Short answer: A claimant company can withdraw without the court’s permission by serving a Form 32 notice of discontinuance up to 14 days after the defence is served (Rules of Court 2021, Order 16, Rule 2). Later, it needs all parties’ written consent or the court’s permission. The defendant usually gets its costs, and suing again is not automatically barred.
Withdrawing a court claim in Singapore is common: the debtor pays after being served, the parties settle at mediation, or the solicitor advises that the case is weaker than it looked. How you end the case decides who pays the legal costs, whether you can enforce the deal and whether the claim can be brought again. This guide, written for directors of a company that is the claimant, covers discontinuance under Order 16 of the Rules of Court 2021, the costs rules, counterclaims, and how withdrawal compares with a consent judgment or a settlement agreement.
Key facts at a glance
- Without permission: the claimant may discontinue the action, or withdraw any particular claim, up to 14 days after the defence (or the last defence) is served, by serving a notice in Form 32 (Order 16, Rule 2(1)).
- By consent: the action may be withdrawn at any time before trial by producing to the Registrar a written consent signed by all parties (Order 16, Rule 2(5)).
- Otherwise, the court’s permission is needed, applied for by summons, on terms as to costs, a later action or otherwise (Order 16, Rule 3).
- Where the claimant discontinues by notice, the defendant is entitled to its costs to that date unless the court orders otherwise (Order 21, Rule 9(1)).
- Discontinuance is not a defence to a later action on the same cause of action, subject to any court terms (Order 16, Rule 4), but that action can be stayed until unpaid costs are paid (Order 16, Rule 5).
- An action in which no party takes a step for more than one year is deemed discontinued (Order 16, Rule 2(7)).
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
What does withdrawing or discontinuing a court claim mean?
Discontinuing means the claimant ends the court case it started, without the court deciding who is right. Withdrawing a particular claim means dropping one part of the case, such as one invoice, while the rest continues.
Order 16 lets a claimant do either against all or only some defendants. If your company sued two related companies and one has paid, the solicitor can discontinue against that one and carry on against the other. Discontinuance is not losing: there is no judgment on the merits. But it is not winning either, because it gives your company nothing to enforce. That is why the order in which you settle, get paid and discontinue matters most.
What is the legal basis under the Rules of Court 2021?
The rules are in Order 16 of the Rules of Court 2021, with the costs consequences in Order 21. They apply in the High Court and the State Courts, including Magistrate’s Court cases under the simplified process, because Order 65 keeps the other Orders in force except where it says otherwise.
| Rule | What it says |
|---|---|
| Order 16, Rule 2(1) | Claimant may discontinue, or withdraw a particular claim, without permission up to 14 days after service of the defence (or the last defence), by serving Form 32 |
| Order 16, Rule 2(2) | Defendant may withdraw its defence at any time, and discontinue a counterclaim without permission up to 14 days after service of the defence to counterclaim |
| Order 16, Rule 2(5) | With all parties’ written consent, the action may be withdrawn at any time before trial |
| Order 16, Rule 2(6) to (10) | Deemed discontinuance if the originating claim is not served in time or no step is taken for over a year; extension and reinstatement |
| Order 16, Rule 3 | In all other cases, the court’s permission is needed, on such terms as the court thinks just |
| Order 16, Rule 6 | A summons, such as a summary judgment application, cannot be withdrawn without permission |
| Order 21, Rules 2 and 9 | Costs are in the court’s discretion, having regard to the stage at which proceedings ended; costs to the defendant on discontinuance by notice |
Permission is usually granted. In EC-Council Pte Ltd v WPP Singapore Pte Ltd [2026] SGHC 125 (unreported), the High Court held that a party that started litigation will generally be allowed to withdraw it if it pays the opponent’s costs thrown away. Permission is refused only where withdrawal would be an abuse of process and the prejudice cannot fairly be met by terms, or where a public interest goes beyond the parties’ own. The court relied on Rohde & Liesenfeld Pte Ltd v Jorg Geselle [1998] 3 SLR(R) 335 for the point that a claimant should not normally be compelled to litigate against its will.
Who can withdraw, and when is permission needed?
