Toyota Tsusho v UOB & Vintech: Pre-Action Discovery for Fraud Proceeds Tracing
Toyota Tsusho (Malaysia) Sdn Bhd applied for pre-action discovery against United Overseas Bank Limited (UOB) to obtain documents related to Vintech Engrg Pte Ltd's account, seeking to trace proceeds from an alleged fraud. Vintech Engrg Pte Ltd opposed the application and sought a stay or strike-out. The High Court dismissed Vintech's summons and granted Toyota Tsusho's originating summons with variations, allowing the discovery to proceed, finding that Vintech had no standing to object and that the discovery was necessary to identify potential recipients of the allegedly defrauded funds.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Originating Summons granted with variations; Summons dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court allowed Toyota Tsusho's application for pre-action discovery against UOB to identify recipients of fraud proceeds from Vintech's account.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| United Overseas Bank Limited | Defendant | Corporation | Neutral | Neutral | |
| Toyota Tsusho (Malaysia) Sdn Bhd | Plaintiff | Corporation | Originating Summons granted with variations | Won | |
| Vintech Engrg Pte. Ltd. | Defendant | Corporation | Summons dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Senior Judge | Yes |
4. Counsels
4. Facts
- Toyota Tsusho alleged fraud by its employees in concert with external parties, including Vintech and Gan.
- The alleged fraud involved RM179m through fake purchase orders and exploitation of internal system weaknesses.
- Toyota Tsusho commenced Suit 753 and Suit 834 against Vintech and Gan, respectively, for fraud, conspiracy, and breach of contract.
- Suits 753 and 834 were stayed in favor of Malaysian proceedings.
- Gan disclosed Vintech's bank accounts, including the UOB account, in an affidavit of assets.
- Toyota Tsusho sought pre-action discovery against UOB to identify recipients of funds from Vintech's account.
- The Vintech Account contained a sum of US$21,168.72, which Sadowara deposed was less than 0.2% of the value of the monies deposited into the Vintech Account by the plaintiff’s employees.
5. Formal Citations
- Toyota Tsusho (Malaysia) Sdn BhdvUnited Overseas Bank Ltd & another, , [2016] SGHC 74
6. Timeline
| Date | Event |
|---|---|
| Worldwide Mareva injunction obtained against the second defendant in Malaysia. | |
| Mareva injunction granted in Suit 753. | |
| Gan filed an affidavit of assets and means on behalf of the second defendant. | |
| Sadowara filed an affidavit in support of the OS. | |
| Suit 753 stayed in favour of Malaysian proceedings by consent order. | |
| Suit 834 stayed in favour of Malaysian proceedings by consent order. | |
| Second defendant joined as a party to the OS by order of court. | |
| Originating Summons and Summons heard. | |
| Gan Teck Beng filed an affidavit setting out his objections. | |
| Decision issued on the Originating Summons. |
7. Legal Issues
- Pre-action Discovery
- Outcome: The court granted the order for pre-action discovery with variations, finding it necessary to identify potential parties liable for knowing receipt or as constructive trustees.
- Category: Procedural
- Sub-Issues:
- Scope of pre-action discovery
- Conditions for granting pre-action discovery
- Discovery against non-parties
- Banking Secrecy
- Outcome: The court held that the plaintiff's application fell under an exception to the Banking Act, as the disclosure was necessary for compliance with a court order under the Evidence Act.
- Category: Substantive
- Sub-Issues:
- Exceptions to banking secrecy
- Disclosure pursuant to court order
8. Remedies Sought
- Discovery of Documents
- Tracing of Funds
9. Cause of Actions
- Fraud
- Conspiracy
- Deceit
- Misrepresentation
- Breach of Contract
- Monies Had and Received
- Knowing Receipt
- Constructive Trust
10. Practice Areas
- Commercial Litigation
- Banking Litigation
- Fraud and Asset Recovery
11. Industries
- Banking
- Legal
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Bayerische Hypo-und Vereinsbank AG v Asia Pacific Breweries (Singapore) Pte Ltd and other applications | High Court | Yes | [2004] 4 SLR (R) 39 | Singapore | Cited for the principles governing pre-action discovery, including the requirement that the application must not be frivolous, speculative, or a fishing expedition, and must be necessary for fairly disposing of the proceedings or for saving costs. |
| Norwich Pharmacal Co v Customs & Excise Commissioners | House of Lords | Yes | [1974] AC 133 | England and Wales | Cited for the principle that a person who, through no fault of their own, gets mixed up in the tortious acts of others has a duty to assist the wronged party by providing information and disclosing the identity of the wrongdoers. |
13. Applicable Rules
| Rule Name |
|---|
| Order 24 r 6(1) and (5) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Banking Act (Cap 19, 2008 Rev Ed) | Singapore |
| Evidence Act (Cap 97, 1997 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Pre-action discovery
- Mareva injunction
- Anton Piller order
- Banking secrecy
- Constructive trust
- Knowing receipt
- Forum non conveniens
- Vintech Account
15.2 Keywords
- pre-action discovery
- fraud
- banking secrecy
- tracing
- Singapore
- UOB
- Vintech
17. Areas of Law
16. Subjects
- Civil Procedure
- Banking
- Fraud