Soup Restaurant wins legal spat against Dian Xiao Er on sublease issue

SINGAPORE - Restaurant chain Soup Restaurant has won a legal spat against Dian Xiao Er over the question of whether the latter had overstayed on its premises in VivoCity for two years by refusing to move out when the sublease came to an end in October 2012.

Soup Restaurant, which is known for its samsui ginger chicken, had sublet some 69 square metres of shop space to herbal roast duck chain Dian Xiao Er, which contended it was entitled to stay as there was an automatic renewal of the sublease after its expiry.

Dian Xiao Er handed back the space to Soup Restaurant on Oct 1, 2014.

In a notification to the Singapore Exchange on Nov 24, Soup Restaurant said that the High Court held that the sublease was terminated on Oct 18, 2012, and that the defendant, YES F&B, which owns Dian Xiao Er, was in wrongful possession of the sub-leased area.

The court also held that YES F&B is liable to pay to Soup Restaurant damages which will be assessed separately.