Bandung Shipping v Keppel Tatlee: Rights of Suit Under Bills of Lading Act

In Bandung Shipping Pte Ltd v Keppel Tatlee Bank Ltd, the Court of Appeal of Singapore allowed the appeal, restoring the decision to strike out Keppel Tatlee's claim. The case concerned a dispute over a cargo of crude palm oil shipped under bills of lading. Keppel Tatlee claimed breach of contract, negligence, and conversion against Bandung Shipping for delivering the cargo without presentation of the bills of lading. The court held that Keppel Tatlee did not have the rights of suit under the Bills of Lading Act because they had endorsed the bills to the State Bank of Saurashtra in India, and the State Bank did not re-endorse them back to Keppel Tatlee.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal Allowed

1.3 Case Type

Admiralty

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The Court of Appeal held that Keppel Tatlee Bank lacked rights to sue under the Bills of Lading Act after endorsing the bills to State Bank.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Bandung Shipping Pte LtdAppellant, DefendantCorporationAppeal AllowedWon
Keppel Tatlee Bank LtdRespondent, PlaintiffCorporationClaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJudge of AppealYes
Judith PrakashJudgeNo

4. Counsels

4. Facts

  1. Shweta International Pte Ltd shipped a cargo of crude palm oil on board the vessel 'Victoria Cob'.
  2. Bandung Shipping Pte Ltd owned the vessel 'Victoria Cob'.
  3. Keppel Tatlee Bank Ltd claimed to be the owners or lawful holders of the bills of lading.
  4. Shweta endorsed the bills of lading in blank and delivered them to Ranchhoddas Purshottam Holdings (RPH).
  5. RPH delivered the bills of lading to Keppel Tatlee Bank for purchase/negotiation.
  6. Keppel Tatlee Bank filled in the name 'the State Bank of Saurashtra in India' on the blank endorsement.
  7. The State Bank returned the bills of lading to Keppel Tatlee Bank without any indorsement.
  8. The vessel discharged the cargo to the agents of Lanyard Foods Ltd without the production of the bills of lading.

5. Formal Citations

  1. Bandung Shipping Pte Ltd v Keppel Tatlee Bank Ltd, CA No 13 of 2002, [2002] SGCA 46

6. Timeline

DateEvent
Bills of lading issued
Keppel TL filled in the name 'the State Bank of Saurashtra in India' onto the blank endorsement
Bills of lading returned by the State Bank to Keppel TL
Appeal heard
Decision date

7. Legal Issues

  1. Rights of Suit under Bills of Lading Act
    • Outcome: The court held that Keppel Tatlee Bank did not have the rights of suit under the Bills of Lading Act.
    • Category: Substantive
  2. Striking Out
    • Outcome: The court allowed the appeal and struck out the action.
    • Category: Procedural

8. Remedies Sought

  1. Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Shipping
  • Banking

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Aegean Sea Traders Corp v Repsol Petroleo SAEnglish Commercial CourtYes[1998] 2 Lloyd’s Rep 29England and WalesCited to support the proposition that mere indorsement, followed by delivery of the bill, does not make the indorsee a lawful holder.
East West Corporation v DKBS 1912 & AnorEnglish Commercial CourtYes[2002] EWHC 83 (COMM)England and WalesCited for the principle that a valid indorsement, besides the physical possession of the bill, was critical to the claimants obtaining the rights to suit.
Gurney v BehrendQueen's BenchYes(1854) 3 El. & BL 622England and WalesCited by Keppel TL’s counsel to support the proposition that if an agent indorses a B/L without authority, his principal may still retain rights of suit under the contract of carriage contained in the B/L.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Bills of Lading Act (Cap 384, 1994 Rev Ed) s 2(1)Singapore
Bills of Lading Act (Cap 384, 1994 Rev Ed) s 2(5)Singapore
Bills of Lading Act (Cap 384, 1994 Rev Ed) s 5(2)Singapore
Rules of Court (Cap 322, R 5, 1997 Rev Ed) O 18 r 19Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Bills of Lading
  • Indorsement
  • Rights of Suit
  • Lawful Holder
  • Bearer Bill
  • Striking Out

15.2 Keywords

  • Bills of Lading Act
  • Rights of Suit
  • Indorsement
  • Shipping
  • Admiralty

17. Areas of Law

16. Subjects

  • Admiralty
  • Shipping
  • Bills of Lading
  • Civil Procedure