High Court bars Standard Chartered and BSI from BVI winding-up applications

The liquidators may pursue pre-UNCITRAL transactions claims.

The High Court has ruled that Standard Chartered Bank (Singapore), BSI Bank, and an employee cannot take part in winding-up applications filed by four British Virgin Islands (BVI) companies.

Alsen Chance Holdings, Brightstone Jewellery, Brazen Sky, and Blackstone Asia Real Estate Partners—BVI companies all in liquidation—sought to let their liquidators pursue avoidance claims under sections 238 and 239 of the Insolvency, Restructuring and Dissolution Act 2018 against the non-parties for pre-UNCITRAL Model Law transactions.

The non-parties argued they had standing as contingent creditors or under the Saad Investments exception, but the court rejected both.

Judge Aidan Xu held that potential liability from future cost orders or indemnities does not grant participation rights.

The companies, liquidated between December 2021 and March 2024, had their foreign liquidations recognised in Singapore.

The judge found that the non-parties’ rights would not be directly affected by the winding-up applications, and denying participation does not prevent them from defending future claims.

The ruling clarifies the High Court’s stance on standing, limiting intervention by non-creditors or parties with only potential indirect interests.