Your company, as claimant, can withdraw by notice in the early window, by consent of all parties before trial, or with the court’s permission at any stage.
| Situation | Route | Court permission? |
|---|---|---|
| Defence not yet served, or served less than 14 days ago | Serve Form 32 on the defendant | No |
| All parties agree, before trial | Produce a written consent signed by all parties to the Registrar | No |
| Window closed and the defendant does not agree | Summons under Order 16, Rule 3 | Yes |
| Defendant dropping its counterclaim | Form 32 within 14 days after the defence to counterclaim; otherwise permission | Depends on timing |
Inside the company, withdrawal is a board decision unless the constitution reserves it. Under section 157A of the Companies Act 1967, a company’s business is managed by, or under the direction or supervision of, its directors.
What happens to a counterclaim if your company withdraws?
Order 16 treats the claim and the counterclaim separately, so discontinuing your company’s claim does not by itself end a counterclaim made against you. If the dispute has settled, withdraw the whole action by written consent of all parties under Rule 2(5), or have the defendant serve its own Form 32 on the counterclaim, and say so in the settlement terms.
How do you withdraw a claim, step by step?
The board decides, the solicitor files and the company secretary keeps the records. Court proceedings, including any notice of discontinuance or summons for permission, are conducted by a Singapore Advocate and Solicitor acting for your company.
- Ask the solicitor for a short written view on the reasons to withdraw, the defendant’s likely costs, whether the 14-day window is still open and whether a counterclaim is on foot.
- If the case has settled, agree written terms first: amount and dates, costs, the counterclaim, and when the action will be withdrawn.
- Collect the settlement money before taking any step that ends the case.
- Pass a directors’ resolution approving the settlement or withdrawal and authorising the solicitor to act.
- The solicitor files and serves Form 32, the signed written consent, or a summons for permission.
- Agree or have assessed the defendant’s costs, and pay them.
- If hearing fees were paid, notify the court in writing at least 14 days before the first hearing date for a full refund, and request it within one month (Order 25, Rule 3(3) and (4)).
- Update the accounts and file the signed documents with the board minutes.
What documents are needed?
The court documents are short; most of the work is in the settlement terms and the internal approval.
| Document | Prepared by | Purpose |
|---|---|---|
| Directors’ resolution | Company secretary, with the solicitor’s input | Authorises the settlement or withdrawal and names the signatory |
| Settlement agreement or deed | Solicitors for both sides | Records payment, costs, releases and withdrawal mechanics |
| Notice of discontinuance (Form 32) | Claimant’s solicitor | Ends the action, or a particular claim, without permission |
| Written consent signed by all parties | Solicitors for all parties | Withdraws the action by consent before trial |
| Summons for permission | Claimant’s solicitor | Asks the court to allow discontinuance under Order 16, Rule 3 |
| Bill of costs or costs agreement | Defendant’s solicitor | Fixes the costs payable on discontinuance |
How long does withdrawing a court claim in Singapore take, and what does it cost?
A Form 32 notice in the early window works by serving it, so it can be done within days; a contested permission application takes longer. The main cost is usually the defendant’s costs, not the court fee.
| Step | Timing | Cost and assumptions |
|---|---|---|
| Form 32 notice | Up to 14 days after the defence (or last defence) is served | Your solicitor’s fee and filing charges; the defendant’s costs to that date unless the court orders otherwise |
| Withdrawal by consent | Any time before trial | Costs as agreed; if the terms are silent, expect argument |
| Summons for permission | After the window, if the defendant will not consent | Fees for the summons and hearing; the court may order costs and other terms |
| Assessment of the defendant’s costs | If not agreed; defendant may sign judgment 48 hours after assessment | The defendant’s reasonable costs on the standard basis |
| Hearing fee refund | Notify at least 14 days before the first hearing date | Full refund of hearing fees paid |
Assumptions: a Singapore company claimant, both sides represented, no appeal and no special court terms. Document fees are in the Fourth Schedule to the Rules of Court 2021, and your solicitor will confirm the current amount; see also our guide to court fees in Singapore. The earlier your company withdraws, the lower the defendant’s bill tends to be, and the court must consider the stage at which proceedings ended when fixing costs (Order 21, Rule 2(2)(h)).
Can your company sue again on the same claim after withdrawing?
Often yes. Under Order 16, Rule 4, discontinuance is not a defence to a later action for the same, or substantially the same, cause of action, subject to any terms the court imposed. Four limits apply:
- Court terms. Where permission was needed, the court may bar a later action as a condition.
- Unpaid costs. If costs from the first action are unpaid, the court may stay the new action until they are paid (Order 16, Rule 5).
