Regalindo Resources v Seatrek Trans: Anti-Suit Injunction & Arbitration Agreement Dispute
In Regalindo Resources Pte Ltd v Seatrek Trans Pte Ltd, the High Court of Singapore addressed an application by Regalindo Resources to restrain Seatrek Trans from continuing proceedings in the United States District Court for the Southern District of New York. Seatrek had commenced arbitration in Singapore against Regalindo for breach of a time charter. Prior to arbitration, Seatrek initiated proceedings in New York to obtain security via a Rule B Attachment. Regalindo sought an anti-suit injunction, arguing the New York proceedings breached the arbitration agreement and were vexatious. The court, presided over by Justice Andrew Ang, dismissed Regalindo's application, finding that Seatrek's actions were not unwarranted given concerns about Regalindo's ability to satisfy a potential arbitral award.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment reserved.
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court denies Regalindo Resources' request to restrain Seatrek Trans from pursuing security in New York, finding no breach of arbitration agreement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Regalindo Resources Pte Ltd | Plaintiff | Corporation | Application dismissed | Lost | |
| Seatrek Trans Pte Ltd | Defendant | Corporation | Application dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Ang | Judge | Yes |
4. Counsels
4. Facts
- Seatrek commenced arbitration in Singapore against Regalindo for breach of a time charter.
- Seatrek commenced an action in the New York District Court to obtain security via a Rule B Attachment.
- A Rule B Attachment was granted and served on major banks in New York.
- Funds being transferred by Regalindo were attached by The Bank of New York.
- Regalindo sought to restrain Seatrek from continuing with the New York Proceedings.
- Three new companies were incorporated by Regalindo's shareholders after the dispute arose.
5. Formal Citations
- Regalindo Resources Pte Ltd v Seatrek Trans Pte Ltd, OS 246/2008, [2008] SGHC 74
6. Timeline
| Date | Event |
|---|---|
| Time charter dated on or about | |
| Seatrek terminated the time charter | |
| Action filed in the United States District Court for the Southern District of New York | |
| Rule B Attachment granted | |
| Regalindo sought to transfer funds | |
| Regalindo informed of the attachment and the New York Proceedings | |
| Regalindo informed of the attachment and the New York Proceedings | |
| Seatrek served a notice of commencement of arbitration on Regalindo | |
| Regalindo appointed an arbitrator | |
| Regalindo applied to court seeking an order to restrain Seatrek from continuing with the New York Proceedings | |
| Application to vacate the Attachment Order was heard and dismissed | |
| Judgment reserved. |
7. Legal Issues
- Anti-Suit Injunction
- Outcome: The court declined to grant the anti-suit injunction.
- Category: Procedural
- Sub-Issues:
- Restraining foreign proceedings
- Vexatious or oppressive proceedings
- Related Cases:
- [1987] AC 871
- [1994] 2 SLR 816
- [1997] 3 SLR 121
- Breach of Arbitration Agreement
- Outcome: The court found that the New York Proceedings did not breach the arbitration agreement.
- Category: Substantive
- Related Cases:
- [1980] 2 Lloyd’s Rep 546
8. Remedies Sought
- Injunction
- Release of attached moneys
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Arbitration
- International Trade
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Société Nationale Industrielle Aerospatiale v Lee Kui Jak | Privy Council | Yes | [1987] AC 871 | England and Wales | Cited for the principles governing the granting of anti-suit injunctions. |
| Bank of America National Trust & Savings Association v Djoni Widjaja | Court of Appeal | Yes | [1994] 2 SLR 816 | Singapore | Cited for adopting the principles enunciated in Société Nationale Industrielle Aerospatiale v Lee Kui Jak regarding anti-suit injunctions. |
| Koh Kay Yew v Inno-Pacific Holdings Ltd | Court of Appeal | Yes | [1997] 3 SLR 121 | Singapore | Cited for applying the Aerospatiale principles and emphasizing the need for clear circumstances of vexation or oppression before granting an injunction. |
| The Lisboa | N/A | No | [1980] 2 Lloyd’s Rep 546 | England and Wales | Cited for the principle that 'any and all legal proceedings' in a jurisdiction clause should be construed as relating only to proceedings to establish liability and not to obtain security. |
| Q&M Enterprises Sdn Bhd v Poh Kiat | N/A | Yes | [2005] 4 SLR 494 | Singapore | Cited for the importance of international comity and avoiding automatic preference for domestic law over foreign law. |
| Evergreen International SA v Volkswagen Group Singapore Pte Ltd | N/A | Yes | [2004] 2 SLR 457 | Singapore | Cited for the principle that the court's power to grant an anti-suit injunction is based upon equity and the need for unconscionable conduct by the party to be restrained. |
| Turner v Grovit | N/A | Yes | [2002] 1 WLR 107 | England and Wales | Cited for the principle that the power to make a restraining order depends on wrongful conduct of the party to be restrained. |
| Aqua Stoli Shipping Ltd v Gardner Smith Pty Ltd | United States Court of Appeals for the Second Circuit | No | 460 F.3d 434 | United States | Cited regarding Rule B Attachment and the rejection of the needs-plus-balancing test. |
| Reibor International Ltd v Cargo Carriers (KACZ–Co) Ltd | United States Court of Appeals for the Second Circuit | Yes | 759 F.2d 262 | United States | Cited for the observation that payments in U.S. dollars often clear through New York. |
| Winter Storm Shipping Ltd v TPI | N/A | Yes | 310 F.3d 263 | United States | Cited for holding that EFT funds in the hands of an intermediary bank may be attached pursuant to Admiralty Rule B(1)(a). |
| General Tankers Pte Ltd v Kundan Rice Mills Ltd | New York District Court | Yes | 475 F.Supp.2d 396 | United States | Cited for holding that Winter Storm remained as good law. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| High Court (Admiralty Jurisdiction) Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Anti-suit injunction
- Rule B Attachment
- Arbitration agreement
- Vexatious or oppressive proceedings
- Time charter
- Electronic fund transfer
- Pre-judgment security
15.2 Keywords
- arbitration
- injunction
- shipping
- Singapore
- New York
- Rule B Attachment
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Anti-suit injunctions | 85 |
| Restraint of foreign proceedings | 80 |
| Injunctions | 75 |
| Rule B Attachment | 70 |
| Arbitration | 65 |
| Natural forum | 50 |
| Shipping Law | 40 |
| Time Charter | 35 |
| Contract Law | 30 |
| Commercial Law | 25 |
16. Subjects
- Arbitration
- Civil Procedure
- Injunctions
- Shipping Law