3 August, 2017
RHTLaw Taylor Wessing has successfully represented Sunrita, a supplier of cars, in resisting Uber-owned Lion City Rentals’ application to put Sunrita into Judicial Management.
The dispute between Sunrita and Lion City Rentals was heard in the High Court of Singapore on 21 July 2017.
Lion City Rentals had alleged that Sunrita failed to deliver a significant number of cars for which Lion City Rentals had fully paid a sum in excess of S$130 million as purchase price. The dispute resulted in Lion City Rentals filing an application to place Sunrita under Judicial Management. RHTLaw Taylor Wessing, on behalf of Sunrita, argued that there was no contractual obligation to deliver the cars to Lion City Rentals by an agreed date. Sunrita also contended that it had delivered a total of 2,186 cars out of 2,463 cars ordered by Lion City Rentals, and only 277 cars were outstanding as at 23 June 2017. This had been further reduced to 171 cars at the date of the hearing.
The Honourable Justice Vinodh Coomaraswamy dismissed Lion City Rentals’ application with costs payable to Sunrita.
Kindly refer to the press release attached for more information. Please feel free to contact Eliezer Toh at eliezer.toh@rhtcir.com or Ng Chip Keng at chipkeng.ng@rhtcir.com should you have any questions as well. Thanks in advance!
RHTLaw Taylor Wessing successfully resists an application by Uber-owned Lion City Rentals Pte Ltd to place client under Judicial Management in dispute arising from a S$130 million contract for the supply of cars
The Firm’s Litigation & Dispute Resolution team secures the dismissal of car rental firm Lion City Rentals’ application with costs payable to the client, Sunrita
Singapore, 2 August 2017 – RHTLaw Taylor Wessing has successfully represented Sunrita Pte Ltd (“Sunrita” or “Defendant”) in resisting Lion City Rentals Pte Ltd’s (“Lion City Rentals” or “Plaintiff”) application to put Sunrita into Judicial Management.
The dispute between Sunrita and Uber-owned Lion City Rentals was heard in the High Court of Singapore on 21 July 2017 after Lion City Rentals alleged that Sunrita failed to deliver a significant number of cars for which Lion City Rentals had fully paid a sum in excess of S$130 million as purchase price. The dispute resulted in Lion City Rentals filing an application to place Sunrita under Judicial Management pursuant to Section 227B of the Companies Act (Cap 50).
RHTLaw Taylor Wessing, on behalf of Sunrita, argued that there was no contractual obligation to deliver the cars to Lion City Rentals by an agreed date. Accordingly, Sunrita did not breach its contractual obligations given that there was no stipulated delivery date or deadline. In the Defendant’s written submissions to the High Court, Sunrita also contended that it had delivered a total of 2,186 cars out of 2,463 cars ordered by Lion City Rentals, and only 277 cars were outstanding as at 23 June 2017. This had been further reduced to 171 cars at the date of the hearing.
Lawyers from RHTLaw Taylor Wessing successfully objected to the Plaintiff’s application for the Court to place Sunrita under Judicial Management on alleged grounds that the Defendant is or will be unable to pay its debts. It was highlighted to the Court that Sunrita has been in business since 1968, was profitable and had net assets in access of S$20 million. To this end, the lawyers argued that on the facts of the case, the making of the Judicial Management order under the Act was clearly unjustified.
The Honourable Justice Vinodh Coomaraswamy dismissed Lion City Rentals’ application with costs payable to Sunrita.
The RHTLaw Taylor Wessing team was led by Litigation & Dispute Resolution Partner Sivakumar Murugaiyan.
