f
  •  
© Reuters.  © Reuters.

By Anshuman Daga

SINGAPORE (Reuters) - A Singapore oil trader has won favourable decisions from the Paris-based International Chamber of Commerce (ICC) against two banks in trade-finance disputes related to troubled Hin Leong Trading, documents reviewed by Reuters showed.

Winson Oil Trading Pte Ltd believes the non-binding decisions will strengthen its claims in court against Standard Chartered (OTC:SCBFF) Bank (Singapore) (L:STAN) and Oversea-Chinese Banking Corp (OCBC) (SI:OCBC), sources familiar with the matter said.

Stanchart and OCBC both declined to comment.

In June, the trader took legal action separately in Singapore against the two banks for non-payment of $30.4 million each for diesel cargoes it sold to Hin Leong Trading (Pte) Ltd that Hin Leong financed via letters of credit (LC) issued by the banks, according to court documents.

Letters of credit are standard instruments of trade finance.

Declining to honour the LC, OCBC had told Winson Oil that it had "serious doubts over the authenticity of the documents" and said Singapore-based Hin Leong had "admitted to executing fraudulent paper transactions," court documents show.

Winson Oil had said that StanChart failed to make payment, according to court documents.

Hin Leong, which used to rank among Asia's biggest independent oil traders, was placed under judicial management in April to restructure billions of dollars of debt after a crash in oil prices revealed a massive, years-long fraud at the firm.

Winson Oil's cases against the banks, which are due to be heard in Singapore, are among several disputes between counterparties of Hin Leong and banks on payment issues arising from oil deals with the trader.

Crystal Tung, executive director at Winson Oil, declined comment to Reuters on the ICC decisions, citing the court cases. Omni Law, its law firm for the cases, declined comment.

Alya Ladjimi, manager of the ICC International Centre for Alternate Dispute Resolution (ADR), declined comment, citing confidentiality.

Winson Oil's claims in the ICC against the two banks were made under its Documentary Instruments Dispute Resolution Expertise (DOCDEX) rules, administered by the ICC International Centre for ADR, the documents show.

Three lawyers contacted by Reuters said favourable DOCDEX decisions are used by companies to support their claims in court by highlighting the international expertise of ICC's panelists.

The decisions, however, are not binding unless parties have otherwise agreed. The ICC documents show that OCBC is of the view that the dispute was outside the scope of DOCDEX rules and Winson Oil had already started court proceedings.

Stanchart's lawyers requested withdrawal of the DOCDEX claim, and considered "the lawsuit more appropriate for the case," the documents show.

In the case against OCBC, ICC's panel of three independent experts unanimously concluded that under ICC's rules on documentary credits - known as UCP 600 - OCBC was "obligated to honour the presentation made against documentary credit," a document dated July 30 shows.

However, the panel said that the issue of fraud was outside the scope of UCP 600 and was for the courts to rule on.

"On the basis of that, the panel of experts is not in the position to comment on the issue of fraud," and that issue was not taken into account, according to the 8-page document.

In Winson Oil's claim against StanChart, the panel unanimously concluded that under the scope of UCP 600, the lender was "under obligation" to honour the principal amount of $30.4 million, according to the 15-page document dated Aug 4.

The document shows that the panel said it reached a conclusion that the DOCDEX procedure was suitable to address issues raised by Winson Oil and that "the pending court proceedings and the respondent's allegation of fraud" do not prevent the panel from accepting the case for DOCDEX decision.


