Wee Chong Jin CJ:

The appellants are the owners and landlords of a piece of property known as No. 1 Bishopsgate Singapore of which the respondents are the tenants. No. 1 Bishopsgate is subject to the provisions of the Control of Rent Ordinance (Ch 242).

The appellants were apparently anxious to obtain vacant possession of their own property and on 17 February 1966 they entered into an agreement with the respondents the material terms of which were as follows:

17 February 1966.

No 1, Bishopsgate

Deeds of agreement

1 Vacant Possession: 7 March 1966.

(2) Compensation: $110,000 payable

(a) $60,000 on 7 March 1966 before possession.

(b) $50,000 by five equal monthly instalments of $10,000 each payable on the last day of each succeeding month. First payment 7 April 1966.

(c) Interest payable on balance from time to time due at 80er annum at the end of each month at same time as the abovementioned instalments.

(d) Bankers' guarantee to be given on 7 March 1966 guaranteeing payment of (b) and (c).

(e) Drew & Napier's legal costs to be paid by Yat Yuen Hong Co. Ltd.

On 5 March 1966 two days before the respondents were due to hand over vacant possession to the appellants and two days before the appellants were due to pay the agreed first instalment of $60,000, the appellants unilaterally repudiated the agreement. In consequence the respondents commenced an action on 22 March 1966 in the High Court of Singapore against the appellants for the $60,000 then due under the agreement of 17 February 1966.

The appellants' defence, inter alia, was that the agreement was unlawful by reason of non-compliance with the provisions of s. 2(1) of the Premiums on Leases Ordinance (Ch 253) in that it was not forthwith presented for inspection to the city council or the successors thereof.

This issue together with another point of law raised by the defence was ordered to be tried before the trial of the action and in the result Ambrose J who heard the preliminary issue held that the respondents had not been guilty of any unlawful act under s. 2(1) of the Premiums on Leases Ordinance. The appellants now appeal.

S. 2(1) of the Premiums on Leases Ordinance provides as follows:

It shall be unlawful for any landlord, or agent of a landlord as a condition of the grant, renewal or continuance of any lease or agreement for the tenancy of any building or part of a building, or for any person as a condition of giving up possession of any building, or part of the building to require the giving of any consideration whatsoever whether with or without reservation of rent unless -

(a) particulars of such consideration and of such building or part of a building are furnished in a written document; and

(b) such document is forthwith presented for inspection by the landlord or his agent or any person giving up possession as aforesaid to the city council if the said building or part of a building is situated within the limits of the city or to the Rural Board if the said building or part of a building is situated within the Rural Board area.

The agreement of 17 February 1966 was sent by the respondents' solicitors addressed to the Chief Assessor, Planning Department, City Hall, Singapore on 21 March accompanied by a letter in the following terms:

Dear Sir,

re: Premiums on Leases Ordinance:

No 1 Bishopsgate

We act for the tenants of the above premises, Messrs Turquand, Youngs & Co. S. 2 of the Premiums on Leases Ordinance (Cap. 253) appears to require our clients to present to you for inspection a document whereby they have agreed to give up possession of these premises in return for a money payment. We enclose

the original and a photostat of the agreement in question dated 17 February 1966 and shall be obliged if you will acknowledge receipt, and return the original to bearer.

The question to be decided in this appeal is whether or not the respondents by presenting the agreement to the city assessor for inspection thirty three days after it