Case Note : Trust Funds, Ascertainability of Beneficial Interest and Insolvency Set-Off: Good Property Land Development Pte Ltd V Societe Generale [[1996] 2 SLR [Singapore Law Reports] 239]

To the growing list of recent significant cases on insolvency set-off may be added the decision of the Singapore Court of Appeal in Good Property Land Development Pte Ltd v Societe Generale. ... In the High Court [[1996] 1 SLR 457], Chao J held that the surplus proceeds held on trust by the respondents for the appellants could be set off against other unsecured indebtedness of the appellants. The Court of Appeal allowed the appeal and ruled that the set-offs were invalid. Their Honours, however, based their decision on grounds which had not been considered by Chao J and proceeded on the assumption that trust funds could be set off. Plausibly, therefore, Chao J's decision remains authoritative in Singapore. It is thus necessary to examine both the first instance and appellate judgments