Chinese businessman withdraws bankruptcy application against Lim Tean

SINGAPORE — A Chinese businessman has withdrawn the bankruptcy application he had filed against opposition party leader Lim Tean after receiving the US$150,000 (about S$206,000) that was owed to him.

Mr Lim sent two cheques to businessman Huang Min to pay the sum and settle other costs on Jan 16.

TODAY understands that the cheques were cleared earlier this week.

Mr Huang’s lawyer, Providence Law Asia’s Mr Lim Mingguan, confirmed over the phone on Thursday (Feb 14) that a hearing has been scheduled on Monday (Feb 18) to sort out the application’s withdrawal.

Mr Lim, who was secretary-general of the National Solidarity Party between 2015 and 2017, recently founded a new political party called People’s Voice. It was registered as the country’s 11th political party on Oct 31 last year.

The withdrawal of the bankruptcy application clears the way for Mr Lim to take part in the next General Election, which is due by early 2021. Undischarged bankrupts are not allowed to contest in an election.

ABOUT THE CASE

The duo were acquainted as Mr Lim was operating an iron ore mine in Central Sulawesi through an Indonesian company, PT Ina Touna Mining, which he controlled. Mr Huang was a potential customer.

Court documents showed that Mr Huang agreed to provide the US$150,000 loan to Mr Lim on Sept 13 in 2013. Both men signed an agreement, which stipulated that repayment has to be made by Nov 30 that year.

Mr Huang, who is based in Shanghai, initiated bankruptcy proceedings against Mr Lim in December last year after failing to get his money back even with an order from the State Court here.

Mr Lim was first ordered to repay Mr Huang last August by the State Court’s deputy registrar Regina Lim. Mr Lim appealed but District Judge Tan May Tee reaffirmed the decision on Nov 22 last year.

Mr Lim, who is himself a lawyer and self-represented, claimed that the money handed to him was not a loan “but a downpayment for a cargo of iron ore” that Mr Huang’s company wanted to buy from him. He appealed to the High Court to contest the lower court’s order.

But he withdrew the appeal on Jan 15 and issued the cheques the day after.

After adding interest, the loan repayment to Mr Huang amounted to S$158,105.06. The amount Mr Lim had to fork out to settle legal costs was S$9,717.28.