DCW Updates
DCW Monthly: July 2025
This month, we explore how digitalisation is reshaping commercial law across key jurisdictions. Marek Dubovec compares UCC Article 12 and
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Kuvera Resources Pte Ltd. v.
JPMorgan Chase Bank, N.A. [2023]
[2023] SGCA 28 [Singapore]
Type of Lawsuit: Beneficiary appealed judgment for Confirming Bank that had dishonoured complying documents citing its sanctions clause.
Parties:
ā¢ Seller - PT Borneo Guna Energi
ā¢ Buyer - Oilboy DMCC
ā¢ Trader - Kuvera Resources Pte Ltd.
ā¢ Issuer - unknown, based in Dubai
ā¢ Nominated Bank/Advising Bank/Confirming Bank - JPMorgan Chase Bank, N.A.
Underlying Transaction: for purchase of 35,000 metric tonnes of coal (Ā± 10%) to resell to Buyer (the Sales Contract)
LC: two UCP600 letters of credit
Decision: The trial court ruled in favour of Confirming Bank. Beneficiary appealed. The Singapore Court of Appeal, Sundaresh Menon, Judith Prakash & Steven Chong, JJ., reversed.
JPMorgan Chase Bank, N.A. [2023]
[2023] SGCA 28 [Singapore]
Type of Lawsuit: Beneficiary appealed judgment for Confirming Bank that had dishonoured complying documents citing its sanctions clause.
Parties:
ā¢ Seller - PT Borneo Guna Energi
ā¢ Buyer - Oilboy DMCC
ā¢ Trader - Kuvera Resources Pte Ltd.
ā¢ Issuer - unknown, based in Dubai
ā¢ Nominated Bank/Advising Bank/Confirming Bank - JPMorgan Chase Bank, N.A.
Underlying Transaction: for purchase of 35,000 metric tonnes of coal (Ā± 10%) to resell to Buyer (the Sales Contract)
LC: two UCP600 letters of credit
Decision: The trial court ruled in favour of Confirming Bank. Beneficiary appealed. The Singapore Court of Appeal, Sundaresh Menon, Judith Prakash & Steven Chong, JJ., reversed.
Factual Summary:
As part of an underlying trade between PT Borneo Guna Energi (Seller), an Indonesian company, and Oilboy DMCC (Buyer), a Dubai, UAE company, Kuvera Resources Pte Ltd. (Trader), a trader of Indonesian coal based in Singapore, advanced funds to Seller for purchase of 35,000 metric tonnes of coal (Ā± 10%) to resell to Buyer (the Sales Contract). Trader was party to the Sales Contract which required that the coal be delivered in two shipments and payment made by two letters of credit obtained by Buyer from āa major or international bankā and further confirmed by a bank in Singapore. Accordingly, Buyer/Applicant caused Issuer, based in Dubai, to issue two UCP600 letters of credit of favour of Trader/Beneficiary (hereinafter āBeneficiaryā) with terms pursuant to draft LCs attached to the Sales Contract.
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