STX Corporation v Herry Beng Koestanto: Mareva Injunction & Forum Non Conveniens Dispute

In STX Corporation and Another v Herry Beng Koestanto and Others, the High Court of Singapore heard applications related to a Mareva injunction and a stay of proceedings. STX Corporation and STX Energy Co Ltd sought a Mareva injunction against Herry Beng Koestanto, Aria Sulhan Witoelar, and Ashbury Finance Ltd. STX Corporation also filed a suit against Herry Beng Koestanto and Aria Sulhan Witoelar for breach of a settlement agreement. The court dismissed the defendants' application for a stay of the suit based on forum non conveniens and allowed STX Corporation's application for a Mareva injunction.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

The High Court dismissed the application for a stay of the Suit and allowed the application for a Mareva injunction.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court addressed a Mareva injunction and forum non conveniens dispute in a case involving STX Corporation and Herry Beng Koestanto.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
STX CorporationPlaintiffCorporationApplication for Mareva injunction allowedWon
STX Energy Co LtdPlaintiffCorporationNeutralNeutral
Herry Beng KoestantoDefendantIndividualApplication for stay of action dismissedLost
Aria Sulhan WitoelarDefendantIndividualApplication for stay of action dismissedLost
Ashbury Finance LtdDefendantCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Nicholas NarayananNicholas & Co
Christopher Anand DanielNicholas & Co
Andrew Ang Chee KwangPK Wong & Associates LLC

4. Facts

  1. STX Energy Co Ltd entered into a sale and purchase agreement for shares in PT Borneo Indobara.
  2. STX Energy Co Ltd paid a commitment fee of US$5 million to Herry Beng Koestanto.
  3. The sale and purchase transaction did not materialize.
  4. STX Energy Co Ltd demanded a refund of the commitment fee plus interest.
  5. Herry Beng Koestanto initially proposed repayment in coal, which STX Energy Co Ltd rejected.
  6. STX Corporation filed a suit against Herry Beng Koestanto and Aria Sulhan Witoelar for US$1,114,070, the balance due under a settlement agreement.

5. Formal Citations

  1. STX Corporation and Another v Herry Beng Koestanto and Others and Another Matter, OS 1889/2007, Suit 64/2008, SUM 735/2008, 652/2008, 725/2008, [2008] SGHC 150

6. Timeline

DateEvent
Exclusive Distributorship Agreement entered into between STX Corporation and PT Borneo Indobara
Memorandum of Understanding entered into between STX Corporation and PT Borneo Indobara
Memorandum of Understanding entered into between STX Corporation and PT Borneo Indobara
Heads of Agreement entered into between STX Energy Co Ltd, Herry Beng Koestanto and PT Borneo Indobara
Settlement agreement between STX and Herry Beng Koestanto and Aria Sulhan Witoelar
Acquisition of Shares/Binding Term Sheet entered into between the Plaintiffs and the 1st and 2nd Defendants
STX Energy Co Ltd transferred US$5 million to Ashbury Finance Ltd
Conditional Sale and Purchase of Shares Agreement entered into between the Plaintiffs and the 1st and 2nd Defendants
Ashbury Agreement entered into between STX Energy Co Ltd and the Defendants
Undertaking and Guarantee entered into by the 1st Defendant
STX Energy Co Ltd informed the 1st Defendant of the decision not to proceed with the Conditional Sale and Purchase of Shares Agreement
Plaintiffs demanded the refund of the Commitment Fee of US$5 million plus interest
Arbitration commenced in Singapore with the Singapore International Arbitration Centre
STX and SE filed the OS applying for a worldwide Mareva injunction against Herry, Aria and Ashbury
Order obtained prohibiting the three defendants from dealing with their assets up to the amount of US$5.3m
Herry, Aria and Ashbury filed Summons No 105 of 2008 to discharge the injunction
STX filed the writ of summons in the Suit
STX filed Summons No 652 of 2008 for a Mareva injunction for the sum claimed plus interest and costs
Herry applied for a stay of the action on the ground of forum non conveniens in Summons No 725 of 2008
Injunction varied by restricting its application to two accounts in Goldman Sachs (Singapore) and discharging the remaining orders made on 2 January 2008
STX and SE filed Summons No 735 of 2008 applying to increase the amount of the injunction by a further US$1m
STX and SE applied in Summons No 995 of 2008 for judgment
SUM 735/2008, SUM 725/2008, SUM 995/2008 and SUM 652/2008 heard
Defendants filed three appeals
Decision Date

7. Legal Issues

  1. Mareva Injunction
    • Outcome: The court allowed the application for a Mareva injunction in the sum of US$1.2m.
    • Category: Procedural
  2. Forum Non Conveniens
    • Outcome: The court dismissed the application for a stay of the action on the ground of forum non conveniens.
    • Category: Jurisdictional

8. Remedies Sought

  1. Mareva injunction
  2. Monetary Damages

9. Cause of Actions

  • Breach of contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Energy

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

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
  • Forum non conveniens
  • Commitment fee
  • Settlement agreement
  • PT Borneo Indobara

15.2 Keywords

  • Mareva injunction
  • forum non conveniens
  • STX Corporation
  • Herry Beng Koestanto
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Injunctions75
Arbitration60
Commercial Disputes50
Breach of Contract40
Forum Non Conveniens30
Contract Law30
Asset Recovery25
Civil Procedure20

16. Subjects

  • Civil Procedure
  • Injunctions
  • Contract Law