Anwar Siraj v Teo Hee Lai: Stay of Proceedings in Favor of Arbitration
Anwar Siraj and Khoo Cheng Neo Norma, the plaintiffs, appealed against the decision to stay court proceedings in favor of arbitration with Teo Hee Lai Building Construction Pte Ltd, the defendant, regarding a dispute over payments and Interim Certificate No. 13 issued by the architect. The High Court dismissed the appeal, upholding the assistant registrar's decision to stay the proceedings and refer the matter to arbitration, finding that the dispute falls within the arbitration clause of the contract.
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
Appeal regarding stay of court proceedings in favor of arbitration. The court upheld the decision, finding the dispute falls under the arbitration clause.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Anwar Siraj | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | G Raman |
| Khoo Cheng Neo Norma | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | G Raman |
| Teo Hee Lai Building Construction Pte Ltd | Defendant, Respondent | Corporation | Stay of Proceedings Granted | Won | S Thulasidas |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Ang | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| G Raman | G R Law Corporation |
| S Thulasidas | Ling Das & Partners |
4. Facts
- Plaintiffs contracted with the defendant for construction on their property.
- Disputes arose over payments due to the defendant.
- The architect issued Interim Certificate No 11 and No 12.
- The architect issued Interim Certificate No 13 reducing the value of the defendant’s work.
- Plaintiffs brought an action for recovery of $348,000 based on Interim Certificate No 13.
- The defendant applied for a stay of proceedings in favor of arbitration.
5. Formal Citations
- Anwar Siraj and Another v Teo Hee Lai Building Construction Pte Ltd, Suit 348/2006, RA 241/2006, [2007] SGHC 29
6. Timeline
| Date | Event |
|---|---|
| Letter of award issued by the project architect Mr Tan Hock Beng, appointing the defendant as the main contractor. | |
| Interim Certificate No 11 issued by the architect valued the work done by the defendant at $726,000. | |
| Interim Certificate No 12 issued reducing the sum to $712,294. | |
| Defendant issued letters to the plaintiffs giving notice of their intention to refer the matters to arbitration. | |
| Defendant issued letters to the plaintiffs giving notice of their intention to refer the matters to arbitration. | |
| Defendant issued letters to the plaintiffs giving notice of their intention to refer the matters to arbitration. | |
| Plaintiffs applied to the High Court in Originating Motion No 26 of 2002 for the arbitrator's removal. | |
| Arbitrator decided he would not hear the claims or counterclaim of the plaintiffs as long as his direction to them to pay the $25,000 deposit went unheeded. | |
| Arbitrator wrote to inform the parties that the award was ready for collection upon payment of his fees and expenses amounting to $199,178.40. | |
| The architect for the Project issued his 13th Interim Certificate reducing the value of the defendant’s work substantially below what the architect had previously certified. | |
| Defendant's solicitor's letter conveyed the defendant's view that the dispute had to be resolved by arbitration. | |
| Plaintiffs brought the action herein for recovery of the said sum of $348,000. | |
| Defendant applied for a stay of proceedings in favour of arbitration. | |
| Appeal dismissed. |
7. Legal Issues
- Stay of Court Proceedings in Favor of Arbitration
- Outcome: The court upheld the decision to stay proceedings in favor of arbitration.
- Category: Procedural
- Architect's Power to Issue Interim Certificates
- Outcome: The court found that the architect had the power to issue a further Interim Certificate correcting any error in an earlier Interim Certificate.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Construction Law
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Uni-Navigation Pte Ltd v Wei Loong Shipping Pte Ltd | High Court | Yes | [1993] 1 SLR 876 | Singapore | Cited regarding the court's jurisdiction to decide on a claim even with an arbitration agreement. |
| JA Milestone & Sons, Ltd (in liquidation) v Yates Castle Brewery, Ltd | N/A | Yes | [1938] 2 All ER 439 | N/A | Cited regarding whether an architect can issue further certificates after a dispute has arisen. |
| Lloyd Brothers v Milward | Court of Appeal | Yes | N/A | N/A | Cited regarding whether an architect can issue certificates only before disputes have arisen. |
| Loke Hong Kee (S) Pte Ltd v United Overseas Land Ltd | N/A | Yes | [1979] 1 MLJ 108 | N/A | Cited regarding whether it was open to the architect to give further certificates once a dispute had arisen and been referred to arbitration. |
| Steel Industries Pte Ltd v Deenn Engineering Pte Ltd | N/A | Yes | [2003] 3 SLR 377 | Singapore | Cited regarding whether the architect had the power to issue a certificate for payment once arbitration proceedings had begun. |
| Tropicon Contractors Pte Ltd v Lojan Properties Pte Ltd | N/A | Yes | [1989] SLR 610 | Singapore | Cited regarding the validity of revised interim certificates. |
| Hong Huat Development Co (Pte) Ltd v Hiap Hong & Co Pte Ltd | N/A | Yes | [2000] 2 SLR 609 | Singapore | Cited regarding when an award is made and published. |
| Samsung Corp v Chinese Chamber Realty Pte Ltd | Court of Appeal | Yes | [2004] 1 SLR 382 | Singapore | Cited regarding the intention behind the amendment must have been that no O 14 application should be made while a stay application was pending. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 1985 Rev Ed) | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Stay of Proceedings
- Interim Certificate
- Functus Officio
- SIA Contract
- Architect
15.2 Keywords
- arbitration
- stay of proceedings
- construction contract
- interim certificate
16. Subjects
- Arbitration
- Construction Contracts
17. Areas of Law
- Arbitration Law
- Contract Law
- Building and Construction Law