Lankan firm files case in Singapore against Shangri-La shipping unit over coal transport deal

• Nonpayment of agent’s broker commission due for securing Lankan coal transportation contract for PCL Shipping

A Sri Lankan firm, SAR Maritime Agencies Ltd., has filed a case in the Singapore High Court against PCL Shipping Ltd., part of the leisure giant Shangri-La Group.

The legal action follows SAR Maritime Agencies alleging that PCL hadn’t paid the broker commission due for successfully lobbying on behalf of PCL to Ceylon Shipping Corporation Ltd., in respect of a proposed coal transportation contract in 2014. 

At the time of the tendering for the three-year contract SAR Maritime were the agents for PCL, Australia. However, subsequent to winning the tender, PCL had terminated the brokerage agreement with SAR Maritime Agencies, a dispute over which the latter is seeking legal redress in Singapore High Court Case HC/S 477/2017.

Analysts said the case is first of its kind where a Lankan firm is seeking legal redress in Singapore over a failure to honour a business contract relating to coal transportation.