Marinteknik v SNC Passion: Injunction Against Banker's Guarantee Demand & Shipbuilding Contract Dispute
In Marinteknik Shipbuilders (S) Pte Ltd v SNC Passion, the Singapore High Court addressed an application by Marinteknik for an injunction to restrain SNC Passion from demanding payment under a banker's guarantee related to a shipbuilding contract. The court discharged the injunction, finding no fraud or unconscionability on the part of SNC Passion and material non-disclosure by Marinteknik. Marinteknik was ordered to pay damages and costs to SNC Passion. The dispute arose from alleged breaches of the shipbuilding agreement, including late delivery and failure to meet speed specifications.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Injunction discharged; Plaintiffs to pay damages and costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving Marinteknik Shipbuilders and SNC Passion, addressing an injunction against a banker's guarantee demand related to a shipbuilding contract dispute.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Marinteknik Shipbuilders (S) Pte Ltd | Plaintiff | Corporation | Injunction Discharged | Lost | John Wang |
| SNC Passion | Defendant | Corporation | Injunction Discharged | Won | R Govintharasah |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| John Wang | Robert W H Wang & Woo |
| R Govintharasah | Gurbani & Co |
4. Facts
- Plaintiffs and Defendants entered into an agreement for the design, build, and delivery of the catamaran 'Passion'.
- Plaintiffs furnished Defendants with a Banker's Guarantee as security for their obligations under the agreement.
- Defendants threatened to make a demand on the Banker's Guarantee due to alleged breaches of the agreement.
- Plaintiffs sought an injunction to restrain Defendants from making a demand on the Banker's Guarantee.
- The Passion was delivered to Pointe-a-Pitre, but the Defendants alleged late delivery and failure to attain specified speed.
- The Defendants claimed liquidated damages for late delivery and damages for failure to attain specified speed.
- The Plaintiffs allegedly did not disclose material facts in their application for the ex parte injunction.
5. Formal Citations
- Marinteknik Shipbuilders (S) Pte Ltd v SNC Passion, OS 1203/2000, SIC 600673/2001, [2001] SGHC 141
6. Timeline
| Date | Event |
|---|---|
| Agreement entered into to design, build, and deliver the Passion. | |
| Banker's Guarantee effective date. | |
| Original agreed delivery date. | |
| Passion arrived at Point-a-Pitre before this date, according to Plaintiffs. | |
| New deadline for delivery. | |
| Sea trials conducted at Guadeloupe. | |
| Defendants threatened to make a demand on the Banker's Guarantee. | |
| Plaintiffs took out Originating Summons. | |
| Interim injunction granted. | |
| Defendants took out Summons-in-Chambers to discharge the ex parte injunction. | |
| Defendants took over the Passion. | |
| Injunction discharged. | |
| Banker's Guarantee due to expire. | |
| Decision Date |
7. Legal Issues
- Enforcement of Banker's Guarantee
- Outcome: The court held that there was no fraud or unconscionability on the part of the Defendants and that the Plaintiffs had failed to make full and frank disclosure of all material facts.
- Category: Substantive
- Sub-Issues:
- Fraud
- Unconscionability
- Material Non-Disclosure
- Related Cases:
- [2000] 4 SLR 290
- [1999] 1 SLR 374
- [1995] 2 SLR 733
- [1999] 4 SLR 604
- [1996] 4 All ER 563
- [2000] 1 SLR 657
- Breach of Contract
- Outcome: The court found that there were genuine disputes between the parties regarding the alleged breaches of contract.
- Category: Substantive
- Sub-Issues:
- Late Delivery
- Failure to Attain Specified Speed
- Miscellaneous Defects
- Failure to Deliver Fifth Engine
8. Remedies Sought
- Injunction
- Declaration
- Return of Sums Paid
- Costs
- Interest
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Law
- Performance Bonds
11. Industries
- Maritime
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Eltraco International Pte Ltd v CGH Development Pte Ltd | Court of Appeal | Yes | [2000] 4 SLR 290 | Singapore | Cited for the principle that it is not unconscionable to make a call on a demand bond where there is a genuine dispute between the parties on liability. |
| New Civilbuild Pte Ltd v Guobena Snd Bhd | High Court | Yes | [1999] 1 SLR 374 | Singapore | Cited for the proposition that there was no concept of unconscionability in English law in relation to on-demand bonds. |
| Bocotra Construction Pte Ltd v A-G (No 2) | Court of Appeal | Yes | [1995] 2 SLR 733 | Singapore | Cited for the principle that fraud or unconscionability is a ground on which the court would interfere and restrain the enforcement of a performance bond. |
| GHL Pte Ltd v Unitrack Building Construction Pte Ltd | Court of Appeal | Yes | [1999] 4 SLR 604 | Singapore | Cited for the principle that unconscionability is another exception under Singapore law for restraining the enforcement of a performance bond. |
| Cargill International SA & Anor v Bangladesh Sugar & Food Industries Corp | Not Available | Yes | [1996] 4 All ER 563 | England | Cited to highlight the difference between Singapore and English law regarding unconscionability as a ground for restraining a call on a performance bond. |
| Dauphin Offshore Engineering & Trading Pte Ltd v The Private Office of HRH Sheikh Sultan bin Khalifa bin Zayed Al Nahyan | High Court | Yes | [2000] 1 SLR 657 | Singapore | Cited for the principle that the court has the discretion to continue an injunction even if there has been material non-disclosure if the justice of the case requires it. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Banker's Guarantee
- Shipbuilding Contract
- Injunction
- Unconscionability
- Material Non-Disclosure
- Late Delivery
- Specified Speed
- Liquidated Damages
- Protocol of Completion
- Sea Trials
- Vessel
- Components
15.2 Keywords
- Banker's Guarantee
- Shipbuilding
- Injunction
- Contract Dispute
- Singapore High Court
16. Subjects
- Contract Dispute
- Shipbuilding
- Injunctions
- Banking
17. Areas of Law
- Contract Law
- Construction Law
- Injunctions
- Banking Law