TQ5_W6 UCV4612

QUESTION

Plaintiff had granted a loan facility for trade of the Cargoes to AI Pte Ltd. (AIP) and
TGFI Pte Ltd. (TGFI), (both collectively referred to as “the Borrowers”) pursuant to
the terms of a Trade Finance Facility (Trade Facility) contained in a letter dated 23 July
2015 and the addendum dated 17 February 2016 thereto (the Facility Letter). The Trade
Facility is also subject to the Plaintiff’s Standard Terms for Trade Finance dated 7 July
2011 and the amendments made thereto dated 12 August 2015 (the Standard Terms for
Trade Finance).
It was an express and/or implied term of the Contracts of Carriage contained in the Bills
of Lading and/or the Borrowers’ s duty thereunder and/or its duty as carriers and/or
bailees that the Borrower would only deliver the Cargoes as described in each Bills of
Lading against the surrender, production or presentation of the original of the particular
Bills of Lading under which that portion of the Cargoes, as described in the Bills of
Lading was shipped.
However the Cargoes had been released without the production of the Bills of Lading.
Therefore, it is the Plaintiff’s case that the Borrowers i.e the Defendant has acted in
breach of the Contracts of Carriage and/or the Defendant’s duty thereunder and/or its
duty as carriers and/or bailees, and/or negligently, when the Defendant delivered the
Cargoes without production of any of the original Bills of Lading.
Plaintiff filed in an admiralty action in rem via a writ WA-27NCC-30- 04/2017 (the
Writ) filed on 5 April 2017. The validity of the Writ expires on 4 October 2017. The
Plaintiff has yet to file its statement of claim. On 20 October 2017 the Plaintiff obtained
a court order for the extension of the validity of the Writ for six months from 5 October
2017. On 4 April 2018 the Plaintiff filed another application for an order that the
validity of the Writ be further extended for another 6 months from 5 April 2018. The
main reason forwarded by the Plaintiff seeking for the extension of the Writ is that the
Vessel has yet to call on any ports in the Malaysian waters, thus service of the Writ
could not be effected. The application was dismissed.
The plaintiff appeal.

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