Mitsui v PSA Corp & Keppel: Stay of Proceedings under International Arbitration Act
In Mitsui Engineering & Shipbuilding Co Ltd v PSA Corp Ltd And Another, the Singapore High Court addressed whether to grant a stay of court proceedings in favor of arbitration. Mitsui and Keppel, as a consortium, contracted with PSA Corporation Limited for a project. Disputes arose, and Keppel sought a stay of Mitsui's claims against it, citing arbitration provisions in their Consortium Agreements. The court, presided over by Judicial Commissioner Woo Bih Li, dismissed Mitsui's appeal, holding that the arbitration was international under the International Arbitration Act, thus mandating the stay.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court granted Keppel's application for a mandatory stay of court proceedings in favor of arbitration, determining that the arbitration between Mitsui and Keppel was international under the IAA.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Mitsui Engineering & Shipbuilding Co Ltd | Plaintiff, Respondent | Corporation | Appeal dismissed | Lost | Leslie Chew, John Chung, Alvin Chang |
| PSA Corp Ltd | Defendant | Corporation | Neutral | Neutral | |
| Keppel Engineering Pte Ltd | Defendant, Applicant | Corporation | Application for stay granted | Won | Steven Chong, Deanna Seow, Chua Kee Loon |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Leslie Chew | Khattar Wong & Partners |
| John Chung | Khattar Wong & Partners |
| Alvin Chang | Khattar Wong & Partners |
| Steven Chong | Rajah & Tann |
| Deanna Seow | Rajah & Tann |
| Chua Kee Loon | Rajah & Tann |
4. Facts
- Mitsui and Keppel were contractors for PSA under Contract Nos 619 and 801.
- Contract No 619 involved the design, construction, supply, installation, testing, commissioning, and integration of an Overhead Bridge Crane System.
- Contract No 801 involved the design, construction, supply, installation, testing, commissioning, and integration of 16 cranes.
- There were two Consortium Agreements between Mitsui and Keppel, each dated 29 December 1997.
- Article 14 of the Consortium Agreements provided for arbitration in Singapore under the UNCITRAL Arbitration Rules.
- Arbitration had commenced with Keppel as the Claimant and Mitsui as the Respondent.
- Mitsui filed a suit against PSA and Keppel, arising from both contracts.
5. Formal Citations
- Mitsui Engineering & Shipbuilding Co Ltd v PSA Corp Ltd And Another, Suit No 114 of 2002/L, RA No 88 of 2002, [2002] SGHC 170
6. Timeline
| Date | Event |
|---|---|
| Consortium Agreements Nos 619 and 801 were dated | |
| Mitsui's solicitors requested an arbitrator who was neither Japanese nor Singaporean | |
| Preliminary hearing in Singapore | |
| Decision Date |
7. Legal Issues
- Stay of Court Proceedings
- Outcome: The court granted the stay of court proceedings in favour of arbitration.
- Category: Procedural
- International Arbitration
- Outcome: The court determined that the arbitration between Mitsui and Keppel was an international arbitration under the International Arbitration Act.
- Category: Substantive
8. Remedies Sought
- Stay of court proceedings
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- Construction
- Engineering
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Thorneloe v Board of Trade | N/A | Yes | [1950] 2 All ER 245 | N/A | Cited to define 'substantial' in the context of obligations. |
| Fung Sang Trading Ltd v Kai Sun Sea Products & Food Co Ltd | Hong Kong High Court | Yes | N/A | Hong Kong | Illustrated the application of s 5(2)(b)(ii) in determining whether an arbitration is international. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 1995 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- International Arbitration Act
- Stay of proceedings
- Consortium Agreement
- Place of business
- Substantial performance
- UNCITRAL Arbitration Rules
15.2 Keywords
- arbitration
- stay of proceedings
- international arbitration act
- singapore
- construction
- contract
16. Subjects
- Arbitration
- International Arbitration
- Civil Procedure
17. Areas of Law
- Arbitration Law
- International Arbitration Law
- Contract Law