HYFLUX LTD (IN COMPULSORY LIQUIDATION) & 35 Ors v KPMG LLP

Case Significance

Hyflux Ltd (in compulsory liquidation) and others v KPMG LLP [2024] SGHC 176 was a decision of the General Division of the High Court delivered by Aedit Abdullah J on 10 July 2024 in Suit No 268 of 2022 (Summons No 1060 of 2024), with judgment reserved after the hearing on 26 June 2024. The plaintiffs, comprising Hyflux Ltd (in compulsory liquidation), Hydrochem (S) Pte Ltd (in compulsory liquidation), Tuaspring Pte Ltd (under receivership) and others, are pursuing claims against the defendant, KPMG LLP, in tort and contract for breach of obligations relating to the previous preparation of the plaintiffs' accounts and financial statements.

As recorded in the judgment, the defendant applied under O 18 r 19(1)(a) of the Rules of Court (2014 Rev Ed) to strike out parts of the Statement of Claim as failing to disclose a reasonable cause of action. The defendant argued that the Statement of Claim failed to set out the material facts relating to the alleged breach of contract, including not identifying the contract or its terms, leaving the pleadings vague. Aedit Abdullah J noted that this brief judgment was published primarily because of the defendant's references to remarks made by Justice Choo Han Teck in an earlier decision, reported at Hyflux Ltd (in compulsory liquidation) and others v KPMG LLP [2023] SGHC 270, which concerned an appeal of an application for further and better particulars. Counsel for the applicant included Mr Thio Shen Yi of TSMP Law Corporation, while the respondent was represented by counsel including Mr Kenneth Tan of Kenneth Tan Partnership and Tan Kok Quan Partnership.