Crédit Agricole Corporate & Investment Bank, Singapore Branch vs PPT Energy Trading Co Ltd

This case involved a commercial dispute between Crédit Agricole Corporate & Investment Bank, Singapore Branch (CACIB) and PPT Energy Trading Co Ltd (PPT) over issues of costs, interest, and damages arising from fraudulent transactions.

TLDR:

• CACIB filed an appeal against PPT regarding costs, interest, and damages.
• The Court of Appeal addressed the complex issues of fraudulent transactions and the associated liabilities.
• The court awarded damages to CACIB but also made significant rulings on interest and costs.

The Appeals arose out of two cases heard by the Singapore International Commercial Court (SICC), where CACIB was the plaintiff in one and the defendant in the other, with PPT being the opposing party in both cases. The disputes involved fraudulent transactions orchestrated by Zenrock Commodities Trading Pte Ltd, leading to complex legal proceedings.

On 28 May 2020, CACIB commenced a suit seeking a permanent injunction to restrain payment under a letter of credit issued in favor of PPT. Concurrently, PPT filed a claim against CACIB for the sum of US$23,662,732.50. The cases were eventually transferred to the SICC, where the trial took place over eight working days in December 2021.

The SICC Judge dismissed CACIB's claims and allowed PPT's counterclaims, leading to CACIB filing the Appeals. The Court of Appeal's judgment addressed the issues of costs and interest payable on the sums awarded, as well as the quantum of damages.

The court found that CACIB was entitled to damages due to PPT's breach of warranty under a letter of indemnity. The court also addressed the interest payable on the sums awarded and the costs of the SICC proceedings and the Appeals, leading to a detailed analysis of the parties' submissions and the final orders on costs and interest.

The Court of Appeal awarded CACIB interest on the sums due and ordered that the costs incurred be reimbursed, with a significant discount applied to account for the complexity and partial success of the claims. The judgment provides crucial insights into the handling of costs and interest in commercial disputes involving fraudulent transactions.

The judgment also highlights the importance of adhering to contractual obligations and the consequences of fraudulent activities in commercial transactions.

Legal representatives: Nair Suresh Sukumaran, Tan Tse Hsien Bryan (Chen Shixian), and Alex Chia Yao Wei (PK Wong & Nair LLC) for the appellant; Giam Chin Toon SC, Lee Wei Yuen Arvin (Li Weiyun), and Wan Hui Ting Monique (Wen Huiting) (Wee Swee Teow LLP) for the respondent.

Judicial Panel: Judith Prakash SJ, Jonathan Hugh Mance IJ, Bernard Rix IJ

Case Citation Reference: [2024] SGCA(I) 3