Kernel Oil Pte Ltd v Iman Djuniardi: Dispute over Loan Agreements & Forum Non Conveniens
Kernel Oil Pte Ltd sued Iman Djuniardi in the High Court of Singapore for unpaid principal sums, late payment charges, and default annual interest under several loan agreements. The defendant applied to set aside the court order granting leave for the plaintiff to serve the writ of summons and statement of claim in Switzerland. The court dismissed the plaintiff's appeal, finding that Singapore was not the proper forum to hear the dispute and that the plaintiff had failed to make full and frank disclosure of material facts.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses appeal, finding Switzerland the proper forum for a dispute over loan agreements between Kernel Oil and Iman Djuniardi.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Kernel Oil Pte Ltd | Plaintiff, Appellant | Corporation | Appeal Dismissed | Lost | Tang Shangwei, Rachel Lee Pei Hua |
| Iman Djuniardi | Defendant, Respondent | Individual | Application to set aside Leave Order granted | Won | Kenny Lau Hui Ming |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tang Shangwei | WongPartnership LLP |
| Rachel Lee Pei Hua | WongPartnership LLP |
| Kenny Lau Hui Ming | Providence Law Asia LLC |
4. Facts
- The plaintiff, Kernel Oil Pte Ltd, is a Singapore-incorporated company engaged in the wholesale of petrochemical products and the trading of crude oil.
- The defendant, Iman Djuniardi, is an Indonesian national resident in Switzerland, described as a trader of crude oil and other oil products.
- The plaintiff sued the defendant for unpaid principal sums, late payment charges, and default annual interest under several loan agreements.
- The Loan Agreements did not expressly state what the governing law was.
- The Loan Agreements were denominated in Swiss francs, and the loan monies were disbursed in Swiss francs.
- The commercial purpose of the transaction was to set up a Swiss entity, KOSA, and to provide its initial working capital.
5. Formal Citations
- Kernel Oil Pte Ltd v Iman Djuniardi, Suit No 281 of 2019, [2020] SGHC 52
6. Timeline
| Date | Event |
|---|---|
| Suit No 281 of 2019 filed | |
| Registrar’s Appeal No 263 of 2019 filed | |
| Summons No 5712 of 2019 filed | |
| Hearing date | |
| Hearing date | |
| Hearing date | |
| Judgment reserved |
7. Legal Issues
- Forum Non Conveniens
- Outcome: The court found that Singapore was not the proper forum to hear the dispute, as Swiss law governed the Loan Agreements.
- Category: Procedural
- Related Cases:
- [2014] 4 SLR 500
- [2016] 5 SLR 1322
- [2008] 2 SLR(R) 491
- [1996] 2 SLR(R) 589
- Full and Frank Disclosure
- Outcome: The court found that the plaintiff failed to make full and frank disclosure of material facts in its original leave application.
- Category: Procedural
- Governing Law of Contract
- Outcome: The court determined that Swiss law governed the Loan Agreements.
- Category: Substantive
- Related Cases:
- [2008] 2 SLR(R) 491
8. Remedies Sought
- Unpaid principal sums
- Late payment charges
- Default annual interest
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Petrochemical
- Commodities Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Zoom Communications Ltd v Broadcast Solutions Pte Ltd | Court of Appeal | Yes | [2014] 4 SLR 500 | Singapore | Cited for the three conditions to be satisfied for setting aside a leave order. |
| Humpuss Sea Transport Pte Ltd (in compulsory liquidation) v PT Humpuss Intermoda Transportasi TBK and another | Unknown | Yes | [2016] 5 SLR 1322 | Singapore | Cited for the principle that the law governing the contract is an important consideration in deciding the proper forum. |
| Pacific Recreation Pte Ltd v S Y Technology Inc and another appeal | Court of Appeal | Yes | [2008] 2 SLR(R) 491 | Singapore | Cited for the issues to consider when the governing law is not expressly stated in the contract. |
| Overseas Union Insurance Ltd v Turegum Insurance Co | Unknown | Yes | [2001] 2 SLR(R) 285 | Singapore | Cited regarding the location of risks of a contract pointing towards the governing law. |
| Las Vegas Hilton Corp (trading as Las Vegas Hilton) v Khoo Teng Hock Sunny | Unknown | Yes | [1996] 2 SLR(R) 589 | Singapore | Cited for the commercial purpose of the transaction as a factor in determining governing law. |
| John Reginald Stott Kirkham and others v Trane US Inc and others | Unknown | Yes | [2009] 4 SLR(R) 428 | Singapore | Cited regarding the ease of transporting documents overseas. |
| Bradley Lomas Electrolok Ltd and another v Colt Ventilation East Asia and others | Unknown | Yes | [1999] 3 SLR(R) 1156 | Singapore | Cited regarding jurisdictional grounds in O 11 r 1 of the ROC. |
| IM Skaugen SE and another v MAN Diesel & Turbo SE and another | High Court | Yes | [2018] SGHC 123 | Singapore | Cited regarding jurisdictional grounds in O 11 r 1 of the ROC. |
13. Applicable Rules
| Rule Name |
|---|
| O 11 r 1 of the Rules of Court |
| O 11 r 1(d)(i) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Loan Agreements
- Governing Law
- Proper Forum
- Full and Frank Disclosure
- Swiss Francs
- KOSA (Kernel Oil (Suisse) SA)
15.2 Keywords
- Loan Agreement
- Singapore
- Switzerland
- Jurisdiction
- Forum
- Service out of jurisdiction
16. Subjects
- Civil Procedure
- Contract Law
- Conflict of Laws
- Forum Non Conveniens
17. Areas of Law
- Civil Procedure
- Contract Law
- Conflict of Laws