Essar Steel Ltd v Bayerische Landesbank: Appeal on Costs & Leave to Appeal to Court of Appeal

In Essar Steel Ltd v Bayerische Landesbank, the Singapore High Court, presided over by Justice Kan Ting Chiu on May 4, 2004, dismissed Essar Steel's appeal against an assistant registrar's order of costs and refused its application for leave to appeal to the Court of Appeal. The dispute arose from a syndicated loan agreement where Essar Steel disputed the validity of loan transfers. The court found no error in the assistant registrar's decision to award indemnity costs and determined that the application did not meet the criteria for granting leave to appeal.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed and application for leave to appeal refused.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Essar Steel's appeal against a costs order was dismissed, and leave to appeal to the Court of Appeal was refused, concerning a loan agreement dispute.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Essar Steel LtdPlaintiff, AppellantCorporationAppeal dismissed, Leave to appeal refusedLost, LostDamodara Suresh, Sunil S Gill
Bayerische LandesbankDefendant, RespondentCorporationWonWonAndre Yeap, Adrian Wong
Anzef LtdDefendant, RespondentCorporationWonWonAndre Yeap, Adrian Wong
The Siam Commercial Bank Public Company Ltd, Singapore BranchDefendant, RespondentCorporationWonWonAndre Yeap, Adrian Wong
Mashreq Bank PSCDefendantCorporationNeutralNeutral
Citigroup Financial Products IncDefendantCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Damodara SureshDavid Lim and Partners
Sunil S GillDavid Lim and Partners
Andre YeapRajah and Tann
Adrian WongRajah and Tann

4. Facts

  1. Essar Steel borrowed US$40m from a consortium of banks.
  2. The defendant banks transferred their portions of the loan to Argo Fund.
  3. Essar Steel disputed the validity of the transfers.
  4. Essar Steel commenced action for a declaration that the transfers are void.
  5. The defendant banks filed a counterclaim for repayment of the loan.
  6. The plaintiff applied to strike out the counterclaim.
  7. The assistant registrar dismissed the application with costs to the defendants.

5. Formal Citations

  1. Essar Steel Ltd v Bayerische Landesbank and Others, Suit 913/2003, RA 410/2003, [2004] SGHC 90

6. Timeline

DateEvent
Appeal dismissed and application for leave to appeal refused.
Plaintiff borrowed US$40m from a consortium of nine banks under a syndicated loan agreement.

7. Legal Issues

  1. Principles governing discretion to grant leave to appeal to Court of Appeal
    • Outcome: The court determined that the application for leave to appeal did not meet the established criteria.
    • Category: Procedural
    • Related Cases:
      • [1997] 3 SLR 489
      • [1989] SLR 607
      • [1999] 4 SLR 716
      • [2001] 4 SLR 262
  2. Whether award should be made where rights to payment in dispute
    • Outcome: The court upheld the assistant registrar's decision to award indemnity costs, finding that the costs were related to the counterclaim to enforce the repayment of the loan.
    • Category: Substantive
  3. Role of appellate judge in appeal from registrar's decision
    • Outcome: The court affirmed the principle that a judge in chambers should not intervene in a registrar's costs order unless the registrar demonstrably erred in their discretion.
    • Category: Procedural
    • Related Cases:
      • [1992] 2 All ER 550

8. Remedies Sought

  1. Declaration that the transfers to Argo are void
  2. Costs

9. Cause of Actions

  • Breach of Contract
  • Declaration that transfers are void

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Banking
  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Hoddle v CCF Construction LtdUnknownYes[1992] 2 All ER 550England and WalesCited for the principle that a judge in chambers should not intervene in a registrar's costs order unless the registrar demonstrably erred in their discretion.
Lee Kuan Yew v Tang Liang HongCourt of AppealYes[1997] 3 SLR 489SingaporeCited for the principles governing the grant of leave to appeal, including prima facie case of error, question of general principle, and question of public importance.
Anthony s/o Savarimiuthu v Soh Chuan TinUnknownYes[1989] SLR 607SingaporeCited for the principle that leave to appeal requires a serious and important issue of law or a prima facie case of error.
Abdul Rahman bin Shariff v Abdul Salim bin SyedUnknownYes[1999] 4 SLR 716SingaporeCited to clarify the meaning of 'a prima facie case of error' in the context of granting leave to appeal.
Goh Kim Heong v AT & J Co Pte LtdUnknownYes[2001] 4 SLR 262SingaporeCited for the proposition that the value of the proposed appeal and the burdens it would place on the parties and the appellate court should be considered when determining whether to grant leave.

13. Applicable Rules

Rule Name
O 56 r 3 of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 1997 Rev Ed)Singapore
Supreme Court of Judicature Act (Cap 322, 1999 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Syndicated loan agreement
  • Indemnity costs
  • Leave to appeal
  • Prima facie case of error
  • General principle
  • Public advantage

15.2 Keywords

  • Costs
  • Appeal
  • Leave to Appeal
  • Loan Agreement
  • Syndicated Loan
  • Indemnity Costs

16. Subjects

  • Civil Procedure
  • Banking Law
  • Appeals
  • Costs

17. Areas of Law

  • Civil Procedure
  • Appeals
  • Costs
  • Courts and Jurisdiction