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Singapore's dispute resolution ecosystem must evolve to stay relevant: Murali

Singapore's dispute resolution ecosystem must evolve to stay relevant: Murali

Straits Times22-05-2025

Mr Murali Pillai, Minister of State for Law and Transport, speaking at the Alternative Dispute Resolution Conference on May 22. ST PHOTO: NG SOR LUAN
SINGAPORE – Hubs for Alternative Dispute Resolution (ADR) must evolve to remain relevant to businesses, to deliver certainty and rule of law amid the volatile global landscape.
In a speech on May 22 to about 200 delegates at the Alternative Dispute Resolution Conference, Mr Murali Pillai, Minister of State for Law and Transport, said Singapore aims to navigate the complex and dynamic global environment in three ways – upholding the rule of law, innovation and creating partnerships.
On the rule of law, Mr Murali said Singapore is a strong proponent of multilateralism, noting that the Republic had signed and ratified a number of key international conventions, including the New York Convention, the Hague Choice of Court Convention, and the Singapore Convention on Mediation.
He said these instruments enhance the enforceability of arbitral awards, court judgments, and mediated settlement agreements across borders.
Mr Murali highlighted the most recent addition - the Singapore Convention on Mediation, which currently has 18 parties and 57 signatories, including many progressive countries from ASEAN and Asia.
'We hope that more countries will sign and ratify the Convention, allowing mediation to become a truly effective and trusted means for resolving cross-border disputes – complementing arbitration as a key pillar of international dispute resolution,' he said.
Speaking at the conference, jointly organised by the Law Society of Singapore and LawAsia (The Law Association for Asia and the Pacific), held at the Pan Pacific Singapore, Mr Murali said Singapore must consistently innovate, improve, and create better ways to meet global needs.
He noted changes were made to introduce a framework for fee agreements, to align the ADR landscape in Singapore with practices and developments on the international front.
Singapore also embraced technology, with the Singapore International Mediation Centre (SIMC) offering the use of the Mediation Artificial Intelligence (AI) Assistant.
The tool allows users to quickly make sense of large volumes of information, including generating a chronology of events, outlining the roles of individuals, providing a table of common positions and differences between parties, and summarising the documents and data provided by parties
Mr Murali said because of the international nature of the disputes, Singapore recognises that it cannot operate in isolation.
At the government-to-government level, he noted that the Ministry of Law has signed memorandum of understanding with counterparts around the world.
ADR institutions have also collaborated with foreign ADR institutions, trade bodies, bar associations, hearing centres and law schools, to exchange knowledge and best practices.
Mr Murali said ADR institutions in Singapore have an international Board, Court and panel from both common law and civil law jurisdictions.
'Just as Singapore is integrated into the global trading system, our ADR ecosystem must also be globally connected.
'To this end, we have liberalised our dispute resolution regime,' he added, noting that parties can appoint counsel, arbitrators and mediators of any nationality.
