Lakshmi v Jhaveri: Anti-Suit Injunction & Natural Forum Dispute in BVI Share Ownership

In Lakshmi Anil Salgaocar v Jhaveri Darsan Jitendra and Million Dragon Wealth Ltd, the High Court of Singapore dismissed Lakshmi Anil Salgaocar's application for an anti-suit injunction to restrain Jhaveri Darsan Jitendra from continuing proceedings in the British Virgin Islands (BVI) regarding the ownership of shares in Million Dragon Wealth Ltd. The court, presided over by Justice Kannan Ramesh, found that Singapore was not the natural forum for the dispute and that the BVI proceedings were not vexatious or oppressive. The court also considered arguments regarding the discontinuance of a related suit in Singapore. The judgment was delivered on April 18, 2018.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Originating Summons and Summons dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court dismisses Lakshmi's anti-suit injunction to halt BVI proceedings on share ownership, finding BVI the natural forum.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lakshmi Anil SalgaocarPlaintiff, ApplicantIndividualApplication DismissedLost
Jhaveri Darsan JitendraDefendant, RespondentIndividualJudgment for DefendantWon
Million Dragon Wealth LtdDefendantCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Kannan RameshJudgeYes

4. Counsels

Counsel NameOrganization
Kanapathi Pillai NirumalanNiru & Co LLC
Liew Teck HuatNiru & Co LLC
Sean LeeNiru & Co LLC
Achala MenonNiru & Co LLC
Ang Cheng HockAllen & Gledhill LLP
Ramesh Kumar s/o RamasamyAllen & Gledhill LLP
Koh Zhen-Xi, BenjaminAllen & Gledhill LLP
Jerald SoonAllen & Gledhill LLP

4. Facts

  1. Darsan instituted proceedings against Salgaocar's estate and MDWL in the BVI.
  2. Lakshmi sought an anti-suit injunction to restrain Darsan from continuing proceedings in the BVI.
  3. MDWL is a BVI-incorporated company and the sole shareholder of 22 other BVI-incorporated companies.
  4. The Subsidiaries each own one unit in Newton Imperial, a condominium development in Singapore.
  5. Pooja executed a memorandum to transfer the Share to Salgaocar for US$1.
  6. Darsan claims he is the sole beneficial owner of the Share due to an unpaid loan.
  7. The core issue in BVI 83 is whether there was a 2014 Agreement between Darsan and Salgaocar.

5. Formal Citations

  1. Lakshmi Anil Salgaocar v Jhaveri Darsan Jitendra and another, Originating Summons No 627 of 2017(Summons No 2674 of 2017), [2018] SGHC 90

6. Timeline

DateEvent
Memorandum executed by Pooja Darsan Jhaveri to transfer the Share to Salgaocar.
Salgaocar lodged caveats against properties in Singapore.
Salgaocar commenced Suit No 821 of 2015 against Darsan in Singapore.
Registered proprietors of properties filed Originating Summons No 727 of 2015.
Registered proprietors of properties filed Originating Summons No 945 of 2015.
Darsan applied to strike out Suit 821.
Salgaocar passed away.
Darsan’s BVI solicitors filed a stop notice in relation to the Share.
Darsan commenced BVI 83.
Lakshmi filed OS 627.
Lakshmi filed Summons No 2674 of 2017.
Court allowed OS 727 and OS 945.
Court dismissed OS 1293 and allowed prayer 1 of Summons 5581 by way of an oral judgment.
Judgment delivered.

7. Legal Issues

  1. Anti-Suit Injunction
    • Outcome: The court found that an anti-suit injunction should not be granted.
    • Category: Procedural
    • Sub-Issues:
      • Amenability to jurisdiction
      • Natural forum
      • Vexation and oppression
      • Unclean hands
    • Related Cases:
      • [2017] SGHC 64
      • [2013] 3 SLR 409
      • [2012] 2 SLR 625
      • [2009] 4 SLR(R) 428
      • [2004] 2 SLR(R) 457
  2. Natural Forum
    • Outcome: The court held that Singapore was not the clearly more appropriate forum for the resolution of the dispute.
    • Category: Jurisdictional
    • Sub-Issues:
      • Connecting factors
      • Location of witnesses
      • Location of parties
      • Ongoing actions in Singapore
    • Related Cases:
      • [2009] 4 SLR(R) 428
      • [1987] AC 460
  3. Deemed Discontinuance of Suit
    • Outcome: The court found that Suit 821 had not been deemed discontinued.
    • Category: Procedural
    • Sub-Issues:
      • Application of Order 15 r 9(1)
      • Interpretation of 'step or proceeding' under O 21 r 2(6)
    • Related Cases:
      • [2014] 4 SLR 15
      • [2017] 2 SLR 409

