CHIAN TECK REALTY PTE LTD v SDK CONSORTIUM & Anor

[2023] SGHC 210 High Court (General Division) 4 August 2023 HC/OA 518/2022

14 cases cited (13 SG, 1 foreign)

Key facts

Court	High Court (General Division)
Decided	4 August 2023
Judge	Lee Seiu Kin
Charges / claim	Contract, Credit and Security, Building and Construction
Counsel	Cooma & Rai, Rajah & Tann Singapore LLP, WongPartnership LLP, Benny Santoso, Choo Poh Hua Josephine, Mahendra Prasad Rai, Samuel Navindran, Soh Lip San, Thawdar Soe Moe @ The Sandi Tun, Yii Li-Huei Adelle

Source: [2023] SGHC 210, High Court (General Division), decided 4 August 2023 — eLitigation. Updated 10 July 2026.

Catchwords

Contract — Terms — Implied terms Credit and Security — Performance bond Building and Construction — Terms — Implied terms Building and Construction — Building and construction related contracts — Guarantees and Bonds

Practice Areas

Contract Credit and Security Building and Construction

Judges (1)

Lee Seiu Kin Delivered

Counsel (10)

Cooma & Rai Firm

Rajah & Tann Singapore LLP Firm WongPartnership LLP Firm Benny Santoso Counsel for the respondent

Choo Poh Hua Josephine Counsel for the applicant

Mahendra Prasad Rai Counsel for the respondent

Samuel Navindran Counsel for the applicant

Soh Lip San Counsel for the respondent

Thawdar Soe Moe @ The Sandi Tun Counsel for the respondent Yii Li-Huei Adelle Counsel for the applicant

Parties (3)

Chian Teck Realty Pte Ltd Applicant

Lonpac Insurance Bhd Respondent

SDK Consortium Respondent

Case Significance

Chian Teck Realty Pte Ltd v SDK Consortium and another [2023] SGHC 210 is a reserved judgment of the General Division of the High Court delivered on 4 August 2023 in Originating Application No 518 of 2022, with Lee Seiu Kin J presiding. The applicant, Chian Teck Realty Pte Ltd, brought proceedings involving Performance Bond No Z/18/BP00/047925 against the respondents, SDK Consortium and Lonpac Insurance Bhd. The matter arose in the building and construction context, where performance bonds serve to facilitate cash flow while managing the risk of a contractor's insolvency, and the catchwords address performance bonds, guarantees and bonds in construction contracts, and implied terms in both contract and building and construction law. The judgment considers the implied terms governing the parties' performance bond arrangement.

Summary

Chian Teck Realty applied to restrain sub-contractor SDK Consortium and insurer Lonpac from calling on a performance bond of $1,123,152.55, disputing the validity of the demand and arguing for an implied term restricting calls after the bond's extension. The High Court held there was no basis to imply the term but found SDK's demand invalid, and ordered Lonpac restrained from paying and SDK restrained from claiming the sum, without preventing a fresh call under the bond.

What was Chian Teck Realty Pte Ltd v SDK Consortium [2023] SGHC 210 about?

It was a High Court judgment of Lee Seiu Kin J delivered on 4 August 2023 concerning Performance Bond No Z/18/BP00/047925, brought by Chian Teck Realty Pte Ltd against SDK Consortium and Lonpac Insurance Bhd, raising issues of implied terms and performance bonds in construction.

What legal issues did [2023] SGHC 210 raise?

The catchwords cover performance bonds, guarantees and bonds in building and construction related contracts, and implied terms in both contract and building and construction law, arising from a performance bond used to manage cash flow and contractor insolvency risk.

Statutes Cited

Chian Teck commenced adjudication proceedings against SDK pursuant to the Building and Construction Industry Security of Payment Act (Cap 30B) Cases on this Act →

First Schedule of the Supreme Court of Judicature Act (Cap 322) Cases on this Act →

Cases Cited (14)

SG (2)

[1999] SGHC 201 [2018] SGHC 145

SLR (11)

[1995] 2 SLR(R) 262 [1999] 3 SLR(R) 44 [2007] 1 SLR(R) 940 [2010] 2 SLR 329 [2012] 3 SLR 125 [2013] 4 SLR 193 [2015] 3 SLR 1041 [2016] 3 SLR 557 [2017] 5 SLR 1106 [2019] 2 SLR 295 [2019] 4 SLR 1324

UK (1)

[1996] 4 All ER 563