A/S Dan-Bunkering Ltd v Tan Chee Hiong Alan: Restrictive Covenant & Injunction in Bunker Trading
In A/S Dan-Bunkering Ltd v Tan Chee Hiong Alan, the High Court of Singapore heard an application by Tan Chee Hiong Alan to discharge an ex parte injunction obtained by A/S Dan-Bunkering Ltd. The injunction prohibited Tan from working for a competitor, Chemoil, based on a restrictive covenant in his employment contract. The court allowed Tan's application, finding that A/S Dan-Bunkering Ltd had not demonstrated irreparable harm. The court also dismissed A/S Dan-Bunkering Ltd's application for leave to appeal.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendant's application to discharge the ex parte injunction was allowed, and the plaintiff's application for leave to appeal was dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court discharged an ex parte injunction against Tan Chee Hiong Alan, a former bunkering executive, finding that the plaintiff A/S Dan-Bunkering Ltd did not demonstrate irreparable harm.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| A/S Dan-Bunkering Ltd | Plaintiff | Corporation | Application to discharge injunction allowed, Application for leave to appeal dismissed | Lost, Lost | Danny Ong Tun Wei, Lau Kah Hee |
| Tan Chee Hiong Alan | Defendant, Applicant | Individual | Application to discharge injunction allowed | Won | Joy Tan, Yuwen Teo-McDonnell, Sim Mei Ling |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | J | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Danny Ong Tun Wei | Rajah & Tann LLP |
| Lau Kah Hee | Rajah & Tann LLP |
| Joy Tan | WongPartnership LLP |
| Yuwen Teo-McDonnell | WongPartnership LLP |
| Sim Mei Ling | WongPartnership LLP |
4. Facts
- The defendant was employed by the plaintiff as a marketing executive and later as a Bunkering Executive.
- The defendant signed a contract with a restrictive covenant clause preventing him from joining a competitor for one year after leaving the plaintiff's employment.
- The defendant resigned from the plaintiff's company and was placed on garden leave.
- The defendant signed a contract with Chemoil, a competitor of the plaintiff.
- The plaintiff obtained an ex parte injunction to prevent the defendant from working for Chemoil.
- The defendant applied to discharge the ex parte injunction.
5. Formal Citations
- A/S Dan-Bunkering Ltd v Tan Chee Hiong Alan, Suit No 413 of 2012 (Summons No 2110 of 2012), [2012] SGHC 145
6. Timeline
| Date | Event |
|---|---|
| Defendant employed by plaintiff as marketing executive | |
| Defendant appointed as Bunkering Executive in Shanghai office | |
| Defendant signed contract with restrictive covenant clause | |
| Defendant resigned | |
| Plaintiff obtained ex parte injunction | |
| Defendant applied to discharge injunction | |
| Defendant's application allowed; ex parte injunction set aside | |
| Decision Date |
7. Legal Issues
- Discharge of Injunction
- Outcome: The court allowed the defendant's application to discharge the ex parte injunction.
- Category: Procedural
- Enforceability of Restrictive Covenant
- Outcome: The court determined that the issue of whether the restrictive clause applies as strictly and narrowly as the plaintiff contended is best settled at trial.
- Category: Substantive
8. Remedies Sought
- Injunction
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Bunker Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Restrictive covenant
- Ex parte injunction
- Bunker trading
- Garden leave
- Irreparable harm
15.2 Keywords
- injunction
- restrictive covenant
- bunker trading
- employment
- singapore
16. Subjects
- Contract Dispute
- Employment Dispute
- Injunctions
17. Areas of Law
- Contract Law
- Injunctions
- Employment Law