SKANDINAVISKA ENSKILDA BANKEN AB V ASIA PACIFIC BREWERIES (SINGAPORE) PTE LTD

[2011] SGCA 22, Singapore Court of Appeal, 19 May 2011

Agency - Fraud committed against banks by finance director of company - Whether agent had ostensible authority on behalf of company - Vicarious liability - Whether company owed duty of care to banks - Restitution

APBS, a company with interests in the distribution of alcoholic beverages, employed Chia as its finance manager in 1999. Chia was an inveterate gambler. By a series of fraudulent misrepresentations Chia induced the claimant banks to lend money to APBS. The banks were cheated out of some S$117.1 million, of which they recovered just under S$30 million. The present claim was against APBS for recovery of the balance. The evidence showed that APBS did not exercise proper supervision of APBS. The Singapore Court of Appeal held as follows.