Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 1 - Jan/Feb/Mar 2021
 

Singapore High Court Issues Significant Judgment on Freezing Injunctions in Cross-Border Insolvency and Asset Recovery Claim

In Allenger, Shiona (Trustee-in-bankruptcy of the Estate of Pelletier, Richard Paul Joseph) v Pelletier, Olga and another [2020] SGHC 279, Rajah and Tann Singapore's Fraud, Asset Recovery and Investigations team led by Partners Danny Ong and Yam Wern-Jhien, and assisted by Bethel Chan and Chen Lixin, prevailed in a significant decision examining principles governing the grant of freezing injunctions against foreign defendants in the context of a cross-border insolvency and asset recovery claim. The Court had to consider its subject-matter jurisdiction over a claim founded in Cayman bankruptcy law, as well as its in personam jurisdiction over the defendants.


The team successfully argued that the Singapore High Court has subject-matter jurisdiction to adjudicate claims based on foreign avoidance laws. The High Court held that the Singapore courts do not require enabling legislation in order to have jurisdiction in a specific subject-matter, and that the mere fact that the cause of action here arose under a foreign insolvency legislation (Cayman Bankruptcy Law) was not a bar to its being adjudicated in Singapore.


The Court also accepted the team's submission that the foreign defendants had submitted to the Singapore courts' jurisdiction by failing to promptly raise a jurisdictional challenge and taking various steps in the proceedings that were inconsistent with an intention to challenge the Singapore court's jurisdiction. As a result, the Court found that it had in personam jurisdiction over the defendants.


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Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

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Contacts:

Francis Xavier, SC, PBM
Partner
D +65 62320551
francis.xavier@rajahtann.com

Chia Kim Huat
Partner
D +65 62320464
kim.huat.chia@rajahtann.com

Howard Cheam
Partner
D +65 62320685
howard.cheam@rajahtann.com

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