Kok Chong Weng
and Others v Wiener Robert Lorenz and Others (Ankerite Pte Ltd, intervener) [2009] SGCA 7 |
Suit No: |
CA 95/2008 |
Decision Date: |
09 Feb 2009 |
Court: |
Court of Appeal |
Coram: |
Andrew Phang Boon Leong JA, Chan Sek Keong
CJ, V K Rajah JA |
Counsel: |
Michael Hwang SC and Fong Lee Cheng (Michael
Hwang), Tan Seng Chew Richard and Diana Xie (Tan Chin Hoe & Co) for the appellants, Quek Mong Hua, Julian Tay and Alma
Yong (Lee & Lee) for the respondents, Andre Yeap SC, Dawn Tan, Dominic Chan, Danny Ong and Tang Hui Jing (Rajah &
Tann LLP) for the intervener |
Subject Area
/ Catchwords |
Statutory Interpretation Land |
Judgment
9 February 2009 |
Judgment reserved. |
Chan Sek Keong CJ (delivering the judgment of the court):
1 This is an appeal by ten minority
subsidiary proprietors (“the Appellants”) against the decision of Choo Han Teck J (“the Judge”)
in Originating Summonses Nos 86, 88, 95 and 192 of 2008 (see Chang Mei Wah Selena v Wiener Robert Lorenz [2008]
4 SLR 385 (“the Judgment”)). In those proceedings, the Judge dismissed the applications of 40 minority subsidiary
proprietors (“MSPs”) to set aside the order of the Strata Titles Board (“the Board”) approving the
application of the sales committee (“the Respondents”) for the collective sale of Gillman Heights Condominium
(“GH”) to Ankerite Pte Ltd (“the Intervener”) at the price of $548m. The application was supported
by a majority of 87.54% of the total share value of the lots in GH.
Background facts
2 The salient facts are as follows.
GH was formerly a Housing and Urban Development Corporation (“HUDC”) estate consisting of four blocks of 20-storey
flats and six blocks of four-storey maisonettes (comprising altogether 607 residential units and one shop unit). With the
exception of one block that was completed in October 1984, GH was ready for occupation in December 1984. Prior to its privatisation
in 1995, GH was subject to the HUDC Housing Estates Act (Cap 131, 1985 Rev Ed) (“the HUDC Act”) which
restricts, inter alia, the rights of the owners of HUDC flats to sell them without the consent of the HUDC.
3 HUDC developments or estates,
unlike private developments, have usually been exempted from the requirements of the Building Control Act 1973 (Act 59
of 1973) (“the 1973 BCA”) and thus any such development may not have been issued with a temporary occupation licence
(“TOL”) or a certificate of fitness (“COF”). The 1973 BCA was subsequently replaced with the Building
Control Act (Cap 29, 1985 Rev Ed) (“the 1985 BCA”). The 1985 BCA was in turn amended in 1990 by the
Building Control Act 1989 (Act 9 of 1989) which substituted the TOL and COF with the temporary occupation permit (“TOP”)
and the certificate of statutory completion (“CSC”) respectively. GH, which was completed in 1984, was exempted
from the requirements of the Building Control Act 1973 under the Building Control (Exemption) Order 1984 (S 329/84).
No TOL or COF was issued upon the completion of GH or when the flat owners were allowed into occupation in 1984.
4 In 1995, Parliament added ss 126A
and 126B to the Land Titles (Strata) Act (Cap 158, 1988 Rev Ed) (“the 1988 LTSA”) via the Land Titles
(Strata) (Amendment) Act 1995 (Act 27 of 1995) (“the 1995 Amendments”) to allow HUDC estates to be privatised.
Upon privatisation, a HUDC estate would cease to be subject to the HUDC Act, and the body corporate constituted under that
Act would continue as a management corporation under the 1988 LTSA, and subsequently the Land Titles (Strata) Act (Cap 158,
1999 Rev Ed) (“the LTSA”) (see s 126B(1) of the LTSA). Effectively, a privatised HUDC estate would acquire
all the legal attributes and benefits of a private strata title development with a management corporation under the LTSA.
As explained by the Minister for National Development Mr Lim Hng Kiang in his second reading speech to the Land Titles
(Strata) (Amendment) Bill (Bill 22 of 1995) (Singapore Parliamentary Debates, Official Report (7 July
1995) vol 64 at cols 1389–1390):
The primary objective of the Bill is to amend the Land Titles (Strata) Act to provide
the legal framework to enable the conversion of the leases of flats in designated HUDC estates to strata titles.
This conversion will allow HUDC residents to enjoy the status and advantages
of private property owners. It is part of the Government’s asset enhancement programme. It will also serve to meet the
rising aspirations of Singaporeans for private housing.
Upon privatisation, the HUDC owners will have ownership of their respective strata units
and own, as tenants-in-common, the common property such as car parks, open landscaped areas and common parts within the buildings.
This will enable them collectively to upgrade their estates to a standard comparable
to private residential estates. The residents will be able to enjoy the status and privileges of private residential owners
without having to uproot themselves and move elsewhere.
At the same time, the privatised estates will no longer come under HDB [Housing and
Development Board] rules and regulations. They will be like any other private property, subject only to the Residential Property
Act.
[emphasis added]
5 On 24 May 1995, the Government
announced that GH would be designated for privatisation on 11 August 1995. In or around 1996, the privatisation of GH
was completed and, in November 1996, GH was issued with a strata title plan under the 1988 LTSA. As part of the privatisation
exercise, building works were done to the common property in the development. The works involved the building of ramps, railings,
boundary fencing, fire engine hard-standing areas and fire engine access, and the installation of fire-rated doors. However,
it was not until 23 October 2002 that a CSC was issued in respect of those works (“the 2002 CSC”). The description
of the “building(s)/building works” in the 2002 CSC referred to “4 BLOCKS OF 20-STOREY FLATS AND 6 BLOCKS
OF 4-STOREY MAISONETTES ON LOT(S) 01478C MK01 AT GILLMAN HEIGHTS”.
6 Sometime in February 2001, the
subsidiary proprietors of GH contributed about $3m to construct a clubhouse, swimming pool and children’s playground.
A TOP was issued on 27 November 2002 (“the 2002 TOP”) for “ADDITIONS AND ALTERATIONS OF A NEW SINGLE-STOREY
CLUBHOUSE WITH SWIMMING POOL TO THE EXISTING CONDOMINIUM AT BLOCK 1A, 1B, 1C, 1D, 1E, 1F, 1G, 1H, 1J & 1K GILLMAN
HEIGHTS”.
7 In 1999, Parliament amended
the 1988 LTSA via the Land Titles (Strata) (Amendment) Act 1999 (Act 21 of 1999) (“the 1999 Amendments”)
to allow owners of strata developments to take advantage of enhanced plot ratios to realise their full development potential.
Parliament enacted Pt VA of the LTSA to facilitate the collective sale of such developments. Part VA contained,
inter alia, s 84A(1) which allowed the collective sale of strata developments by majority consent, as opposed
to unanimous consent which was extremely difficult to achieve in the case of many freehold and 999-year leasehold strata developments.
Section 84A(1) prescribed the percentage majority consent at 90% or 80% (“the 90% consent requirement” or
the “80% consent requirement”) for strata developments which were less than ten years old or more than ten years
old, as the case might be, as measured by reference to the date of issue of the latest TOP or CSC, as the case might be.
