Wong Kian Kheong JCA:

JUDGMENT A. Novel issues

[1]This case discusses whether the court could pierce the corporate veil of one company (Company X) and impose liability incurred by Company X on another company (Company Y) when -

(1) Company Y had developed commercial lots in a shopping mall (Lots) and sold the Lots to various purchasers (Purchasers);

(2) the Purchasers and Company X had entered into tenancy agreements wherein the Purchasers rented the Lots to Company X (Tenancy Agreements);

(3) Company X was liable to the Purchasers for the unpaid rent of the Lots under the Tenancy Agreements (Unpaid Rent);

(4) Company Y was not a party to the Tenancy Agreements;

(5) the Purchasers had obtained a final judgment against Company X for the Unpaid Rent [Purchasers’ Final Judgment (Company X)]; and

(6) Company X is solvent; and

(7) the Purchasers’ Final Judgment (Company X) is not a “paper judgment” and can be executed against Company X.

The above question also discusses the following matters -

(a)with regard to a group of companies [Group (Companies)], in view of the separate legal personality of each member company in the Group (Companies) as well as the right of the Group (Companies) to arrange