SINGAPORE Law and Practice Contributed by: Jansen Chow and Ang Leong Hao, Rajah & Tann Singapore LLP
without notice (ex parte) basis. Freezing injunc - tions can be sought in aid of domestic or foreign proceedings, although the legal requirements for each differ. A claimant may also seek a freezing injunc - tion against a third party (non-cause of action defendant) who is holding on to the defendant’s assets as nominee. Exceptionally, a claimant may also seek an inter - im receivership order requiring the defendant’s assets to be handed over and managed by a court-appointed receiver, pending trial of the action. A receivership order may be granted if the court concludes that the defendant cannot be trusted to obey the freezing order – for exam - ple, where the defendant’s assets are held via a complex, opaque and multi-layered corporate structure. If the defendant does not comply with the court order, they may be liable for contempt of court under the Administration of Justice (Protection) Act 2016 for a fine up to SGD100,000, or impris - onment for a term not exceeding three years, or both. Additionally, the court may refuse to hear the defendant until: • the contempt is purged; • the defendant submits to the order or direc - tion of the court; or • an apology is made to the satisfaction of the court. Third parties (such as banks) within Singapore are also bound by the freezing order when they receive notice of the injunction; failure to comply with it may render the third party liable for con - tempt of court.
A claimant seeking a freezing or proprietary injunction will need to pay filing fees for the application, which may range approximately between SGD2,000 and SGD10,000, depend - ing on the volume and number of documents filed. The fees are not pegged to the value of the claim. The claimant will also be required to provide a cross-undertaking in damages to the court, which may be substantial depending on the nature of the claim and the potential loss and damage that may be incurred by the defend - ant. In certain cases, the claimant may also be required to provide fortification of such under - taking, which would usually be in the form of payment into court, a solicitor’s undertaking or a bank guarantee. 2. Procedures and Trials 2.1 Disclosure of Defendants’ Assets Generally, a claimant can seek a disclosure order as an ancillary order to support the freezing injunction. The defendant will be required to file an affidavit to identify their assets, whether held in their own name or not, and whether solely or jointly owned. If there are reasonable grounds to believe that the defendant has not complied with their dis - closure obligations, the claimant may apply for the defendant to be cross-examined on their asset disclosure. Where the defendant is found to have acted in breach of the disclosure order, they may be liable for contempt of court. A claimant may also rely on the defendant’s failure to comply with the disclosure order as a basis to apply for an interim receivership order requiring the defendant’s assets to be handed over and managed by a court-appointed receiv - er, pending trial of the action.
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