8 Section 84A(1) then read
as follows:
84A.—(1) An application to a
Board [Strata Titles Board] for an order for the sale of all the lots and common property in a strata title plan may be made
by —
(a) the subsidiary proprietors of the lots
with not less than 90% of the share values where less than 10 years have passed since the date of the issue of the latest
Temporary Occupation Permit on completion of any building comprised in the strata title plan or, if no Temporary Occupation
Permit was issued, the date of the issue of the latest Certificate of Statutory Completion for any building comprised in the
strata title plan, whichever is the later; or
(b) the subsidiary proprietors of the lots
with not less than 80% of the share values where 10 years or more have passed since the date of the issue of the latest Temporary
Occupation Permit on completion of any building comprised in the strata title plan or, if no Temporary Occupation Permit was
issued, the date of the issue of the latest Certificate of Statutory Completion for any building comprised in the strata title
plan, whichever is the later,
who have agreed in writing to sell all the lots and common property in the strata title
plan to a purchaser under a sale and purchase agreement which specifies the proposed method of distributing the sale proceeds
to all the subsidiary proprietors (whether in cash or kind or both), subject to an order being made under subsection (6)
or (7).
9 In 2007, following public feedback
on the operation of the collective sale scheme, Parliament again amended the LTSA by enacting the Land Titles (Strata) (Amendment)
Act 2007 (Act 46 of 2007) (“the 2007 Amendments”). Section 84A(1) was one of the sections that was amended
by the 2007 Amendments. The amendments to s 84A(1) are shown in italics in the section reproduced below:
84A.—(1) An application to a Board for an order for the sale of all the lots and common property in a strata
title plan may be made by —
(a)
the subsidiary proprietors of the lots with not less than 90% of the share values and
not less than 90% of the total area of all the lots (excluding the area of any accessory lot) as shown in the subsidiary strata
certificates of title where less than 10 years have passed since the date of the issue of the latest Temporary Occupation
Permit on completion of any building (not being any common property)comprised in the strata title plan or, if no Temporary
Occupation Permit was issued, the date of the issue of the latest Certificate of Statutory Completion for any building (not
being any common property) comprised in the strata title plan, whichever is the later; or
(b)
the subsidiary proprietors of the lots with not less than 80% of the share values and not less than 80% of the total area of all the lots (excluding the area of any accessory lot) as shown in the subsidiary
strata certificates of titlewhere 10 years or more have passed since the date of the issue of the latest Temporary Occupation Permit
on completion of any building (not being any common property) comprised in the strata title plan or, if no Temporary
Occupation Permit was issued, the date of the issue of the latest Certificate of Statutory Completion for any building (not
being any common property) comprised in the strata title plan, whichever is the later,
who
have agreed in writing to sell all the lots and common property in the strata title plan to a purchaser under a sale and purchase
agreement which specifies the proposed method of distributing the sale proceeds to all the subsidiary proprietors (whether
in cash or kind or both), subject to an order being made under subsection (6) or (7).
Hereinafter in this judgment, all references to “s 84A(1)” of the LTSA
are to s 84A(1) as contained in the 1999 Amendments, unless stated to the contrary.
10 The other 2007 Amendments relevant to the
present case are the new ss 126A(6A) and 126A(6B) which are reproduced below:
(6A)
Subject to subsection (6B), in the application of section 84A(1)(a) or (b) to any designated land,
any reference therein to the date of the issue of the latest Certificate of Statutory Completion for any building (not being
any common property) comprised in the strata title plan shall be read as a reference to the date of completion of the construction
of the last building (not being any common property) comprised in the strata title plan as certified by the relevant authority.
(6B)
In the application of section 84A(1)(a) or (b) to any designated land specified in the First Schedule to
the HUDC Housing Estates Act (Cap. 131), any reference therein to the date of the issue of the latest Certificate
of Statutory Completion for any building (not being any common property) comprised in the strata title plan shall be read
as a reference to the date of the issue of the Certificate of Fitness for any building (not being any common property) comprised
in the strata title plan.
The Appellants’ case in the court below
11 Before the Judge, the 40 MSPs raised a
large number of issues on which they relied on eight grounds to set aside the decision of the Board (see the Judgment at [2]).
They were all rejected by the Judge. As the Appellants have raised only two issues in this appeal, we will only examine the
Judge’s decision on these two issues. The two issues are as follows:
(a) whether s 84A(1) applies to privatised
HUDC estates;
(b) alternatively, if s 84A applies,
whether the applicable provision is s 84A(1)(a) (the 90% consent requirement) or s 84A(1)(b) (the
80% consent requirement).
12 With respect to these two issues, the Appellants’
submission before the Judge was that: (a) s 84A(1) did not apply to privatised HUDC estates, such as GH; and (b) in
the alternative, if s 84A(1) applied to GH, then the applicable provision was s 84A(1)(b). The submissions
of the Respondents and the Intervener on the two issues were that: (a) s 84A(1) applied to GH; and (b) the
applicable provision was s 84A(1)(b). The Appellants have referred to their submissions on issue (a) as “the
Applicability Argument” and their submissions on issue (b) as “the Reference Date Argument”.
13 The essential elements of the Applicability
Argument were as follows:
(a) When Parliament enacted s 84A(1)
in 1999, it must be presumed to have known that HUDC estates did not have TOPs (or TOLs) and CSCs (or COFs). Therefore, since
there was a requirement for a TOP or a CSC under s 84A(1), Parliament must have intended not to apply s 84A(1) to
privatised HUDC estates.
(b) The draftsman of the 1999 Amendments adopted
an inclusive approach in drafting Pt VA of the LTSA (regulating collective sales) in that the specific sections (ie,
ss 84A to 84F) were provided to apply to different and specific types of estates. HUDC estates were not referred to in
Pt VA.
(c) The 2007 Amendments changed the ambit
of s 84A(1) by providing:
(i) under s 126A(6A), that, in
respect of privatised HUDC estates, any reference to the date of the issue of the CSC in the application of s 84A(1)(a)
or s 84A(1)(b) shall be read as a reference to the date of completion of the construction of the last building
(not being common property) in the strata title plan; and
(ii) under s 126A(6B), that any reference
to the CSC in s 84A(1) shall be a reference to the COF.
These amendments showed that Parliament had deliberately excluded HUDC estates from
the ambit of s 84A(1).
(d) Even if Parliament had not intended s 84A(1)
to exclude privatised HUDC estates, but having done so due to an oversight, this was nevertheless not an omission which could
be corrected by the courts.
14 The essential elements of the Reference
Date Argument were as follows:
(a) The reference date to determine the age
of GH under s 84A(1) was the latest TOP or the latest CSC, as the case might be.
(b) As both the TOP and the CSC issued with
respect to GH were the 2002 TOP and the 2002 CSC dated 23 November 2002 and 20 October 2002 respectively, the reference
date was 23 November 2002, with the consequence that s 84A(1)(a) was applicable and the consent requirement
for the collective sale of the lots and common property of GH was 90% (which the Respondents’ application for the collective
sale of GH did not satisfy).
