Three Arrows Capital Ltd v Cheong Jun Yoong: Application to Set Aside Service of Claim Out of Jurisdiction Dismissed
The Appellate Division of the High Court of Singapore heard an application by Three Arrows Capital Ltd and its liquidators against Cheong Jun Yoong, seeking permission to appeal the High Court's decision to dismiss their application to set aside the service of an originating claim out of jurisdiction. The claim concerns a dispute over assets in the 'DeFiance Capital' fund managed by Mr. Cheong. The court dismissed the application for permission to appeal, finding no questions of general principle or importance and no prima facie case of error.
1. Case Overview
1.1 Court
Appellate Division of the High Court1.2 Outcome
Application for permission to appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses application to set aside service of claim out of jurisdiction in dispute over DeFiance Capital fund assets.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Three Arrows Capital Ltd | Applicant, Defendant | Corporation | Application for permission to appeal dismissed | Lost | Lionel Leo Zhen Wei, Liu Zhao Xiang, Kwong Kai Sheng, T Abirami |
| Christopher Farmer | Applicant, Defendant | Individual | Application for permission to appeal dismissed | Lost | Lionel Leo Zhen Wei, Liu Zhao Xiang, Kwong Kai Sheng, T Abirami |
| Russell Crumpler | Applicant, Defendant | Individual | Application for permission to appeal dismissed | Lost | Lionel Leo Zhen Wei, Liu Zhao Xiang, Kwong Kai Sheng, T Abirami |
| Cheong Jun Yoong | Respondent, Claimant | Individual | Costs awarded | Won | Hing Shan Shan Blossom, Chin Tian Hui Joshua, Claire Neoh Kai Xin |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Debbie Ong | Judge of the Appellate Division | No |
| Valerie Thean | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lionel Leo Zhen Wei | WongPartnership LLP |
| Liu Zhao Xiang | WongPartnership LLP |
| Kwong Kai Sheng | WongPartnership LLP |
| T Abirami | WongPartnership LLP |
| Hing Shan Shan Blossom | Drew & Napier LLC |
| Chin Tian Hui Joshua | Drew & Napier LLC |
| Claire Neoh Kai Xin | Drew & Napier LLC |
4. Facts
- Three Arrows Capital Ltd was placed under liquidation by a BVI court.
- The Liquidators obtained an order for the BVI Liquidation Proceedings to be recognised in Singapore.
- Mr Cheong managed a portfolio of assets in Three Arrows named as “DeFiance Capital”.
- Mr Cheong filed an application for permission to commence proceedings against Three Arrows.
- Permission was granted to Mr Cheong to commence proceedings against Three Arrows.
- The applicants applied for the service of court documents in the Singapore Claim to be set aside.
- The BVI court dismissed Mr Cheong’s BVI Setting Aside Application.
5. Formal Citations
- Three Arrows Capital Ltd and others v Cheong Jun Yoong, Originating Application No 42 of 2023, [2024] SGHC(A) 10
6. Timeline
| Date | Event |
|---|---|
| Three Arrows Capital Ltd placed under liquidation by a BVI court. | |
| Liquidators obtained an order for the BVI Liquidation Proceedings to be recognised in Singapore. | |
| Mr Cheong filed an application for permission to commence proceedings against Three Arrows. | |
| Permission granted to Mr Cheong to commence proceedings against Three Arrows. | |
| Mr Cheong applied to set aside the BVI court order granting the Liquidators permission to serve the Parallel BVI Proceeding. | |
| Mr Cheong commenced the Singapore Claim. | |
| Mr Cheong applied for approval to serve the Originating Claim on the applicants in the BVI. | |
| Approval was granted for the Originating Claim to be served on the applicants in the BVI. | |
| The applicants applied for the service of court documents in the Singapore Claim to be set aside. | |
| The BVI court heard the application to set aside the BVI court order. | |
| The Judge dismissed the application to set aside the service of court documents. | |
| The BVI court dismissed Mr Cheong’s BVI Setting Aside Application. | |
| The Judge released his written grounds of decision for his decision. | |
| Hearing date. | |
| Judgment date. |
7. Legal Issues
- Service out of Jurisdiction
- Outcome: The court found that the requirements for service out of jurisdiction were satisfied.
- Category: Procedural
- Sub-Issues:
- Forum conveniens
- Sufficient nexus to Singapore
- Full and frank disclosure
- Forum Conveniens
- Outcome: The court found that Singapore was the more appropriate forum compared to the BVI.
- Category: Procedural
- Existence of Trust
- Outcome: The court considered that there was a serious question to be tried as to the existence of the trust.
