Panwell Pte Ltd v Indian Bank: Damages Assessment for Conversion of CBN Notes

In Panwell Pte Ltd and Another v Indian Bank, the High Court of Singapore heard an appeal regarding the assessment of damages for the conversion of Central Bank of Nigeria (CBN) promissory notes. The court, presided over by Judicial Commissioner Choo Han Teck, ruled on 19 September 2002, that damages should be assessed as of the date of the conversion, not the date of the judgment. The court allowed the appeal in part, adjusting the damages calculation accordingly.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal allowed in part.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court addressed the assessment of damages for conversion of CBN notes, ruling damages should be assessed at the date of conversion, not judgment.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Indian BankDefendantCorporationAppeal allowed in partPartial
Panwell Pte LtdPlaintiffCorporationDamages assessed at date of conversionPartial

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Tan Teng MuanMallal & Namazie
Wong Khai LengMallal & Namazie
Sushil NairDrew & Napier LLC
Manoj SandrasegaraDrew & Napier LLC
Yarni LoiDrew & Napier LLC

4. Facts

  1. The first plaintiffs placed Central Bank of Nigeria promissory notes as security with the defendants.
  2. The first plaintiffs assigned the notes to the second plaintiffs.
  3. The defendants sold the CBN notes on 19 March 2001 at 32% of their face value.
  4. The plaintiffs sued the defendants for conversion, arguing the defendants had no right to dispose of the security.
  5. The trial judge found in favor of the plaintiffs.
  6. The assistant registrar assessed damages at US$2,380,000.00 plus quarterly payments from the date of conversion to the date of assessment.
  7. The CBN notes would expire in 2010 and quarterly payments would be made until then.

5. Formal Citations

  1. Panwell Pte Ltd and Another v Indian Bank, Suit 422/2001, RA 180/2002, 199/2002, [2002] SGHC 219

6. Timeline

DateEvent
Conversion of Central Bank of Nigeria promissory notes
Trial judge found the defendants liable
Assistant registrar assessed damages
High Court allowed the defendants’ appeal in part

7. Legal Issues

  1. Assessment of Damages for Conversion
    • Outcome: The court held that damages should be assessed as at the date of conversion, not the date of judgment.
    • Category: Substantive
    • Sub-Issues:
      • Relevant date for assessment of damages
      • Duty to mitigate loss
    • Related Cases:
      • [1991] 1 SLR 661

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Conversion

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Banking
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Brandeis Goldsmidt & Co v Western Transport LtdN/AYes[1981] QB 864England and WalesCited regarding the principle of monetary compensation for losses sustained in tort cases.
IBL Ltd v CoussensCourt of AppealYes[1991] 2 AER 133England and WalesCited regarding the assessment of damages for conversion under the English Tort (Interference With Goods) Act 1977, and the principle of fair compensation for the owner's loss.
Mercer v JonesN/AYes(1825) 1 C&P 625N/ACited in favor of a discretion to assess the market value at the date of judgment.
Sachs v MiklosN/AYes[1948] 2 KB 23N/ACited in favor of a discretion to assess the market value at the date of judgment.
The EnduranceCourt of AppealYes[1991] 1 SLR 661SingaporeCited for the principle that a plaintiff is expected to mitigate damages by purchasing goods in the market where a market exists.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Central Bank of Nigeria promissory notes
  • CBN notes
  • Conversion
  • Assessment of damages
  • Date of conversion
  • Mitigation of loss

15.2 Keywords

  • conversion
  • damages
  • CBN notes
  • Indian Bank
  • Panwell Pte Ltd
  • assessment

17. Areas of Law

Area NameRelevance Score
Conversion95
Damages90
Torts70
Breach of Contract30
Contract Law30
Estoppel10

16. Subjects

  • Banking
  • Finance
  • Torts