In his speech, Mr Murali said he is optimistic that globalisation is here to stay, though in a different form, with new ties forged between like-minded jurisdictions.
He said he was especially confident about the future of Asia, noting that three of the top five largest economies in the world are in Asia – China, Japan and India.
'ASEAN, as a collective bloc, is around the same size as India. This region is dynamic and full of promise.
'The Asia-Pacific is home to over 60 per cent of the world's youth aged 15 to 24, representing not only a significant source of talent, but also a growing base of consumers.
'With an expanding middle class and increasing urbanisation, we are witnessing a surge in infrastructure development and economic activity.
'And where business thrives, so too does demand for legal and dispute resolution services. There is room for all of us to benefit from this growth,' he added.
Legal experts speaking to The Straits Times at the sideline of the event said new trends are emerging in the ADR environment.
One of the delegates at the conference, Mr See Chern Yang, director of dispute resolution at Drew & Napier, told The Straits Times: 'We are starting to see more commercial disputes, especially now... cross border, commercial disputes between two parties of different countries getting through the mediation system.
'We are also starting to see a trend of what we call pre-commencement mediation, which means even before the case is found in the court, before litigation commences, parties with their lawyers collectively decide, 'let's mediate'.'
Mr See Chern Yang, director of dispute resolution at Drew & Napier, said that they are starting to see more commercial disputes, especially now.
ST PHOTO: NG SOR LUAN
Parties from around the world have chosen Singapore as the dispute resolution forum , even when the dispute has no direct connection with Singapore.
In the latest Queen Mary University of London and White & Case's International Arbitration Survey, Singapore continues to rank amongst the top four most preferred seats of arbitration across all regions, including Africa and Latin America.
The Singapore International Arbitration Centre has received cases from parties from 110 jurisdictions.
Mr Shyam Divan, president of LawAsia, said ADR can bring cost-savings and be more efficient to feuding parties.
In international trade disruptions, such as the Covid-19 pandemic, parties may find themselves having a problem which needs to be solved quickly.
Mr Divan told ST: 'So in situations like that, I think ADR, without having to go through the court system, is much more efficient – either through the arbitration or the mediation route – in trying to have a solution which is acceptable to two sides.'
He added that he sees mediated settlements gaining popularity.
Mr Shyam Divan, president of LawAsia, said ADR can bring cost-savings and be more efficient to feuding parties.
ST PHOTO: NG SOR LUAN
Mr Murali, who will be appointed Senior Minister of State for both portfolios from May 23 , told ST about his new role as 'being a team player in the team captained by Prime Minister Lawrence Wong'.
He said: 'The goal is simple but difficult – to win the match to secure our country's future at local, national and international levels.'
Zaihan Mohamed Yusof is senior crime correspondent at The Straits Times.
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Park Hotel Management and Allen Law's legal battle results in landmark High Court judgment for insolvency law
Park Hotel Management and Allen Law's legal battle results in landmark High Court judgment for insolvency law

