Introduction

The Court of Appeal’s decision in Yit Chee Wah v Inner Mongolia Huomei-Hongjun Aluminium Electricity Co, Ltd [2025] SGCA 27 marks a significant development in insolvency law. It not only clarifies the test under Rule 133(1) of the CIR Rules but also provides the first authoritative local endorsement of vessel tracking data (specifically from VesselFinder) as a reliable evidentiary tool in challenging proofs of debt.

Background

The case arose from attempts by the liquidator of Zhong Jun Resources (S) Pte Ltd to expunge previously admitted proofs of debt by two related PRC-based entities, Inner Mongolia and Shenzhen. Both claims related to trades involving the shipment of alumina allegedly loaded in Australia and supported by bills of lading.

Subsequent investigations raised serious doubts about whether the trades occurred at all. In particular, AIS (Automatic Identification System) data from VesselFinder suggested that the vessels in question had not been anywhere near the alleged loading ports in Australia during the relevant periods.

High Court’s Reluctance to Rely on VesselFinder

At first instance, the High Court dismissed the applications. It found that the VesselFinder data raised only “suspicion” and noted its disclaimers about accuracy. Critically, the High Court placed insufficient weight on the AIS data in the absence of independent expert evidence, and relied instead on contractual documents and financial records.

Court of Appeal’s Findings: AIS Data Vindicated

On appeal, the Court of Appeal overturned the decision and allowed both expungement applications. In doing so, the Court:

• Clarified the test under Rule 133(1): Under the first limb, the liquidator need only show a prima facie case that the proof of debt sought to be expunged/reduced was improperly admitted, not prove the underlying debt is invalid (rejecting the “Higher Standard”).

• Affirmed the evidentiary value of VesselFinder: The Court gave significant weight to AIS data, relying and accepting expert evidence from Captain White (a Master Mariner with 58+ years of experience) that:

• AIS gaps are normal due to coverage issues or vessels involved in “dark activities”. With legitimate gaps occurring when the AIS transmission is not picked up by receiving stations within the range of the transmitters.

• VesselFinder is widely regarded as a reliable source. VesselFinder amongst others lead the market, with 7,000 data sources, providing comprehensive tracking capabilities, ensuring that users can monitor the movements of vessels across the oceans.

• General disclaimers do not negate the integrity of raw AIS data when corroborated.

This use of geolocation technology in forensic liquidation investigations sets a notable precedent.

Broader Implications

This judgment is noteworthy for several reasons:

• Expanded Evidentiary Toolkit: AIS data from VesselFinder and similar platforms can now be relied upon as primary evidence in insolvency, shipping, and trade finance disputes.

• Heightened Risk for Sham Transactions: Parties relying on fabricated or dubious trade documents may face serious consequences if vessel movement data contradicts their claims.

• Liquidators’ Vigilance Endorsed: The Court affirmed the right—and duty—of liquidators to act decisively when faced with red flags, especially involving related party claims or prior fraud investigations.

• Future Litigation Strategy: AIS data should now be considered at an early stage when assessing the credibility of shipping-based claims, whether in insolvency, arbitration, or court proceedings.

Conclusion

Yit Chee Wah v Inner Mongolia signals an important evolution in how Singapore courts assess and verify shipping-based claims in insolvency proceedings. With this decision, AIS tracking data has crossed the threshold from investigatory tool to courtroom evidence, and its probative value will likely feature prominently in future commercial and shipping litigation.

For more information or advice on how this decision may impact your company’s interests or claims strategy, please contact our team at JTJB LLP.

Prepared By: