had
quoted for the job was the assurance that the Defendants would be
responsible for payments". He said Koh told him that
"the Defendants would pay for the works done or otherwise
indemnify the Plaintiff company for works done, if it entered
into the contract with SKS". He then said that "in
consequence of and further to Koh's assurances and request to
take on the job" the plaintiff entered into the carpentry
contract with SKS on 2 January 1992. Under cross-examination he
said the meeting he and Toh had with Koh took place after all the
quotations had been submitted and before Christmas and that as
regards what in his affidavit he said Koh had told him his exact
words were "Timothy. You don't have to worry. We will pay
you directly for all works being carried out on this
project." "Timothy" is a reference to Tan. Toh
said in his affidavit that he and Tan were in the owner's
representative's office at the shipyard when Koh "assured
him < Tan > that the Defendants would be responsible for
and make all payments in respect of the sub-contract, and that
the Plaintiffs had no cause for concern". When he was asked
what Koh actually said his answer was "Can't really
recall."
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24 Authority of Koh Chye Heng
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26 " Executive Action Plan
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30 ....
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33 3. ....
34 4. ....
35 5. ....
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37 6(a).....
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39 8. ....
40 For and on behalf of WESTERN TUG & BARGE CO PTY LTD
41 Signed NIGEL DALTON General Manager
42 Date: 16th Dec 1991 "
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N Sreenivasan and Chua Swee Leen for plaintiff
Leong Kah Wah and Eric Tan for defendant