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time27-05-2025

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Park Hotel Management and Allen Law's legal battle results in landmark High Court judgment for insolvency law

Park Hotel Management and Allen Law's legal battle results in landmark High Court judgment for insolvency law Source: Business Times Article Date: 27 May 2025 Author: Jessie Lim In a related claim, CapitaLand unit Ascendas Hospitality Reit, another Park Hotel creditor, will not be able to recover the full sum it seeks from liquidators. Former Park Hotel Management (PHMPL) director Allen Law, who is being sued by liquidators of the company, has failed to reduce his potential liabilities by S$6.8 million after the High Court rejected his application to amend his defence and introduce a counterclaim. In a landmark judgment last year, Justice Goh Yihan dismissed Law's application on the basis that the counterclaims Law sought to introduce did not fall within the scope of insolvency set-offs. Justice Goh ruled that insolvency set-offs are the only form of set-offs that can be advanced against an insolvent company without requiring permission from the court. This is the first time a court in Singapore has authoritatively addressed the legal issue of what kind of set-offs are available against an insolvent company. An insolvency set-off is a mechanism by which a company's debt is cancelled out or reduced by the amount the other party owes, if the company goes into liquidation. There are also legal and equitable set-offs but these are not provided for in the Singapore statutes. In his application, Law claimed that the S$6.8 million included S$4.3 million, which he paid to UOB as a guarantor of a loan extended by the bank to PHMPL, and S$2.5 million, which was paid to discharge PHMPL's debts. Since 2022, the liquidators of PHMPL and Law have been embroiled in several related court cases over the disposal of assets sold to entities related to Law before PHMPL was placed into liquidation. The main case pertains to whether Law transferred virtually all of PHMPL's assets to himself and three companies under his control, in undervalued transactions or in breach of Law's duties as a director. 'The effect of these transactions was allegedly to substantially reduce the sums available for distribution amongst PHMPL's creditors in the event of its liquidation,' Justice Goh said. While a verdict has yet to be delivered for the main case, in dismissing Law's application to introduce a counterclaim, Justice Goh said that because the claims against the defendants were based on the defendants' 'wrongdoing', the claims do not satisfy the requirement of mutual dealings required for insolvency set-offs. In their suit, PHMPL's liquidators allege that Law committed breach of fiduciary duty, breach of trust and conspiracy through unlawful means. Citing English case law, Justice Goh said: 'There is no set-off available between a debt due to a misfeasant and his liability to repay the monies which he has been ordered to pay in misfeasance proceedings.' He pointed out how English legal scholar Roy Goode said: 'Any other conclusion would enable the wrongdoer to benefit from his wrongdoing by recovery through set-off instead of having to prove in the winding-up in competition with other creditors.' In another judgment released last Friday (May 23), High Court Judge Audrey Lim ruled that another of PHMPL's creditors, the trustee of Ascendas Hospitality Reit (AH-Reit), will not be able to claim the full amount it is seeking from PHMPL's subsidiary PHCQ, which is also in liquidation. This was after Park Hotel Group Management, one of Law's companies, challenged how AH-Reit had derived its claim for over S$562,400 in property tax it was seeking from the liquidators. AH-Trust, the stapled entity which comprised AH-Reit and Ascendas Hospitality Business Trust, has since combined with Ascott Residence Trust to form what is known today as CapitaLand Ascott Trust. AH-Reit was the landlord of the former Park Hotel Clarke Quay property at Unity Street leased by PHCQ. AH-Reit sought to claim, among other costs, rental and property tax payable from August 2021 to June 2023. PHCQ stopped paying rent in 2020, which resulted in AH-Reit terminating its lease in August 2021 and repossessing the property after PHCQ failed to pay around S$5.92 million in rent. From August 2021 to September 2022, Ascott International Management (AIMPL), an entity related to AH-Reit, was appointed to manage the hotel. The building was leased to Ascott Hospitality Business Trust from October 2022, with AIMPL remaining as manager. The property is currently home to The Robertson House by The Crest Collection, which officially opened in October 2023. Under the lease, Ascott Hospitality Business Trust paid rent to AH-Reit while AH-Reit bore the property tax, Justice Lim noted. The judge said it was 'not unreasonable' for AH-Reit to have arranged for AIMPL to manage the property and that it was 'reasonable' for AH-Reit to lease the property to Ascott Hospitality Business Trust. However, she added: 'Neither AH-Reit nor the liquidators have explained why AH-Reit did not impose the obligation to pay property tax on Ascott Hospitality Business Trust.. Nor why the tax was borne by AH-Reit. 'That the Ascott Hospitality Business Trust lease did not include an obligation on Ascott Hospitality Business Trust to bear the property tax is to be contrasted with the lease wherein PHCQ bore such an obligation.' 'AH-Reit appears to have treated AHBT more favourably (compared to PHCQ) by not imposing an obligation on AHBT to pay property tax, only to then claim the property tax from PHCQ instead.' The liquidators' acceptance of AH-Reit's property tax claim, without any scrutiny it would seem, was unsatisfactory, Justice Lim said. As a result, the High Court judge reduced AH-Reit's proof of debt by S$273,792 in property tax it was claiming for the period from October 2022 to June 2023. She also ruled that some of the items the Reit sought to claim under costs for replacement had insufficient evidence to prove that they were remedial works that fell within PHCQ's obligations under its lease. Nanthini Vijayakumar from TSMP Law was the lead counsel representing Allen Law, while Allen & Gledhill's Lee Bik Wei and her team acted on behalf of the liquidators. The case continues. Source: The Business Times © SPH Media Limited. Permission required for reproduction. Print

