On August 29, 2024, the Singapore International Commercial Court (SICC) delivered a judgment concerning the legal costs related to the enforcement proceedings of a buy-out order involving Kiri Industries Ltd. This ruling marks a significant development in the ongoing legal dispute between Kiri Industries, Senda International Capital Ltd, and DyStar Global Holdings (Singapore) Pte Ltd.

Background of the Case

The legal proceedings revolved around a buy-out order initially issued by the court, which required Senda International Capital Ltd to acquire Kiri Industries' shareholding in DyStar Global Holdings for US$603.8 million. However, as Senda failed to comply with this order, the court mandated an en bloc sale of the shares, to be managed by court-appointed receivers. This decision aimed to resolve the non-compliance and ensure fair distribution of the proceeds from the sale.

Court's Judgment on Legal Costs

The judgment addressed the legal costs associated with the enforcement proceedings. The court determined that:

Kiri Industries Ltd emerged as the successful party in the proceedings. Despite not prevailing on all issues, Kiri was granted 40% of its claimed legal costs from Senda, given that the company had succeeded in key aspects such as the appointment of receivers and the priority of distribution of sale proceeds.

Senda International Capital Ltd was ordered to pay Kiri Industries S$360,050 for legal costs and additional disbursements amounting to S$17,053.81 and US$6,415.18.

DyStar Global Holdings was partially successful in defending its position. Kiri was required to pay DyStar S$125,705 in legal costs and disbursements totaling S$8,126.91 and US$1,223.57. This reflects DyStar's success in certain aspects of the case, particularly regarding its own financial obligations.

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Implications

The court’s decision on legal costs has significant implications for the involved parties. For Kiri Industries, the award represents a partial recovery of the substantial legal expenses incurred during the proceedings. For Senda and DyStar, the judgment underscores the financial consequences of their involvement and positions in the case.

Conclusion

This judgment underscores the complexity and financial impact of legal proceedings in international commercial disputes. Kiri Industries Limited's successful recovery of legal costs from Senda and the partial payment to DyStar highlights the court’s role in addressing and adjudicating the financial aspects of complex corporate disputes.

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