Re Medora Xerxes Jamshid (in his capacity as the private trustee in bankruptcy of Tan Han Meng) (Planar One & Associates Pte Ltd (in liquidation), non-party) [2024] SGHC 196
Issue: Can a proof of debt claim for breach of fiduciary duty / director’s duties be accepted by a private trustee under the proof of debt process in bankruptcy?
In the oft-cited decision of Bristol & West Building [1998], it was suggested that a breach of trust claim was inappropriate to be decided by proof of debt in bankruptcy proceedings, but should be decided only by court proceedings.
In this decision, the Honourable Aedit Abdullah J decided the issue in the affirmative. Considering the legislative provisions in question, the Judge held that the phrase ‘breach of trust’ (which is included in the categories of claims which are provable in bankruptcy) includes breach of fiduciary duty.
Further, the Judge held that liability under the claim accrued prior to the date of the bankruptcy order and that the Private Trustee was to use the date of the bankruptcy order as the relevant date for the quantification of the claim in adjudicating upon the proof of debt.