A business giving loans to another business was found to have engaged in moneylending and it was ruled that it was hence unable to recover its unpaid principal amounting to almost SGD9 million in the case of Ochroid Trading Ltd v Chua Siok Lui. In so deciding, the Singapore Court of Appeal set out its approach to determining when a contract involving illegality will be unenforceable and when the culpable party can nevertheless obtain some form of restitution.
