Dukkar S.A v Thailand Integrated Services: Mareva Injunction & Breach of Contract Dispute
In Dukkar S.A v Thailand Integrated Services Pte Ltd, the High Court of Singapore heard an application by Dukkar S.A for a Mareva injunction against Thailand Integrated Services. Dukkar S.A sought to restrain the defendant from disposing of assets in Singapore up to US$959,044.77, pending the determination of an international arbitration in London for a breach of contract claim. The court, presided over by Steven Chong J, dismissed the application, finding that Dukkar S.A failed to demonstrate a good arguable case for breach of contract and a real risk of asset dissipation. The judgment was delivered on 2015-09-07.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Oral Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The High Court denied Dukkar S.A's Mareva injunction application against Thailand Integrated Services due to a lack of good arguable case for breach of contract.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Dukkar S.A | Plaintiff | Corporation | Application dismissed | Lost | |
| Thailand Integrated Services Pte Ltd | Defendant | Corporation | Application dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Steven Chong | Judge | Yes |
4. Counsels
4. Facts
- Dukkar S.A applied for a Mareva injunction against Thailand Integrated Services.
- The injunction sought to restrain Thailand Integrated Services from disposing of assets in Singapore up to US$959,044.77.
- The application was made pending the determination of an international arbitration in London.
- The arbitration concerned an alleged breach of contract for the sale and purchase of bitumen mixture.
- Dukkar S.A claimed an oral contract was concluded on 30 March 2015.
- The parties disputed the price and specifications of the product.
- Thailand Integrated Services had commenced legal proceedings against Jayta Petroluem Pte Ltd.
5. Formal Citations
- Dukkar S.A v Thailand Integrated Services Pte Ltd, Originating Summons No 632 of 2015, [2015] SGHC 234
6. Timeline
| Date | Event |
|---|---|
| Purported contract concluded between Dukkar S.A and Thailand Integrated Services. | |
| Dukkar S.A sent a draft contract to Thailand Integrated Services. | |
| Dukkar S.A sent an SMS message to Thailand Integrated Services enquiring “Can we finalize the contract?” | |
| Thailand Integrated Services counter-proposed to extend the price trigger period to 10 June 2015. | |
| Dukkar S.A disagreed to Thailand Integrated Services' counter-proposal. | |
| Dukkar S.A informed Thailand Integrated Services that they will counter laytime, price trigger period etc. | |
| Dukkar S.A sent an email to Thailand Integrated Services stating “please revert ASAP with your comments/agreement to the contract as we cannot hold the Contract unclosed for such long period of time”. | |
| Dukkar S.A sent an SMS message to Thailand Integrated Services stating “If we don’t finalize the contract i will be on panic on monday”. | |
| Parties exchanged SMS messages with a view to increase the asphaltene content to 8% by using different test methods and/or adding additives. | |
| Parties exchanged SMS messages with a view to increase the asphaltene content to 8% by using different test methods and/or adding additives. | |
| Thailand Integrated Services provided a draft wording for the letter of credit for Dukkar S.A’s acceptance. | |
| Dukkar S.A replied and proposed certain amendments to the letter of credit. | |
| Letter of demand sent by Dukkar S.A’s English solicitors to Thailand Integrated Services. | |
| Holding response received from Wong Partnership on behalf of Thailand Integrated Services. | |
| Yulia Yancheva’s affidavit was dated. | |
| Substantive response sent by Wong Partnership on behalf of Thailand Integrated Services. | |
| Thailand Integrated Services exhibited a recent contract dated 14 July 2015 to show that it is active in trading. | |
| Dukkar S.A's skeletal submissions were dated. | |
| Judgment reserved and oral judgment delivered by Steven Chong J. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the plaintiff failed to demonstrate a good arguable case for breach of contract.
- Category: Substantive
- Mareva Injunction
- Outcome: The court denied the application for a Mareva injunction.
- Category: Procedural
- Risk of Dissipation of Assets
- Outcome: The court found that the plaintiff failed to demonstrate a real risk of dissipation of assets by the defendant.
- Category: Substantive
8. Remedies Sought
- Mareva Injunction
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Commodities Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Amixco Asia Pte Ltd v Bank Negara Indonesia 1946 | Unknown | Yes | [1991] 2 SLR(R) 713 | Singapore | Cited for the threshold to examine whether the plaintiff’s case is “more than barely capable of serious argument, but not necessarily one which the judge considers would have a better than 50% chance of success”. |
| Bouvier, Yves Charles Edgar and another v Accent Delight International Ltd and another and another appeal | Court of Appeal | Yes | [2015] SGCA 45 | Singapore | Cited for the principle that while a lack of probity can be relevant to show a real risk of dissipation of assets, the allegation must be “well-substantiated”. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Mareva Injunction
- Bitumen Mixture
- Price Trigger Period
- Asphaltene Content
- Dissipation of Assets
- Good Arguable Case
15.2 Keywords
- Mareva Injunction
- Breach of Contract
- Arbitration
- Singapore
- International Arbitration Act
- Bitumen
17. Areas of Law
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure
- Injunctions