Raffles Money Change v Skandinaviska Enskilda Banken: Forged Cheques & Bank's Right to Debit Account
Raffles Money Change Pte Ltd appealed to the High Court of Singapore against the District Court's decision to dismiss its claim against Skandinaviska Enskilda Banken AB (Publ) for the wrongful debiting of €39,982.71 from its account. The debit was due to a forged Euro Draft that Raffles Money Change had deposited with the bank. The High Court, Chan Sek Keong CJ, dismissed the appeal, finding that the bank was entitled to debit the account and that Raffles Money Change had not proven it had changed its position to its detriment.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed with costs
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Raffles Money Change's claim against Skandinaviska Enskilda Banken for wrongful debiting of its account due to a forged bank draft was dismissed. The court upheld the bank's right to debit the account.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Raffles Money Change Pte Ltd (formerly known as Honest Money Changer Pte Ltd) | Appellant | Corporation | Appeal Dismissed | Lost | N Sreenivasan, Palaniappan Sundararaj, Lin Ming Khin |
| Skandinaviska Enskilda Banken AB (Publ) (formerly known as Skandinaviska Enskilda Banken AB) | Respondent | Corporation | Appeal Dismissed | Won | Chew Ming Hsien Rebecca, Nigel Pereira |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Sek Keong | Chief Justice | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| N Sreenivasan | Straits Law Practice LLC |
| Palaniappan Sundararaj | Straits Law Practice LLC |
| Lin Ming Khin | Donaldson & Burkinshaw |
| Chew Ming Hsien Rebecca | Rajah & Tann LLP |
| Nigel Pereira | Rajah & Tann LLP |
4. Facts
- Raffles Money Change operated a foreign currency account with Skandinaviska Enskilda Banken.
- Raffles Money Change presented a Euro Draft for €40,000 to the bank for collection.
- The bank credited Raffles Money Change's account with €39,982.71, subject to final payment.
- The bank later discovered the Euro Draft was counterfeit and debited the account.
- Raffles Money Change claimed the bank wrongfully debited its account.
- The bank relied on its general terms and conditions to justify the debit.
5. Formal Citations
- Raffles Money Change Pte Ltd (formerly known as Honest Money Changer Pte Ltd) v Skandinaviska Enskilda Banken AB (Publ) (formerly known as Skandinaviska Enskilda Banken AB), DA 33/2007, [2009] SGHC 37
6. Timeline
| Date | Event |
|---|---|
| Euro Draft dated | |
| Appellant presented Euro Draft to Respondent for collection | |
| Respondent informed Appellant of crediting account | |
| Respondent credited Appellant's account | |
| Respondent informed Appellant Euro Draft was counterfeit and debited account | |
| Police report made | |
| District Court Suit No 1465 of 2006 | |
| Ms Valerie Tan gave evidence | |
| Raffles Money Change Pte Ltd v Skandinaviska Enskilda Banken AB (Publ) [2008] SGDC 70 | |
| Judgment reserved |
7. Legal Issues
- Wrongful Debiting of Account
- Outcome: The court held that the bank was entitled to debit the appellant's account due to the forged bank draft.
- Category: Substantive
- Misrepresentation and Estoppel
- Outcome: The court found that there was no misrepresentation by the bank that led the appellant to rely on it to its detriment.
- Category: Substantive
- Applicability of General Terms and Conditions
- Outcome: The court found that clauses 1.23 and 13.1 of the General Terms and Conditions did not provide a defence to the respondent in the present case.
- Category: Substantive
8. Remedies Sought
- Repayment of €39,982.71
9. Cause of Actions
- Breach of Contract
- Estoppel
10. Practice Areas
- Commercial Litigation
- Banking Litigation
11. Industries
- Banking
- Financial Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Raffles Money Change Pte Ltd v Skandinaviska Enskilda Banken AB (Publ) | District Court | Yes | [2008] SGDC 70 | Singapore | Cited as the decision of the District Judge which was being appealed. |
| Dovey v Bank of New Zealand | New Zealand Court of Appeal | Yes | [2000] 3 NZLR 328 | New Zealand | Distinguished on the ground that both parties there had led expert evidence on the effect of a message sent under SWIFT. |
| Momm v Barclays Bank International Ltd | Queen's Bench | Yes | [1977] QB 790 | England and Wales | Distinguished as involving payment from one customer’s account to another customer’s account within the same bank. |
| Royal Products Ltd v Midland Bank Ltd and Bank of Valletta Ltd | Unknown | Yes | [1981] 2 Lloyd’s Rep 194 | England and Wales | Distinguished as involving transfer of money between separate bank accounts at separate banks. |
| National Westminster Bank Ltd v Barclays Bank International Ltd | Queen's Bench | Yes | [1975] QB 654 | England and Wales | Cited for the principle that the payee of a forged instrument has no right to receive payment on the instrument. |
| Kleinwort, Sons, and Co v Dunlop Rubber Company | Unknown | Yes | (1907) 97 LT 263 | England and Wales | Cited for the principle that a bank is entitled at common law to recover payment from the payee unless the payee has changed its position to its detriment. |
| The Brimnes | Queen's Bench | Yes | [1975] QB 929 | England and Wales | Cited for the proposition that payment is said to be complete when the creditor receives cash or has cash available on which he can draw if he so wishes, but found not relevant in this case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Unfair Contract Terms Act (Cap 396, 1994 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Forged bank draft
- Wrongful debit
- General terms and conditions
- SWIFT message
- Complete and irreversible payment
- Misrepresentation
- Estoppel
- Collecting bank
- Drawee bank
15.2 Keywords
- banking
- cheques
- forgery
- debit
- raffles money change
- skandinaviska enskilda banken
16. Subjects
- Banking
- Cheques
- Contract Law
17. Areas of Law
- Banking Law
- Contract Law
- Agency Law