Aryan (SEA) Private Limited v Pure Group (Singapore) Pte. Ltd
[2025] SGHC 99 · HC/OA 1090/2024 · cites 10 cases (8 Singapore, 2 foreign)
Step 1: What happened
Under an agreement of 13 June 2023, Pure Group (Singapore) Pte Ltd (Pure) agreed to provide project management services to Aryan (SEA) Private Limited (Aryan) for the renovation of its ZARA boutique at ION Orchard. Pure later supplied manpower and tools for the project at cost plus a 10% handling fee, which it said Aryan had urgently requested. Pure served a statutory demand on 22 July 2024 for S$307,807.87 under three invoices; S$180,708.20 remained unpaid after Aryan paid one of them, which Aryan said it did by mistake.
Aryan did not admit liability and asserted cross-claims for alleged delay by Pure, said the agreement contained an arbitration clause, and showed it was solvent with more than $2.37 million in its bank account. On 17 October 2024 it applied in the General Division of the High Court (Originating Application No 1090 of 2024) to set aside the statutory demand and to restrain Pure from filing a winding up application. It served a notice of arbitration on 2 April 2025.
Step 2: What the court had to decide
- Whether the court should follow the Privy Council in Sian instead of the prima facie standard in AnAn v VTB
- Whether the agreement contained a valid arbitration agreement covering the dispute, including the supply of manpower and tools
- Whether Aryan's dispute and cross-claim were raised in abuse of process
- Whether a company can apply to set aside a statutory demand, and what relief was appropriate
Step 3: How the court reasoned
The court held it was bound by the Court of Appeal's decision in AnAn Group (Singapore) Pte Ltd v VTB Bank (Public Joint Stock Co) [2020] 1 SLR 1158, unaffected by Sian. Under it, a winding up based on a debt or cross-claim covered by an arbitration agreement will not proceed if there is a valid arbitration agreement and a dispute within its scope, unless raised in abuse of process.
The dispute resolution clauses were unclear and confusing, but once parties intended arbitration the court gives effect to that intention. On either reading put forward, there was an arbitration agreement for disputes arising out of or relating to the agreement. The words "relating to" are broad, and because the manpower and tools were supplied for the same project, the payment dispute fell within it.
On abuse of process, the court said Pure had grounds for grievance: the correspondence supported its view that it had done Aryan a favour on something out of scope, and no serious attempt was made to explain how Pure caused the delay, which Aryan was also claiming against the contractor. But refusing to pay an obvious debt and forcing arbitration is not in itself abuse, especially where there is a cross-claim, and there was no full admission of the debt. The court made no findings on the merits, which were for the arbitration. Aryan's solvency meant the insolvency process was not needed and there were no solvency concerns justifying conditions.
“This matter illustrates the counter-productive nature of invoking the insolvency process by service of a statutory demand where there is an arbitration agreement.”
[2025] SGHC 99 at [2]
Step 4: The order
The court allowed the application in part. It granted the injunction restraining Pure from filing a winding up application in reliance on the statutory demand, to remain in place only until the award in the arbitration, but agreed with Pure that there was no basis for a company to have a statutory demand set aside, so only the injunction was properly sought. Costs were ordered to be costs in the cause of the arbitration, fixed at $22,000 all-in whoever turns out to be the paying party.
Court record
Key facts
| Court | High Court |
|---|---|
| Decided | |
| Judge | Philip Jeyaretnam |
| What the case was about | Companies |
Source: [2025] SGHC 99, High Court, decided — eLitigation. Updated .
Judge
- Philip Jeyaretnam Delivered the judgment
Parties
- Aryan (SEA) Private Limited Applicant
- Pure Group (Singapore) Pte. Ltd Respondent
Counsel
- Sim Chong LLC Firm
- Sim Chong
- Teh Chon Chung Gabriel
Statutes cited
Cases cited (10)
- [2022] SGHC 210
- [2007] 2 SLR(R) 268
- [2008] 2 SLR(R) 491
- [2009] 2 SLR(R) 949
- [2020] 1 SLR 1043
- [2020] 1 SLR 1158
- [2020] 1 SLR 1296
- [2024] 3 SLR 332
- [2015] Ch 589
- [2024] 3 WLR 937
Related cases
Other Singapore judgments on the same subject, most closely matched first.
-
The High Court dismissed AQCEL's application in CWU 23 and allowed LHG's application in CWU 60, ordering that LIH be wound up on just and equitable grounds and appointing LHG's liquidators as joint…
High Court · 30 June 2026 · [2026] SGHC 138 -
The judge dismissed the winding up application and fixed costs at $12,000 all-in, payable by Mr Lim to Mr Koh.
High Court · 13 February 2026 · [2026] SGHC 35 -
The court allowed the application and ordered NHL to be wound up, finding no substantial and bona fide dispute over the debt and no genuine cross-claim, and that NHL was presumed insolvent under s…
High Court · 28 January 2025 · [2025] SGHC 16 -
The Court of Appeal allowed TJS's appeal in CA 3 of 2024 and dismissed TYH's appeal in CA 22 of 2023.
Court of Appeal · 7 August 2024 · [2024] SGCA 27 -
Hri Kumar Nair J allowed the application, finding it just and equitable under s 125(1)(i) to wind up LKE, and ordered that LKE be wound up.
High Court · 26 July 2024 · [2024] SGHC 191 -
The High Court allowed the application and ordered the company to be wound up, appointing joint and several liquidators.
High Court · 27 March 2024 · [2024] SGHC 87
Referenced in
Statutes interpreted in this judgment
Read the full judgment
The judgment itself is on the official Singapore Courts portal.
Read on eLitigationSource: eLitigation ([2025] SGHC 99)
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