- Category: Substantive
8. Remedies Sought
- Declaration of Trust
- Proprietary Relief
9. Cause of Actions
- Breach of Trust
- Proprietary Rights
10. Practice Areas
- Commercial Litigation
- Insolvency Litigation
- Trust Litigation
- Cryptocurrency Disputes
11. Industries
- Finance
- Investment Management
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lee Kuan Yew v Tang Liang Hong and another | High Court | Yes | [1997] 2 SLR(R) 862 | Singapore | Cited for the grounds on which permission to appeal may be granted. |
| Soo Hoo Khoon Peng v Management Corporation Strata Title Plan No 2906 | High Court | Yes | [2023] SGHC 355 | Singapore | Cited for the requirement that the denial of permission to appeal must result in a miscarriage of justice. |
| Rothstar Group Ltd v Leow Quek Shiong and other appeals | Court of Appeal | Yes | [2022] 2 SLR 158 | Singapore | Cited for the principle that an appellate court will generally be open to consider new arguments involving questions of law. |
| Liew Kit Fah and others v Koh Keng Chew and others | Court of Appeal | Yes | [2020] 1 SLR 275 | Singapore | Cited for the principle that an appellate court will generally be open to consider new arguments involving questions of law. |
| Russell Crumpler et al. v Cheong Jun Yoong et al. | High Court of Justice (Commercial Division) | No | BVIHC (COM) 2023/0003; 2022/0119 | British Virgin Islands | Cited for the BVI court's decision on the requirements for service out of jurisdiction and the forum conveniens analysis. |
| Cheong Jun Yoong v Three Arrows Capital Ltd and others | High Court | Yes | [2024] SGHC 21 | Singapore | Cited as the Singapore GD, the written grounds of decision for the Judge's decision in SUM 2078. |
| Anil Singh Gurm v J S Yeh & Co and another | High Court | Yes | [2018] SGHC 221 | Singapore | Cited for the factors considered in determining whether a question is of such importance that a decision of a higher tribunal would be to the public advantage. |
| Luckin Coffee Inc v Interactive Digital Finance Ltd and others | High Court (Appellate Division) | Yes | [2024] SGHC(A) 7 | Singapore | Cited for the principle that permission to appeal is not granted over an issue that will not alter the outcome of the case. |
| Ivanishvili, Bidzina and others v Credit Suisse Trust Ltd | Court of Appeal | Yes | [2020] 2 SLR 638 | Singapore | Cited for the principle that where the legal issues are straightforward or if the competing fora apply substantially similar domestic laws, the identity of the governing law would be of little significance. |
| Lakshmi Anil Salgaocar v Jhaveri Darsan Jitendra | Court of Appeal | Yes | [2019] 2 SLR 372 | Singapore | Cited for the principle that the governing law of the dispute was of no relevance to the identification of the forum conveniens as there was no suggestion that the BVI or Singapore court would apply different principles which would affect the outcome of the dispute. |
| Beluga Chartering GmbH (in liquidation) and others v Beluga Projects (Singapore) Pte Ltd (in liquidation) and another (deugro (Singapore) Pte Ltd, non-party) | Court of Appeal | Yes | [2014] 2 SLR 815 | Singapore | Cited for the principle that the commencement of legal proceedings against a defendant foreign company is not precluded by the mere fact that insolvency proceedings have been commenced against the company in another jurisdiction. |
| Sun Jin Engineering Pte Ltd v Hwang Jae Woo | Court of Appeal | Yes | [2011] 2 SLR 196 | Singapore | Cited for the principle that submission to jurisdiction may relate to the existence of jurisdiction in that court but another jurisdiction may still be considered the forum conveniens in respect of the exercise of jurisdiction. |
| Lin Jianwei v Tung Yu-Lien Margaret and another | Court of Appeal | Yes | [2021] 2 SLR 683 | Singapore | Cited for the principle that matters concerning the application of established principles do not raise a question of general principle. |
| Rodeo Power Pte Ltd and others v Tong Seak Kan and another | High Court (Appellate Division) | Yes | [2022] SGHC(A) 16 | Singapore | Cited for the principle that any error must be an error of law save where, in exceptional circumstances, the error is one of fact which is obvious from the record. |
| IW v IX | High Court | Yes | [2006] 1 SLR(R) 135 | Singapore | Cited for the principle that in the forum conveniens analysis, where the weightage of matters of fact varies from case to case, the decision is not a scientific exercise but one of judgment. |
13. Applicable Rules
| Rule Name |
|---|
| Eastern Caribbean Supreme Court Civil Procedure Rules 2000 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court 2021 | Singapore |
| Supreme Court Practice Directions 2021 | Singapore |
| Insolvency Act 2003 (No 5 of 2003) (BVI) | British Virgin Islands |
15. Key Terms and Keywords
15.1 Key Terms
- Three Arrows Capital
- DeFiance Capital
- BVI Liquidation Proceedings
- Liquidators
- Service out of jurisdiction
- Forum conveniens
- Independent Fund Arrangement
- DC Assets
- Master-feeder fund structure
- Cryptoassets
15.2 Keywords
- Three Arrows Capital
- Cheong Jun Yoong
- DeFiance Capital
- Service out of jurisdiction
- Forum conveniens
- Cryptocurrency
- Trust
- Insolvency
16. Subjects
- Civil Procedure
- Appeals
- Insolvency
- Trusts
- Cryptocurrency
17. Areas of Law
- Civil Procedure
- Appeals
- Leave
- Service
- Service out of jurisdiction
- Insolvency Law
- Trust Law
- Cryptocurrency Law