NSL Oilchem Waste Management Pte Ltd v Prosper Marine Pte Ltd – High Ct (Lee Seiu Kin J) [2020] SGHC 204 – 29 September 2020

Contract – Contracts for disposal of marine slop and sale of recycled fuel oil – Terms of contract – Whether defendant liable for failure to pay plaintiff’s invoices – Whether plaintiff in breach of contract – Whether defendant entitled to set-off – Whether clause providing for 18 per cent interest on late payment a penalty clause – Whether directors of defendant liable under guarantee – Whether defendant in breach of bareboat charterparty – Whether fraudulent representation

NSL Oilchem Waste Management Pte Ltd (NOWM) was in the business of treating marine and land-based “slop”, ie a liquid mixture of water, hydrocarbons and solids. It engaged contractors to deliver slop to its waste management reception centre (the NOWM plant) where the sediment, oil and water in the slop were separated via a process involving heating and settlement. NOWM also profited from the sale of recycled fuel oil (RFO) extracted from the slop.