United Overseas Bank v Owner of Swiber Concorde: Forfeited Deposit as Proceeds of Sale
In United Overseas Bank Limited v Owner of the vessel “SWIBER CONCORDE”, the Singapore High Court addressed whether a deposit forfeited by the Sheriff in an earlier abortive sale should be treated as part of the proceeds of sale of the vessel and be paid out to claimants. The Plaintiff, United Overseas Bank, being the mortgagee of the vessel, commenced admiralty in rem proceedings. The court held that the forfeited deposit should be treated as part of the proceeds of sale of the vessel and ordered that the forfeited deposit be paid out to the Plaintiff.
1. Case Overview
1.1 Court
High Court of Singapore1.2 Outcome
Order that forfeited deposit be treated as part of proceeds of sale.
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court held that a forfeited deposit from an abortive vessel sale should be treated as part of the proceeds of sale and paid to claimants.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| United Overseas Bank Limited | Plaintiff | Corporation | Order that forfeited deposit be treated as part of proceeds of sale | Won | |
| Owner of the vessel “SWIBER CONCORDE” | Defendant | Corporation | Order that forfeited deposit be treated as part of proceeds of sale | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Pang Khang Chau | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Song Swee Lian Corina | Allen & Gledhill LLP |
| Parveen Kaur | Allen & Gledhill LLP |
4. Facts
- United Overseas Bank is the mortgagee of the vessel “Swiber Concorde”.
- UOB commenced admiralty in rem proceedings against the Vessel.
- The Sheriff conducted two rounds of bidding, but all bids were below the appraised value.
- VML submitted the highest bid in the second round of bidding.
- VML failed to make the required payments and repudiated the sale contract.
- The Sheriff accepted VML's repudiation and forfeited the deposit.
- The Vessel was sold to Thien Nam Offshore Services Joint Stock Company in a third round of bidding.
5. Formal Citations
- The “Swiber Concorde”, Admiralty in Rem No 47 of 2017(Summons No 3077 of 2018), [2018] SGHC 197
6. Timeline
| Date | Event |
|---|---|
| Court grants leave for vessel to be sold below appraised value. | |
| Sheriff accepts Valentine Maritime Ltd's bid of USD 5,000,100 for the Vessel. | |
| Valentine Maritime Ltd was required to pay the balance of the 10% deposit of the purchase price. | |
| Valentine Maritime Ltd was required to pay the balance 90% of the purchase price plus the value of the bunkers. | |
| Valentine Maritime Ltd informs Sheriff it will not proceed with purchase. | |
| Sheriff accepts Valentine Maritime Ltd’s repudiation of sale contract and informs VML that its deposit had been forfeited. | |
| Sale completed with Thien Nam Offshore Services Joint Stock Company for USD 4,599,769; proceeds paid into court. | |
| Hearing of the application. | |
| Hearing of the application. | |
| Judgment issued. |
7. Legal Issues
- Treatment of Forfeited Deposit
- Outcome: The court held that the deposit forfeited by the Sheriff from the earlier abortive sale of the Vessel should be treated as part of the proceeds of sale of the Vessel.
- Category: Substantive
8. Remedies Sought
- Payment out of proceeds of sale
9. Cause of Actions
- Admiralty in Rem
10. Practice Areas
- Admiralty
- Shipping
- Commercial Litigation
11. Industries
- Shipping
- Banking
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Elinoil-Hellenic Petroleum Co SA v Wee Ramayah & Partners | High Court | Yes | [1999] 1 SLR(R) 977 | Singapore | Cited regarding the title to an arrested vessel and private sale by the owner. |
| The “Turtle Bay” | High Court | Yes | [2013] 4 SLR 615 | Singapore | Cited regarding the Sheriff acting under the court’s commission for appraisement and sale for the benefit of all parties interested in the arrested vessel. |
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
- Admiralty in Rem
- Forfeited Deposit
- Proceeds of Sale
- Sheriff
- Abortive Sale
- Vessel
- Mortgagee
15.2 Keywords
- Admiralty
- Shipping
- Forfeited Deposit
- Proceeds of Sale
- Singapore
- Vessel
- Swiber Concorde
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Admiralty and Maritime Law | 90 |
| Judicial sale of vessel | 80 |
| Arrest of Vessel | 70 |
| Civil Procedure | 60 |
| Shipping Law | 60 |
| Judgments and Orders | 50 |
| Enforcement of Order | 40 |
| Contract Law | 30 |
16. Subjects
- Admiralty
- Shipping
- Civil Procedure
- Practice and Procedure