B. Does the market overt rule apply in Singapore?
On this point,22 there was, before Caterpillar, no direct reported authority.23
Prior to the passing of the Application of English Law Act24 (‘the AELA’)
in 1993, the market overt rule as codified in section 22(1) of the UK SGA
was applicable to a particular case if it was received, for the purpose ofthat case, under section 5 of the Civil Law Act.25 Section 5 has been repealed
by section 6(1) of the AELA. However, section 6(2) of that Act makes
clear that in respect of a proceedings instituted or a cause of action accruing
before the commencement of that Act, section 5 of the Civil Law Act will
continue to apply. Caterpillar was apparently such a case: the series of
thefts and subsequent sales were carried out in 1983 and the suit was
instituted and the cause of action in conversion arose before the
commencement of the AELA. This probably explains why the court referred
to section 22(1) of the UK SGA although, and this is surprising, both the
AELA and the Civil Law Act were not even mentioned in the judgment.
Under section 5(3)(a) of the Civil Law Act, English law is received ‘subject
to such modifications and adaptations as the circumstances of Singapore
may require.’ One would be hard put, given its technical meaning, to find
a ‘market overt’ in Singapore. Whichever of two possible interpretations
one takes of Caterpillar (which will be discussed two paragraphs away), it
is clear that the Chief Justice did not think that the market overt rule, in
its English form, is suitable for local application
B. Does the market overt rule apply in Singapore?On this point,22 there was, before Caterpillar, no direct reported authority.23Prior to the passing of the Application of English Law Act24 (‘the AELA’)in 1993, the market overt rule as codified in section 22(1) of the UK SGAwas applicable to a particular case if it was received, for the purpose ofthat case, under section 5 of the Civil Law Act.25 Section 5 has been repealedby section 6(1) of the AELA. However, section 6(2) of that Act makesclear that in respect of a proceedings instituted or a cause of action accruingbefore the commencement of that Act, section 5 of the Civil Law Act willcontinue to apply. Caterpillar was apparently such a case: the series ofthefts and subsequent sales were carried out in 1983 and the suit wasinstituted and the cause of action in conversion arose before thecommencement of the AELA. This probably explains why the court referredto section 22(1) of the UK SGA although, and this is surprising, both theAELA and the Civil Law Act were not even mentioned in the judgment.Under section 5(3)(a) of the Civil Law Act, English law is received ‘subjectto such modifications and adaptations as the circumstances of Singaporemay require.’ One would be hard put, given its technical meaning, to finda ‘market overt’ in Singapore. Whichever of two possible interpretationsone takes of Caterpillar (which will be discussed two paragraphs away), itis clear that the Chief Justice did not think that the market overt rule, in
its English form, is suitable for local application
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