Singapore | Rules against Penalties – Singapore Court of Appeal affirms Dunlop Pneumatic and declines to follow the UK Supreme Court and the Australia High Court

The Singapore Court of Appeal has affirmed that the rule against penalties in Singapore remains that articulated by Lord Dunedin in Dunlop Pneumatic Tyre Company, Ltd v New Garage and Motor Company, Limited [1915] AC 79. In doing so, the Court of Appeal declined to adopt the wider “legitimate interest” standard established by the UK Supreme Court in Cavendish Square Holding BV v Makdessi [2016] AC 1172.

This article examines the Court of Appeal’s reasoning in Denka Advantech Pte Ltd and another v Seraya Energy Pte Ltd and another and other appeals [2020] SGCA 119.

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Shumin Lin

Director, Dispute Resolution
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