UCO Bank v Golden Shore Transportation: Title to Sue on Bills of Lading under Bills of Lading Act
In UCO Bank v Golden Shore Transportation Pte Ltd, the Court of Appeal of Singapore heard an appeal by UCO Bank against the High Court's decision to strike out its action against Golden Shore Transportation based on four bills of lading. The primary legal issue was whether UCO Bank, as the named consignee, had the right to sue on the bills of lading under the Bills of Lading Act, despite the bills being transferred through a negotiating bank (HSBC) without indorsement in favour of HSBC. The Court of Appeal allowed the appeal, holding that UCO Bank, as the named consignee in possession of the bills of lading, had the right to sue, restoring the action for further hearing.
1. Case Overview
1.1 Court
Court of Appeal of the Republic of Singapore1.2 Outcome
Appeal Allowed
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
UCO Bank sued Golden Shore for cargo delivery failure. The court addressed whether UCO Bank, as consignee, had the right to sue on bills of lading.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| UCO Bank | Appellant | Corporation | Appeal Allowed | Won | Kenneth Tan, Bazul Ashhab, Ramesh Tiwari |
| Golden Shore Transportation Pte Ltd | Respondent | Corporation | Original Action Struck Out | Lost | Toh Kian Sing, John Seow |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of Appeal | Yes |
| Judith Prakash | Judge | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Kenneth Tan | Kenneth Tan Partnership |
| Bazul Ashhab | T S Oon and Bazul |
| Ramesh Tiwari | T S Oon and Bazul |
| Toh Kian Sing | Rajah and Tann |
| John Seow | Rajah and Tann |
4. Facts
- UCO Bank is the Singapore branch of an Indian bank.
- Golden Shore Transportation Pte Ltd owns the vessel Asean Pioneer.
- Four bills of lading were issued for shipments of Sarawak round logs.
- The bills of lading were made out to "the order of UCO Bank".
- SOM International Pte Ltd was the notifying party and a customer of UCO Bank.
- The shipments were financed by letters of credit issued by UCO Bank.
- The shippers negotiated the bills of lading to HSBC.
- HSBC presented the bills of lading to UCO Bank and was reimbursed.
- The bills of lading were not indorsed to HSBC.
- Golden Shore delivered the cargo against switched bills of lading without retrieving the original bills.
5. Formal Citations
- UCO Bank v Golden Shore Transportation Pte Ltd, CA 8/2005, [2005] SGCA 42
6. Timeline
| Date | Event |
|---|---|
| Bills of lading issued for shipments of Sarawak round logs. | |
| Bills of lading issued for shipments of Sarawak round logs. | |
| Vessel arrived at Kandla, India. | |
| High Court decision on stay application. | |
| Appeal allowed, restoring the action for further hearing. | |
| Court of Appeal decision issued. |
7. Legal Issues
- Title to Sue on Bills of Lading
- Outcome: The Court of Appeal held that the appellant, as the named consignee in possession of the bills of lading, had the right to sue, even without indorsement from the shipper to the negotiating bank.
- Category: Substantive
- Sub-Issues:
- Indorsement requirements
- Lawful holder definition
- Rights of consignee
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Failure to Deliver Cargo
- Breach of Contract of Carriage
10. Practice Areas
- Commercial Litigation
- Shipping Litigation
11. Industries
- Banking
- Shipping
- Logistics
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| UCO Bank v Golden Shore Transportation Pte Ltd | High Court | Yes | [2004] 1 SLR 6 | Singapore | Cited for a prior decision in the same case regarding a stay application based on a foreign jurisdiction clause. |
| East West Corporation v DKBS 1912 | High Court | Yes | [2002] 2 Lloyd’s Rep 182 | England and Wales | Discussed in relation to the transfer of rights of suit under bills of lading and the requirement of re-indorsement. |
| The Aegean Sea | High Court | Yes | [1998] 2 Lloyd’s Rep 39 | England and Wales | Discussed in relation to the requirements for becoming a holder of a bill of lading and the element of acceptance. |
| Bandung Shipping Pte Ltd v Keppel TatLee Bank Ltd | Court of Appeal | Yes | [2003] 1 SLR 295 | Singapore | Cited for the principle that a re-indorsement of a bill of lading is necessary to re-vest rights of suit in the forwarding party. |
| CP Henderson & Co v The Comptoir D’Escompte De Paris | Privy Council | Yes | CP Henderson & Co v The Comptoir D’Escompte De Paris (1873) LR 5 PC 253 | United Kingdom | Cited as a case with different issues from the instant case. |
| The Rafaela S | Queen's Bench | Yes | [2004] QB 702 | England and Wales | Cited as a case with different issues from the instant case. |
| APL Co Pte Ltd v Voss Peer | High Court | Yes | [2002] 4 SLR 481 | Singapore | Cited as a case with different issues from the instant case. |
| Bandung Shipping Pte Ltd v Keppel TatLee Bank Ltd | Court of Appeal | Yes | [2003] 1 Lloyd’s Rep 619 | Singapore | Cited for the principle that a re-indorsement of a bill of lading is necessary to re-vest rights of suit in the forwarding party. |
| East West Corporation v DKBS 1912 | Court of Appeal | Yes | [2003] 1 Lloyd’s Rep 239 | England and Wales | Discussed in relation to the transfer of rights of suit under bills of lading and the requirement of re-indorsement. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 2004 Rev Ed) O 14 r 12 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bills of Lading Act (Cap 384, 1994 Rev Ed) | Singapore |
| Bills of Lading Act (Cap 384, 1994 Rev Ed) s 2(1)(a) | Singapore |
| Bills of Lading Act (Cap 384, 1994 Rev Ed) s 5(2) | Singapore |
| Bills of Lading Act (Cap 384, 1994 Rev Ed) s 1(2)(a) | Singapore |
| Bills of Lading Act (Cap 384, 1994 Rev Ed) s 2(4) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Bills of Lading
- Negotiating Bank
- Indorsement
- Lawful Holder
- Consignee
- Letters of Credit
- Switched Bills of Lading
- Rights of Suit
15.2 Keywords
- bills of lading
- UCO Bank
- Golden Shore Transportation
- title to sue
- indorsement
- negotiating bank
- consignee
- HSBC
- SOM International
- Sarawak round logs
16. Subjects
- Bills of Lading
- Admiralty
- Shipping
- Banking
- International Trade
17. Areas of Law
- Admiralty Law
- Shipping Law
- Bills of Lading Law
- Contract Law