8. Remedies Sought

  1. Anti-Suit Injunction
  2. Declaration of Beneficial Ownership

9. Cause of Actions

  • Breach of Agreement
  • Declaration of Beneficial Ownership

10. Practice Areas

  • Commercial Litigation
  • Injunctions
  • Cross-Border Disputes

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
BC Andaman Co Ltd and others v Xie Ning Yun and anotherHigh CourtYes[2017] SGHC 64SingaporeCited for the principles regarding the grant of anti-suit injunctions.
Morgan Stanley Asia (Singapore) Pte (formerly known as Morgan Stanley Dean Witter Asia (Singapore) Pte) and others v Hong Leong Finance LtdCourt of AppealYes[2013] 3 SLR 409SingaporeCited for the general rule that an anti-suit injunction will be granted unless there are strong reasons not to do so in a Category (1) case.
Ashlock William Grover v SetClear Pte Ltd and othersCourt of AppealYes[2012] 2 SLR 625SingaporeCited for the general principles governing the grant of an anti-suit injunction.
John Reginald Stott Kirkham and others v Trane US Inc and othersCourt of AppealYes[2009] 4 SLR(R) 428SingaporeCited for the four elements to consider in deciding whether to grant an anti-suit injunction.
Evergreen International SA v Volkswagen Group Singapore Pte Ltd and othersCourt of AppealYes[2004] 2 SLR(R) 457SingaporeCited for the broad principle that an anti-suit injunction will be granted when the ends of justice require it.
Koh Kay Yew v Inno-Pacific Holdings LtdCourt of AppealYes[1997] 2 SLR(R) 148SingaporeCited for the meaning of being amenable to the jurisdiction of the Singapore court.
Spiliada Maritime Corporation v Cansulex LtdHouse of LordsYes[1987] AC 460United KingdomCited for the principles in determining the natural forum.
Teo Gim Tiong v Krishnasamy Pushpavathi (legal representative of the estate of Maran s/o Kannakasabai, deceased)Court of AppealYes[2014] 4 SLR 15SingaporeCited for the proper procedure to be adopted when a plaintiff dies during proceedings.
Chua Peng Ho v Saravanan a/l Subramaniam (dependent of the estate of Lingaswari a/p Koushanan, deceased) and othersCourt of AppealYes[2017] 2 SLR 409SingaporeCited for the interpretation of 'step or proceeding' under O 21 r 2(6) of the Rules of Court.
Moguntia-Est Epices SA v Sea-Hawk Freight Pte LtdHigh CourtYes[2003] 4 SLR(R) 429SingaporeCited for the rationale behind the introduction of O 21 r 2(6) of the Rules of Court.
Virsagi Management (S) Pte Ltd v Welltech Construction Pte Ltd and another appealCourt of AppealYes[2013] 4 SLR 1097SingaporeCited for the factor of whether and to what extent similar issues arise in parallel proceedings.
PT Sandipala Arthaputra v STMicroelectronics Asia Pacific Pte Ltd and othersHigh CourtYes[2015] 5 SLR 873SingaporeCited for the weight to be accorded to parallel proceedings within the jurisdiction.
Bouvier, Yves Charles Edgar and another v Accent Delight International Ltd and another and another appealCourt of AppealYes[2015] 5 SLR 558SingaporeCited for the principle that notice should be given to the other concerned parties prior to a hearing of an ex parte injunction except in cases of extreme urgency.
The “Vasiliy Golovnin”High CourtYes[2008] 4 SLR(R) 994SingaporeCited for the scope of disclosure in ex parte applications.
Lee Foon Juan v Neo Foo KeeHigh CourtYes[1958] 2 MC 118SingaporeCited for the allowance of an administrator to be substituted as the plaintiff to carry on proceedings.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (Cap 322, R 5, 2014 Rev Ed) O 21 r 2(6)Singapore
Rules of Court O 15 r 9(1)Singapore
Probate and Administration Act (Cap 251, 2000 Rev Ed) s 37(1)Singapore
Probate and Administration Act (Cap 251, 2000 Rev Ed) s 37(3)Singapore
Rules of Court O 15 r 7(2)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Anti-suit injunction
  • Natural forum
  • BVI 83
  • Share
  • 2014 Agreement
  • 2003 Agreement
  • Deemed discontinuance
  • Vexatious and oppressive
  • Amenable to jurisdiction
  • Unclean hands

15.2 Keywords

  • Anti-suit injunction
  • Natural forum
  • British Virgin Islands
  • Share ownership
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Anti-suit injunction95
Natural forum90
Conflict of Laws80
Injunctions75
Civil Procedure60

16. Subjects

  • Civil Procedure
  • Conflict of Laws
  • Injunctions
  • Jurisdiction