DHJS Hull v Skaugen Marine: Winding Up Dismissal Due to Disputed Debt & Improper Pressure
In DHJS Hull No 2007-002 LLC v Skaugen Marine Investments Pte Ltd, the High Court of Singapore dismissed winding up proceedings commenced by DHJS Hull No 2007-002 LLC against Skaugen Marine Investments Pte Ltd due to a disputed debt and the improper use of proceedings to pressure the defendant. The court also dismissed the plaintiff's application to be substituted by a supporting creditor, DHJS Hull No. 2007-001 LLC. Costs were awarded to the defendant. The judgment was delivered by Choo Han Teck J on 21 May 2018.
1. Case Overview
1.1 Court
High Court of Singapore1.2 Outcome
Companies Winding Up No 7 of 2018 is dismissed; the plaintiff’s application to be substituted by a supporting creditor is dismissed; and costs to the defendant are fixed at $18,000 plus reasonable disbursements.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Winding up proceedings dismissed as the debt was disputed and the proceedings were used to improperly pressure the defendant. The court also dismissed the plaintiff's application for substitution.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| DHJS Hull No 2007-002 LLC | Plaintiff | Corporation | Winding up dismissed, Application to be substituted by a supporting creditor is dismissed | Dismissed, Dismissed | Lin Weiwen Moses, Seet An Xiang Justin |
| Skaugen Marine Investments Pte Ltd | Defendant | Corporation | Winding up dismissed | Won | Daryll Ng, Lauren Tang Hui Jing, Ong Huijun Christine |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lin Weiwen Moses | Incisive Law LLC |
| Seet An Xiang Justin | Incisive Law LLC |
| Daryll Ng | Virtus Law LLP |
| Lauren Tang Hui Jing | Virtus Law LLP |
| Ong Huijun Christine | Virtus Law LLP |
4. Facts
- The defendant chartered a vessel from the plaintiff on 28 July 2008 but did not pay after receiving invoices for the charter.
- The plaintiff issued a statutory demand and a notice of arbitration on 20 December 2017.
- The defendant's solicitors stated on 10 January 2018 that the debt was disputed.
- The plaintiff commenced winding up proceedings on 15 January 2018.
- The defendant alleges a common understanding that hire would not be paid in accordance with invoices.
- The defendant claims to have counterclaims against the plaintiff.
- The supporting creditor had obtained a partial final arbitral award in its favour.
5. Formal Citations
- DHJS Hull No 2007-002 LLC v Skaugen Marine Investments Pte Ltd, Companies Winding-Up No 7 of 2018 and HC/Summons No 1931 of 2018, [2018] SGHC 122
6. Timeline
| Date | Event |
|---|---|
| Defendant chartered a vessel from the plaintiff | |
| Plaintiff issued a statutory demand and a notice of arbitration | |
| Defendant's solicitors stated the debt was disputed | |
| Plaintiff commenced winding up proceedings | |
| Defendant applied for proceedings to be abridged | |
| Hearing for winding up application and application to be substituted by a supporting creditor | |
| Last day of payment for supporting creditor's statutory demand | |
| Judgment issued |
7. Legal Issues
- Whether the debt is disputed
- Outcome: The court found that the debt was disputed on substantial grounds.
- Category: Substantive
- Abuse of process
- Outcome: The court found that the winding up proceedings were being used for the collateral purpose of exerting improper pressure on the defendant.
- Category: Procedural
- Application for substitution of creditor
- Outcome: The court declined to exercise its discretion to substitute the supporting creditor for the plaintiff.
- Category: Procedural
8. Remedies Sought
- Winding up of the company
9. Cause of Actions
- Failure to pay charter hire
10. Practice Areas
- Winding Up
- Commercial Litigation
11. Industries
- Shipping
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 |
|---|---|
| Companies Act (Cap 50) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Winding up
- Statutory demand
- Disputed debt
- Arbitration
- Substitution of creditor
- Abuse of process
- Charter party
- Counterclaims
15.2 Keywords
- Winding up
- Singapore
- Disputed debt
- Arbitration
- Shipping
16. Subjects
- Insolvency
- Winding Up
- Company Law
- Arbitration
17. Areas of Law
- Insolvency Law
- Company Law
- Civil Procedure