Park Hotel Management and Allen Law's legal battle results in landmark High Court judgment for insolvency law
Park Hotel Management and Allen Law's legal battle results in landmark High Court judgment for insolvency law

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time26-05-2025

  • Business Times

Park Hotel Management and Allen Law's legal battle results in landmark High Court judgment for insolvency law

[SINGAPORE] Former Park Hotel Management (PHMPL) director Allen Law Ching Hung, who is being sued by liquidators of the company, has failed to reduce his potential liabilities by S$6.8 million after the High Court rejected his application to amend his defence and introduce a counterclaim . In a landmark judgement last year, Justice Goh Yihan dismissed Law's application on the basis that the counterclaims Law sought to introduce did not fall within the scope of insolvency set-offs. Justice Goh ruled that insolvency set-offs are the only form of set-offs that can be advanced against an insolvent company without requiring permission from the court. This is the first time a court in Singapore has authoritatively addressed the legal issue of what kind of set-offs are available against an insolvent company. An insolvency set-off is a mechanism by which a company's debt is cancelled out or reduced by the amount the other party owes, if the company goes into liquidation. There are also legal and equitable set-offs but these are not provided for in the Singapore statutes. In his application, Law claimed that the S$6.8 million included S$4.3 million which he paid to UOB as a guarantor of a loan extended by the bank to PHMPL and S$2.5 million which was paid to discharge PHMPL's debts. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Since 2022, the liquidators of PHMPL and Law have been embroiled in several related court cases over the disposal of assets sold to entities related to Law before PHMPL was placed into liquidation. The main case pertains to whether Law transferred virtually all of PHMPL's assets to himself and three companies under his control, in undervalued transactions or in breach of Law's duties as a director. 'The effect of these transactions was allegedly to substantially reduce the sums available for distribution amongst PHMPL's creditors in the event of its liquidation,' Justice Goh said. While a verdict has yet to be delivered for the main case, in dismissing Law's application to introduce a counterclaim, Justice Goh said that because the claims against the defendants were based on the defendants' 'wrongdoing', the claims do not satisfy the requirement of mutual dealings required for insolvency set-offs. In their suit, PHMPL's liquidators allege that Law committed breach of fiduciary duty, breach of trust and conspiracy through unlawful means. Citing English case law, Justice Goh said: 'There is no set-off available between a debt due to a misfeasant and his liability to repay the monies which he has been ordered to pay in misfeasance proceedings'. He pointed out how in English legal scholar Sir Roy Goode said: 'Any other conclusion would enable the wrongdoer to benefit from his wrongdoing by recovery through set-off instead of having to prove in the winding-up in competition with other creditors.' In another judgement released last Friday (May 23), High Court Judge Audrey Lim ruled that another of PHMPL's creditors, the trustee of Ascendas Hospitality Reit (AH-Reit), will not be able to claim the full amount it is seeking from PHMPL's subsidiary PHCQ, which is also in liquidation. This was after Park Hotel Group Management, one of Law's companies, challenged how AH-Reit had derived its claim for over S$562,400 in property tax it was seeking from the liquidators. AH-Reit, which has since combined with Ascott Residence Trust to form what is known today as CapitaLand Ascott Reit, was the landlord of the former Park Hotel Clarke Quay property at Unity Street leased by PHCQ. AH-Reit sought to claim, amongst other costs, rental and property tax payable from August 2021 to June 2023. PHCQ stopped paying rent in 2020 which resulted in AH-Reit terminating its lease in August 2021 and repossessing the property after PHCQ failed to pay around S$5.92 million in rent. From August 2021 to September 2022, Ascott International Management (AIMPL), an entity related to AH-Reit, was appointed to manage the hotel. The building was leased to Ascott Hospitality Business Trust from October 2022, with AIMPL remaining as manager. The property is currently home to The Robertson House by The Crest Collection which officially opened in October 2023. Under the lease, Ascott Hospitality Business Trust paid rent to AH-Reit while AH-Reit bore the property tax, Justice Lim noted. The judge said she accepted that it was reasonable for AH-Reit to have arranged for AIMPL to manage the property and that it was reasonable for AH-Reit to lease the property to Ascott Hospitality Business Trust. However she added: 'Neither AH-Reit nor the liquidators have explained why AH-Reit did not impose the obligation to pay property tax on Ascott Hospitality Business Trust.. Nor why the tax was borne by AH-Reit. 'That the Ascott Hospitality Business Trust lease did not include an obligation on Ascott Hospitality Business Trust to bear the property tax is to be contrasted with the lease wherein PHCQ bore such an obligation.' 'AH-Reit appears to have treated AHBT more favourably (compared to PHCQ) by not imposing an obligation on AHBT to pay property tax, only to then claim the property tax from PHCQ instead.' The liquidators' acceptance of AH-Reit's property tax claim, without any scrutiny it would seem, was unsatisfactory, Justice Lim said. As a result, the High Court judge reduced AH-Reit's proof of debt by S$273,792 in property tax it was claiming for the period from October 2022 to June 2023. She also ruled that some of the items the Reit sought to claim under costs for replacement had insufficient evidence to prove that they were remedial works that fell within PHCQ's obligations under its lease. Nanthini Vijayakumar from TSMP Law was the lead counsel representing Allen Law, while Allen & Gledhill's Lee Bik Wei and her team acted on behalf of the liquidators. The case continues.

Park Hotel Management and Allen Law's legal battle results in landmark High Court judgement for insolvency law
Park Hotel Management and Allen Law's legal battle results in landmark High Court judgement for insolvency law

Business Times

time26-05-2025

  • Business Times

Park Hotel Management and Allen Law's legal battle results in landmark High Court judgement for insolvency law

