PSA Corp Ltd v Korea Exchange Bank: Banking Secrecy & Disclosure of Customer Information
PSA Corporation Limited ('PSA') sued Korea Exchange Bank ('KEB') in the High Court of Singapore on April 26, 2002, for payment under two guarantees. KEB argued that PSA did not open an account for the correct entity and that the second guarantee replaced the first. PSA sought discovery of documents, but KEB claimed banking secrecy under s 47 of the Banking Act. The court dismissed PSA's appeal, finding that the Banking Act imposed a general prohibition on disclosure of customer information, subject to specific exceptions, which did not apply in this case.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
PSA Corp Ltd sued Korea Exchange Bank (KEB) for payment under guarantees. The court addressed whether s 47 of the Banking Act prohibits discovery of documents.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| PSA Corp Ltd | Plaintiff, Appellant | Corporation | Appeal Dismissed | Lost | Siraj Omar |
| Korea Exchange Bank | Defendant, Respondent | Corporation | Judgment for Defendant | Won | Toh Kian Sing, Chia Song Yeow |
| Cho Yang (Singapore) Pte Ltd | Other | Corporation | |||
| Cho Yang Shipping Co Ltd | Other | Corporation |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Siraj Omar | Drew & Napier LLC |
| Toh Kian Sing | Rajah & Tann |
| Chia Song Yeow | Rajah & Tann |
4. Facts
- PSA claimed against KEB for payment under two guarantees.
- KEB's main defenses were that PSA did not open an account for CY Singapore as required under each guarantee.
- KEB alleged that the second guarantee was issued in replacement or substitution of the first guarantee.
- PSA applied for discovery of two categories of documents.
- KEB argued that s 47 of the Banking Act precluded it from giving discovery.
- PSA obtained an order for discovery of the first category but not the second category of documents at the first hearing.
- PSA appealed against the decision regarding the second category of documents.
5. Formal Citations
- PSA Corp Ltd v Korea Exchange Bank, Suit 937/2001, RA 26/2002, [2002] SGHC 88
6. Timeline
| Date | Event |
|---|---|
| Appeal dismissed with costs | |
| Judgment issued |
7. Legal Issues
- Banking Secrecy
- Outcome: The court held that the current s 47 of the Banking Act imposes a general prohibition on disclosure of customer information, subject to specific exceptions listed in the Sixth Schedule.
- Category: Substantive
- Sub-Issues:
- Scope of banking secrecy provisions
- Interpretation of 'customer information'
- Exceptions to banking secrecy
- Disclosure of Documents
- Outcome: The court held that it could not order disclosure of the second category of documents because they related to customer information and no exceptions applied.
- Category: Procedural
- Sub-Issues:
- Whether documents relate to account of bank's customer
- Whether court can order disclosure if statutory exceptions in applicable
- Whether right for court to order disclosure of certain documents and not others
8. Remedies Sought
- Payment under Guarantees
- Discovery of Documents
9. Cause of Actions
- Breach of Guarantee
10. Practice Areas
- Commercial Litigation
- Banking Litigation
11. Industries
- Banking
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tournier | N/A | Yes | Tournier | N/A | Discussed in relation to the scope of banking secrecy and whether the disclosure of certain information would breach a duty of confidentiality. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Banking Act (Cap 19) | Singapore |
| s 47 Banking Act (Cap 19, 1999 Ed) | Singapore |
| s 47 Banking Act (Cap 19) | Singapore |
| s 40A Banking Act (Cap 19, 1999 Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Banking secrecy
- Customer information
- Disclosure of documents
- Guarantees
- Banking Act
- Discovery
- Confidentiality
15.2 Keywords
- Banking secrecy
- Customer information
- Disclosure
- Singapore
- Banking Act
16. Subjects
- Banking
- Civil Procedure
- Contract Law
17. Areas of Law
- Civil Procedure
- Banking Law
- Disclosure of Documents
- Banking Secrecy
- Contract Law