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The Court of Appeal upheld an order for a house, owned by former Singapore Swimming Club (SSC) president now bankrupt, Freddie Koh, and his wife, to be sold to pay off debts of around $ 3.2 million.
However, in light of the “extraordinary circumstances” presented by the Covid-19 pandemic and the “advanced age” of the couple, who are in their 70s, the court granted Ms Ooi Chhooi Ngoh a period of one year to sell the house. .
The two-story townhouse on Neram Road in Seletar has been estimated in recent years to be worth between $ 5.7 million and $ 7.8 million.
This is the first known case in which a court application is filed on behalf of a bankrupt to order the sale of a jointly owned property, as opposed to one made by a joint owner who is not bankrupt.
Koh owes $ 1.8 million to the club and $ 1.4 million to the mortgagee DBS Bank, but he and Madam Ooi have refused to sell their home following their bankruptcy in 2016.
Last year, the private trustees appointed to sell and distribute Mr. Koh’s assets to his creditors filed an application in Superior Court for the sale of the home.
In written reasons for the decision last week, the Court of Appeal said there was no difference between an application filed by a co-owner and one filed by the Bankrupt Official Assignee or private trustees.
The Supreme Court of the Judiciary Act gives the court general power to order the sale of property when it is “necessary or convenient” to do so, said Judge Andrew Phang, who issued the decision.
Koh’s debt to the SSC stemmed from a dispute that began in 2009, when four members of a previous management committee sued him for defamation.
The club’s money was used to defend the lawsuit until 2012, when members voted to remove him and recover legal costs. The club won a court battle in 2016 to recover the funds. Mr. Koh was declared bankrupt by the SSC that same year.
Madame Ooi resisted the request made by the private trustees to sell the house.
He maintained that he had a sentimental attachment to the house, where he has lived for more than 42 years, and that it was also home to his second son and family.
He also argued that it was not possible to find an “equivalent property in the same area”.
Their arguments were rejected last year by the Superior Court, which ordered the sale of the house.
Judge Chan Seng Onn said the damage to Madam Ooi and her family was outweighed by the financial damage to the unsecured creditor SSC, which has waited more than three years to claim their debt.
He noted that the couple would be left with “more than enough” funds to purchase alternative accommodation after selling the house and paying off Koh’s creditors. However, if the house did not sell, the club could never recover the debt.
The Court of Appeal said that the High Court judge had correctly balanced the various interests at stake to determine whether a sale should be ordered.
The superior court noted that Mr. Koh and Ms. Ooi were given various options to settle their debt, including getting one of their children to buy more than half of their stake in the property, but none of these suggestions were accepted. .
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