Former director of Sabana Reit’s ex-tenant jailed for contempt of court in ongoing tussle over unpaid rent

IN AN ongoing tussle over unpaid rent, the former director of Kleio One-Solution, which was once a tenant of Sabana Real Estate Investment Trust (Reit) , was sentenced to three days’ jail on Friday (Mar 7) for contempt of court.

Lin Duanliang had failed to comply with examination orders, as well as other directions from the court, indicated an affidavit filed by Donald Han, the chief executive officer of Sabana Reit’s manager.

Lin was the director of Kleio One-Solution until a liquidator was appointed for the company in September 2024.

The issue between the two parties dates back to November 2023, when Sabana Reit sought a court order against Kleio One-Solution for possession of the Reit’s 33 and 35 Penjuru Lane premises, as well as the payment of around S$2.1 million in arrears of rent and other fees. Kleio One-Solution was the master lessee of the site.

According to the affidavit seen by The Business Times, Lin had engaged in contempt of court on three occasions.

In one occurrence, Lin sought to postpone a court examination scheduled for Sep 11, 2024, to Sep 18, citing a two-day medical leave due to chest pains. This was despite his medical certificate stating that it was not valid for absence from court.

Nevertheless, the court adjourned the hearing to Sep 23, as Lin was not present. However, he failed to attend the rescheduled court examination as well.

According to the affidavit, Kleio One-Solution had passed a resolution to wind up, and appointed a liquidator on Sep 19, 2024.

On account of the company commencing winding-up proceedings, Lin’s lawyers sought confirmation that Han would seek a discharge of the examination order, and that their client’s attendance in court would no longer be required.

Han’s lawyers disagreed, but Lin failed to attend the hearing on Sep 23.

Units of Sabana Reit ended 1.4 per cent or S$0.005 higher at S$0.365 on Friday.