ILC Co v Saitama Hiroshi: Dismissal of Contempt Application for Breach of Mareva Injunction

In ILC Co, Ltd v Saitama Hiroshi and others [2023] SGHC 280, the High Court of Singapore dismissed the plaintiff's application for committal against the 3rd and 4th respondents for alleged breach of a disclosure order under a Mareva injunction. Justice Choo Han Teck found that the respondents had satisfied the injunction by securing the full claim amount against them. The court held that the plaintiff's persistence in seeking further disclosure to uncover assets of another party was improper and an abuse of process. Costs were awarded to the 3rd and 4th respondents.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Committal application dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Contempt application dismissed as respondents complied with Mareva injunction by securing the claim amount. Court found no evidence of concealed assets.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
ILC Co, LtdApplicantCorporationApplication DismissedLost
Saitama HiroshiRespondentIndividual
Hora YoheiRespondentIndividual
Asia Capital Management Pte LtdRespondentCorporationApplication DismissedWon
Oshima YumikoRespondentIndividualApplication DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Faith HwangRajah & Tann Singapore LLP
Ang Leong HaoRajah & Tann Singapore LLP
Jansen ChowRajah & Tann Singapore LLP
Edward N. OngFocus Law Asia LLC
Mark TanFocus Law Asia LLC
Zeng HanyiFocus Law Asia LLC

4. Facts

  1. The plaintiff applied for committal against the 3rd and 4th respondents for breach of a disclosure order under a Mareva injunction.
  2. The 1st and 2nd respondents are enjoined up to US$6,718,925.11, and the 3rd and 4th respondents to US$194,031.23.
  3. The 3rd and 4th respondents secured the plaintiff’s full claim against them by setting aside US$194,031.23 in a separate DBS bank account.
  4. The plaintiff believes that the 3rd and 4th respondents are assisting the 1st respondent to conceal his assets.
  5. The plaintiff applied for the Mareva injunction under HC/OA 153/2023, which was an application for leave for the plaintiff to commence a derivative action under s 216A of the Companies Act.
  6. The plaintiff has been the majority shareholder of AEI since 27 July 2023.
  7. The 1st and 2nd respondents had been removed as directors of AEI on 26 April 2023.

5. Formal Citations

  1. ILC Co, Ltd v Saitama Hiroshi and others, Originating Application No 652 of 2023(Summons No 2452 of 2023), [2023] SGHC 280

6. Timeline

DateEvent
Affidavit filed in support of obtaining the Mareva injunction
1st and 2nd respondents removed as directors of AEI
Plaintiff became the majority shareholder of AEI
Hearing date
Judgment date

7. Legal Issues

  1. Breach of Disclosure Order
    • Outcome: The court held that the 3rd and 4th respondents did not breach the disclosure order because they had secured the plaintiff's full claim against them.
    • Category: Substantive
  2. Abuse of Process
    • Outcome: The court found that the plaintiff's persistence in seeking further disclosure was an abuse of process because it was aimed at uncovering assets of another party.
    • Category: Procedural

8. Remedies Sought

  1. Committal

9. Cause of Actions

  • Contempt of Court

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
ILC Co, Ltd v Saitama Hiroshi and othersHigh CourtNo[2023] SGHC 206SingaporeCited as the judgment where leave was granted for the committal application against the 3rd and 4th respondents.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Companies Act 1967 (2020 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Mareva injunction
  • Disclosure order
  • Committal application
  • Abuse of process
  • Derivative action
  • Companies Act

15.2 Keywords

  • Contempt
  • Mareva Injunction
  • Disclosure
  • Assets
  • Companies Act
  • Singapore

17. Areas of Law

Area NameRelevance Score
Civil Contempt95
Mareva Injunctions90
Injunctions80
Abuse of Process60
Company Law40
Companies Act40
Civil Procedure30
Costs20

16. Subjects

  • Civil Procedure
  • Contempt of Court
  • Injunctions