SA Shee v Kaki Bukit: Stay of Proceedings & Arbitration Agreement Interpretation
In SA Shee & Co (Pte) Ltd v Kaki Bukit Industrial Park Pte Ltd, the Court of Appeal of Singapore heard an appeal regarding the High Court's decision to stay proceedings in Suit 658/99 pending arbitration, pursuant to Section 7 of the Arbitration Act. SA Shee & Co (Pte) Ltd, the appellant, claimed payment for five interim certificates, while Kaki Bukit Industrial Park Pte Ltd, the respondent, denied liability based on alleged agreements. The Court of Appeal dismissed the appeal, finding that the dispute fell within the arbitration clause of the contract.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding stay of court proceedings pending arbitration. The court dismissed the appeal, finding the dispute fell within the arbitration clause.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| SA Shee & Co (Pte) Ltd | Appellant | Corporation | Appeal dismissed | Lost | Vinodh Coomaraswamy |
| Kaki Bukit Industrial Park Pte Ltd | Respondent | Corporation | Appeal dismissed | Won | Howard Cashin, Lim Khoon |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of Appeal | Yes |
| Tan Lee Meng | Judge | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Vinodh Coomaraswamy | Shook Lin & Bok |
| Howard Cashin | Lim Hua Yong & Co |
| Lim Khoon | Lim Hua Yong & Co |
4. Facts
- Respondents were the developer of a factory at Kaki Bukit Road 3.
- Appellants were engaged as the main contractor for the project.
- The contract incorporated the Singapore Institute of Architects Conditions of Building Contract.
- Respondents failed to make payments under five interim certificates.
- Appellants brought Suit 658/99 to claim payment for the five certificates.
- Respondents denied liability based on alleged agreements regarding payment.
- Appellants purported to terminate the contract, which the respondents disputed.
5. Formal Citations
- SA Shee & Co (Pte) Ltd v Kaki Bukit Industrial Park Pte Ltd, CA 445/2000, [2000] SGCA 7
6. Timeline
| Date | Event |
|---|---|
| Ho Mun Fei and Chng Heng Tiu jointly tendered for the project site. | |
| Dispute arose between the Ho group and the Chng group. | |
| Agreement entered into between members of the Chng group and SIR for shareholding in the respondents. | |
| SIR stopped payment on installments due to a dispute. | |
| Contract awarded by the respondents to the appellants. | |
| Chng group and Ho group decided to settle their dispute. | |
| Appellants sent a letter to the respondents giving notice under cl 33(1)(b) of the SIA Conditions. | |
| Appellants gave the respondents notice of termination of the contract. | |
| Parties agreed on a 'mutual termination' of the contract. | |
| Respondents wrote to the appellants pointing out that the notice of termination of 13 February 1999 was invalid. | |
| Respondents sent a letter to the appellants regarding the termination of the contract. | |
| Respondents rescinded the termination agreement and reserved their right to claim damages. | |
| Respondents gave the appellants notice to vacate the site. | |
| Respondents gave notice of arbitration to the appellants' solicitors. | |
| Respondents accepted the appellants' repudiation of the contract. | |
| Appellants took out the writ of summons in Suit 658/99. | |
| Respondents took out SIC 3257/99 to stay the proceedings. | |
| Appellants took out SIC 3480/99 for summary judgment on its claim. | |
| SIC applications fixed for hearing before the judge. | |
| Decision Date |
7. Legal Issues
- Stay of Court Proceedings
- Outcome: The court held that the proceedings should be stayed pending arbitration.
- Category: Procedural
- Interpretation of Arbitration Agreement
- Outcome: The court held that the dispute fell within the scope of the arbitration agreement.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Arbitration
- Construction Law
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tropicon Contractors Pte Ltd v Lojan Properties Pte Ltd | High Court | Yes | [1989] SLR 610 | Singapore | Cited for the approach of hearing the application for summary judgment first, followed by the application for stay. |
| Tropicon Contractors Pte Ltd v Lojan Properties Pte Ltd | Unknown | Yes | [1989] 3 MLJ 216 | Unknown | Cited for the approach of hearing the application for summary judgment first, followed by the application for stay. |
| Woh Hup (Pte) Ltd & Anor v Turner (East Asia) Pte Ltd | Unknown | Yes | [1986] SLR 152 | Singapore | Cited for the approach of hearing the application for summary judgment first, followed by the application for stay. |
| Woh Hup (Pte) Ltd & Anor v Turner (East Asia) Pte Ltd | Unknown | Yes | [1987] 1 MLJ 443 | Unknown | Cited for the approach of hearing the application for summary judgment first, followed by the application for stay. |
| Heyman v Darwins Ltd | House of Lords | Yes | [1942] AC 356 | United Kingdom | Cited for the principle that whether a dispute falls within an arbitration clause depends on the nature of the dispute and the scope of the arbitration clause. |
| Coop International Pte Ltd v Ebel SA | Court of Appeal | Yes | [1998] 3 SLR 670 | Singapore | Cited for the principle that issues in dispute must have arisen under or out of or be reasonably connected with the contract between the parties to fall within the arbitration clause. |
| Aoki Corp v Lippoland (Singapore) Pte Ltd | High Court | Yes | [1995] 2 SLR 609 | Singapore | Cited for the principle that progress payments are the lifeline of a building contractor's business and the object of giving interim certificates temporary finality is to minimize cash flow problems. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Stay of proceedings
- Interim certificates
- SIA Conditions
- Collateral agreement
- Termination of contract
- Repudiation
- Mutual termination
15.2 Keywords
- arbitration
- stay of proceedings
- construction contract
- interim certificates
- Singapore
16. Subjects
- Construction Dispute
- Arbitration
- Contract Law
17. Areas of Law
- Arbitration Law
- Contract Law
- Construction Law
- Civil Procedure