Bounty Resources Armenia Ltd v Li Haidong: Default Judgment & Director's Authority
In Bounty Resources Armenia Ltd v Li Haidong, the High Court of Singapore heard an appeal by Li Haidong against the decision to dismiss his application to set aside a default judgment. Bounty Resources Armenia Ltd had sued Li Haidong as guarantor for a loan. The court, presided over by Justice Woo Bih Li, dismissed the appeal, finding that Li Haidong was precluded from raising the lack of authority point and that his other defenses lacked merit.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding setting aside a default judgment. The court considered the director's authority to commence legal proceedings and the validity of defenses.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Bounty Resources Armenia Ltd | Plaintiff, Respondent | Corporation | Appeal Dismissed | Won | |
| Li Haidong | Defendant, Appellant | Individual | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Wong Tjen Wee | Eldan Law LLP |
| Edwin Lee | Eldan Law LLP |
| Chia Xin Hui | Eldan Law LLP |
| Mark Cham | Lee & Lee |
4. Facts
- Bounty Resources Armenia Ltd entered into a facility agreement with Bounty Investment Holdings Ltd to provide a loan facility of up to US$6,000,000.
- Li Haidong was the guarantor for the loan under the Facility Agreement.
- BIHL requested and received a drawdown of US$6,000,000 from the plaintiff.
- BIHL failed to repay the outstanding loan amount.
- The plaintiff commenced a suit against the defendant claiming US$5.7m with interest of US$952,029.
- The defendant failed to enter an appearance, and a Default Judgment was entered against him.
- The defendant applied to set aside the Default Judgment, which was dismissed by the AR.
5. Formal Citations
- Bounty Resources Armenia Ltd v Li Haidong, Suit No 1102 of 2014 (Registrar's Appeal No 114 of 2015 and Summons No 2282 of 2015), [2015] SGHC 188
6. Timeline
| Date | Event |
|---|---|
| Facility Agreement entered into between Bounty Resources Armenia Ltd and Bounty Investment Holdings Ltd. | |
| Plaintiff transferred US$6,000,000 to BIHL. | |
| Plaintiff, BIHL and the defendant entered into a Deed of Repayment. | |
| First tranche repayment date under Deed of Repayment. | |
| Second tranche repayment date under Deed of Repayment. | |
| Plaintiff commenced suit against the defendant. | |
| Default Judgment entered against the defendant. | |
| Defendant filed SUM 578/2015 to set aside the Default Judgment. | |
| AR dismissed the defendant’s application. | |
| Defendant filed Summons No 2282 of 2015. | |
| Court dismissed both the application for leave to file further affidavits and the appeal. |
7. Legal Issues
- Setting Aside Default Judgment
- Outcome: The court dismissed the appeal to set aside the default judgment.
- Category: Procedural
- Related Cases:
- [2008] 4 SLR(R) 907
- Authority to Commence Legal Proceedings
- Outcome: The court found that the defendant was precluded from raising the lack of authority point.
- Category: Substantive
- Related Cases:
- [2011] 1 SLR 1155
- [2014] 3 SLR 329
- Adducing Fresh Evidence
- Outcome: The court dismissed the defendant's application for leave to adduce further affidavits.
- Category: Procedural
- Related Cases:
- [1954] 1 WLR 1489
- [2007] 1 SLR(R) 1133
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Enforcement of Guarantee
10. Practice Areas
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ladd v Marshall | Not specified | Yes | [1954] 1 WLR 1489 | England and Wales | Cited for the conditions to admit fresh evidence. |
| WBG Networks (S) Pte Ltd v Sunny Daisy Ltd | Court of Appeal | Yes | [2007] 1 SLR(R) 1133 | Singapore | Cited for the test to be applied for adducing fresh evidence in a Registrar’s Appeal vis-à-vis a summary judgment. |
| Chang Ho Kwok David and anor v Winbless Inc and anor | BVI High Court | Yes | BVIHC (Com) No. 149 of 2013 | British Virgin Islands | Cited to support the point that a single director was not entitled to convene a meeting of members on his own initiative. |
| Ng Joo Soon (alias Nga Ju Soon) v Dovechem Holdings Pte Ltd and another suit | High Court | Yes | [2011] 1 SLR 1155 | Singapore | Cited for the Duomatic principle. |
| Ho Kang Peng v Scintronix Corp Ltd (formerly known as TTL Holdings Ltd) | Court of Appeal | Yes | [2014] 3 SLR 329 | Singapore | Cited for the application of the Duomatic principle to decisions which ought to have been taken by a board of directors. |
| SAL Industrial Leasing Ltd v Lin Hwee Guan | Not specified | Yes | [1998] 3 SLR(R) 31 | Singapore | Cited to support the principle that the informal assent of all the directors of a company would suffice. |
| Marshall’s Valve Gear Company, Limited v Manning, Wardle & Co, Limited | Not specified | Yes | [1909] 1 Ch 267 | England and Wales | Cited to argue that even if there existed a deadlock within the board of directors, such a process could be dispensed with since it was a foregone conclusion that a majority of the shareholders would have agreed to the commencement of the suit. |
| Mercurine Pte Ltd v Canberra Development Pte Ltd | Court of Appeal | Yes | [2008] 4 SLR(R) 907 | Singapore | Cited for the principles regarding setting aside a regular default judgment. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court | Singapore |
| BVI Business Companies Act (No 16 of 2004) | British Virgin Islands |
15. Key Terms and Keywords
15.1 Key Terms
- Facility Agreement
- Deed of Repayment
- Default Judgment
- Guarantee
- Duomatic principle
- Articles of Association
- Loan Repayment
- Directors' Authority
15.2 Keywords
- default judgment
- director authority
- loan guarantee
- setting aside judgment
- civil procedure
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 75 |
| Commercial Disputes | 70 |
| Director's Authority | 65 |
| Company Law | 60 |
| Guarantee | 50 |
| Misrepresentation | 40 |
16. Subjects
- Civil Litigation
- Contract Law
- Company Law
- Default Judgment