16 June 2010

Advisory

CLOSURE OF NAUGHTY BY NATURE PTE LTD

With regard to the recent closure of Naughty By Nature Pte Ltd (Naughty By Nature) as reported by The Straits Times on 15 June 2010, CASE offers the following advice for affected consumers:

As of 15 June 2010 (9.00am), the status of Naughty By Nature was live. Hence, if the company’s status is still ‘live’ at ACRA but not operating at their premises, the first thing the consumer need to do is to file a claim against the business at the Small claims Tribunal (SCT) so that he can obtain an Order of the Tribunal and demand the business to pay whatever amount awarded to him / her by the SCT. If the amount is not settled, the consumer can enforce the order by taking out a writ of seizure of other forms of legal action.

However, if the company or sole proprietor or partners offer a package and collect money with no intention to execute the package and cease operations, that may amount to a scam and be regarded as criminal offence rather than a genuine business failure. There is a possibility that the Director of the business may be held personally liable for the debts of the company when it is being wound up under the Companies Act. The sole proprietor or partner will also be liable for the debts of the business. Consumers can file a complaint with the police, so that the persons liable for the scam can be charged in court for commission of a criminal offence.

CASE had previously in 2007 commenced an injunction action against Naughty By Nature and its then two directors including Bupendra Ramason for breaching the Consumer Protection (Fair Trading) Act.

Should consumers require any assistance regarding their disputes with Naughty By Nature, they can call CASE’s hotline at 6463 1811. Consumers can also visit the Small Claims Tribunal at Havelock Road to file a claim.