Other relevant articles 
[2020-09-16 00:45:09] Exclusive: AT&T considers cellphone plans subsidized by ads
[2020-09-15 23:50:05] Exclusive: Investors expect reprieve on contentious U.S....
[2020-09-15 20:25:04] Exclusive: Britain has moved to break fisheries deadlock in...
[2020-09-15 15:55:03] Exclusive: Petrobras resumes oil trading with Vitol, Trafigura...
[2020-09-15 15:15:04] Exclusive: Turkish companies seek fresh debt restructuring as...
[2020-09-14 21:15:26] Exclusive: AstraZeneca COVID-19 vaccine trial in U.S. on hold until at least midweek - sources
[2020-09-14 14:35:24] Exclusive: EU to delay euro clearing decision due to Brexit...
[2020-09-13 16:15:20] Exclusive: Canada looks set for a fight over C$1 billion...
[2020-09-12 19:10:16] Exclusive: Workhorse Eyes Electric Van Sales, With or Without USPS
[2020-09-11 19:35:12] Exclusive: China would rather see TikTok U.S. close than a forced...
[2020-09-11 15:40:12] Exclusive: Tesla in talks to buy low carbon nickel from Canada -...
[2020-09-11 12:55:11] Exclusive: Vingroup weighs selling school, health units, sources...
[2020-09-10 17:05:07] Exclusive: Saudi sovereign fund PIF weighs investing in Ant IPO -...
[2020-09-10 11:20:07] Exclusive: BOJ to offer brighter view on economy, output on signs...
[2020-09-10 06:40:06] Exclusive: Russian state hackers suspected in targeting Biden...
[2020-09-10 05:55:18] Exclusive: Mexico may extend relaxed bank credit rules to help...
[2020-09-10 00:35:25] Exclusive: Boeing to face independent ethics probe over lunar...
[2020-09-09 19:40:07] Exclusive: J.C. Penney on cusp of rescue deal with landlords
[2020-09-09 19:15:08] Exclusive: French government request that LVMH delay Tiffany deal...
[2020-09-09 15:40:07] Exclusive: Russian government tells state banks to ensure...
[2020-09-09 08:40:06] Exclusive: Baidu, investors in talks to raise $2 billion for...
[2020-09-09 05:00:12] Exclusive: Trump administration to deny pending retroactive U.S....
[2020-09-08 14:55:03] Exclusive: Klarna talks to investors on raising funds at over $10...
[2020-09-08 06:15:04] Exclusive: Exxon downsizes global empire as Wall Street worries...
[2020-09-07 17:55:22] Exclusive: Worldline $9.2 billion Ingenico deal may need EU...
[2020-09-05 09:50:14] Goldman Sachs joins syndicate for Ant IPO of up to $30 billion, say sources
[2020-09-04 22:45:12] Exclusive: Facebook removes pages of right-wing group Patriot...
[2020-09-04 13:25:10] Exclusive: Hungary central bank sees slower recovery, stimulus...
[2020-09-04 12:10:10] Exclusive: White House asks U.S. agencies to detail all...
[2020-09-04 11:10:10] Exclusive: Taking power - Chinese firm to run Laos electric grid...
[2020-09-03 12:55:07] Exclusive: UK trade minister reverses decision to remove think...
[2020-09-03 11:10:06] Exclusive: Biden garners more Republican endorsements, this time...
[2020-09-02 18:00:09] Exclusive: Aspiring TikTok buyers pursue four options in effort to revive talks - sources
[2020-09-02 16:50:07] Exclusive: EU draft plan targets free carbon credit cut for most...
[2020-09-02 11:50:07] Exclusive: Some 1,300 voting forms uncounted in contentious...
[2020-09-01 15:40:03] Exclusive: Online retailer Boxed explores $1 billion sale -...
[2020-09-01 13:15:03] Exclusive: Hackers test defenses of Trump campaign websites ahead...
[2020-08-31 21:30:25] Exclusive: TPG explores $8 billion sale of U.S. cable operator...
[2020-08-31 07:55:21] Exclusive: Rio vows to preserve ancient Australian rock shelter...
[2020-08-30 03:30:18] Exclusive: Hong Kong survey shows support grows for pro-democracy goals, 44%...
[2020-08-28 20:20:16] Exclusive: Sanofi more confident about its coronavirus vaccines
[2020-08-28 14:45:11] Exclusive: Germany seen revising upward its 2020 GDP forecast,...
[2020-08-28 03:30:11] Exclusive: Facebook says Apple rejected its attempt to tell users...
[2020-08-27 22:50:08] Exclusive: ByteDance asks TikTok to draw up U.S. shutdown...
[2020-08-27 20:40:08] Exclusive: Glencore puts entire stake in Mopani on the table in...
[2020-08-27 20:10:09] Exclusive: Iranian vessel loads with Venezuelan alumina, amid...
[2020-08-27 10:00:12] Exclusive: Alibaba in talks to hike stake in Chinese courier YTO Express
[2020-08-26 21:40:07] Exclusive: France sends reform roadmap to crisis-ridden Lebanon
[2020-08-26 17:10:07] Exclusive: Alibaba puts India investment plan on hold amid China...
[2020-08-26 12:50:07] Exclusive: Amazon faces new antitrust challenge from Indian...