The Judge’s decision on the Appellants’ arguments
15 The Judge rejected the Applicability Argument
on the following grounds:
(a) Parliament intended s 84A(1) of the
LTSA to apply to all strata developments, as confirmed by the parliamentary materials concerning the 1999 Amendments, such
as the explanatory statement to the Land Titles (Strata) (Amendment) Bill (Bill 28 of 1998) (“the 1998 Amendment
Bill”), the second reading speech to the 1998 Amendment Bill (“the Second Reading Speech”) by the Minister
of State for Law Mr Ho Peng Kee (“the Minister of State”), the report of the Select Committee on the 1998
Amendment Bill (“the Select Committee Report”), the relevant parliamentary debates and the particular words of
s 84A(1) (“the sale of all the lots and common property in a strata title plan”).
(b) The parliamentary materials show that
Parliament had intended to peg the requisite majority consent needed for a collective sale (90% or 80%, as the case may be)
to the age of the estate or the development (see the Second Reading Speech, the Select Committee Report and the third reading
speech to the 1998 Amendment Bill).
(c) The determining factor in s 84A(1)
was the age of the strata development. The references to TOP and CSC in s 84A(1) were not intended to exclude privatised
HUDC estates from its operation but were merely used as a method to calculate the age of the strata development for the purpose
of determining the relevant consent requirement for a collective sale.
(d) Sections 126A(6A) and 126A(6B) of
the 2007 Amendments were not intended to change the existing law. Section 126A(6A) was intended to clarify the meaning
of “completion” for the purpose of a phased development. Section 126A(6B) was intended to clarify that the
reference to the CSC in s 84A(1) was intended to apply to a COF issued under the 1973 BCA and the 1985 BCA in response
to public feedback for such a clarification. Accordingly, ss 126A(6A) and 126A(6B) were not intended as a change to the
existing legal position that s 84A(1) was applicable to privatised HUDC estates (see [46] below).
(e) The 1995 Amendments (by means of ss 126A
and 126B) equated a privatised HUDC estate with any other private strata development, with all its legal attributes and privileges
accorded to the flat owners under the law, and free from the restrictions of the HUDC Act.
(f) HUDC estates did not have TOPs or
CSCs, and GH did not have either building certification in 1986 when it was completed in 1984, when it was privatised in 1996
or when s 84A(1) was enacted in 1999. The result was that privatised HUDC estates could never meet the requirements for
TOPs or CSCs in s 84A(1) if those requirements were applied literally.
(g) Nevertheless, s 9A of the Interpretation
Act (Cap 1, 2002 Rev Ed) required that a construction promoting the legislative purpose be preferred over one that
did not promote such a purpose. A literal interpretation of s 84A(1), as advanced by the Appellants, would not only frustrate
Parliament’s intention to allow owners of privatised HUDC estates to enjoy fully all the benefits of private strata
developments, it would also frustrate the legislative objective of the 1999 Amendments to promote the rejuvenation of old
estates or developments as privatised HUDC estates, many of which (including GH) were more than 20 years old.
(h) For all these reasons, Parliament did
not intend to exclude privatised HUDC estates from the application of s 84A(1) which was expressed to apply to all strata
developments. On the contrary, Parliament intended s 84A(1) to apply to privatised HUDC estates (see the Judgment at
[18]).
16 The Judge rejected the Reference Date Argument
on the following grounds:
(a) Parliament intended to peg the requisite
consent requirement to the age of the estate. Based on this criterion, GH was more than 20 years old as it was completed in
December 1984.
(b) Even if s 84A(1) were read literally
to require a TOP or a CSC, neither the 2002 TOP nor the 2002 CSC was a TOP or a CSC as required by s 84A(1), since neither
of them was issued in respect of “any building comprised in the strata title plan”. Furthermore, the 2007 Amendments
showed that the phrase “building comprised in the strata title plan” in s 84A(1) was not intended to include
common property, and as the 2002 CSC was issued for the upgrading of the common property in GH, it was not a CSC under s 84A(1)(a).
(c) The applicable provision was therefore
s 84A(1)(b) and not s 84A(1)(a), ie, the consent requirement was 80% and not 90%.
Issues on appeal
17 In the present appeal, the Appellants’
case on the two issues we have referred to earlier (see [11]–[12] above) is substantially a reiteration of their case
before the Judge. Before us, the Appellants do not dispute the applicability of s 9A of the Interpretation Act. However,
the Appellants dispute that a purposive interpretation may be used to determine the two issues in favour of the Respondents
and the Intervener. The Appellants contend that s 84A(1) should be interpreted literally to ascertain the intention of
Parliament not to apply s 84A(1) to privatised HUDC estates.
The Applicability Argument
18 The Appellants’ argument is that
Parliament did not envision that the 1999 Amendments would apply to privatised HUDC estates; otherwise, Parliament would have
enacted a specific provision to deal with such estates. Counsel for the Appellants also made the following additional points:
(a) When Minister Lim Hng Kiang said in his
second reading speech on 7 July 1995 that residents of privatised HUDC estates would enjoy the status and privileges
of private residential owners (see [4] above), he was not thinking of en bloc sales with a tiered consent level because
in 1995 even private residential owners could only sell en bloc with 100% consent.
(b) When Minister for National Development
Mr Mah Bow Tan said in Parliament on 24 April 2003 that, with privatisation, HUDC flat owners would “own the
common property ... and have the autonomy to manage and upgrade their estate, according to their needs and aspirations”
(Singapore Parliamentary Debates, Official Report (24 April 2003) vol 76 at col 2014), he did
not mean that they would have the same rights as other private strata owners to invoke s 84A(1) of the LTSA, as their
“aspirations” must include the right to stay there as long as they wished. The Minister also did not make any
reference to en bloc sales.
(c) Parliament enacted the 1999 Amendments
only for the purpose of enlarging the pool of freehold and 999-year leasehold estates available for development. As such,
there was no need to apply the 1999 Amendments to a wider class of properties than necessary, such as to 99-year leasehold
estates. Furthermore, as there was little or no experience of en bloc sales of 99-year leasehold estates in 1999 (the
first occurred only in 2005 in the case of Eng Cheong Towers), it was not within Parliament’s contemplation in 1999
that developers would be interested in redeveloping 99-year leasehold strata developments, including privatised HUDC estates.
(d) There was no “motivation”
for Parliament to encourage privatised HUDC estates to be sold en bloc as the privatisation exercise had been heavily
subsidised by the Government in keeping the conversion costs to $25,000 per unit. The subsidy could only be justified in terms
of enhancing the quality of living in HUDC estates rather than to allow the subsidiary proprietors to make super-profits over
and above the right to sell the unit individually.
(e) In the light of the preceding arguments,
the references to TOP and CSC in s 84A(1) are references to TOPs and CSCs for private developments and not privatised
HUDC estates; such references are inapt for privatised HUDC estates which were built without such building control certification,
as Parliament would have known. Furthermore, the references could not have any application to the 2002 CSC and the 2002 TOP
issued to GH after the upgrading works.
(f) Sections 126A(6A) and 126A(6B)
effected a specific change in the law. When a law is amended, the inference is that it effects a change to the existing law
unless the amendment is expressed in terms that make it clear that it is declaratory of existing law, such as by the use of
the formulation, “for the avoidance of doubt”, a technique which has been used in other declaratory statutes.
(g) The Judge was wrong to use the 2007 Amendments
to interpret the meaning of the expression “strata title plan” in s 84A(1) to exclude the common property
from any building comprised in a strata title plan, and thereby to exclude the relevance of the 2002 CSC as a CSC under s 84A(1).
The reverse should have been the case, ie, the 2007 Amendments effected a substantive change in the meaning of “strata
title plan” and was not a clarification of its meaning.
