HDB flat owner wins High Court case against contractor that shuttered firm before resolving dispute

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HDB flat owner wins High Court case against contractor that shuttered firm before resolving dispute
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The reversal of business deregistration will allow the flat owner to press his claims for damages.

A unilateral decision by a business to cease operations and deregister itself can be reversed on grounds of fairness if there is an aggrieved party affected by the business closure.

Despite the decrease in 2023, the sector saw the third-highest number of complaints that year, after cars, and electrical and electronic goods. The complaints against renovation contractors were mostly related to unsatisfactory workmanship and delays in project completion. The couple agreed to move out of the flat by Sept 13, 2021, and renovation works were to be completed by Nov 30, 2021. In the meantime, they rented an apartment to stay in and stored some belongings in a storage facility.

In October 2023, Mr Lye took Concept Werk, Mr Xie and Ms Tay to the Small Claims Tribunal for the losses he suffered. He subsequently withdrew the case at the SCT and intended to escalate the claim to the High Court, but he could not do so as Concept Werk had by then ceased to exist. In a written judgment on Oct 23, the judge said that Mr Lye has grounds to feel aggrieved by Concept Werk’s deregistration and therefore has the legal standing to ask for the deregistration to be reversed.

In his decision, Justice Goh rejected Mr Xie’s argument that Concept Werk was not in operation at the time of its deregistration.

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