Bayerische Hypo- und Vereinsbank AG v Asia Pacific Breweries: Pre-Action Discovery & Fraud
Bayerische Hypo- und Vereinsbank AG, Skandinaviska Enskilda Banken AB, Mizuho Corporate Bank Ltd, and Sumitomo Mutsui Banking Corporation applied for pre-action discovery against Asia Pacific Breweries (Singapore) Pte Ltd in the High Court of Singapore. The banks sought documents related to a fraud perpetrated by Chia Teck Leng, APBS's former finance manager. The High Court allowed APBS's appeal against the order for pre-action discovery, finding that the banks had not provided sufficient grounds for the application. The court determined that the banks could commence proceedings without pre-action discovery.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeals allowed with costs to be taxed if not agreed, save for the assistant registrar’s decision on costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
APBS appeals order to give banks pre-action discovery in fraud case involving former finance manager. Court allows appeal, finding insufficient grounds.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Bayerische Hypo- und Vereinsbank AG | Applicant, Respondent | Corporation | Appeal Dismissed | Lost | Alvin Yeo, Monica Chong, Tan Hsiang Yue |
| Skandinaviska Enskilda Banken AB | Applicant | Corporation | Appeal Dismissed | Lost | Steven Chong, Rebecca Chew, Lynette Koh, Lionel Tay, Paul Ng |
| Mizuho Corporate Bank Ltd | Applicant | Corporation | Appeal Dismissed | Lost | Steven Chong, Rebecca Chew, Lynette Koh, Lionel Tay, Paul Ng |
| Sumitomo Mutsui Banking Corporation | Applicant | Corporation | Appeal Dismissed | Lost | Joseph Ang, Ang Wee Tiong |
| Asia Pacific Breweries (Singapore) Pte Ltd | Respondent, Appellant | Corporation | Appeal Allowed | Won | Davinder Singh, Yarni Loi |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Davinder Singh | Drew and Napier LLC |
| Yarni Loi | Drew and Napier LLC |
| Alvin Yeo | Wong Partership |
| Monica Chong | Wong Partership |
| Tan Hsiang Yue | Wong Partership |
| Steven Chong | Rajah and Tann |
| Rebecca Chew | Rajah and Tann |
| Lynette Koh | Rajah and Tann |
| Lionel Tay | Rajah and Tann |
| Paul Ng | Rajah and Tann |
| Joseph Ang | Tan Kok Quan Partnership |
| Ang Wee Tiong | Tan Kok Quan Partnership |
4. Facts
- Chia was the finance manager of APBS from 20 January 1999 until his arrest in September 2003.
- Chia deceived the banks by forging signatures of APBS directors on loan resolutions.
- The banks extended loans of approximately S$120m to APBS based on Chia's deceptions.
- Chia was charged with forging documents and cheating the banks to obtain banking facilities.
- Chia pleaded guilty to the charges on 2 April 2004.
- The banks sought pre-action discovery of documents from APBS to support their claims.
- APBS denied knowledge of Chia's fraudulent activities and unauthorized accounts.
5. Formal Citations
- Bayerische Hypo- und Vereinsbank AG v Asia Pacific Breweries (Singapore) Pte Ltd, OS 284/2004, 285/2004, 286/2004, 287/2004, RA 111/2004, 112/2004, 113/2004, 114/2004, [2004] SGHC 155
6. Timeline
| Date | Event |
|---|---|
| Chia Teck Leng appointed finance manager of APBS | |
| Bank account opened with SEB in the name of APBS | |
| Sumitomo offered credit facilities to APBS | |
| Mizuho made available banking facilities to APBS | |
| HVB entered into an agreement to grant a term loan to APBS | |
| HVB disbursed US$30m to an account of APBS held with SEB | |
| Chia appointed Senior Manager, Group Finance, of APBL | |
| Chia charged for forging documents and cheating the four banks | |
| 2004 edition of the Rules of Court published | |
| Chia pleaded guilty to the charges | |
| Assistant registrar ordered APBS to give pre-action discovery to the applicants | |
| High Court delivered judgment allowing APBS's appeals |
7. Legal Issues
- Pre-Action Discovery
- Outcome: The court held that the banks had not established sufficient grounds for pre-action discovery and allowed the appeal.
- Category: Procedural
- Sub-Issues:
- Grounds for granting pre-action discovery
- Appropriateness of pre-action discovery under the circumstances
- Vicarious Liability
- Outcome: The court did not make a ruling on vicarious liability, as the issue was not fully argued.
- Category: Substantive
- Sub-Issues:
- Scope of employment
- Ordinary course of business
- Breach of Contract
- Outcome: The court did not make a ruling on breach of contract, as the issue was not fully argued.
- Category: Substantive
- Sub-Issues:
- Authority to enter into loan agreements
- Banker-customer relationship
8. Remedies Sought
- Pre-Action Discovery
9. Cause of Actions
- Breach of Contract
- Vicarious Liability for Deceit
- Restitutionary Claims
10. Practice Areas
- Commercial Litigation
- Banking Litigation
- Fraud and Asset Recovery
11. Industries
- Banking
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Kuah Kok Kim v Ernst & Young (a firm) | Court of Appeal | Yes | [1997] 1 SLR 169 | Singapore | Leading local case on pre-action discovery, outlining the requirements and considerations for granting such orders. |
| Beckkett Pte Ltd v Deutsche Bank AG Singapore Branch | High Court | Yes | [2003] 1 SLR 321 | Singapore | Confirms that the law on pre-action discovery has not changed under the Rules of Court 1997. |
| Ng Giok Oh v Sajjad Akhtar | High Court | Yes | [2003] 1 SLR 375 | Singapore | Applied the duty of the court to ensure that the application is not frivolous or speculative and that the applicant is not on a fishing expedition. |
| Tan Chin Seng v Raffles Town Club Pte Ltd | Court of Appeal | Yes | [2002] 3 SLR 345 | Singapore | Outlines O 24 r 7 as an overriding principle of discovery. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court 1997 (Cap 322, R 5, 1997 Rev Ed) |
| Rules of the Supreme Court 1990 (Cap 322, R 5, 1990 Rev Ed) |
| Order 24 rule 6(3) |
| Order 24 rule 7 |
| Order 24 rule 13 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Supreme Court of Judicature Act (Cap 322, 1999 Rev Ed) | Singapore |
| Evidence Act (Cap 97, 1997 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Pre-action discovery
- Finance manager
- Forged signatures
- Banking facilities
- Loan agreements
- Banker-customer relationship
- Vicarious liability
- Mega fraud
- Drawdown instructions
- Unauthorised accounts
15.2 Keywords
- Pre-action discovery
- Fraud
- Banking
- Singapore
- Civil Procedure
16. Subjects
- Civil Procedure
- Banking
- Fraud
17. Areas of Law
- Civil Procedure
- Discovery of Documents
- Banking Law
- Fraud Law