The Reference
Date Argument
19 The Appellants’ contention here is
that s 84A(1) must be applied fairly and strictly in accordance with its terms and not with the benefit of 20/20 hindsight
so as to impute the intention of Parliament in 2007 to the legislation existing in 1999. Counsel for the Appellants also made
the following arguments:
(a) Parliament must be assumed to know in
1998–1999 that HUDC estates would need upgrading works before they could be privatised and that new CSCs would be issued
for such works. Parliament would also have known that privatised HUDC estates might add new buildings and other facilities
and that that would require new TOPs to be issued for such new works. On that basis, Parliament must be deemed to know the
legal consequences of using the expressions “TOP” and “CSC” in s 84A(1). The Select Committee
did not change the reference date formula as it realised that “TOP” and “CSC” were technical terms,
and the normal rule of interpretation is to give technical terms their full technical meaning. They cannot be used as surrogates
for a broader test. It is also significant that the phrases “the latest” TOP and “the latest” CSC
were used in the 2007 Amendments.
(b) The “completion” of a strata
development cannot be used as a reference point (as argued by the Respondents) as there is no legislative basis for it. The
word “completion” is an ambiguous term, and it is well established in the relevant legislation that “completion”
is normally defined as the date of the TOP or the CSC as they mark objective points of reference.
(c) There was a gap in s 84A(1) which
the 2007 Amendments filled via s 126A(6B) by deeming a COF issued under the previous building legislation as a CSC under
s 84A(1).
Our decision
The Applicability Argument
20 In our view, the Applicability Argument
rests basically on certain inferences based on the indications or pointers of intent which the Appellants have managed to
cull from all the parliamentary materials relating to the 1995 Amendments (privatising HUDC estates), the 1999 Amendments
(facilitating collective sales of strata developments), and the 2007 Amendments (fine-tuning the collective sale scheme).
The Appellants have submitted that:
(a) When the Government introduced the 1998
Amendment Bill that became the 1999 Amendments, it only had in mind the rejuvenation of strata developments of freehold and
999-year leasehold estates, and not of 99-year leasehold estates (including privatised HUDC estates).
(b) The Government had no motivation on its
part to encourage privatised HUDC estates to be sold en bloc as it had incurred heavy costs subsidising the privatisation
exercise so as to enhance the quality of living in HUDC estates rather than to allow the subsidiary proprietors to reap super-profits
over and above the right to sell their units individually.
(c) Section 84A(1) deliberately used
the TOP and the CSC as reference markers to determine the qualifying age of a strata development for a collective sale so
as to exclude strata developments without TOPs or CSCs, or for which TOPs or CSCs would not be issued, ie, HUDC estates.
(d) The Government or Parliament was or must
be deemed to be aware that HUDC estates did not have TOPs or CSCs as they were exempted from the need to have such certification
under the relevant legislation, and thus privatised HUDC estates would also not have TOPs or CSCs.
(e) These indications and pointers show that
the Government had not thought of including privatised HUDC estates for collective sales, and consequently had not provided
for it in s 84A(1).
21 We do not agree with the reasoning and
conclusion in this submission. In our view, there are no credible indications or pointers of legislative intent in the parliamentary
debates in 1995, 1998/1999 and 2007 in relation to the relevant legislation that can assist the Appellants. On the contrary,
the indications of legislative intent as to the purpose of s 84A(1) support the Respondents’ position. In our view,
the Applicability Argument rests entirely on only one factor and one factor alone, viz, the references to TOPs and
CSCs in s 84A(1), and the implications for privatised HUDC strata developments which may not have the TOP or the CSC
envisaged by that section.
22 The Appellants’ argument is based
entirely on what we may call reverse logic. Because s 84A(1) uses the TOP or the CSC as the means to determine the age
of a strata development, it cannot apply to any strata development which does not have a TOP or a CSC. If s 84A(1) cannot
apply as such, Parliament could not have intended it to apply to such kind of strata developments. This argument is not necessarily
correct because it relies on the means, viz, the TOP or the CSC (to calculate the age of the development in order to
determine the consent requirement) to determine the purpose of the legislation, whereas in ascertaining the legislative object
or purpose, it is more appropriate to rely on the object or purpose to determine whether the means is appropriate to achieve
the object or purpose. If it were the case that Parliament has deliberately and unambiguously selected the TOP and the CSC
as the only permissible means for this purpose, the argument would have greater cogency. But the related parliamentary materials
show no such indication. On the contrary, they show that the drafting of s 84A(1) was wanting in many respects.
23 However, the proposition that Parliament
has deliberately enacted the TOP and the CSC as the only permissible means to determine the age of a strata development lies
at the heart of the Applicability Argument. The Appellants have argued that the enactment in 2007 of s 126A(6B) of the
LTSA (which provides that in the case of privatised HUDC estates, any reference to the date of the CSC in s 84A(1) shall
be a reference to the date of the COF for any building comprised in the strata title plan) shows that it was only in 2007
that Parliament decided to use another marker to determine the age of a strata development under s 84A(1). Without this
amendment, it would not be possible to interpret s 84A(1) to equate a CSC with a COF. The Applicability Argument is therefore
premised on the literal interpretation of “TOP” and “CSC”. They were the only permitted markers until
s 84A(1) was amended in 2007 to provide an alternative marker, the COF.
24 Given the thrust of the Applicability Argument,
it is clear that it is directed not against private 99-year strata developments but solely against privatised HUDC estates
as the latter do not have TOPs or CSCs whereas the former will have them. This accounts for the Appellants’ position
in these proceedings that TOLs and COFs issued for non-HUDC developments are acceptable as the equivalent of TOPs and CSCs
under s 84A(1). Of course, this position implies that the references to TOP and CSC in s 84A(1) cannot be interpreted
literally, but purposively, to include equivalent building certifications issued before the 1999 Amendments were made to prescribe
the collective sale scheme. However, the Appellants are not prepared to go beyond this point in interpreting s 84A(1)
purposively.
25 In our view, the issue of the applicability
of s 84A(1) to privatised HUDC estates therefore boils down to this question: Why would Parliament want to exclude privatised
HUDC estates from the collective sale scheme when the object or purpose of the scheme was to rejuvenate old estates and to
improve the quality of housing in Singapore? Parliament must also know that HUDC estates would need rejuvenation sooner than
private strata developments, and therefore they should be prime candidates for the scheme. With these observations, we now
consider the elements of the Applicability Argument, as summarised in [20] above.
26 As to point (a), the fact that the
Minister of State referred only to freehold and 999-year estates in the Second Reading Speech as developments ripe for en
bloc sales to take advantage of enhanced plot ratios did not mean that the Government was limiting the collective sale
scheme estates with such tenures, which point (a) suggests. This point is really a non-starter as there have been many
collective sales effected under s 84A(1) of many 99-year leasehold strata developments without any legal objection being
raised against their eligibility.
27 In fact, the Minister of State’s
statement was not intended as an explanation for the ambit of s 84A(1). A careful reading of the speech shows that the
Minister of State’s statement was a response to many appeals and feedback from frustrated owners of flats in such developments.
The Government was more concerned with stipulating a fair and workable consent requirement (linked to the age of the strata
development) that would achieve the legislative object as well as providing adequate safeguards for minority owners. There
is nothing in the explanatory statement to the 1999 Amendments, the Select Committee Report or the parliamentary debates to
suggest that the Government would wish to discriminate against flat owners of strata developments with 99-year leasehold titles.