[2020-08-25 13:15:05] Exclusive: Nasdaq files with SEC for IPO alternative to raise...
[2020-08-25 01:20:25] Exclusive: Fauci says rushing out a vaccine could jeopardize...
[2020-08-24 13:15:42] Exclusive: Foxconn, other Asian firms consider Mexico factories...
[2020-08-24 08:10:24] Exclusive: ByteDance investors seek to use stakes to finance...
[2020-08-22 20:50:15] Exclusive: RingCentral Becoming the Other Pandemic Communications Bet
[2020-08-22 13:00:22] Exclusive: RingCentral Becoming the Other Pandemic Communications...
[2020-08-21 23:40:12] Exclusive: TikTok to challenge U.S. order banning transactions...
[2020-08-21 19:35:11] Exclusive: Photoshopping Obama - the company that wants to buy...
[2020-08-20 15:30:07] Exclusive: OPEC+ needs to fix daily oversupply of more than two...
[2020-08-19 17:05:08] Exclusive: Facebook employees internally question policy after India content controversy - sources, memos
[2020-08-19 16:40:07] Exclusive: Germany, France push for WHO reform talks in September
[2020-08-19 13:20:07] Exclusive: Plant-based egg maker JUST sees profit next year, then...
[2020-08-19 08:20:07] Exclusive: GM bets on electric Cadillacs and micro-vans to...
[2020-08-19 08:05:07] Exclusive: FANCL Asia owner launches sale that could fetch $1...
[2020-08-18 19:55:04] Exclusive: U.S. Postmaster General to pause all operational...
[2020-08-17 16:55:22] Exclusive: Amazon in talks to invest in cloud services company...
[2020-08-17 13:40:31] Exclusive: U.S. to tighten restrictions on Huawei access to...
[2020-08-15 16:00:19] Exclusive: Chegg Poised for Growth in Study-at-Home Mode
[2020-08-15 13:20:15] Exclusive: Chegg Poised for Growth in Study-at-Home Mode
[2020-08-15 02:25:14] Exclusive: UPS, FedEx warn they cannot carry ballots like U.S....
[2020-08-14 19:50:11] Exclusive: China ramps up U.S. oil purchases ahead of trade deal...
[2020-08-14 18:35:12] Exclusive: U.S.-China trade deal review planned for Saturday...
[2020-08-13 13:45:07] Exclusive: ByteDance censored anti-China content in Indonesia...
[2020-08-13 07:35:06] Exclusive: China pushes First Capital merger in drive to take on...
[2020-08-12 22:05:08] Exclusive: Chilean regulator drops appeal on SQM environmental...
[2020-08-12 19:05:12] Exclusive: Argentina to submit debt revamp offer to SEC within...
[2020-08-12 16:20:08] Exclusive: Venezuela wins grace period on China oil-for-loan...
[2020-08-12 05:20:06] Exclusive: European banks face indigenous calls to end Amazon oil...
[2020-08-12 01:40:06] Exclusive: U.S. ban on TikTok could cut it off from app stores,...
[2020-08-11 16:05:03] Exclusive: Indian craft brewer Bira talking to foreign beer...
[2020-08-10 12:10:22] Exclusive: Microsoft faces complex technical challenges in TikTok...
[2020-08-07 19:00:27] Exclusive: FAA employees report industry pressure, question...
[2020-08-07 18:00:15] Exclusive: PDVSA changes oil deals to include shipping as...
[2020-08-07 17:25:17] Exclusive: Japan kept activist investor in limbo over key Toshiba vote, sources say
[2020-08-07 13:50:11] Exclusive: South Africa tries to recover over $23 million from...
[2020-08-07 11:25:10] Exclusive: Lebanon navigates food challenge with no grain silo...
[2020-08-06 08:30:07] Exclusive: Italy ups the ante in its plan to create a single...
[2020-08-05 20:35:08] Exclusive: 16 Republican senators back new payroll assistance to...
[2020-08-05 12:15:07] Exclusive: Mexico power plant violated environmental law,...
[2020-08-05 02:25:06] Exclusive: U.S. pursues nearly $13 billion of claims in Purdue...
[2020-08-03 16:40:28] Exclusive: Papers leaked before UK election in suspected Russian...
[2020-08-03 13:40:23] Exclusive: Chipotle, fast food brands set for new wave of hiring
[2020-08-03 08:15:23] Exclusive: Trump gives Microsoft 45 days to clinch TikTok deal
[2020-08-02 20:30:24] Exclusive: Prescription drug marketplace GoodRx files for IPO -...
[2020-08-01 23:40:16] Exclusive: Eastman Kodak top executive got Trump deal windfall on an...
[2020-08-01 15:35:22] Exclusive: ByteDance offers to forgo stake in TikTok to clinch...
[2020-07-31 19:45:12] Exclusive: Payments firm Paya nears $1.3 billion deal to go...
[2020-07-31 16:15:11] Exclusive: Republicans, Democrats agree on one thing: Doubt about...
[2020-07-31 12:40:16] Exclusive: SenseTime eyes STAR market IPO after $1.5 billion...
[2020-07-31 12:15:10] Exclusive: Bradesco plans long-term remote work, eyes 5-7% in...