Tan Liang Chong v Chou Lai Tiang

Tan Liang Chong v Chou Lai Tiang

The assistant registrar's findings were correct and should be affirmed: the auditors' evidence was admissible and credible; the unexplained $30,000 sundry creditor was treated as absent thereby increasing distributable assets; undisclosed rental income of $103,076.34 was partnership income; and, because the...

Source-derived case information.

Citation
[2003] SGHC 225
Parties
Plaintiff/respondent (suit No 606/1999): Tan Liang Chong; Plaintiff/respondent (suit No 1473/1999): Tan Liang Teck; Defendant/appellant: Chou Lai Tiang
Court
General Division of the High Court
Jurisdiction
Singapore
Judgment Date
21 October 2003
Case Number
RA 600017/2003, Suit 606/1999, 1473/1999
Procedural Posture
High Court Appeal From Assistant Registrar's Assessment of Damages and Accounting Pursuant to Consent Judgment (partnership Dispute) / Final Judgment on Appeal
Outcome
Appeal dismissed in part; assistant registrar's findings on sundry creditor, undisclosed rental income and estimated 1999 profits affirmed; appeal on interest and costs abandoned by appellant.
Legal Topics
Assessment of Damages, Accounting and Access to Partnership Books, Adverse Inference for Failure to Produce Accounts, Estimation of Profits in Absence of Proper Accounts, Partnership Act S 24
Source Language
english
Partnership Law Damages Civil Procedure Accounts and Discovery Assessment of Damages Accounting and Access to Partnership Books Adverse Inference for Failure to Produce Accounts Estimation of Profits in Absence of Proper Accounts Partnership Act S 24

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Parties

Tan Liang Chong

Plaintiff/respondent (suit No 606/1999)

Tan Liang Teck

Plaintiff/respondent (suit No 1473/1999)

Chou Lai Tiang

Defendant/appellant

Procedural Posture

High Court Appeal From Assistant Registrar's Assessment of Damages and Accounting Pursuant to Consent Judgment (partnership Dispute) / Final Judgment on Appeal

Legal Issues

  1. 1 Whether the court could rely on auditors' evidence in determining partnership assets and income
  2. 2 Whether an adverse inference should be drawn from partner's failure to produce accounts and tax returns
  3. 3 Whether a sundry creditor entry of $30,000 was fictitious and should be distributed to partners

Ratio Decidendi

The assistant registrar's findings were correct and should be affirmed: the auditors' evidence was admissible and credible; the unexplained $30,000 sundry creditor was treated as absent thereby increasing distributable assets; undisclosed rental income of $103,076.34 was partnership income; and, because the appellant failed to produce proper accounts and tax returns, adverse inferences justified estimating 1999 profits at the 1997 level, awarding the respondents their proportional shares.

Court Disposition

Appeal dismissed in part; assistant registrar's findings on sundry creditor, undisclosed rental income and estimated 1999 profits affirmed; appeal on interest and costs abandoned by appellant.

Orders

  • Assistant registrar's findings affirmed.
  • Chou to account for partnership profits from 28 August 1996 to 31 July 1999 pursuant to the consent judgment.