The Bunga Melati 5 – The Saga Ends

The saga began when Equatorial Marine Fuel Management Services Pte Ltd (the "Plaintiff") commenced an in rem action against the Bunga Melati 5 which was a ship belonging to MISC Berhad (the "Defendant"). The Defendant responded by applying to strike out the writ of summons. The application first came before an Assistant Registrar who agreed with the Defendant and struck out the writ of summons on the basis that (i) the court lacked admiralty jurisdiction and (ii) that the Plaintiff's claims were plainly and obviously unsustainable. The Plaintiff appealed to a judge in chambers who, however, agreed that the Plaintiff's claims were plainly and obviously unsustainable and therefore dismissed the Plaintiff's appeal. The Plaintiff appealed further to the Court of Appeal which decided that the Plaintiff's main argument (i.e. that the Defendant was the party liable to the Plaintiff under the doctrine of agency by estoppel) was not so factually or legally unsustainable that it ought to have been summarily struck out by the court below. The Plaintiff was, therefore, allowed to take its action to trial.

Unfortunately for the Plaintiff, after a full trial at which all the evidence was presented and tested, the judge ruled that agency by estoppel did not arise on the facts. The Plaintiff appealed to the Court of Appeal which, again unfortunately for the Plaintiff, upheld the judge's ruling and dismissed the appeal. The Plaintiff therefore ultimately lost.

The Issue in Question

By the time the dispute reached the Court of Appeal, the Plaintiff sought a determination on only one point viz. was the judge right to find that the Defendant was not estopped from denying that Market Asia Link Sdn Bhd ("MAL") was its agent. At the heart of the...