OW Bunker In Singapore – Where Are We?

Co-authored by: Mohan Subbaraman, Bernard Yee

Although the Singapore courts have not, to date, been required to consider the legal issues which have recently come before the English courts in the Res Cogitans, the cases which have come before the Singapore courts indicate that the courts may be no more sympathetic to the plight of the owners and physical bunker suppliers than the UK courts have been, and that the remedy for physical bunkers suppliers most probably lies in proving their claims in insolvency proceedings against OW Bunker.

Introduction To date, the Singapore courts have only handed down two decisions related to the ongoing OW Bunker saga. Both of these cases were decisions handed down by Mr Steven Chong J, sitting in the Singapore High Court:

1. Precious Shipping Public Co Ltd and others v OW Bunker Far East (Singapore) Pte Ltd and others and other matters [2015] SGHC 187 (Precious Shipping); and

2. The Xin Chang Shu [2015] SGHC 308 (Xin Chang Shu).

   Summaries of the facts, legal analysis and decisions in those cases are set down below. As will be apparent, neither of these cases examines the principal legal issues recently considered by the English courts relating to OW Bunker's insolvency and, in particular, by Lord Mance in the Res Cogitans Supreme Court judgment of 11 May 2016.

   Rather, the first case of Precious Shipping considers in detail the threshold which must be met for an application for interpleader relief to succeed. The second case of Xin Chang Shu provides a useful overview of wrongful arrest in Singapore and in what circumstances the courts will award damages. That said, this doesn't mean it is the end of the road for OW developments in Singapore and, in particular, Reed Smith (in alliance with Resource Law) is aware of further interpleader and other suits being pursued in the Singapore Courts relating to OW Bunker insolvency which will be reported on as and when cases come to light.

   OW Bunker related cases in Singapore

   Precious Shipping The case of Precious Shipping concerns 13 consolidated applications for interpleader relief. S Mohan and Bernard Yee represented Precious Shipping, who were one of the applicants.

   Interpleader summons relief is generally available where a (prospective) defendant faces rival claims in respect of an admitted liability for debt, money, goods or chattels from at least two (prospective) competing claimants, and wishes to determine the incidence of that admitted liability to the exclusion of one of those competing claims.

   Each of the 13 individual summonses in Precious Shipping involved three principal parties, being:

1. The...