Swiss Singapore Overseas Enterprise Pte Ltd v Navalmar UK Ltd (No 2)

• Court: High Court (Singapore)
• Judgment Date: 07 November 2002
• Docket Number: Suit No 1331 of 2002 (Summons-in-Chambers
• Date: 07 November 2002

Swiss Singapore Overseas Enterprises Pte Ltd

Plaintiff

and

Navalmar UK Ltd

Defendant

[2002] SGHC 263

Choo Han Teck JC

Suit No 1331 of 2002 (Summons-in-Chambers No 4702 of 2002)

High Court

Civil Procedure–Injunctions–Application for stay of execution pending appeal against interlocutory order for mandatory injunction–Whether circumstances justify stay of execution

The defendants had issued “freight to collect” bills of lading in respect of cargo carried on board their vessel. The defendants were obliged to issue “freight prepaid” bills (“the switch bills”) in exchange for the originally issued bills when freight was paid. Although the plaintiffs paid the freight, the defendants refused to issue the switch bills. The plaintiffs, by way of an interlocutory application, obtained a mandatory injunction requiring the defendants to issue the switch bills to them. The defendants applied for a stay of execution against that order.

Held, dismissing the application for a stay of execution:

(1) In exercising the court's discretion as to whether a stay of execution ought to be granted, the court had to consider the merits of the grounds of the appeal, the balance of convenience of a stay and whether the appeal would be rendered nugatory or academic if a stay was not granted: at [7].

(2) The grounds of the intended appeal were not sufficiently strong to justify a stay: at [5] and [6].

(3) Although the order was an interlocutory one, it effectively dealt with the substantive claim. Any losses suffered by the defendants in issuing the switch bills were quantifiable and recoverable from the plaintiffs if the defendants succeeded on appeal: at [7].

Lee Sian Hee v Oh Kheng Soon [1991] 2 SLR (R) 869; [1992] 1 SLR 77 (folld)

White v Bluett (1853) 23 LJ Ex 36 (refd)

Contracts (Rights of Third Parties) Act 1999 (UK)

R Srivathsan (Haridass Ho & Partners) for the plaintiffs

Joseph Tan Wee Kong (Kenneth Tan Partnership) for the defendants.

Choo Han Teck JC

1 The defendants are the owners of the vessel Zubaran that they had chartered to an Indonesian party called Menaras. The Zubaran was carrying a cargo of timber in respect of which the defendants had issued a total of nine “freight to collect” bills of lading. They were obliged to issue “freight prepaid” bills (“the switch bills”) in exchange for the originally issued bills when freight had been paid. The plaintiffs had purchased the cargo and re-sold it to a customer in India. When the defendants refused to issue the switch bills, the plaintiffs sued in this action and on 5 November 2002, in an interlocutory application, obtained an order from Woo Bih Li JC for a mandatory injunction requiring the...