UCO Bank v Golden View Maritime: Mareva Injunction & Dissipation of Assets

UCO Bank sued Golden View Maritime Pte Ltd for breach of contract and conversion, seeking US$330,415.03 for the release of goods without the original bills of lading. The bank obtained a Mareva injunction to restrain the defendant from dealing with the vessel "Asean Unity", but the court discharged the injunction, finding no evidence of asset dissipation and noting the delay in applying for the injunction. The court allowed the defendant's application with costs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Defendants' application allowed with costs; injunction discharged.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

UCO Bank sought a Mareva injunction against Golden View Maritime to prevent asset dissipation. The court discharged the injunction due to lack of evidence.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
UCO BankPlaintiffCorporationApplication DismissedLost
Golden View Maritime Pte LtdDefendantCorporationApplication AllowedWon

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
David KongShook Lin and Bok
Dylan LeeShook Lin and Bok
Toh Kian SingRajah and Tann
John SeowRajah and Tann

4. Facts

  1. UCO Bank provided trade finance to SOM International Pte Ltd.
  2. SOM shipped goods financed by UCO Bank on vessels managed by Glory Ship Management Pte Ltd.
  3. SOM failed to settle their financing obligations with UCO Bank.
  4. UCO Bank, as holders of bills of lading, sued Golden View Maritime for breach of contract and conversion.
  5. The claim was for US$330,415.03 for releasing shipments without the original bills of lading.
  6. The "Asean Ranger" was sold as scrap six months after UCO Bank started action against Golden Star.
  7. The "Asean Unity" is still trading and the company is still very much in business.

5. Formal Citations

  1. UCO Bank v Golden View Maritime Pte Ltd, Suit 184/2002/Z, SIC 5263/2003, [2003] SGHC 271

6. Timeline

DateEvent
Bill of lading no. SSR/ACHA/48C dated
Bill of lading no. AU/GE/2 dated
UCO Bank sued Golden Star in Suit No. 56 of 2002/K
Action commenced
Class Certificate issued for Asean Unity
Financial year ending for Defendants
Asean Ranger sold as scrap
Safety Management Certificate renewed for Asean Unity
Plaintiffs obtained a mareva injunction
Injunction obtained
Defendants applied to set aside the injunction
Decision Date

7. Legal Issues

  1. Risk of Dissipation of Assets
    • Outcome: The court found that the Plaintiffs did not establish a sufficient risk of dissipation of assets to justify the Mareva injunction.
    • Category: Substantive
    • Related Cases:
      • [2003] 1SLR 157
  2. Delay in Applying for Injunction
    • Outcome: The court considered the delay of sixteen months in applying for the injunction as a factor against granting the injunction.
    • Category: Procedural

8. Remedies Sought

  1. Monetary Damages
  2. Mareva Injunction

9. Cause of Actions

  • Breach of Contract
  • Conversion

10. Practice Areas

  • Commercial Litigation
  • Shipping
  • Injunctions

11. Industries

  • Banking
  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Guan Chong Cocoa Manufacturer Sdn Bhd v Pratiwi Shipping SACourt of AppealYes[2003] 1SLR 157SingaporeCited for the objective test of whether a refusal of a mareva injunction would involve a real risk that a judgment in favour of the plaintiffs would remain unsatisfied.
Third Chandris Corpn v Unimarine S.A.N/AYes[1979] QB 645N/ACited in reference to Lord Denning's description of certain companies as elusive as the Cheshire Cat.
Pek Seng Co Pte Ltd v Low Tin Kee & OrsN/AYes[1989] SLR 890SingaporeCited as distinguishable because there was evidence of fraud.
The Coral RoseN/AYes[1991]1 Lloyd’s Rep. 563N/ACited for the principle that the 'eye of equity' would look beyond the corporate structure where the circumstances so require.
Best Electronics Sdn Bhd v Chen Li YengN/AYes[1997] 167 MLJU 1N/ACited for the principle that delay in taking out an application is a factor the court could take into consideration in exercising its discretion.
Dynasty Rangers (M) Sdn Bhd v SBSK Plantations Sdn BhdN/AYes[2001] 439 MLJU 1N/ACited for the principle that a failure to act promptly in the absence of satisfactory is a ground for refusing a grant of or setting aside of an injunction.

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

  • Mareva Injunction
  • Dissipation of Assets
  • Bills of Lading
  • Switched Bills of Lading
  • One-Ship Company
  • Risk of Dissipation
  • Delay
  • Vessel
  • Trading Certificates

15.2 Keywords

  • Mareva Injunction
  • Shipping
  • UCO Bank
  • Golden View Maritime
  • Dissipation of Assets
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Mareva Injunctions95
Injunctions90
Shipping Law70
Breach of Contract60
Contract Law50
Estoppel50
Conversion40
Judgments and Orders30

16. Subjects

  • Injunctions
  • Shipping
  • Commercial Law