PSONS Ltd v UPF Holding Pte Ltd: Setting Aside Mareva Injunction for Lack of Clean Hands
In PSONS Ltd v UPF Holding Pte Ltd, the High Court of Singapore heard an application by UPF Holding Pte Ltd, and its directors to set aside a Mareva injunction. The injunction was initially granted to PSONS Ltd, a Hong Kong company, to prevent the defendants from disposing of assets up to US$900,000. The claim was for breach of contract and tort of deceit related to a failed mining license procurement in Laos. Choo Han Teck J allowed the application, finding that PSONS Ltd did not come to the court with clean hands due to their involvement and knowledge of illicit activities. The court set aside the Mareva injunction.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendants’ application to set aside the injunction allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court set aside a Mareva injunction against UPF Holding and its directors due to PSONS Ltd's involvement in illicit activities related to obtaining a mining license.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Second defendant | Defendant | Individual | Application Allowed | Won | |
| Third defendant | Defendant | Individual | Application Allowed | Won | |
| PSONS Ltd | Plaintiff | Corporation | Injunction Set Aside | Lost | |
| UPF Holding Pte Ltd | Defendant | Corporation | Application Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | J | Yes |
4. Counsels
4. Facts
- Plaintiff paid the first defendant US$841,350 to procure a mining license in Laos.
- The Memorandum of Understanding (MOU) outlined payment stages linked to obtaining the license.
- No mining license was obtained despite the payments.
- Parties entered into the Bangkok Agreement to resolve the dispute, but the license was still not obtained.
- Plaintiff commenced Suit No 750 of 2013 pleading breach of contract and tort of deceit.
- Plaintiff allegedly discovered forgery of a letter from a Deputy Minister in Laos by the defendants.
- Plaintiff continued to deal with the defendants even after discovering the alleged forgery.
5. Formal Citations
- PSONS Ltd v UPF Holding Pte Ltd and others, Suit No 750 of 2013 (Summons No 5068 of 2013), [2014] SGHC 55
6. Timeline
| Date | Event |
|---|---|
| Plaintiff and first defendant signed a Memorandum of Understanding | |
| Parties arrived at the Bangkok Agreement | |
| Plaintiff commenced Suit No 750 of 2013 in the High Court | |
| Court granted ex parte injunction order | |
| Proceedings against the first defendant were stayed in favour of arbitration | |
| Plaintiff commenced arbitration against the first defendant and filed the notice of arbitration | |
| Counsel appeared before the court | |
| Judgment reserved |
7. Legal Issues
- Setting Aside a Mareva Injunction
- Outcome: The court allowed the application to set aside the Mareva injunction.
- Category: Procedural
- Clean Hands Doctrine
- Outcome: The court found that the plaintiff did not come to the court with clean hands, thus equitable relief was denied.
- Category: Substantive
8. Remedies Sought
- Injunction
9. Cause of Actions
- Breach of Contract
- Tort of Deceit
10. Practice Areas
- Commercial Litigation
11. Industries
- Mining
- Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Solvadis Commodity Chemicals GmbH v Affert Resources Pte Ltd | High Court | Yes | [2014] 1 SLR 174 | Singapore | Cited for the proposition that evidence of a defendant's lack of probity can constitute evidence of a risk of dissipation of assets. |
| Beckkett Pte Ltd v Deutsche Bank AG and another | High Court | Yes | [2011] 1 SLR 524 | Singapore | Cited for its description of the 'clean hands' doctrine. |
| Guan Chong Cocoa Manufacturer Sdn Bhd v Pratiwi Shipping SA | unknown | Yes | [2003] 1 SLR(R) 157 | Singapore | Cited with approval for the proposition that evidence of a defendant's lack of probity can constitute evidence of a risk of dissipation of assets. |
| Ninemia Maritime Corporation v Trave Schiffahrtsgesellschaft mbH (The Niedersachsen) | unknown | Yes | [1983] 1 WLR 1412 | England and Wales | Cited with approval for the proposition that evidence of a defendant's lack of probity can constitute evidence of a risk of dissipation of assets. |
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
- Mareva Injunction
- Clean Hands Doctrine
- Mining License
- Memorandum of Understanding
- Facilitation Fees
- Illicit Activities
15.2 Keywords
- Mareva Injunction
- Clean Hands
- Mining License
- Breach of Contract
- Singapore High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Clean Hands Doctrine | 80 |
| Injunctions | 75 |
| Contract Law | 60 |
| Misrepresentation | 50 |
| Arbitration | 40 |
| Civil Procedure | 30 |
16. Subjects
- Injunctions
- Contract Law
- Civil Procedure
- Equity