Stepaniuk v Wellstead: Judgment on Trust, Share Transfer, and Non-Compliance with Court Order
In Suit No 547 of 2016, the High Court of Singapore heard a claim by Nikolai Stepaniuk against Wellstead Corporate Solutions Pte Ltd, Nazrad Aman d/o Mohamed Hanifah, Amar Prem Kashmir @ Prem Kashmir Singh s/o Kusmavi Singh, and Electronic Commerce Trading Limited concerning shares and assets of Electronic Commerce Trading Limited. Chua Lee Ming J granted a declaration that Nazrad holds the shares in Electronic Commerce Trading Limited on trust for the plaintiff and ordered the transfer of those shares to the plaintiff. The court also struck out the defenses filed by Nazrad and Electronic Commerce Trading Limited and made several orders against Nazrad, including an injunction, delivery of share certificates, an account of assets, and damages for breach of trust. The court found that Nazrad and Electronic Commerce Trading Limited failed to comply with an earlier court order.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Nikolai Stepaniuk sued Wellstead and others over shares and assets of Electronic Commerce Trading Limited. The court granted judgment for Stepaniuk, ordering share transfer and striking out defenses.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Nikolai Stepaniuk | Plaintiff | Individual | Judgment for Plaintiff | Won | Chacko Samuel, Charmaine Chan-Richard |
| Wellstead Corporate Solutions Pte Ltd | Defendant | Corporation | Defenses Struck Out | Lost | Genesis Shen |
| Nazrad Aman d/o Mohamed Hanifah | Defendant | Individual | Defenses Struck Out | Lost | Genesis Shen |
| Amar Prem Kashmir @ Prem Kashmir Singh s/o Kusmavi Singh | Defendant | Individual | Neutral | Neutral | |
| Electronic Commerce Trading Limited | Defendant | Corporation | Defenses Struck Out | Lost | Genesis Shen |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chua Lee Ming | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Chacko Samuel | Legis Point LLC |
| Charmaine Chan-Richard | Legis Point LLC |
| Genesis Shen | Gloria James-Civetta & Co |
4. Facts
- Plaintiff claimed to be the sole beneficial owner of Electronic Commerce Trading Limited.
- Nazrad held shares in Electronic Commerce Trading Limited as nominee for the plaintiff.
- Funds were held in Electronic Commerce Trading Limited's bank account with Hang Seng Bank in Hong Kong.
- Plaintiff experienced difficulties accessing the bank account online.
- Wellstead informed the plaintiff that his token would be deactivated for technical and security reasons.
- Nazrad declared the Declaration of Trust void and revoked the Power of Attorney.
- Defendants failed to comply with a court order to disclose the whereabouts of the Funds.
5. Formal Citations
- Stepaniuk, NikolaivWellstead Corporate Solutions Pte Ltd and others, Suit No 547 of 2016, [2017] SGHC 39
6. Timeline
| Date | Event |
|---|---|
| Electronic Commerce Trading Limited incorporated in Hong Kong by Wellstead. | |
| Plaintiff engaged Wellstead to assist him in setting up his business in Hong Kong. | |
| Power of Attorney signed. | |
| Nazrad executed a Declaration of Trust. | |
| Plaintiff's employee started experiencing difficulties operating the Bank Account online. | |
| Plaintiff's employee was denied access to the Bank Account completely. | |
| Wellstead informed the plaintiff that his token would be deactivated for technical and security reasons. | |
| Kashmir informed the plaintiff that he would receive clarifications by the next day at the latest. | |
| Kashmir sent an email to the plaintiff, on behalf of Nazrad, declaring the Declaration of Trust void and revoking the Power of Attorney. | |
| Plaintiff replied through his solicitors denying that he had falsified Nazrad’s signatures for improper purposes. | |
| Plaintiff commenced suit against the defendants. | |
| Lai Siu Chiu SJ granted the plaintiff a worldwide Mareva injunction and a property injunction against the defendants. | |
| Lai Siu Chiu SJ ordered the defendants to confirm in writing the whereabouts of the Funds. | |
| Defendants claimed that disclosing the whereabouts of the Funds would somehow place the defendants’ and their associates’ lives in danger. | |
| Wellstead wrote to Lai SJ in purported compliance with the Varied Disclosure Order. | |
| Two affidavits were filed – one by Kashmir and the other by one John Tan Kee Eng. | |
| Andrew Ang SJ granted the application. | |
| Plaintiff filed Summons No 3828 of 2016 seeking an order that each of the defendants’ defences in the suit be struck out, and final judgment be entered against them, unless they comply with the orders made by Lai SJ and Ang SJ. | |
| Court ordered Nazrad and Electronic Commerce Trading Limited to comply with the orders made by Lai Siu Chiu SJ and Andrew Ang SJ by 20 September 2016 failing which their defences in the suit were to be struck out. | |
| Nazrad filed three affidavits. | |
| Nazrad met with her solicitor and Katrina Zevele. | |
| Deadline for Nazrad and Electronic Commerce Trading Limited to comply with the orders made by Lai Siu Chiu SJ and Andrew Ang SJ. | |
| Nazrad filed a fourth affidavit. | |
| Nazrad sent a letter stating that she was willing to transfer all the shares in Electronic Commerce Trading Limited to the plaintiff. | |
| Plaintiff filed Summons No 5087 of 2016 and Summons No 5088 of 2016. | |
| Court heard SUM 5088/2016. | |
| Shen Luda Genesis’s affidavit filed. | |
| Judgment delivered. |
7. Legal Issues
- Breach of Trust
- Outcome: The court found Nazrad in breach of trust for failing to transfer shares held on trust for the plaintiff.
- Category: Substantive
- Non-Compliance with Court Order
- Outcome: The court struck out the defendants' defenses due to their failure to comply with the Unless Order.
- Category: Procedural
- Admissions of Fact
- Outcome: The court granted judgment against Nazrad based on her admissions of fact regarding the trust.
- Category: Procedural
8. Remedies Sought
- Declaration of beneficial ownership
- Transfer of shares
- Injunction
- Account of assets
- Damages
9. Cause of Actions
- Breach of Trust
10. Practice Areas
- Commercial Litigation
11. Industries
- Information Technology
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ow Chor Seng v Coutts Bank (Schweiz) AG | High Court | Yes | [2002] 1 SLR(R) 380 | Singapore | Cited regarding the court's power to give judgment where clear admissions of fact are made by a party. |
| Chee Jok Heng Stephanie v Chang Yue Shoon | High Court | Yes | [2010] 3 SLR 1131 | Singapore | Cited for the principle that a defendant cannot rely on illegality to defeat a plaintiff’s claim based on his legal or equitable title. |
| Tinsley v Milligan | House of Lords | Yes | [1994] 1 AC 340 | United Kingdom | Applied in Chee Jok Heng Stephanie v Chang Yue Shoon regarding illegality and property rights. |
| Syed Mohamed Abdul Muthaliff and another v Arjan Bhisham Chotrani | Court of Appeal | Yes | [1999] 1 SLR(R) 361 | Singapore | Cited regarding the requirements for striking out a defence for failure to comply with an order of court. |
13. Applicable Rules
| Rule Name |
|---|
| O 27 r 3 of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 332, R 5, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Declaration of Trust
- Unless Order
- Beneficial Ownership
- Nominee Director
- Mareva Injunction
- Power of Attorney
- Funds
- Bank Account
15.2 Keywords
- trust
- shares
- court order
- non-compliance
- beneficial ownership
16. Subjects
- Trusts
- Civil Procedure
- Company Law
17. Areas of Law
- Civil Procedure
- Trust Law
- Company Law