Singapore Recreation Club loses $3m suit against its ex-president, ex-general manager

SRC had sued Mr Johnny Goh and Mr Abdul Rashid Mohamed Ali for at least $3 million. ST PHOTOS: WONG KWAI CHOW

SINGAPORE - The High Court on Tuesday (July 28) threw out a lawsuit brought by the Singapore Recreation Club (SRC) against its former president and former general manager, saying there was "no merit" to the club's claims.

SRC had sued Mr Johnny Goh, 81, and Mr Abdul Rashid Mohamed Ali, 61, for at least $3 million, in a case that arose against the backdrop of a change in leadership at one of Singapore's oldest social clubs.

Justice Ang Cheng Hock partly allowed Mr Rashid's counterclaim for wrongful dismissal and ordered the club to pay him his salary for his two-month notice period.

In his judgment, Justice Ang said it was clear there was a "long history of ill-will and rancour" between the defendants and two members of the current management committee (MC) who testified, club president Sarbjit Singh and Mr Derrick D'Souza.

The judge stressed that the court was not the forum to resolve "every niggling dispute" and that the outcome of the suit will not settle their longstanding grievances.

The suit started in 2015 to recover a laptop and other items that the club accused Mr Rashid of removing from the office after he resigned in August 2014.

The case ballooned over time as the club kept mounting new claims.

In 2017, the club added a claim to claw back bonuses paid to Mr Rashid which it alleged were unauthorised.

SRC also added Mr Goh as a defendant. He was president for 22 years until his suspension in 2015, following a complaint lodged by Dr Singh.

The case was amended again to add various claims for alleged losses relating to guest rooms that the club operated from its premises.

These include an alleged failure to collect fees from guests who stayed in the rooms, and an alleged failure to obtain approval of the MC before paying commissions to online booking agents for marketing the rooms.

In dismissing the "missing" property claim, Justice Ang said the club had not identified the items that were supposedly removed and failed to prove that Mr Rashid has misappropriated the laptop.

In relation to Mr Rashid's bonuses, the judge noted that Dr Singh was the only person who testified that these had been "secretly" paid out.

Justice Ang said this was not supported by objective evidence. He pointed to letters setting out the bonuses that were copied to individuals in charge of human resources.

As for the uncollected fees, the judge said there was no evidence that the MC had ever authorised the collection of fees from guests.

Turning to the commissions paid to booking agents, the judge said MC members from 2007 to 2013 testified that this was done with their knowledge.

Financial reports also stated that money was being paid to booking agents.

The judge noted that just like the case of the bonuses, Dr Singh was the only MC member who had said he did not know the club was using booking agents.

"After reviewing the totality of the evidence... I came to the conclusion that Dr Singh was simply not being truthful in this regard," he said.

Commenting on the verdict, Mr Rashid said he was "elated that justice has been served", while Mr Goh said he was "happy to clear his name". The pair were represented by Mr P.E. Ashokan.

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