- Limitation. The clock does not stop while the first action ran. A contract claim must generally be brought within 6 years from when the cause of action accrued (Limitation Act 1959, section 6(1)(a)).
- Settlement. If your company released the claim in a settlement, the original claim is usually compromised, and a later default is pursued under the settlement agreement unless it says otherwise. Our note on settlement by instalments covers when a release should take effect.
Withdrawal, consent judgment or settlement agreement: which should your company use?
Withdraw when you are walking away or have been paid in full. Use a consent judgment when payment comes later and you want to enforce directly on default. Use a settlement agreement to record the wider terms, usually alongside one of the other two.
| Option | What your company gets | If the other side defaults |
|---|---|---|
| Discontinuance or withdrawal | The case ends; nothing is decided | Nothing to enforce; sue again, subject to Order 16, Rules 4 and 5 and limitation |
| Consent judgment or order | A court judgment on agreed terms | Enforce the judgment directly |
| Settlement agreement or deed | A contract recording the deal, releases and costs | Sue on the agreement, then enforce any judgment |
See our guides to the consent judgment in Singapore and to making an offer to settle that protects your company on costs if talks fail.
What does the company secretary prepare, and what does the solicitor file?
The company secretary or corporate service provider (CSP) handles approvals and records; the Singapore Advocate and Solicitor advises on procedure and files every court document. Raffles Corporate Services does not give legal advice or act in court; a law firm from our panel handles the proceedings.
| Company secretary or CSP | Singapore Advocate and Solicitor |
|---|---|
| Directors’ resolution approving settlement or withdrawal | Advice on the route, the 14-day window, costs and limitation |
| Recording any director’s interest in the counterparty | Drafting the settlement terms and costs clause |
| Checking the constitution for matters reserved to shareholders | Filing Form 32, the written consent or a summons for permission |
| Filing the signed documents with the minutes; passing figures to the accountant | Agreeing or contesting the bill of costs; hearing fee refunds |
Our guide to board versus shareholder resolutions explains which body approves. If you are unsure whether to withdraw or press on, speak to a lawyer before the 14-day window closes.
What happens after the claim is withdrawn?
The case ends, any costs must be paid and the company’s accounts are updated. No ACRA lodgement is normally needed when a company discontinues an ordinary commercial claim.
- Costs. Pay promptly: the court may stay or dismiss later proceedings if a party neglects to pay costs ordered (Order 21, Rule 2(6)).
- Accounts. Record the settlement receipt, legal costs and any balance written off, and ask your accountant about the tax treatment of an unrecovered debt.
- Dormant cases. An action with no step for more than one year is deemed discontinued (Order 16, Rule 2(7)). An extension must be sought before the year ends; afterwards the company must apply to reinstate (Rules 2(9) and 2(10)).
What are the common mistakes?
Most problems come from withdrawing too early, or leaving costs and the counterclaim out of the deal.
- Withdrawing before the settlement money is paid. Once the action is discontinued, there is nothing to enforce. If payment comes later, use a consent judgment.
- Forgetting costs. A settlement should state expressly if each party bears its own costs; otherwise a defendant served with Form 32 can claim its costs.
- Missing the 14-day window, which leaves only consent or a court application.
- Ignoring the counterclaim, which survives your withdrawal.
- Letting the case go quiet until it is deemed discontinued.
- Assuming you can always sue again, despite court terms, unpaid costs, limitation or a signed release.
Frequently asked questions
Can my company withdraw a court claim without the defendant’s agreement?
Yes, up to 14 days after the defence, or the last defence, is served (Order 16, Rule 2(1)). After that, without the defendant’s written consent, your company needs the court’s permission.
Do we have to pay the defendant’s legal costs if we withdraw?
Usually. Where a claimant discontinues by notice, the defendant is entitled to its costs to that date unless the court orders otherwise (Order 21, Rule 9(1)). A settlement can provide differently.
Can we withdraw just one invoice from the claim?
Yes. Order 16 allows a claimant to withdraw any particular claim, against all or only some defendants, while the rest of the action continues.
Does withdrawing stop the limitation clock?
No. A new action must still be brought within the limitation period, generally 6 years from accrual for contract claims.
Our free tools help you keep ACRA and tax deadlines on track while a dispute is wound down.
Need help with this?
Raffles Corporate Services can handle the ACRA filings, compliance documentation and records for you, and where court proceedings or legal advice are needed, we work with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice.
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Last reviewed: 4 November 2026. The Editorial Team, Raffles Corporate Services.