28 In the same speech, the Minister of State
also said (Singapore Parliamentary Debates, Official Report (31 July 1998) vol 69 at col 601):
I emphasised [referring to another speech he made in Parliament on 19 November 1998] that in land-scarce Singapore, such an approach was even more imperative as it would make available
more prime land for higher-intensity development to build more quality housing in Singapore.
In this connection, we would refer to para 20 of the Appellants’ skeletal
arguments which states:
By definition, HUDC estates were built to a lower standard than private commercial developments,
and upgrading works would always be necessary to bring them to a standard suitable for conversion to a private condominium.
Assuming, for the sake of argument, the correctness of this assumption, it supports
the Respondents’ case that HUDC estates should be allowed to be sold en bloc so as to create more quality housing
in Singapore, as the Minister of State had emphasised in the Second Reading Speech. Therefore we would not expect the Government
to exclude privatised HUDC estates from the collective sale scheme in order to realise this objective.
29 As to point (b), counsel for the Intervener
has pointed out that owners of GH did not receive a substantial subsidy from the Government, as out of the conversion costs
of $25,000, $20,000 was for the purchase of car park lots from the Housing and Development Board (“HDB”), and
$5,000 was for legal and survey fees as well as construction costs to meet prevailing barrier-free requirements of strata-titled
properties (Singapore Parliamentary Debates, Official Report (7 July 1995) vol 64 at col 1390).
But this is not an important point. What is more relevant is that when the 1995 Amendments were enacted, there was no market
for collective sales of 99-year leasehold strata developments, just as there was a moribund market for freehold and 999-year
strata developments due to the consent requirement of 100% in order to effect such a sale. Hence, in 1999, when the 1999 Amendments
were enacted, the idea of super-profits being made from en bloc sales of privatised HUDC flats by their owners would
have been furthest from the minds of both the competent Ministers (the Minister for National Development and the Minister
for Law). If the Government had been concerned about letting privatised HUDC flat owners make money from the resale of their
flats, it would not have privatised them in the first place. And, if indeed there were instant super-profits to be made by
the privatised HUDC flat owners, there would be no legitimate reason for the Government to begrudge them this windfall (having
agreed to grant them all the privileges of private owners, including the right to resell their units whether individually
or collectively). The Government would gain nothing from such a “dog in the manger” approach but, instead, would
lose the economic and social benefits of having more quality housing being developed by private developers.
30 As to points (c), (d) and (e), it
is true that s 84A(1) does use the reference markers “TOP” and “CSC”. But, whether Parliament
used them deliberately to indicate expressly its intention to exclude privatised HUDC estates (which enjoy the same
rights as private developments), is altogether another issue. The fact that the TOP and the CSC were merely new names for
the TOL and the COF under the previous corresponding legislation shows, in our view, that the reference only to the TOP and
the CSC by name is more likely the product of faulty or inappropriate drafting, We have mentioned earlier (see [24] above)
that the Appellants have accepted that the TOL and the COF could be treated as the TOP and the CSC for the purposes of s 84A(1).
This would imply that, to this extent, those references in s 84A(1) cannot be applied literally.
31 This conclusion raises the question as
to whether there are any other words in s 84A(1) or indeed in any of the other sections in Pt VA of the LTSA that
cannot or should not be applied literally because of faulty or inappropriate drafting. In this connection, we should mention
that in Ng Swee Lang v Sassoon Samuel Bernard [2008] 2 SLR 597 (“Ng Swee Lang”) at [32], this court
decided that another part of s 84A(1), viz, the words “which specifies the proposed method of distributing
the sale proceeds to all the subsidiary proprietors (whether in cash or kind or both)”, were mere surplusage and were
included ex abundanti cautela. We accept that the reference markers “TOP” and “CSC” in s 84A(1)
are not surplusage as they have the function of providing a definitive method of resolving any dispute relating to the age
of a strata development for the purpose of determining the consent requirement for a collective sale. It is necessary to highlight
this issue to show that s 84A(1) alone suffers from a number of problems on its drafting.
32 In our view, the critical issue before
us is whether, irrespective of s 9A of the Interpretation Act, Parliament intended s 84A(1) to apply to strata developments,
whatever their tenures may be. It was clear to the Judge, and it is equally clear to us, that this was the legislative intention.
Indeed, the Minister of State has stated this unambiguously in the Second Reading Speech (Singapore Parliamentary Debates,
Official Report (31 July 1998) vol 69 at col 605):
Sir, the new scheme will apply to three types of strata developments: those registered under the Land Titles (Strata) Amendment Act where the owners own their units
and share in the common property, which is the vast majority ... [emphasis added]
It is not disputed that GH was registered as a strata development in November 1996 when
it was issued with a strata title plan. Therefore, in 1999, the owners of the strata flats in GH were already members of the
“vast majority” the Minister of State had in mind in the Second Reading Speech.
33 In our view, Parliament clearly intended
s 84A(1) to apply to all strata developments registered under the LTSA, and therefore s 84A(1) applies to GH. Accordingly,
we reject the Applicability Argument.
The Reference Date Argument
34 The Reference Date Argument proceeds on
the basis that s 84A(1) applies to privatised HUDC estates. On this basis, any application for the collective sale of
any privatised HUDC estate has to meet all the requirements of s 84A(1). In the case of GH, since GH has been issued
the 2002 TOP and the 2002 CSC, the references to TOP and CSC have been satisfied. But, as these certifications were issued
only on 23 November 2002 and 27 October 2002, less than ten years have passed since their issue, and therefore the
collective sale application falls within s 84A(1)(a) (which provides for a 90% consent requirement) and not s 84A(1)(b)
(which provides for an 80% consent requirement). For this reason, the Board and the Judge were both wrong in deciding that
the applicable provision was s 84A(1)(b).
35 We have mentioned earlier that the Judge
rejected this argument on the ground that the 2002 TOP and the 2002 CSC were not a TOP or a CSC in terms of s 84A(1)
as neither of them was issued in respect of a “building comprised in the strata title plan”. The 2002 TOP was
issued only for a clubhouse and a swimming pool, neither of which was comprised in the strata title plan for GH. The 2002
CSC was issued only for the upgrading works to the common property which, under the 2007 Amendments, was excluded from the
“building comprised in the strata title plan”.
36 Before us, the Appellants have made the
following submissions under the Reference Date Argument:
(a) The 2002 CSC issued for GH in November
1996 referred specifically to all the residential blocks in GH. It was, self-evidently, a CSC for the buildings in GH which
would have been comprised in the strata title plan issued to GH, and therefore, it was a CSC for the buildings comprised in
the strata title plan.
(b) The strata title plan issued for GH in
November 1996 was for all the residential units and the common property in the buildings comprised in the strata title plan.
Therefore the Judge was wrong to interpret ss 126A(6A) and 126A(6B) in the 2007 Amendments to read down the meaning of
the expression “strata title plan” in s 84A(1) as enacted in 1999.
37 On point (a), we agree that the Judge
was correct to look at the substance rather than the form of the certification. It is our view that the 2002 CSC was not a
CSC for the purposes of s 84A(1) as enacted in 1999 or amended in 2007. Although it was expressed to be for the four
blocks of 20-storey flats and the six blocks of four-storey maisonettes (which undoubtedly are buildings and would be buildings
comprised in the strata title plan issued for GH), the heading of the 2002 CSC was “Description of the “building(s)/building
works”. Accordingly, the 2002 CSC could be for buildings or building works. It is therefore necessary to find out what
the 2002 CSC actually certified and not what it described. On this question, there is no dispute that the 2002 CSC was meant
to refer to the statutory completion of the upgrading works to the common areas in the buildings referred to.
