RCMA Asia v Matthew Peloso: Contempt of Court for Breaching Injunction Order

In RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd) v Matthew Peloso, the High Court of Singapore found Matthew Peloso in contempt of court for breaching an injunction order. RCMA alleged that Peloso, as an officer of Sun Electric Power Pte Ltd, breached the Injunction Order by causing SEP to dispose, deal with and/or diminish the value of its 70% share of the FSC Payments. The court found that Peloso had committed contempt of court by making the September 2018 Withdrawal in breach of the Injunction Order and imposed a fine of $15,000 (in default, ten days’ imprisonment).

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Peloso found in contempt of court for making the September 2018 Withdrawal in breach of the Injunction Order. A fine of $15,000 (in default, ten days’ imprisonment) was imposed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Matthew Peloso found in contempt of court for breaching an injunction order by withdrawing funds. The court imposed a fine of $15,000 and ordered him to pay costs.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd)ApplicantCorporationPartialPartialMohammed Reza s/o Mohammed Riaz, Victoria Katerina Jones, Kwek Yuan, Justin
Matthew PelosoRespondentIndividualLostLostLim Chee San

3. Judges

Judge NameTitleDelivered Judgment
Chua Lee MingJudgeYes

4. Counsels

Counsel NameOrganization
Mohammed Reza s/o Mohammed RiazJWS Asia Law Corporation
Victoria Katerina JonesJWS Asia Law Corporation
Kwek Yuan, JustinJWS Asia Law Corporation
Lim Chee SanTanLim Partnership

4. Facts

  1. RCMA commenced proceedings against Peloso alleging breach of an injunction order.
  2. The injunction order restrained SEP from disposing of RCMA’s 70% share of FSC Payments.
  3. Peloso withdrew S$1.5m from the OCBC Account and loaned it to SEEAPL.
  4. The OCBC Account had been set up for the specific purpose of receiving the FSC Payments.
  5. The September 2018 Withdrawal left the OCBC Account short of the amount required for the Injunction Funds.
  6. Peloso transferred a total amount of S$6,091,555.39 from the OCBC Account to the DBS Account.
  7. Kashish obtained a garnishee order in respect of the moneys in the DBS Account.

5. Formal Citations

  1. RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd) v Peloso, Matthew, Originating Summons No 1137 of 2019, Summons No 4835 of 2019, [2021] SGHC 7

6. Timeline

DateEvent
Energy Market Authority of Singapore introduced the Forward Sales Contract Scheme
SEP assigned to RCMA 70% of all its "present and future rights" to receive the FSC Payments
RCMA commenced Suit 191 against SEP
Court granted an interim injunction restraining SEP from disposing, dealing with or diminishing RCMA’s 70% share of FSC Payments
Court granted RCMA an interim injunction, pending final determination of Suit 191
Peloso withdrew S$1.5m from the OCBC Account and loaned it to Sun Electric Energy Assets Pte Ltd
Peloso transferred S$2m from the OCBC Account to the DBS Account
Peloso transferred S$4m from the OCBC Account to the DBS Account
Peloso transferred S$91,555.39 from the OCBC Account to the DBS Account
Kashish Worldwide FZE sued SEP in Suit 74
Kashish entered default judgment against SEP
Kashish obtained a garnishee order to show cause in respect of the DBS Account
Court made a final garnishee order in respect of the moneys in the DBS Account
DBS Bank Ltd paid the sum of S$6,091,555.39 from the DBS Account to Kashish
SEP applied to place itself under judicial management in Originating Summons No 1060 of 2019
RCMA applied for leave to apply for an order of committal against Peloso
Leave was granted to RCMA to apply for an order of committal against Peloso
Court granted RCMA’s application for Peloso to be cross-examined on the affidavits that he had filed in these proceedings
Peloso was cross-examined on his affidavits
Judgment was delivered

7. Legal Issues

  1. Breach of Injunction Order
    • Outcome: The court found that Peloso breached the Injunction Order by causing the September 2018 Withdrawal.
    • Category: Substantive
    • Sub-Issues:
      • Withdrawal of funds subject to injunction
      • Disposing of assets subject to injunction
      • Diminishing the value of assets subject to injunction
    • Related Cases:
      • [2010] 4 SLR 801
  2. Contempt of Court
    • Outcome: The court found Peloso in contempt of court and imposed a fine of $15,000 (in default, ten days’ imprisonment).
    • Category: Substantive
    • Sub-Issues:
      • Civil contempt
      • Sentencing for contempt
  3. Requirements for Committal Applications
    • Outcome: The court held that RCMA was not entitled to rely on the alleged conspiracy in these proceedings because it was not one of the grounds in the O 52 Statement.
    • Category: Procedural
    • Sub-Issues:
      • Sufficiency of particulars in the O 52 r 2 statement
      • Boundaries of the applicant's case
      • Burden of proof for allegations of conspiracy
    • Related Cases:
      • [2016] 3 SLR 1
      • [2014] 2 SLR 1261

8. Remedies Sought

  1. Order of committal against Peloso
  2. Payment of S$6,533,333.52 to the DBS Account

9. Cause of Actions

  • Contempt of Court

10. Practice Areas

  • Civil Contempt

11. Industries

  • Energy

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Lee Shieh-Peen Clement and another v Ho Chin Nguang and othersHigh CourtYes[2010] 4 SLR 801SingaporeCited for the principle that an injunction order must be complied with both in letter and in spirit.
Mok Kah Hong v Zheng Zhuan YaoCourt of AppealYes[2016] 3 SLR 1SingaporeCited for the fundamental rule of justice that a person called upon to answer a charge must first know the precise case he has to meet and should be accorded ample opportunity to refute the allegations.
STX Corp v Jason Surjana Tanuwidjaja and othersCourt of AppealYes[2014] 2 SLR 1261SingaporeCited for the principle that the burden was on RCMA to prove the alleged conspiracy beyond a reasonable doubt.

13. Applicable Rules

Rule Name
Order 52, Rule 2 of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 2014 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Injunction Order
  • FSC Payments
  • OCBC Account
  • DBS Account
  • September 2018 Withdrawal
  • Contempt of Court
  • Garnishee Order
  • Judicial Management

15.2 Keywords

  • Contempt of court
  • injunction
  • RCMA Asia
  • Matthew Peloso
  • SEP
  • FSC Payments
  • Singapore High Court

16. Subjects

  • Contempt of Court
  • Civil Procedure
  • Injunctions

17. Areas of Law

  • Contempt of Court
  • Civil Procedure
  • Injunctions