Da Hui Shipping (Pte) Ltd v An Rong Shipping Pte Ltd [2024] SGHC 166, High Court of Singapore (Justice S Mohan) - 28 June 2024

Ship mortgages - Ship mortgages granted to lender - Borrower having repaid more than its share of bank loan - Contribution from co-debtor - Subrogation - Subrogation to extinguished securities in equity - Rights following ship arrest and sale - Restitution - Unjust enrichment - Mercantile Law Amendment Act 1856, section 2

The claimant, DH, and the defendant, AR, were co-borrowers from the Bank of America (BofA) under a secured lending transaction. The sum borrowed was US$37,200,000. DH owned the vessel Sea Equatorial, and AR owned the vessels Ocean Jack and Ocean Goby. The loan from BofA was secured in part by mortgages over all three vessels. DH and AR were unable to repay the debt due to BofA, and the three vessels were sold. The sale proceeds were applied by BofA in satisfaction of the debt. The mortgages were duly discharged. AR went into compulsory liquidation.