Australian Timber Products v Koh Brothers: Stay of Proceedings & Default Judgment in Arbitration Dispute
In Australian Timber Products Pte Ltd v Koh Brothers Building & Civil Engineering Contractor (Pte) Ltd, the High Court of Singapore heard an appeal by Australian Timber Products Pte Ltd against the decision of the district judge to set aside a default judgment. The underlying dispute concerned a sub-contract for the supply and installation of timber strip flooring. Koh Brothers Building & Civil Engineering Contractor (Pte) Ltd applied for a stay of proceedings under s 6(1) of the Arbitration Act, arguing that the dispute should be referred to arbitration. The plaintiff entered judgment in default of defence, which the defendant sought to set aside. The High Court allowed the appeal, finding that the defendant should have applied for an extension of time to serve its defence and that the defendant had not demonstrated a real prospect of successfully defending the claim.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Stay application was filed in an arbitration dispute. The court held that the defendant should have applied for an extension of time.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Australian Timber Products Pte Ltd | Plaintiff, Appellant | Corporation | Appeal Allowed | Won | Andrew Chan, Chua Boon Thien |
| Koh Brothers Building & Civil Engineering Contractor (Pte) Ltd | Defendant, Respondent | Corporation | Appeal Dismissed | Lost | Lai Kwok Seng |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | J | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Andrew Chan | Allen and Gledhill |
| Chua Boon Thien | David Siow Chua and Tan LLC |
| Lai Kwok Seng | Lai Mun Onn and Co |
4. Facts
- The defendant appointed the plaintiff as its nominated sub-contractor for the supply and installation of timber strip flooring.
- A dispute arose between the plaintiff and the defendant as to the amount due to the plaintiff.
- The plaintiff commenced proceedings against the defendant for $134,031.24.
- The defendant applied to stay the action under s 6(1) of the Arbitration Act.
- The plaintiff entered judgment in default of defence.
- The defendant applied to set aside the default judgment.
- The defendant argued that the plaintiff’s works were incomplete and defective.
5. Formal Citations
- Australian Timber Products Pte Ltd v Koh Brothers Building & Civil Engineering Contractor (Pte) Ltd, DC Suit 190/2004, RAS 23/2004, [2004] SGHC 243
6. Timeline
| Date | Event |
|---|---|
| Defendant appointed the plaintiff as its nominated sub-contractor. | |
| Plaintiff commenced proceedings in the District Court against the defendant. | |
| Writ of summons was served. | |
| Appearance to the action was entered on behalf of the defendant. | |
| Amended writ of summons was re-served on the defendant’s solicitor. | |
| Defendant applied to stay the entire action under s 6(1) of the Arbitration Act. | |
| Plaintiff called upon the defendant to serve its defence within 48 hours. | |
| Plaintiff entered judgment in default of defence. | |
| Defendant applied to set aside the default judgment. | |
| Stay application fixed for hearing. | |
| District judge in chambers reversed the Deputy Registrar's decision. | |
| Plaintiff appealed against the decision of the district judge. | |
| Judgment issued. |
7. Legal Issues
- Stay of Court Proceedings
- Outcome: The court held that the defendant should have applied for an extension of time to serve its defence.
- Category: Procedural
- Sub-Issues:
- Whether defendant should file defence pending outcome of stay application
- Whether application to extend time to serve defence constituting 'step in the proceedings'
- Whether application to set aside default judgment constituting 'step in the proceedings'
- Default Judgment
- Outcome: The court held that the defendant had not demonstrated a real prospect of successfully defending the claim.
- Category: Procedural
- Sub-Issues:
- Whether judgment regularly obtained
- Whether judgment should be set aside
- Whether defence having real prospect of success
- Principles governing court's discretion to set aside default judgments
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
- Construction Law
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Samsung Corp v Chinese Chamber Realty Pte Ltd | Court of Appeal | Yes | [2004] 1 SLR 382 | Singapore | Distinguished on its facts; the court held that the issues therein were different. |
| Yeoh Poh San v Won Siok Wan | N/A | Yes | [2002] 4 SLR 91 | Singapore | Cited for the principle that the proper occasion to cite observations made by Chao JA in Samsung and Woo JC in Yeoh Poh San v Won Siok Wan is at the time when the court hears an application to extend time. |
| London Sack & Bag Co, Ltd v Dixon & Lugton, Ltd | N/A | Yes | [1943] 2 All ER 763 | N/A | Cited in support of the contention that an application to extend time to serve the defence would not be viewed as a “step in the proceedings”. |
| Pitchers, Ltd v Plaza (Queensbury), Ltd | N/A | Yes | [1940] 1 All ER 151 | N/A | Cited for the underlying principle of what amounts to a step in the proceedings. |
| Eagle Star Insurance Co Ltd v Yuval Insurance Co Ltd | N/A | Yes | [1978] 1 Lloyd’s Rep 357 | N/A | Cited for the underlying principle of what amounts to a step in the proceedings. |
| Kuwait Airways Corporation v Iraq Airways Co | N/A | Yes | [1994] 1 Lloyd’s Rep 276 | N/A | Cited for the underlying principle of what amounts to a step in the proceedings. |
| Patel v Patel | N/A | Yes | [2000] QB 551 | N/A | Cited for the principle that unless there was an application to set aside the default judgment there would be nothing to stay. |
| Alpine Bulk Transport Co Inc v Saudi Eagle Shipping Co Inc (The Saudi Eagle) | N/A | Yes | [1986] 2 Lloyd’s Rep 221 | N/A | Cited for the approach that to set aside a judgment regularly obtained, the burden is on the defendant to satisfy the court that it has a defence on the merits which has a real prospect of success and carries some degree of conviction. |
| Abdul Gaffer v Chua Kwang Yong | N/A | Yes | [1995] 1 SLR 484 | Singapore | Cited for the approach that to set aside a judgment regularly obtained, the burden is on the defendant to satisfy the court that it has a defence on the merits which has a real prospect of success and carries some degree of conviction. |
| Oversea-Chinese Banking Corp Ltd v Measurex Corp Bhd | N/A | Yes | [2002] 4 SLR 578 | Singapore | Cited for the approach that to set aside a judgment regularly obtained, the burden is on the defendant to satisfy the court that it has a defence on the merits which has a real prospect of success and carries some degree of conviction. |
| Chong Long Hak Kee Construction Trading Co v IEC Global Pte Ltd | N/A | Yes | [2003] 4 SLR 499 | Singapore | Cited for the principle that an act, which would otherwise be regarded as a step in the proceedings, will not be treated as such if the applicant has specifically stated that he intends to seek a stay or expressly reserves his right to do so. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5 2004 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Stay of proceedings
- Default judgment
- Arbitration clause
- Step in the proceedings
- Real prospect of success
- Extension of time
15.2 Keywords
- arbitration
- stay of proceedings
- default judgment
- construction
- Singapore
16. Subjects
- Arbitration
- Civil Procedure
- Contract Law
17. Areas of Law
- Arbitration Law
- Civil Procedure
- Contract Law