38 The 2002 CSC was not a certification with
respect to the completion of any building comprised in a strata title plan, but a certification of the completion of upgrading
works in those buildings. The Appellants’ argument involved a literal reading of the 2002 CSC to give it an accidental
fit with the CSC referred to in s 84A(1). But this does not avail the Appellants. The 2002 CSC was not a s 84A(1)
CSC because it was not issued on completion of any building comprised in the strata title plan issued for GH; it was
a CSC issued on the completion of upgrading works to a completed building.
39 The dispute over the nature of the 2002
CSC shows that there are different types of CSCs issued for different purposes and different kinds of works in relation to
buildings and structures which may not be buildings, such as a swimming pool, under the Building Control Act (Cap 29,
1999 Rev Ed). In this respect, it may be noted that the Appellants have not argued before us that the 2002 TOP was not
a TOP referred to in s 84A(1)(a) (ie, a TOP issued on completion of any building comprised in a strata
title plan.) This was an appropriate decision on the part of counsel for the Appellants, as the 2002 TOP was issued only for
the clubhouse and the swimming pool which did not exist when the strata title plan was issued in November 1996. It was not
a TOP under s 84A(1) in 1999 or in 2007.
40 In the light of these findings, it is not
necessary for the disposal of the issues in this appeal to consider another argument of the Appellants on the meaning and
effect of the references to “the latest” TOP and “the latest” CSC in s 84A(1). These words, it
is argued, envisage the issue of new TOPs and CSCs for strata developments from time to time after their completion (see [19(a)]
above), where the Appellants refer to new CSCs being issued for upgrading works and new TOPs for new buildings and other facilities,
in the context of the privatisation of HUDC estates). It is also argued further that the effect of a new TOP or a new CSC
issued for a strata development would have the effect of resetting the reference date of the age of the building under s 84A(1)
to the date of the latest TOP or the latest CSC.
41 However, given the importance of this issue
in relation to collective sales under s 84A(1), it is desirable that we give our views on the Appellants’ submissions. In our view, there cannot be any resetting of the reference date to zero
(as described by the Board) unless the latest TOP or the latest CSC is issued with reference to “the completion of any
building comprised in the strata title plan” for the strata development. The references to TOP and CSC in s 84A(1)
are references to a TOP and a CSC for the completion of an entire strata development, and not for building works carried
out in the development from time to time. The position is clear in the case of a strata development with one building. In
the case of multiple buildings or a development in phases, the relevant certification would be that for the last building
to be completed. Thus, in the case of a strata development that is completed in phases, the latest TOP or the latest CSC would
be that issued for the completion of the last phase in that development. Applying these conclusions to GH (on the assumption
that GH had been issued either a TOL or a COF on its completion), the latest TOP or the latest CSC would be that issued for
the completion of the blocks in December 1984 (see [23] of the Judgment and [2] above).
42 In our view, the issue of new TOPs or CSCs
to strata developments does not have the extensive effect advocated by the Appellants. A new TOP or a new CSC cannot reset
the date for the calculation of the age of the development unless the TOP or the CSC is for the completion of a new development.
This is a question of fact which can only be determined on a case-by-case basis, depending on the extent of the changes made
to the existing development. The Board has dealt with this point in its grounds of decision (Wiener Robert Lorenz v Chua
It Poh/Ng Lee Beng [2007] SGSTB 6) (in connection with determining the age of GH) with such clarity that we can do no
better than to quote its words at [29]:
The Board is of the view that the issuance of the [2002] TOP and the [2002] CSC did
not affect the age of the estate. The [2002] CSC was issued on privatisation as the owners were now required to comply with
the requirements such as fire safety. [The 2002] TOP was specifically issued when the clubhouse and swimming pool were built.
With or without the last amendment to the [LTSA], the Board is of the view that the age of the development cannot be re-set
back to year zero merely because parties had built a structure which required a TOP or a CSC to be issued. The “birth
date” of the development cannot be rejuvenated merely because some structure is built which required a TOP or a CSC.
Not every single shed or toilet built for the common good of all would restart the time line. [In the case of GH] which was
initially exempted from complying with the requirements of the Building Control Act or the regulations, the date in which
owners were permitted to occupy the premises must be the start time from which the Board will calculate the years whether
the estate falls within section 84A(1)(a) or (b). The Board must disregard the [2002] TOP for the construction of the clubhouse
and swimming pool and [the 2002] CSC for the privatisation [of] the estate issued to [GH] as being the time reference to calculate
whether it was above or below 10 years.
43 There is, however, another submission in
the Applicability Argument which we wish to comment on, even though, again, it is not necessary for the disposition of the
main issues in the dispute before us. We refer to the argument (at [18(g)] above) that the Judge was wrong to accept the argument
of the Respondents and the Intervener (see [25] of the Judgment) that the words “strata title plan” in s 84A(1)
excluded the common property from any building comprised in a strata title plan, and thereby excluded the relevance of the
2002 CSC as a CSC under s 84A(1) and that this was a clarification and not an amendment. In our view, this was a clarification
of the meaning of the words “strata title plan” in s 84A(1), but it was not intended to have prospective
effect and was intended to apply to TOPs or CSCs issued for buildings or other parts of the strata development that were,
or comprised, common property. In this sense, it may be said to be an amendment. For example, the 2002 TOP issued with respect
to the clubhouse and the swimming pool would be a TOP envisaged by the 2007 Amendments. However, in our view, these amendments
do not affect the meaning of the words “strata title plan” in relation to the certification of the “completion
of any building ... comprised in the strata title plan” [emphasis added] in s 84A(1) as it existed in 1999.
For these reasons, the Appellants’ submission that the insertion of the words “not being any common property”
in s 84A(1) in 2007 cannot detract from the meaning of those words in s 84A(1) before its amendment in 2007 is correct.
However, this argument does not avail the Appellants in the outcome of this appeal.
GH has no TOP (TOL) or CSC (COF)
44 The net result of our findings above is
that GH has never had and still does not have a TOP or a CSC (or its equivalent, a TOL or a COF). Therefore, in spite of the
concession by the Appellants that the certifications of TOL and COF are equivalent to TOP and CSC, the Respondents can never
satisfy the requirements of s 84A(1) for such certifications.
45 The problem of privatised HUDC without
any TOP (or TOL) or CSC (or COF) in the context of the collective sale scheme in s 84A(1) was brought to the attention
of the Government in the feedback exercise. This is set out in paras 11.3 and 11.4 of the Ministry of Law’s “Response
to Feedback Received from Public Consultation on Proposed Changes to the En Bloc Sale Legislation” as follows:
Feedback
11.3 It was suggested that provisions be introduced to
make clear the milestones to use to determine the age of a privatised HUDC [estate] that is applying for en bloc sale
as some HUDC developments may not have TOP or CSC.
Response
11.4 We agreed with the suggestion and had provided
in the legislation that in determining the age of a privatised HUDC estate that is applying for an en bloc sale under the
[LTSA], reference can, in addition to the date of the latest [TOP] or the latest [CSC], also be taken from the date of
completion of construction of the building as certified by the relevant authority (eg. HDB).
