Direct payments are not uncommon in the construction industry. For example, an employer may make direct payments to a subcontractor on a main contractor’s behalf, or a main contractor may make direct payments to a sub-subcontractor on a subcontractor’s behalf.
The purport and effect of such a direct payment arrangement was considered by the General Division of the High Court (General Division) in SECC Holdings Pte Ltd v Helios PV (Asia Pacific) Pte Ltd (Sinohydro Corporation Limited (Singapore Branch), garnishee) [2024] SGHC 215. Specifically, the essential question before the General Division was whether the direct payment arrangement in question operated as an assignment of debt, or as a vicarious performance of a debt obligation. Whether the provisional garnishee order that the appellant, SECC Holdings Pte Ltd (SECC), had obtained against the garnishee, Sinohydro Corporation Limited (Singapore Branch) (Sinohydro), should be made final turned on this essential question.
The General Division allowed SECC’s appeal against the decision of the District Court which had ruled in Sinohydro’s favour, and ordered that the provisional garnishee order be made final.
Our Partner Vishi Sundar and Associate Joshua Ho successfully represented SECC in the appeal.
This update reviews and sets out key takeaways from the General Division’s decision.
If you would like information or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:
Ian DE VAZ
Head – Infrastructure, Construction & Engineering
d +65 6416 8128
e ian.devaz@wongpartnership.com
Click here to view Ian's CV.
Vishi SUNDAR
Partner – Infrastructure, Construction & Engineering
d +65 6517 3787
e vishi.sundar@wongpartnership.com
Click here to view Vishi's CV.