Lord Edmund-Davies:

This is an appeal from a judgment of the Court of Appeal of the Republic of Singapore, who on 14 April 1978, dismissed the present appellants' appeal from an order of Wee Chong Jin CJ made upon the respondents' petition, that the appellant company be wound up.

The appellants were incorporated in Singapore on 9 February 1972, under the Companies Act (Cap. 185). The nominal capital was $10m and the amount paid up or credited $1.77m. The respondents are a bank wholly owned by the Soviet Government, but incorporated in London and having a place of business in Singapore. From 1972 the respondents extended financial accommodation for the appellants' trading activities in three ways:

(1) overdraft facilities;

(2) credit facilities for the acquisition of goods, a trust receipt being issued in respect of each transaction and the goods and their proceeds of sale being held on trust for the respondents; and

(3) acceptance by the respondents of bills of exchange on the appellants' behalf.

By way of security, the appellants mortgaged their Singapore premises to the respondents and from 1974 onwards they also pledged their goods.

The appellants traded successfu