01⬡ JUDGMENT
High Court in Equation Recycling Pte Ltd v Leading Bio-Energy (S) Pte Ltd [2026] SGHC 126 reaffirms that a clause is only a penalty if it is 'extravagant and unconscionable' relative to a legitimate interest.
The Court set aside the District Judge's finding that a forfeiture clause was a penalty, ruling that the judge erred by applying a
Why it mattersLawyers should focus on demonstrating a legitimate commercial interest to defend against penalty claims, rather than merely arguing the sum is disproportionate to the breach.
JUDICIARY
READ JUDGMENT ↗