[SINGAPORE] Former Park Hotel Management (PHMPL) director Allen Law Ching Hung, who is being sued by liquidators of the company, has failed to reduce his potential liabilities by S$6.8 million after the High Court rejected his application to amend his defence and introduce a counterclaim . In a landmark judgement last year, Justice Goh Yihan dismissed Law's application on the basis that the counterclaims Law sought to introduce did not fall within the scope of insolvency set-offs. Justice Goh ruled that insolvency set-offs are the only form of set-offs that can be advanced against an insolvent company without requiring permission from the court. This is the first time a court in Singapore has authoritatively addressed the legal issue of what kind of set-offs are available against an insolvent company. An insolvency set-off is a mechanism by which a company's debt is cancelled out or reduced by the amount the other party owes, if the company goes into liquidation. There are also legal and equitable set-offs but these are not provided for in the Singapore statutes. In his application, Law claimed that the S$6.8 million included S$4.3 million which he paid to UOB as a guarantor of a loan extended by the bank to PHMPL and S$2.5 million which was paid to discharge PHMPL's debts. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Since 2022, the liquidators of PHMPL and Law have been embroiled in several related court cases over the disposal of assets sold to entities related to Law before PHMPL was placed into liquidation. The main case pertains to whether Law transferred virtually all of PHMPL's assets to himself and three companies under his control, in undervalued transactions or in breach of Law's duties as a director. 'The effect of these transactions was allegedly to substantially reduce the sums available for distribution amongst PHMPL's creditors in the event of its liquidation,' Justice Goh said. While a verdict has yet to be delivered for the main case, in dismissing Law's application to introduce a counterclaim, Justice Goh said that because the claims against the defendants were based on the defendants' 'wrongdoing', the claims do not satisfy the requirement of mutual dealings required for insolvency set-offs. In their suit, PHMPL's liquidators allege that Law committed breach of fiduciary duty, breach of trust and conspiracy through unlawful means. Citing English case law, Justice Goh said: 'There is no set-off available between a debt due to a misfeasant and his liability to repay the monies which he has been ordered to pay in misfeasance proceedings'. He pointed out how in English legal scholar Sir Roy Goode said: 'Any other conclusion would enable the wrongdoer to benefit from his wrongdoing by recovery through set-off instead of having to prove in the winding-up in competition with other creditors.' In another judgement released last Friday (May 23), High Court Judge Audrey Lim ruled that another of PHMPL's creditors, the trustee of Ascendas Hospitality Reit (AH-Reit), will not be able to claim the full amount it is seeking from PHMPL's subsidiary PHCQ, which is also in liquidation. This was after Park Hotel Group Management, one of Law's companies, challenged how AH-Reit had derived its claim for over S$562,400 in property tax it was seeking from the liquidators. AH-Reit, which has since combined with Ascott Residence Trust to form what is known today as CapitaLand Ascott Reit, was the landlord of the former Park Hotel Clarke Quay property at Unity Street leased by PHCQ. AH-Reit sought to claim, amongst other costs, rental and property tax payable from August 2021 to June 2023. PHCQ stopped paying rent in 2020 which resulted in AH-Reit terminating its lease in August 2021 and repossessing the property after PHCQ failed to pay around S$5.92 million in rent. From August 2021 to September 2022, Ascott International Management (AIMPL), an entity related to AH-Reit, was appointed to manage the hotel. The building was leased to Ascott Hospitality Business Trust from October 2022, with AIMPL remaining as manager. The property is currently home to The Robertson House by The Crest Collection which officially opened in October 2023. Under the lease, Ascott Hospitality Business Trust paid rent to AH-Reit while AH-Reit bore the property tax, Justice Lim noted. The judge said she accepted that it was reasonable for AH-Reit to have arranged for AIMPL to manage the property and that it was reasonable for AH-Reit to lease the property to Ascott Hospitality Business Trust. However she added: 'Neither AH-Reit nor the liquidators have explained why AH-Reit did not impose the obligation to pay property tax on Ascott Hospitality Business Trust.. Nor why the tax was borne by AH-Reit. 'That the Ascott Hospitality Business Trust lease did not include an obligation on Ascott Hospitality Business Trust to bear the property tax is to be contrasted with the lease wherein PHCQ bore such an obligation.' 'AH-Reit appears to have treated AHBT more favourably (compared to PHCQ) by not imposing an obligation on AHBT to pay property tax, only to then claim the property tax from PHCQ instead.' The liquidators' acceptance of AH-Reit's property tax claim, without any scrutiny it would seem, was unsatisfactory, Justice Lim said. As a result, the High Court judge reduced AH-Reit's proof of debt by S$273,792 in property tax it was claiming for the period from October 2022 to June 2023. She also ruled that some of the items the Reit sought to claim under costs for replacement had insufficient evidence to prove that they were remedial works that fell within PHCQ's obligations under its lease. Nanthini Vijayakumar from TSMP Law was the lead counsel representing Allen Law, while Allen & Gledhill's Lee Bik Wei and her team acted on behalf of the liquidators. The case continues.

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