Re PT Garuda Indonesia: Recognition of Foreign Insolvency Proceeding & Costs Dispute
The Singapore International Commercial Court heard an application by Irfan Setiaputra and Prasetio, foreign representatives of PT Garuda Indonesia, for recognition and relief under the UNCITRAL Model Law on Cross Border Insolvency. The application was opposed by Greylag Goose Leasing Entities. The court allowed the application, recognizing Garuda Indonesia's restructuring proceedings in Jakarta as a foreign main proceeding. This judgment addresses the costs of the application, with the court ordering the Greylag Entities to pay the applicants US$228,503.70 in costs, IDR 277,500,000 for experts' fees, S$784.08 and IDR 41,636,921 for experts' disbursements, and S$11,293.71 for other disbursements.
1. Case Overview
1.1 Court
Singapore International Commercial Court1.2 Outcome
Greylag Goose Leasing Entities to pay applicants US$228,503.70 in costs, IDR 277,500,000 for experts' fees, S$784.08 and IDR 41,636,921 for experts' disbursements, and S$11,293.71 for other disbursements.
1.3 Case Type
Insolvency
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court addresses costs in recognizing Garuda Indonesia's restructuring, focusing on reasonableness and proportionality of legal fees.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Irfan Setiaputra | Applicant | Individual | Successful party entitled to costs | Won | |
| Prasetio | Applicant | Individual | Successful party entitled to costs | Won | |
| Greylag Goose Leasing 1410 Designated Activity Company | Non-party | Corporation | Unsuccessful party to bear costs | Lost | |
| Greylag Goose Leasing 1446 Designated Activity Company | Non-party | Corporation | Unsuccessful party to bear costs | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kannan Ramesh | Judge of the Appellate Division | No |
| Anselmo Reyes | International Judge | No |
| Christopher Scott Sontchi | International Judge | Yes |
4. Counsels
4. Facts
- Irfan Setiaputra and Prasetio, foreign representatives of PT Garuda Indonesia, applied for recognition and relief under the UNCITRAL Model Law.
- The application was opposed by the Greylag Goose Leasing Entities.
- The applicants had filed similar proceedings in the US Bankruptcy Court for the Southern District of New York.
- The applicants withdrew their application in the SDNY shortly before a joint hearing protocol was due to be filed.
- The Greylag Entities brought an application for production of documents (SUM 34), which was dismissed.
- The court allowed the application and recognised Garuda Indonesia’s restructuring proceedings in Jakarta as a foreign main proceeding.
- The court granted reliefs for legal proceedings between Garuda Indonesia and the Greylag Entities to be stayed.
5. Formal Citations
- Re PT Garuda Indonesia (Persero) Tbk and another matter, Originating Application No 5 of 2022, [2024] SGHC(I) 18
6. Timeline
| Date | Event |
|---|---|
| OA 5 filed in the General Division of the High Court | |
| Case transferred to the Singapore International Commercial Court | |
| Applicants withdrew their application in the SDNY | |
| SUM 34 application for production of documents brought by Greylag Entities | |
| Judgment issued allowing the application | |
| Applicants’ written submissions on costs and updated costs schedule received | |
| Greylag Entities’ reply submissions on costs filed | |
| Responsive costs submissions from the applicants filed | |
| Judgment reserved | |
| Judgment reserved |
7. Legal Issues
- Costs
- Outcome: The court determined the quantum of costs payable by the Greylag Entities to the applicants.
- Category: Procedural
- Sub-Issues:
- Reasonableness of costs
- Proportionality of costs
- Issue-based approach to costs
- Recognition of Foreign Insolvency Proceeding
- Outcome: The court allowed the application and recognised Garuda Indonesia’s restructuring proceedings in the Jakarta Commercial Court as a foreign main proceeding.
- Category: Substantive
8. Remedies Sought
- Recognition of foreign insolvency proceeding
- Stay of legal proceedings
9. Cause of Actions
- Application for recognition and relief under the UNCITRAL Model Law on Cross Border Insolvency
10. Practice Areas
- Commercial Litigation
- Insolvency
- Cross Border Insolvency
11. Industries
- Aviation
- Leasing
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Re PT Garuda Indonesia (Persero) Tbk and another matter | Singapore International Commercial Court | Yes | [2024] SGHC(I) 1 | Singapore | The current judgment refers to this judgment for the underlying circumstances of OA 5. |
| CJM and others v CJT | Singapore High Court | Yes | [2021] 5 SLR 222 | Singapore | Cited as a past SICC case regarding costs awards. |
| Asiana Airlines, Inc v Gate Gourmet Korea Co, Ltd | Singapore High Court | Yes | [2022] 4 SLR 158 | Singapore | Cited as a past SICC case regarding costs awards. |
| BXS v BXT | Singapore High Court | Yes | [2019] 5 SLR 48 | Singapore | Cited as a past SICC case regarding costs awards. |
| CYW v CYX | Singapore High Court | Yes | [2024] 3 SLR 125 | Singapore | Cited as a past SICC case regarding costs awards. |
| Senda International Capital Ltd v Kiri Industries Ltd | Court of Appeal | Yes | [2023] 1 SLR 96 | Singapore | Cited for the principles relating to the assessment of costs in SICC cases. |
| Comfort Management Pte Ltd v OGSP Engineering Pte Ltd and another | Singapore High Court | Yes | [2022] 5 SLR 525 | Singapore | Cited for the principles regarding an issue-based approach to costs and Type II orders. |
| CBX and another v CBZ and others | Singapore High Court | Yes | [2022] 1 SLR 88 | Singapore | Cited in Senda International Capital Ltd v Kiri Industries Ltd [2023] 1 SLR 96 at [79] regarding the relevance of previous costs awards. |
13. Applicable Rules
| Rule Name |
|---|
| Singapore International Commercial Court Rules 2021 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Insolvency, Restructuring and Dissolution Act 2018 | Singapore |
| Goods and Services Tax Act 1993 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- UNCITRAL Model Law on Cross Border Insolvency
- Foreign main proceeding
- Costs
- Proportionality
- Reasonableness
- Issue-based approach
- Carve-outs
- Disbursements
- Experts' fees
- SICC Rules
15.2 Keywords
- Garuda Indonesia
- Insolvency
- Cross Border
- Costs
- Singapore
- SICC
- Greylag
- Restructuring
17. Areas of Law
16. Subjects
- Insolvency
- Civil Procedure
- Costs