6 September, 2015
In PT Sariwiguna Binasentosa v Sindo Damai [2015] SGHCR 20, the High Court rejected an application by the Defendant judgment debtor for a stay of execution pending appeal, even though the Defendant had offered to pay the judgment sum into Court. Leong Kah Wah and Max Lim from the Shipping & International Trade Practicerepresented the Plaintiff in this matter, successfully resisting the Defendant’s application.
The Plaintiff's claim against the Defendant was for the conversion and/or misdelivery of certain tin cargo shipped under a bill of lading. In a summary judgment application before the Registrar, judgment was entered in favour of the Plaintiff. The Defendant appealed against the Registrar's decision.
As the appeal did not operate as a stay of execution, the Defendant also applied for a stay of execution of the summary judgment pending appeal on the main ground that the Plaintiff was an Indonesian company. Importantly, the Defendant offered to pay the judgment sum plus interest into Court as a condition for obtaining a stay.
Nonetheless, the High Court dismissed the Defendant's application. The Court reiterated that the touchstone for the granting of a stay pending appeal is whether the appeal, if successful, would be rendered nugatory in the circumstances. Even though the Defendant's offer to pay the judgment sum into Court provided security for the Plaintiff, it still resulted in the locking up of funds to which the Plaintiff was prima facie entitled. In the absence of evidence that the appeal would be rendered nugatory, the Defendant's offer did not in itself justify a stay pending appeal.
For further information, please contact:
Leong Kah Wah, Partner, Rajah & Tann
kah.wah.leong@rajahtann.com
