Beckkett Pte Ltd v Deutsche Bank AG: Discovery, Implied Undertaking, and Use of Documents in Indonesian Proceedings

In Beckkett Pte Ltd v Deutsche Bank AG and PT Dianlia Setyamukti, the High Court of Singapore addressed Beckkett's application to use documents disclosed by Deutsche Bank in Singapore proceedings in a separate Indonesian case. Beckkett sought to use these documents to obtain an interim injunction in Indonesia to prevent the sale of shares held by Setyamukti. The court allowed Deutsche Bank's appeal, setting aside the order that granted Beckkett leave to use the documents, citing concerns about potential criminal proceedings against Deutsche Bank in Indonesia and the availability of substantial relief to Beckkett even if the sale proceeded.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

First defendant's appeal allowed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court addresses Beckkett's application to use documents disclosed by Deutsche Bank in Singapore proceedings in a separate Indonesian case, focusing on the implied undertaking and potential prejudice.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Deutsche Bank AGDefendant, RespondentCorporationAppeal allowedWon
Beckkett Pte LtdPlaintiff, AppellantCorporationAppeal dismissedLost
PT Dianlia SetyamuktiDefendantCorporationNo specific outcomeNeutral

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudgeYes

4. Counsels

Counsel NameOrganization
William OngAllen and Gledhill
Stanley LaiAllen and Gledhill
K ShanmugamAllen and Gledhill
Sim Kwan KiatRajah and Tann
Ronald ChooRajah and Tann
Steven ChongRajah and Tann

4. Facts

  1. Deutsche Bank AG (DB) advanced a US$100m loan to PT Asminco Bara Utama (Asminco).
  2. The loan was secured by Beckkett's shareholding in PT Swabara Mining & Energy (SME) and other assets.
  3. DB disposed of the pledged shares after an event of default.
  4. Beckkett claimed the disposal was without notice and at an undervalue.
  5. Beckkett sought to use documents disclosed by DB in Singapore proceedings to obtain an injunction in Indonesia.
  6. Beckkett had previously commenced and discontinued an action in Indonesia regarding the same facts.
  7. DB argued that the use of documents in Indonesia would expose it to potential criminal proceedings.

5. Formal Citations

  1. Beckkett Pte Ltd v Deutsche Bank AG and Another, Suit 326/2004, RA 72/2005, [2005] SGHC 79

6. Timeline

DateEvent
Deutsche Bank AG advanced a loan of US$100m to PT Asminco Bara Utama.
Deutsche Bank AG disposed of the pledged shares.
Beckkett requested information from Deutsche Bank AG on the purchaser and price of pledged shares.
Deutsche Bank AG provided limited information to Beckkett after solicitor's request.
Order made for pre-action discovery in Originating Summons No 772 of 2002.
Deutsche Bank AG's appeal against the pre-action discovery order was dismissed.
Beckkett commenced proceedings in Suit No 326 of 2004.
Deutsche Bank AG disclosed documents to Beckkett.
Deutsche Bank AG disclosed documents to Beckkett.
Beckkett applied for leave to use documents in Indonesian proceedings.
Assistant registrar granted leave for Beckkett to use documents with qualifications.
Deutsche Bank AG filed notice of appeal.
Appeal heard by Woo Bih Li J.
Woo Bih Li J allowed Deutsche Bank AG's appeal.
Decision Date

7. Legal Issues

  1. Implied Undertaking
    • Outcome: The court held that the implied undertaking should not be modified to allow the use of documents in Indonesian proceedings due to the risk of criminal prosecution and the availability of other remedies.
    • Category: Procedural
    • Sub-Issues:
      • Modification of undertaking
      • Release from undertaking
      • Use of disclosed documents
    • Related Cases:
      • [1977] QB 881
      • [1987] AC 829
      • [1992] 2 SLR 136
  2. Discovery of Documents
    • Outcome: The court addressed the scope of discovery and the limitations on the use of documents obtained through discovery.
    • Category: Procedural
    • Sub-Issues:
      • Scope of discovery
      • Use of discovered documents
  3. Privilege Against Self-Incrimination
    • Outcome: The court considered the risk of self-incrimination in foreign proceedings as a factor in deciding whether to allow the use of disclosed documents.
    • Category: Procedural
    • Related Cases:
      • [1990] 3 All ER 283
      • [1992] 2 SLR 273
      • [1992] 1 SLR 553
      • [1997] AC 238

