Ocean Tankers (PTE) Ltd. (under interim judicial management) v. Rajah & Tann Singapore LLP: Directors “residual powers” in judicial management; joinder and substitution of parties

9 November, 2020

On 4 November 2020, the High Court struck out the action in Ocean Tankers (Pte) Ltd (Under Interim Judicial Management v Rajah & Tann Singapore LLP (and its companion action Hin Leong Trading (Pte) Ltd (Under Interim Judicial Management) v Rajah & Tann Singapore LLP).

The actions were commenced by the directors of two companies which had been placed in judicial management, in reliance on what was said to be the directors’ “residual powers” of management, to restrain the respondent law firm from acting for the companies and their judicial managers. Following an application by the respondents to strike out the actions, the directors also applied to be joined to the actions in their personal capacities.

Kannan Ramesh J accepted the submissions made on behalf of the respondent law firm, striking out the actions and declining to join the directors.

Toby Landau QC and Colin Liew acted for the respondent law firm.