Banque de Commerce et de Placements SA, DIFC Branch & Anor v China Aviation Oil (Singapore) Corporation Ltd

[2025] SGCA 33 Court of Appeal 7 July 2025 • CA/CA 1/2025 • 70 min read
25 cases cited (22 SG, 3 foreign)

Catchwords

Tort — Misrepresentation — Fraud and deceit — Whether honest belief in representation is to be assessed by reference to representor’s or representee’s subjective understanding of the representation Bills of Exchange and Other Negotiable Instruments — Letter of credit transaction — Presentation of letter of indemnity — Whether representations in letter of indemnity were false — Whether representor made representations with no honest belief in their truth — Whether documents presented to issuing bank contained representations made to the issuing bank

Practice Areas

Tort Bills of Exchange and Other Negotiable Instruments

Judges (3)

Belinda Ang Saw Ean Coram Steven Chong Delivered Sundaresh Menon Coram

Counsel (14)

Focus Law Asia LLC Firm Rajah & Tann Singapore LLP Firm Siraj Omar LLC Firm Fitzgerald Hendroff Counsel Appellant Khoo Ching Shin Shem Counsel Appellant Larisa Cheng Counsel Appellant Lin Yong'En Nathanael Counsel Respondent Marcus Chiang Mun Leong Counsel Respondent Muhammad Salihin bin Mohd Zahrin Counsel Respondent Ng Wei Kit Joshua Counsel Appellant Siraj Omar Counsel Appellant Tan Zhi Rui Counsel Respondent Teo Jia Hui Veronica Counsel Appellant Toh Kian Sing Counsel Respondent

Parties (5)

Banque de Commerce et de Placements SA Appellant Banque de Commerce et de Placements SA, DIFC Branch Appellant China Aviation Oil (Singapore) Corporation Ltd Respondent Golden Base Energy Pte Ltd Third Party Shandong Energy International (Singapore) Pte Ltd Third Party

Case Significance

[2025] SGCA 33 is a Court of Appeal decision dated 7 July 2025 concerning Bills of Exchange and Other Negotiable Instruments and Tort, specifically addressing misrepresentation and letter of credit transaction. The judgment was delivered by Steven Chong, with Belinda Ang Saw Ean and Sundaresh Menon on the coram. The case was brought by Banque de Commerce et de Placements SA and others (appellant) against China Aviation Oil (Singapore) Corporation Ltd (respondent). Legal representation was provided by Focus Law Asia LLC and Rajah & Tann Singapore LLP. The judgment cites 25 cases (22 Singapore, 3 foreign).

Summary

Banque de Commerce et de Placements (BCP) sued China Aviation Oil (CAO) for fraudulent misrepresentation in connection with a letter of credit transaction involving the sale of gasoil through a chain of contracts that included the now-insolvent Zenrock Commodities. BCP alleged that CAO's letter of indemnity contained false representations about its entitlement to possession of bills of lading. The Court of Appeal dismissed the appeal, finding the representation was neither false nor made fraudulently, as CAO held an honest belief in the truth of its representations at the time they were made.

What was decided in [2025] SGCA 33?

[2025] SGCA 33 (Banque de Commerce et de Placements SA, DIFC Branch & Anor v China Aviation Oil (Singapore) Corporation Ltd) is a Court of Appeal decision from 7 July 2025 addressing Bills of Exchange and Other Negotiable Instruments and Tort, specifically misrepresentation and letter of credit transaction. The judgment was delivered by Steven Chong.

Who were the parties in Banque de Commerce et de Placements SA, DIFC Branch & Anor v China Aviation Oil (Singapore) Corporation Ltd?

The appellant in [2025] SGCA 33 was Banque de Commerce et de Placements SA, Banque de Commerce et de Placements SA, DIFC Branch, and the respondent was China Aviation Oil (Singapore) Corporation Ltd. Legal representation included Rajah & Tann Singapore LLP and Focus Law Asia LLC. The case was decided on 7 July 2025 in the Court of Appeal.

Which judge decided [2025] SGCA 33?

[2025] SGCA 33 was delivered by Steven Chong in the Court of Appeal on 7 July 2025. Belinda Ang Saw Ean and Sundaresh Menon also sat on the coram. The case concerned Bills of Exchange and Other Negotiable Instruments and Tort.

What cases and statutes does [2025] SGCA 33 cite?

[2025] SGCA 33 cites 25 prior decisions, including 3 from foreign jurisdictions.

Cases Cited (25)

SG (2)
[2024] SGHC 145 [2024] SGHC 282
SLR (20)
[1996] 2 SLR(R) 134 [2001] 2 SLR(R) 435 [2003] 3 SLR(R) 501 [2007] 1 SLR(R) 196 [2007] 4 SLR(R) 460 [2008] 3 SLR 261 [2012] 1 SLR 447 [2013] 1 SLR 1310 [2013] 3 SLR 801 [2013] 4 SLR 1204 [2013] 4 SLR 308 [2015] 3 SLR 990 [2016] 3 SLR 1308 [2017] 2 SLR 627 [2018] 1 SLR 894 [2023] 2 SLR 587 [2023] 4 SLR 572 [2024] 1 SLR 1054 [2024] 1 SLR 893 [2024] 3 SLR 476
UK (3)
[1997] AC 254 [2002] EWCA Civ 1101 [2005] EWHC 2350

Judgment

Read the full judgment on the official Singapore Courts portal.

Read on eLitigation

Source: eLitigation ([2025] SGCA 33)