8. Remedies Sought

  1. Setting aside the sale of pledged shares
  2. Restoration of equity of redemption
  3. Damages

9. Cause of Actions

  • Breach of Mortgagee Duties
  • Conspiracy to Harm or Injure

10. Practice Areas

  • Commercial Litigation
  • International Litigation

11. Industries

  • Banking
  • Mining

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Riddick v Thames Board Mills LtdN/AYes[1977] QB 881N/AEstablished the principle of implied undertaking not to use documents disclosed in litigation for any ulterior purpose.
Crest Homes Plc v MarksN/AYes[1987] AC 829N/AAffirmed that a party could be released from the implied undertaking in special circumstances without injustice to the disclosing party.
Reebok International Ltd v Royal CorpHigh CourtYes[1992] 2 SLR 136SingaporeCited with approval the principle of releasing or modifying an undertaking in special circumstances and in the absence of injustice to the person giving discovery.
Sim Leng Chua v ManghardtN/ANo[1987] SLR 205SingaporeDiscussed the balance between private and public interests in the context of the implied undertaking.
Halcon International Inc v The Shell Transport and Trading CoN/ANo[1979] RPC 97N/ADiscussed the use of a document disclosed in a proceeding in some other context.
Sociedade Nacional de Combustiveis de Angola UEE v LundqvistN/AYes[1990] 3 All ER 283N/ADiscussed the privilege against self-incrimination.
Lee Thin Tuan v Louis VuittonCourt of AppealNo[1992] 2 SLR 273SingaporeDiscussed the privilege against self-incrimination and the admissibility of evidence.
Guccio Gucci SpA v Sukhdav SinghN/AYes[1992] 1 SLR 553SingaporeDiscussed the privilege against self-incrimination in the context of pre-trial discovery.
Brannigan v DavisonPrivy CouncilNo[1997] AC 238New ZealandAddressed whether the privilege against self-incrimination applies to foreign penal sanctions.
Arab Monetary Fund v HashimN/AYes[1989] 3 All ER 466N/AStated that the possibility of self-incrimination or the incrimination of others should be a factor in deciding whether a disclosure order should be made.
Attorney-General for Gibraltar v MayCourt of AppealNo[1999] 1 WLR 998N/AThe Court of Appeal did not disapprove of that part of his judgment which cited Morritt J’s view with approval.
Omar v OmarN/AYes[1995] 1 WLR 1428N/AAddressed the use of disclosed documents in ancillary proceedings outside jurisdiction.
Bayer AG v Winter (No 2)N/AYes[1986] FSR 357N/AAddressed the use of Anton Piller information and documents in proposed proceedings in Switzerland and in Austria to attach funds held by certain defendants and to assert claims against Austrian parties identified by the Anton Piller documents.
Bank of Crete SA v Koskotas (No 2)N/AYes[1992] 1 WLR 919N/AAddressed the use of material obtained in the course of English proceedings for the purpose of similar proceedings in other jurisdictions.

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

  • Implied Undertaking
  • Pledged Shares
  • Discovery of Documents
  • Mareva Injunction
  • Anton Piller Order
  • Self-Incrimination
  • Foreign Penal Sanctions
  • Ancillary Proceedings
  • Pre-emptive Rights

15.2 Keywords

  • Discovery
  • Implied Undertaking
  • Deutsche Bank
  • Beckkett
  • Indonesian Proceedings
  • Injunction
  • Self-Incrimination

17. Areas of Law

Area NameRelevance Score
Civil Practice70
Mortgage60
Injunctions50
Commercial Disputes40
Company Law30
Property Law30
Contract Law30
Misrepresentation20
Fraud and Deceit20

16. Subjects

  • Civil Procedure
  • Banking Law
  • Mortgages
  • Discovery
  • Injunctions