Hyphen Trading v BLPL Singapore: Sale of Cargo Pendente Lite Dispute

In Hyphen Trading Limited v BLPL Singapore Pte Ltd and others, the Singapore High Court dismissed Hyphen Trading's application for the sale of a cargo of nickel briquettes pendente lite. Hyphen Trading sought the sale under Order 13 Rule 4(1) of the Rules of Court 2021, citing diminishing value and accruing costs. The court, presided over by S Mohan J, found insufficient evidence to support the claim that the cargo's value was likely to diminish or that a sale was in the interests of justice. The court ordered Hyphen Trading to pay costs of S$14,000 to the third defendant.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Claimant's application for sale of cargo pendente lite dismissed.

1.3 Case Type

Admiralty

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court case concerning the sale of nickel briquettes pendente lite. The court dismissed the application, citing insufficient evidence of diminishing value.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Trafigura Pte LtdDefendantCorporationNeutralNeutral
Hyphen Trading LimitedClaimant, Defendant in CounterclaimCorporationApplication DismissedLost
BLPL Singapore Pte LtdDefendant, Claimant in CounterclaimCorporationNeutralNeutral
Trafigura India Pvt LtdDefendantCorporationWonWon

3. Judges

Judge NameTitleDelivered Judgment
S MohanJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Tan Hui TsingDennisMathiew
Mathiew Christophe RajooDennisMathiew
Lim Min IsabelDennisMathiew
Teo Ke-Wei IanHelmsman LLC
Tan Yong Jin JonathanHelmsman LLC
Khng UnaHelmsman LLC
Cheng Le En LeanneHelmsman LLC

4. Facts

  1. Hyphen Trading claimed ownership of a cargo of nickel briquettes.
  2. BLPL Singapore was the contractual carrier of the cargo.
  3. Trafigura India claimed possession of the original bills of lading.
  4. The cargo was stored at Henry Bath LME warehouse in Port Klang, Malaysia.
  5. Hyphen Trading sought a sale pendente lite due to diminishing value and accruing costs.
  6. The court had previously ordered preservation of the cargo at the warehouse.
  7. The claimant undertook to bear the costs of maintaining the storage of the Cargo at the Henry Bath LME warehouse.

5. Formal Citations

  1. Hyphen Trading Ltd v BLPL Singapore Pte Ltd and others, , [2023] SGHC 302
  2. Hyphen Trading Limited v BLPL Singapore Pte Ltd, Admiralty in Personam No 14 of 2023, Admiralty in Personam No 14 of 2023

6. Timeline

DateEvent
Second and third defendants claimed third defendant was lawful holder of original bills of lading.
Claimant asserted it was the lawful holder of the original bills of lading.
First defendant stated that the copies of the bills of lading provided by the claimant were not issued by the first defendant.
Claimant commenced ADM 14 seeking a declaration that it is entitled to take delivery of the Cargo.
Claimant filed SUM 591 seeking an order for the preservation of the Cargo.
Court granted the order sought in SUM 591 in ORC 1013.
Claimant filed SUM 2034 seeking an order for a sale pendente lite of the Cargo.
Hearing date.
Court dismissed SUM 2034.
Oral grounds for decision provided.
Full grounds of decision provided.

7. Legal Issues

  1. Sale of Cargo Pendente Lite
    • Outcome: The court dismissed the application for sale of cargo pendente lite.
    • Category: Procedural
  2. Diminution of Value
    • Outcome: The court found insufficient evidence to support the claim that the cargo's value was likely to diminish.
    • Category: Substantive
  3. Interests of Justice
    • Outcome: The court determined that a sale of the cargo pendente lite was not in the interests of justice.
    • Category: Substantive

8. Remedies Sought

  1. Order for sale of cargo pendente lite
  2. Proceeds to be placed in court or escrow account

9. Cause of Actions

  • Declaration of Entitlement to Cargo

10. Practice Areas

  • Admiralty
  • Commercial Litigation

11. Industries

  • Commodity Trading
  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
The MyrtoLloyd’s RepYes[1977] 2 Lloyd’s Rep 243England and WalesCited for the principle that a court may order a sale of movable property pendente lite where there is good reason for it and it is in the interests of justice to do so.
Emilia Shipping Inc v State Enterprise for Pulp and Paper IndustriesHigh CourtYes[1991] 1 SLR(R) 411SingaporeCited as an example where the court ordered the sale of property due to significant diminution in value on account of accruing storage and other costs.
Five Ocean Corp v Cingler Ship Pte Ltd (PT Commodities & Energy Resources, intervener)High CourtYes[2016] 1 SLR 1159SingaporeCited as an example where the court ordered the sale of property due to significant diminution in value on account of accruing storage and other costs.
Unicorn Lines (Pty) Ltd v MV Michalis SDurban and Coast Local DivisionYes1990 (3) SA 817 (D)South AfricaCited for the principle that the fact that the costs of storing and maintaining the cargo pending the conclusion of the dispute are not such as to materially or significantly diminish the value of the property is a relevant consideration against ordering the sale of the cargo.
Banco Do Brasil SA v Alexandros G Tsavliris (The)Federal CourtYes[1987], 12 FTR 278 (TD)CanadaCited as a case where the court considered factors relevant to the exercise of discretion on whether to order a sale of movable property pendente lite.
The United States of America v The Owners of the Vessels, Jade Phoenix and Golden PhoenixHigh CourtYes[1988] 2 CLJ 526MalaysiaCited for the principle that the absence of any charges, expenses or costs that would progressively eat into and diminish the value of the vessels was an important factor in the court’s decision to refuse to order the sale of the ships pendente lite.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Order 13 rule 4(1) of the Rules of Court 2021Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Nickel briquettes
  • Bills of lading
  • Sale pendente lite
  • Cargo
  • LME warehouse
  • De-warranted
  • Storage costs
  • Preservation costs

15.2 Keywords

  • Admiralty
  • Shipping
  • Sale of Goods
  • Pendente Lite
  • Nickel
  • Cargo

17. Areas of Law

Area NameRelevance Score
Shipping90
Admiralty and Maritime Law90
Sale Pendente Lite80
Bills of Lading70
Sale of Goods60
Contract Law50
Breach of Contract40
Civil Procedure30
Evidence20
Judgments and Orders20
Property Law20
Business Litigation10

16. Subjects

  • Admiralty
  • Shipping
  • Civil Procedure