[emphasis added]
46 The provisions referred to by the Ministry
of Law are ss 126A(6A) and 126A(6B) in the 2007 Amendments (see [10] above). It is thus clear from the feedback and the
response that these amendments were meant to clarify the manner or the means to determine the age of the strata development
(and also the nature of the TOP or the CSC by the omission of any TOP or CSC for the common property). However, it is not
so clear that ss 126A(6A) and 126A(6B) (which do not refer to the term “TOP”) are so worded with the intention
to clarify the meaning of the term “CSC” in s 84A(1). It is not disputed that the CSC is a technical
term which should be given a technical meaning. Whilst it may be correct to argue that s 126A(6B) merely clarified the
meaning of the term “CSC” to include the COF (and, as a matter of law, they are the same, the CSC having replaced
the COF only in name), it may not be possible to argue that the phrase “the date of completion … as certified
by the relevant authority” in s 126A(6A) is factually or legally the same as a CSC, unless there is evidence that
this date has always been the same as the date of the COF. Accordingly, we think that s 126A(6A) was more than a clarification
of the meaning of the CSC. Therefore, in spite of the Ministry’s response that the 2007 Amendments had provided
the clarification of “the milestones to use to determine the age of a privatised HUDC [estate] that is applying for
en bloc sale as some HUDC developments may not have TOP or CSC” (see [45] above), what the Ministry probably meant was
that the clarification would have prospective rather than retrospective effect. In other words, it was more an amendment for
future cases rather than a clarification of past cases. In our view, it is probable that the draftsman did not have in mind
a case like the present where the privatised HUDC estate has no TOP or CSC for the purposes of s 84A(1).
47 However, we wish to emphasise that the
enactment of s 126A(6A) did not show, as contended by the Appellants, that Parliament had in 1999 deliberately excluded
privatised HUDC estates from the operation of s 84A(1). We do not think it is legitimate to infer past parliamentary
intention in this way (see [22] above).
The application of the purposive interpretation
48 Given that the purpose of the 1999 Amendments
is clear from an examination of the parliamentary materials, particularly the Second Reading Speech, but that the means to
calculate the age of the strata development in order to determine whether s 84A(1)(a) (the 90% consent requirement)
or s 84A(1)(b) (the 80% consent requirement) is applicable is under-inclusive, the question arises as to whether
it is proper for the court to interpret s 84A(1) purposively to use some other means or reference point to determine
the age of GH other than the issuance of a TOP or CSC.
49 The Judge has dealt with this question
at [19] and [20] of the Judgment by first stating that s 9A of the Interpretation Act required a construction that promoted
the legislative purpose or object of the legislation be preferred over one that did not. Section 9A(1) provides as follows:
In the interpretation of a provision of a written law, an interpretation that would
promote the purpose or object underlying the written law (whether that purpose or object is expressly stated in the written
law or not) shall be preferred to an interpretation that would not promote that purpose or object.
The Judge also reminded himself that the canon of “purposive interpretation”
is not a password like “open sesame”, and that the court must keep an eye on what purposes were involved, and
whose purposes were being served (citing PP v Low Kok Heng [2007] 4 SLR 183 at [39]–[45]). He rejected the Appellants’
argument that applying a purposive interpretation to simply use the age of GH to determine the consent requirement in s 84A(1)
would be a strained construction of s 84A(1)(a), as even so, there were circumstances in which a strained construction
was justified. The Judge referred to the following passage from Francis Bennion, Bennion on Statutory Interpretation
(Lexis Nexis, 5th Ed, 2008) (“Bennion”) at p 458:
Section 158. When strained construction needed
There are broadly four reasons which may justify (and in some cases positively require)
the strained construction of an enactment:
(a) a repugnance between the words of the
enactment and those of some other enactment;
(b) consequences of a literal construction
so undesirable that Parliament cannot have intended them;
(c) an error in the text which plainly falsifies
Parliament’s intention; or
(d) the passage of time since the enactment
was originally drafted.
COMMENT ON CODE S 158
This section states in very broad outline the main reasons why sometimes a strained
construction of an enactment is necessary. In many actual cases, the reasons overlap. Each reason is related to the intention
of Parliament (the only ultimate criterion). As Blackstone pointed out, it is not always enough for a lawyer to say ita
lex scripta est (thus the law is written).
50 We agree with the Judge’s approach
in interpreting s 84A(1) purposively to decide the two issues before us in favour of the Respondents and the Intervener.
We agree that the parliamentary materials and the wording of s 84A(1) itself confirm that:
(a) the collective sale scheme in Pt VA
of the LTSA was intended to apply to all strata developments, including privatised HUDC estates;
(b) the age of the development was the determinative
criterion of the consent requirement in ss 84A(1)(a) and 84A(1)(b);
(c) the TOP and the CSC were merely a convenient
and reliable means to determine the age of a strata development; and
(d) the lack of means should not be allowed to
defeat or frustrate the legislative purpose or object of the 1999 Amendments.
In Ng Swee Lang ([31] supra), this court emphasised at [6] that the two
main qualifying conditions for a collective sale are (a) the age of the subject property; and (b) the share value
and the total area held by the majority owners.
51 In our view, the Judge’s interpretation,
even though somewhat strained, is justified because applying the TOP or the CSC as the only means to determine the age of
a strata development would falsify Parliament’s intention (in the words of Bennion, see [49] above). It
would defeat the legislative purpose of privatising HUDC estates – to accord the flat owners all the privileges enjoyed
by owners of private developments. This is a case where a literal application of the TOP and the CSC prescribed by s 84A(1)
would lead to the frustration of the 1995 Amendments and the 1999 Amendments.
52 The Appellants have argued that the concept
of “completion” is ambiguous and to use it to determine the age of a strata development would lead to uncertainty.
This is undesirable as the uncertainty could affect the freedom of flat owners to live where they like and not be subject
to the wishes of the majority. We have great sympathy with this argument, and might be inclined to accept it if the concept
of completion is used to apply to all strata developments. But this is not the case here. The case here concerns one type
of strata development which, by legislation, had been deprived of the very means prescribed in s 84A(1) to determine
its age. In the present case, the application of the concept of “completion” cannot possibly lead to any uncertainty
as far as the owners of GH are concerned since in fact the last blocks of buildings in GH were completed and occupied by the
residents more than 20 years ago. In our view, this is a rare case and a rare example of a casus omissus created by
what we believe to be faulty or inappropriate drafting and, in our judgment, it is within the legitimate bounds of purposive
interpretation to make good such an omission.
53 It is, of course, possible to argue that
there are other means to determine the age of GH for the purposes of s 84A(1) which would be more certain than using
the date of its completion as a factual criterion. For example, it may be argued that the age of GH should be determined by
reference to the last date on which the residents of GH were allowed to take possession of their flats as occupiers (as this
would simply be a question of fact which can be verified by a certificate from the HDB). Another reference point of sufficient
certainty to determine the age of GH could be the date of the latest certification for any building comprised in a strata
title plan. If this reference point is used, the reference date would be the date of the strata title plan for GH, which was
issued in November 1996, which would be just over ten years past the date of the application to the Board for the collective
sale of GH.
