Jurong Aromatics Corp Pte Ltd (receivers and managers
appointed) and others v BP Singapore Pte Ltd and another
matter [2018] SGHC 215 ("Jurong
Aromatics")
The Singapore High Court recently considered the effect of a
prohibition against assignment clause on assets subject to a
charge. The decision confirms that, while such a prohibition is
effective to prevent an assignment of assets, it did not restrict a
charge on the asset.
The High Court also held that there was no required mutuality of
debts for insolvent set-off to occur, if the debt was charged to
another party.
Facts of Jurong Aromatics
The joint venture Jurong Aromatics Corporation
("JAC") was tasked with the development
of the Jurong Aromatics Plant on Jurong Island
("Plant"). Glencore Singapore Pte Ltd
("Glencore") and BP Singapore Pte Ltd
("BP") were suppliers to JAC under their
respective feedstock supply agreements, and also customers of JAC
under their respective product offtake agreements.
