Legitimate Commercial Reasons Do Not Demonstrate a Real Risk of Dissipation 07 Aug 2025 The Court of Appeal in Continental Shipping Line Pte Ltd v Jonathan John Shipping Ltd [2025] SGCA 36 discharged a Mareva injunction previously granted over the Appellant’s assets, finding that there was no real risk of asset dissipation to frustrate the enforcement of a future arbitral award. The Court of Appeal found that the withdrawals made by the Appellant were in the ordinary course of business, such as payment of staff salaries and office rent, and that the liquidation of the Appellant’s assets and the cessation of its primary business did not support an inference of unjustified asset dissipation. The Court of Appeal’s decision is a clear reaffirmation that Mareva injunctions are not to be granted lightly. Legitimate commercial conduct, even in the face of business cessation or asset liquidity, cannot on its own sustain such a serious remedy. Director Daniel Cai discusses this decision. Read more here