54 But we wish to emphasise that the availability
of other means not expressed in s 84A(1) merely confirms that specifying the TOP and the CSC as the only reference points
for determining the age of a strata development was a drafting flaw which, if not corrected by the court, would defeat the
legislative purpose of the 1999 Amendments. In such a case, the court is entitled to apply the purposive construction to correct
the drafting error. The Respondents have referred to a series of very recent English cases where the English courts have adopted
a purposive construction to add words to a statute to achieve the purpose intended by Parliament, eg, Inco Europe
Ltd v First Choice Distribution [2000] 1 WLR 586 (“Inco Europe Ltd”), Regina (Confederation
of Passenger Transport UK) v Humber Bridge Board [2004] QB 310 and Regina (Government of the United States of America)
v Bow Street Magistrates’ Court [2007] 1 WLR 1157.
55 It is not necessary for us
to rely on these decisions on purposive interpretation which are based on common law principles of interpretation since the
basis for purposive interpretation in Singapore is described in s 9A of the Interpretation Act in very broad terms: see
Constitutional Reference No 1 of 1995 [1995] 2 SLR 201; L & W Holdings Pte Ltd v MCST Plan No 1601
[1997] 3 SLR 905; Planmarine AG v Maritime and Port Authority of Singapore [1999] 2 SLR 1; PP v Loo Kun Long
[2003] 1 SLR 28; The Seaway [2005] 1 SLR 435; PP v Low Kok Heng ([49] supra); and Siow Doreen v Lo
Pui Sang [2008] 1 SLR 213. However, the English decisions are still useful guides on the relevant factors to take into
account in order to determine when the courts will be prepared to purposively construe an Act by reading into it the words
that are necessary and apt to give effect to the legislative purpose or object.
56 This conclusion
is consistent with the view of the Building and Construction Authority (“BCA”) as evidenced by a letter dated
23 April 2007 confirming that, for practical purposes, in the case of GH, “the date of completion of the buildings
can be taken as equivalent to the [TOP] issued by the [BCA]”. In our view, this letter does not mean that the BCA was
deciding, as a matter of law or statutory construction, that the date of completion was or equivalent to the TOP, but simply
that, if it were necessary to determine the age of a strata development which did not have a TOP or a CSC, the date of completion
of the development would, in a case such as this, be an appropriate means for that purpose.
57 In Wentworth
Securities Ltd v Jones [1980] AC 74, Lord Diplock stated (at 105–106) that three conditions had to be fulfilled
before the court could read words into an Act which were not expressly included in it, viz: (a) it was possible
to determine from a consideration of the provisions of the Act read as a whole precisely what the mischief was that Parliament
sought to remedy with the Act; (b) it was apparent that the draftsman and Parliament had by inadvertence overlooked,
and so omitted to deal with, the eventuality that was required to be dealt with so that the purpose of the Act could be achieved;
and (c) it was possible to state with certainty what the additional words would be that the draftsman would have inserted
and that Parliament would have approved had their attention been drawn to the omission. In Inco Europe Ltd at 592,
Lord Nicholls of Birkenhead framed the third requirement in a broader fashion as follows: that the court must be abundantly
sure of “the substance of the provision Parliament would have made, although not necessarily the precise words Parliament
would have used, had the error in the Bill been noticed”. In our view, given the broad wording of s 9A of the Interpretation
Act, the broader formulation of Lord Nicholls is more consonant with the legislative purpose of that provision.
58 Applying this test, the court must ask
itself what was the substance, and not the precise words, of the provision that Parliament would have used, if the drafting
error had been brought to its attention. In the present case, the substance is clear enough in the context of the function
of the TOP and the CSC, the dating of which is to determine the age of the strata development. The TOP indicates that the
building for which it is issued is ready for occupation. The CSC indicates that the building has satisfied all the requirements
of the Building Control Act and is “completed” in terms of that Act. It is not disputed that, under the Building
Control Act, if a TOP is required to be issued, it is always issued before the CSC. Therefore, in the absence of a
TOP (or its statutory equivalent, a TOL) or a CSC (or its statutory equivalent, a COF), the substance of the omitted provision
should reflect the function of the TOP or the CSC and the words to be read into s 84A(1) in relation to a situation where
there is neither a TOP or a CSC (or their statutory equivalent) should refer to the date when the building authority would
have regarded the development as having been completed and fit or ready for occupation. This is a question of fact that can
easily be determined by a certificate from the HDB.
59 In the case of GH, it was completed and
ready for occupation in December 1984, more than 20 years before the date of the application for its collective sale. It is
true that the references to TOP and CSC in s 84A(1) are for TOPs and CSCs in relation to the building or buildings comprised
in a strata title plan, but since no TOP or CSC has ever been issued to GH, we think that it is legitimate to use the
date of completion and occupation of GH to determine its age rather than the strata title plan issued to GH in November 1996.
The reason is that the 1999 Amendments were intended to permit collective sales of strata developments by reference to their
age. But even if we adopt a formalistic or a literal interpretational approach in relation to the reference to the strata
title plan in s 84A(1), it would still make no difference to the outcome of this appeal. The fact remains that GH would
still be more than ten years old at the date of the application for its collective sale.
60 So much for purposive interpretation. We
would conclude our consideration of the issues in this appeal and the arguments of counsel for the parties by adverting to
one other issue that has not been raised in the proceedings below by the Respondents or the Intervener. Since, for this reason,
we did not have the benefit of counsel’s arguments on this issue, we are unable to take it further except to make the
observation that interpreting s 84A(1) of the LTSA to exclude only privatised HUDC estates from its operation, as contended
for by the Appellants, might engage Art 12 of the Constitution of the Republic of Singapore (1985 Rev Ed, 1999 Reprint)
since it might result in the discrimination of one type of property owners, viz, privatised HUDC flat owners, even
though they have the same rights and privileges as owners of any other strata developments (including 99-year leasehold developments).
It is open to argument that if Parliament had deliberately excluded privatised HUDC estates from the 1999 Amendments, it could
run the risk of the collective sale scheme under Pt VA of the LTSA being nullified for unconstitutionality, unless it
could justify the discriminatory legislation. We only say that there is such a risk, which cannot be discounted. Given that
there is such a risk, the Government might not have wished to run that risk since, as we have pointed out earlier, it had
nothing to lose but everything to gain in terms of achieving the objectives of the collective sale scheme by allowing privatised
HUDC estates to be sold en bloc under s 84A(1) of the LTSA.
61 To summarise, our conclusions on the two
issues before us are as follows:
(a) Section 84A(1) applies to all strata
developments, including privatised HUDC estates.
(b) The age of the strata development is the
touchstone of the collective sale scheme.
(c) The TOP and CSC referred to in s 84A(1)
are merely a means to determine the age of the development and whether s 84A(1)(a) or s 84A(1)(b)
is the applicable provision to a collective sale.
(d) The use of “TOP” and “CSC” (as a reference to their technical meanings) in s 84A(1) was a drafting
flaw as a literal interpretation and application thereof would have created a casus omissus (in respect of privatised
HUDC estates) and frustrated the legislative purpose of s 84A(1) to apply to all strata developments, which by definition
included privatised HUDC estates.
(e) A purposive interpretation may be applied
to rectify the flaw by reading into s 84A(1) the necessary test or words to enable the age of GH to be determined by reference to the date on which GH was completed and fit
or ready for occupation.
Conclusion
62 In the light of the considerations summarised above,
we agree with the Judge’s decision that the consent qualification for the collective sale of GH was 80% and not 90%.
For this reason, the appeal is dismissed. There will be no order as to costs on appeal. With respect to the costs in the court
below, the Appellants are to pay half the costs of the Respondents and the Intervener. The usual consequential orders follow.