The principle of res judicata precludes re-litigation of issues previously decided, and credit agreements related to gambling debts are enforceable under Malaysian law.

Bhupindar Singh Gurcharan Singh Preet J:

Introduction

[1] This is an appeal by the Judgment Debtor (JD1) against the decision of the Senior Assistant Registrar, who dismissed the JD's application to set aside the Bankruptcy Notice dated 22 December 2021.

[2] The Bankruptcy Notice is based on the judgment dated 31 July 2018 obtained by the Judgment Creditor ("JCJ) at the High Court of Singapore, which was registered as a judgment of the High Court of Malaya by an Order for registration dated 28 November 2018.

Background Of The Case

[3] The JC is a licensed casino operator in the Republic of Singapore. The JD is a Malaysian citizen and a businessman in Malaysia.

[4] On 7 July 2010, the JD visited the JC's casino and applied to be the casino's member. He obtained a "Platinum"‌ level membership which allowed him to game in the casino's high limit gaming area. On 20 August 2010, the JD visited the casino and upon his request was granted a credit facility of S$5,000,000.00. Two days later, on 22 August 2010, the JD requested and obtained an increase in his credit facility to S$10,000,000.00. On both occasions, the JD signed the relevant documents before the credit facility was granted (hereinafter referred to as "Credit Agreements'). The total amount of S$10,000,000.00 credit facility was fully drawn down.

[5] Subsequently, the JD made partial payments for the credit facility and the amount of S$5,930,595.00 was still due to the JC. The JC then commenced a civil suit against the JD to recover the outstanding amount under the Credit Agreements. On 31 July 2018, after a full trial, the JC obtained a judgment at the High Court of Singapore for a sum of S$5,930,595.00 being the remaining sum of credit facility issued and interest at a rate equal to the Singapore Interbanking Offer Rate at one, three or six months, plus 4% (whichever is the higher), pursuant to Clause (J) of the terms and conditions of the Credit Agreements.

[6] On 13 August 2018, the JC obtained a judgment at the High Court of Singapore for costs in relation to the recovery action taken against the JD on an indemnity basis fixed at S$180,000.00 and disbursement fixed at S$55,143.77 (subject to any reduction arising from refund of hearing fees). No appeals were filed against the judgments of the High Court of Singapore.

[7] The judgments of the High Court of Singapore dated 31 July 2018 and 13 August 2018 were registered as judgments of the High Court of Malaya by Orders of registration dated 28 November 2018 and 5 December 2018, respectively under the Reciprocal Enforcement of Judgments Act 1958 ("registered judgments").

[8] On 3 June 2019, the JD applied to set aside the registered judgments vide Resorts World at Sentosa Pte Ltd v. Lee Fook Kheun High Court at Malaya at Kuala Lumpur (Appellate and Special Powers Division) Originating Summons No. WA-24-92-11/2018 and Originating Summons No WA-24-93-11/2018 ("KL OS"). Both applications were heard together. On 2 October 2019, the JD's applications to set aside the registered judgments were dismissed by the High Court and the JD appealed to the Court of Appeal. The appeals were dismissed by the Court of Appeal on 8 March 2021. Finally, the application for leave to appeal to the Federal Court was dismissed on 19 August 2021.

[9] Next, the JC initiated bankruptcy proceedings against the JD.

Issues And Findings Of The Court

[10] The learned counsel for the JD submitted that the Bankruptcy Court has the statutory and inherent power to go behind the judgment.