Karaha Bodas Co LLC v Perusahaan Pertambangan: Setting Aside Ex Parte Order in Arbitration Enforcement
In Karaha Bodas Co LLC v Perusahaan Pertambangan Minyak dan Gas Bumi Negara, the Singapore High Court addressed the applicant's, Karaha Bodas Company LLC’s, oral application to set aside an ex parte order to enforce an arbitration award. The respondent, Perusahaan Pertambangan Minyak dan Gas Bumi Negara, opposed the application. Sundaresh Menon JC allowed the applicant's application and set aside the ex parte order, citing no injustice or prejudice would be caused to either party.
1. Case Overview
1.1 Court
High Court1.2 Outcome
The court set aside the ex parte order on the oral application made by the applicant.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment reserved
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case regarding setting aside an ex parte order for arbitration enforcement. The court considered the applicant's motion to set aside the order.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Karaha Bodas Co LLC | Applicant | Corporation | Application granted | Won | |
| Perusahaan Pertambangan Minyak dan Gas Bumi Negara | Respondent | Corporation | Application dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- The parties were jointly engaged in a project to mine geothermal resources in Indonesia.
- The project was suspended following a presidential decree issued by the Government of Indonesia.
- The suspension gave rise to arbitration proceedings which culminated in an award made in Geneva in favour of the applicant for around US$260m.
- The applicant commenced enforcement proceedings in various jurisdictions, including the US, Canada, Hong Kong, and Singapore.
- The respondent filed an application to set aside the ex parte order based on an allegation of fraud.
- The applicant applied for the matter to be stayed pending the outcome of the determination by the US Supreme Court on the Petition.
- The applicant then made an oral application to set aside the ex parte order.
5. Formal Citations
- Karaha Bodas Co LLC v Perusahaan Pertambangan Minyak dan Gas Bumi Negara, OS 342/2002, [2006] SGHC 148
6. Timeline
| Date | Event |
|---|---|
| Project to mine geothermal resources in Indonesia was suspended | |
| Applicant commenced proceedings and obtained an ex parte order to enforce the award | |
| Respondent filed its application to set aside the ex parte order | |
| Respondent filed a further affidavit introducing an allegation of fraud | |
| Hearing dates were vacated on the applicant’s motion | |
| Applicant applied for the matter to be stayed pending the outcome of the determination by the US Supreme Court | |
| Judgment reserved |
7. Legal Issues
- Setting aside ex parte order
- Outcome: The court held that it had the jurisdiction to set aside the ex parte order on the application of the party that obtained the order and could consider facts and matters subsequent to the making of the order.
- Category: Procedural
- Sub-Issues:
- Jurisdiction to set aside ex parte order
- Consideration of facts subsequent to the order
8. Remedies Sought
- Setting aside ex parte order
9. Cause of Actions
- Enforcement of Arbitration Award
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Mining
- Energy
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Sumitomo Bank Ltd v Kartika Ratna Thahir | High Court | Yes | [1993] 1 SLR 735 | Singapore | Cited for the dicta that there is no requirement whether as a rule of law or otherwise that every component of an allegation of fraud has to be proved by oral evidence. |
| WEA Records Ltd v Visions Channel 4 Ltd | English Court of Appeal | Yes | [1983] 1 WLR 721 | England and Wales | Cited for the principle that the High Court has power to review and to discharge or vary any order which has been made ex parte. |
| Becker v Noel | N/A | Yes | [1971] 1 WLR 803 | N/A | Cited for the principle that the court has inherent jurisdiction to revoke leave if it feels that it gave its original leave under a misapprehension upon new matters being drawn to its attention. |
| Hallmark Cards Inc. v. Image Arts Ltd. | N/A | Yes | [1977] 3 F.S.R.150 | N/A | Cited to show that the court looks at the reality of the situation, including any evidence filed or statement made by counsel by way of admissions after the execution of the Anton Piller order. |
| Nikkomann Co Pte Ltd v Yulean Trading Pte Ltd | Court of Appeal | Yes | [1992] 2 SLR 980 | Singapore | Cited for the principle that the court is entitled to take into account facts and documents disclosed or discovered in compliance or in pursuance of the interim orders. |
| Ministry of Foreign Affairs, Trade and Industry v Vehicles and Supplies Ltd | Privy Council | Yes | [1991] 1 WLR 550 | Jamaica | Cited to demonstrate that it is permissible to have regard to matters that take place after the order that is being challenged was made. |
| Majlis Peguam Malaysia v Raja Segaran a/l S Krishnan | Court of Appeal | Yes | [2002] 3 MLJ 155 | Malaysia | Cited for the principle that the discretion of the court was ultimately to be exercised in the interests of justice. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Order 32 r 6 Rules of Court (Cap 322, R 5, 2006 Rev Ed) | Singapore |
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Ex parte order
- Arbitration award
- Enforcement proceedings
- Fraud allegation
- Stay of proceedings
- Setting aside
- Jurisdiction
- Presidential decree
15.2 Keywords
- ex parte order
- arbitration
- enforcement
- fraud
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Civil Practice | 75 |
| Arbitration | 60 |
| Enforcement of Foreign Judgments | 50 |
16. Subjects
- Civil Procedure
- Arbitration
- Enforcement of Judgments