Guan Chong Cocoa v Pratiwi Shipping: Mareva Injunction for Damaged Cocoa Beans
Guan Chong Cocoa Manufacturer Sdn Bhd sued Pratiwi Shipping S.A. in the High Court of Singapore, seeking damages for loss and damage to cocoa beans during shipment. The Plaintiffs applied for a worldwide mareva injunction to freeze the Defendant's assets. The court, presided over by Judicial Commissioner Belinda Ang Saw Ean, dismissed the application, finding insufficient evidence of a risk of asset dissipation. The decision was made on 31 August 2002.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiffs' application for a mareva injunction dismissed.
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court denied Guan Chong Cocoa's application for a worldwide Mareva injunction against Pratiwi Shipping due to insufficient evidence of asset dissipation risk.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Guan Chong Cocoa Manufacturer Sdn Bhd | Plaintiff | Corporation | Application Dismissed | Lost | Lawrence Lee |
| Pratiwi Shipping S A | Defendant | Corporation | Application Dismissed | Won | Joseph Tan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lawrence Lee | Chui Sim Goh & Lim |
| Joseph Tan | Kenneth Tan Partnership |
4. Facts
- Plaintiffs claimed damages for loss/damage to cocoa beans shipped on 'PRATIWI'.
- A fire occurred on board 'PRATIWI' during the voyage.
- 'PRATIWI' was a constructive total loss and sold for S$50,000.
- Cocoa beans were forwarded to Pasir Gudang on another vessel.
- Plaintiffs' loss was computed at $904,164.22 plus interest and costs.
- Plaintiffs sought a worldwide mareva injunction to freeze Defendants' assets.
- Defendants sold their vessel 'LANGSA' for US$150,000.
5. Formal Citations
- Guan Chong Cocoa Manufacturer Sdn Bhd v Pratiwi Shipping S A, Admiralty Action in Personam No 41 of 2002/G, SIC Entered No 2701 of 2002/K, [2002] SGHC 202
6. Timeline
| Date | Event |
|---|---|
| Bills of lading issued at Palu. | |
| Fire started on board the vessel 'PRATIWI'. | |
| Kenneth Tan Partnership appointed to represent the Defendants. | |
| Bill of Sale for 'LANGSA' dated. | |
| Plaintiffs commenced in personam action. | |
| Plaintiffs applied for a worldwide mareva injunction. | |
| Plaintiffs obtained leave to serve the in personam Writ on Foong Sun Shipping (Pte) Ltd. | |
| Hearing for the mareva injunction application. | |
| Plaintiffs filed Notice of Appeal. | |
| Decision issued dismissing the application. |
7. Legal Issues
- Mareva Injunction
- Outcome: The court held that the Plaintiffs failed to adduce sufficient evidence of a risk of dissipation of assets to justify a mareva injunction.
- Category: Procedural
- Sub-Issues:
- Risk of dissipation of assets
- Exceptional circumstances for worldwide injunction
8. Remedies Sought
- Monetary Damages
- Mareva Injunction
9. Cause of Actions
- Breach of contract of carriage
- Breach of duty as bailees
- Negligence
10. Practice Areas
- Commercial Litigation
- Admiralty Litigation
11. Industries
- Shipping
- Commodities Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| SSAB Oxelosund AB v Xendral Trading Pte Ltd | High Court | Yes | [1992] 1 SLR 600 | Singapore | Cited for the principle that a worldwide mareva injunction is a draconian measure to be ordered only in exceptional circumstances. |
| Wallace Kevin James v Merrill Lynch International Bank Ltd | High Court | Yes | [1998] 1 SLR 785 | Singapore | Cited in support of the principle that a worldwide mareva injunction order is a draconian measure. |
| Republic of Haiti & Ors v Duvalier & Ors | Court of Appeal | Yes | [1990] 1QB 202 | England and Wales | Cited in support of the principle that a worldwide mareva injunction order is a draconian measure. |
| Babanaft International Co SA v Bassatne | Court of Appeal | Yes | [1990] Ch 13 | England and Wales | Cited for the principle that the situation must be so exceptional as to 'cry out' for an order covering foreign assets before judgment. |
| Choy Chee Keen Collin v Public Utilities Board | High Court | Yes | [1997] 1 SLR 604 | Singapore | Cited for the principle that a plaintiff seeking to freeze assets within the jurisdiction must adduce 'solid evidence' of a risk of dissipation. |
| Petromar Energy Resources Pte Ltd v Glencore International AG | High Court | Yes | [1999] 2 SLR 609 | Singapore | Cited for the principle that a plaintiff seeking to freeze assets within the jurisdiction must adduce 'solid evidence' of a risk of dissipation. |
| The Skaw Prince | High Court | Yes | [1994] 3 SLR 379 | Singapore | Cited for the principle that one-ship companies are a legitimate device for limiting liability in the shipping industry. |
| European Grain & Shipping Ltd Compania Naviera Euro-Asia SA & Ors | High Court | Yes | [1990] 2 MLJ 291 | Malaysia | Cited for the principle that carrying on business through Panamanian companies is a normal method of carrying on shipping business and does not imply dishonesty. |
13. Applicable Rules
| Rule Name |
|---|
| Order 56 rule 2 of Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Supreme Court of Judicature Act (Cap 322) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Mareva Injunction
- Dissipation of Assets
- Constructive Total Loss
- Bills of Lading
- Cargo Underwriters
- One-Ship Company
15.2 Keywords
- mareva injunction
- shipping
- cocoa beans
- admiralty
- asset dissipation
16. Subjects
- Admiralty
- Shipping
- Injunctions
17. Areas of Law
- Admiralty Law
- Civil Procedure
- Injunctions
- Shipping Law