Part 19: Bankruptcy and Winding Up Matters

159. Bankruptcy applications 160. Applications to set aside statutory demands made under the Bankruptcy Rules or the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020 160A. Applications for bankruptcy orders filed by creditors 161. Judicial Management and winding up applications under the Companies Act (Cap. 50, 2006 Rev. Ed.) or Insolvency, Restructuring and Dissolution Act 2018 162. Documents for use in open court trials of contested winding-up applications Bundles of documents Bundles of authorities Opening statements Timeline for tendering documents

The following arrangements will apply to hearings of bankruptcy matters:

Bankruptcy matters are divided into 2 parts, namely,

applications for bankruptcy orders; and (b) other applications under the Bankruptcy Act (Cap. 20, 2009 Rev. Ed.) or Bankruptcy Rules, or under Parts 13 to 21 of the Insolvency, Restructuring and Dissolution Act 2018 or the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020, including: (i) applications to set aside statutory demands; (ii) applications to extend the time to set aside statutory demands; and (iii) applications for interim orders.

Without notice applications for substituted service in bankruptcy proceedings will be dealt with by the Duty Registrar.

Rule 97 of the Bankruptcy Rules and Rule 67 of the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020 allow a debtor to apply to set aside a statutory demand within such of the following periods, after the date on which the statutory demand is served or deemed to be served on the debtor, as may be applicable:

14 days; or (b) where the demand was served outside Singapore – 21 days.

Without limiting Rule 98 of the Bankruptcy Rules or Rule 68 of the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020, on an application to set aside a statutory demand based on a judgment or an order, the Court will not go behind the judgment or order and inquire into the validity of the debt.

When the debtor:

claims to have a counterclaim, set-off or cross demand (whether or not he or she could have raised it in the action or proceedings in which the judgment or order was obtained) which equals or exceeds the amount of the debt or debts specified in the statutory demand; or (b) disputes the debt (not being a debt subject to a judgment or order),

the Court will normally set aside the statutory demand if, in its opinion, on the evidence there is a genuine triable issue.

This paragraph applies to every application for a bankruptcy order made by a creditor who is represented by counsel. The creditor’s counsel is to ensure that the applicable requirements in this paragraph are complied with before each hearing of the application (referred to in this paragraph as the “next hearing”).

If the creditor’s position is that a bankruptcy order should be made against the debtor at the next hearing, the creditor’s counsel must:

ensure that the papers filed in support of the application are in order; and (b) file a checklist (called the “Creditor’s Bankruptcy Application Checklist”) in Form B48 of Appendix B of these Practice Directions at least 3 days before the date of the next hearing. The Creditor’s Bankruptcy Application Checklist is to be filed using the Electronic Filing Service as an “Other Hearing Related Request”.

Notwithstanding sub-paragraph (2) above, where a Creditor’s Bankruptcy Application Checklist has already been filed for a previous hearing of the application, a fresh Creditor’s Bankruptcy Application Checklist need not be filed if there is no change to the information prior to the next hearing.

Requests for adjournments

If the creditor intends to seek an adjournment of the next hearing, and has obtained the debtor’s consent to the adjournment, the creditor’s counsel must make a Request through the Electronic Filing Service for an adjournment of the hearing. The creditor’s counsel must make this Request as soon as possible, and in any event at least 3 days before the date of the next hearing. The Request must set out the reasons for the requested adjournment and attach evidence of the debtor’s consent to the requested adjournment. The Court will still evaluate the merits of the Request before making its decision.

If the creditor intends to seek an adjournment at the next hearing, and has not obtained the debtor’s consent to the adjournment, the creditor’s counsel must inform the Court as soon as possible – and, in any event, at least 3 days before the date of the next hearing – of the intention to make such a request at the next hearing.

Requests for permission to withdraw

If the creditor intends to seek permission to withdraw the application at the next hearing, and has obtained the debtor’s consent to the withdrawal (and to any costs order sought by the creditor), the creditor’s counsel must write to the Court as soon as possible – and, in any event, at least 3 days before the date of the next hearing – to seek the Court’s permission to withdraw the application. The request should briefly explain why the creditor is seeking to withdraw the application and must attach evidence of the debtor’s consent to the withdrawal (and to any costs order sought by the creditor).

If the creditor intends to seek permission to withdraw the application at the next hearing, and has not obtained the debtor’s consent to the withdrawal (or to any costs order sought by the creditor), the creditor’s counsel must inform the Court as soon as possible – and, in any event, at least 3 days before the date of the next hearing – of the intention to make such a request at the next hearing.

Effect of non-compliance

The Court may consider any non-compliance with this paragraph, and the reasons for the non-compliance, in making any order or giving any direction.

After a winding up application has been filed, the applicant or his or her solicitor should file the necessary documents using the checklist provided in the Electronic Filing Service. Once the necessary documents under the checklist have been filed, the applicant or his or her solicitor should generate and file the winding up memorandum before attending before the Duty Registrar in compliance with Rule 32 of the Companies (Winding Up) Rules or Rule 73 of the Insolvency, Restructuring and Dissolution (Corporate Insolvency and Restructuring) Rules 2020. This requirement will similarly apply to judicial management applications under the Companies Act (Cap. 50, 2006 Rev. Ed.) or the Insolvency, Restructuring and Dissolution Act 2018.

This paragraph applies to trials of contested winding-up applications in open court.

To facilitate the conduct of contested winding-up applications and to reduce the time taken in the presentation of cases in Court, the following documents must be filed by the respective solicitors of the parties:

a bundle of documents (an agreed bundle where possible); (b) a bundle of authorities; and (c) an opening statement.

Bundles of documents

For bundles of documents:

Documents to be used at trial (including, where applicable, the cover page, table of contents, separator sheets and exhibit sheets) must be paginated such that the printed page numbers correspond to the page numbers in the soft copy Portable Document Format (PDF) version of the document that is filed through the Electronic Filing Service, the page number must be inserted at the top right hand corner of the page, and, where there are multiple volumes, each separate volume must start at page 1, and every page in that volume must be numbered consecutively. An index of the contents of each bundle in the manner and form set out in Form B18 of Appendix B of these Practice Directions must also be prepared. No bundle of documents is necessary in cases where parties are not relying on any document at the trial. (b) It is the responsibility of solicitors for all parties to agree and prepare an agreed bundle as soon as possible. The scope to which the agreement extends must be stated in the index sheet of the agreed bundle. (c) In cases where certain documents cannot be agreed upon, these should be separately bundled as the applicant’s or claimant’s bundle or such other party’s bundle, as the case may be. (d) The requirements set out in paragraph 102(8) to (13) of these Practice Directions must, with the necessary modifications, be complied with in respect of proceedings falling within this paragraph. (e) The bundles of documents including the agreed bundle and core bundle, if applicable, must be filed and served on all relevant parties at least 5 working days before trial.

Bundles of authorities

The requirements set out in paragraph 101(5) to (11) of these Practice Directions must, with the necessary modifications, be complied with in respect of proceedings falling within this paragraph.

Opening statements

The requirements set out in paragraph 102(14) of these Practice Directions must, with the necessary modifications, be complied with in respect of proceedings falling within this paragraph.

Timeline for tendering documents

Paragraph 102(2) to (4) of these Practice Directions apply, with the necessary modifications, to proceedings to which this paragraph applies.