Tjong Very Sumito v Antig Investments: Stay of Proceedings Under International Arbitration Act
In Tjong Very Sumito and Others v Antig Investments Pte Ltd, the Singapore High Court heard an appeal regarding the stay of court proceedings in favor of arbitration. The plaintiffs, Tjong Very Sumito, Iman Haryanto, and Herman Aries Tintowo, commenced an action against the defendant, Antig Investments Pte Ltd, for allegedly failing to make payment according to a Shares Sale and Purchase Agreement (SPA). The defendant applied for a stay under Section 6 of the International Arbitration Act. Choo Han Teck J allowed the appeal, holding that a dispute existed and the defendant had made a positive assertion challenging the plaintiffs’ claim, thus warranting a stay of proceedings.
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
The High Court allowed an appeal for a stay of court proceedings in favor of arbitration, emphasizing that a positive assertion of a dispute is sufficient under the International Arbitration Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tjong Very Sumito | Respondent, Plaintiff | Individual | Appeal Allowed | Lost | Manjit Singh |
| Iman Haryanto | Respondent, Plaintiff | Individual | Appeal Allowed | Lost | Manjit Singh |
| Herman Aries Tintowo | Respondent, Plaintiff | Individual | Appeal Allowed | Lost | Manjit Singh |
| Antig Investments Pte Ltd | Appellant, Defendant | Corporation | Appeal Allowed | Won | Michael Hwang, Charis Tan, Nicholas Narayanan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Michael Hwang | Independent Practitioner |
| Charis Tan | Independent Practitioner |
| Nicholas Narayanan | Nicholas & Co |
| Manjit Singh | Manjit Govind & Partners |
4. Facts
- Plaintiffs and defendant entered into a Shares Sale and Purchase Agreement (SPA) in November 2004.
- The SPA contained an arbitration clause for disputes arising out of or in connection with the SPA.
- The parties entered into four supplementary agreements, the last dated 19 August 2005.
- The last supplementary agreement stipulated a payment of US$3.7m to Aventi on a specified date.
- Aventi requested early settlement of US$3.7m in late September 2007, granting a discount.
- Defendant released $3.5m to Aventi on or about 7 November 2007.
- Plaintiffs informed the defendant on 9 April 2008 that the US$3.7m was to be made to the first plaintiff, not Aventi.
5. Formal Citations
- Tjong Very Sumito and Others v Antig Investments Pte Ltd, Suit 348/2008, RA 333/2008, [2008] SGHC 202
6. Timeline
| Date | Event |
|---|---|
| Shares Sale and Purchase Agreement entered into | |
| Last supplementary agreement dated | |
| Defendant granted a 6% discount for early settlement of a US$2m payment | |
| Aventi requested for an early settlement of US$3.7m | |
| Defendant released a sum of some $3.5m to Aventi | |
| First plaintiff wrote to the defendant regarding the balance purchase price | |
| Plaintiffs informed the defendant that the sum of US$3.7m was to be made to the first plaintiff | |
| Plaintiffs commenced an action in the High Court | |
| Judgment Date |
7. Legal Issues
- Stay of Court Proceedings
- Outcome: The court held that a dispute existed and a positive assertion had been made by the defendant challenging the plaintiffs’ claim, justifying a stay of proceedings.
- Category: Procedural
- Related Cases:
- [2005] 4 SLR 646
- Existence of a Dispute
- Outcome: The court found that a dispute referable to the SPA existed, based on the defendant's assertion that payment to Aventi extinguished its liabilities.
- Category: Substantive
- Related Cases:
- [2005] 4 SLR 646
- [1998] 1 WLR 726
8. Remedies Sought
- Restraint of payment to any party other than the plaintiffs
- Damages to be assessed
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Dalian Hualiang Enterprise Group Co Ltd v Louis Dreyfus Asia Pte Ltd | High Court | Yes | [2005] 4 SLR 646 | Singapore | The court relied on this case to determine the principles for granting a stay of proceedings under s 6(2) IAA, specifically regarding the existence of a dispute. |
| Halki Shipping Corporation v Sopex Oils Ltd | N/A | Yes | [1998] 1 WLR 726 | England | The court cited this case for the view that a dispute exists once money is claimed unless the defendant admits the sum is due and payable. |
| A v B (Costs) | N/A | Yes | [2007] 1 Lloyd’s Rep 358 | England | The court cited this case regarding the award of costs on an indemnity basis where a party has breached an arbitration clause. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A) | Singapore |
| Section 6(2) International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Shares Sale and Purchase Agreement
- International Arbitration Act
- Stay of proceedings
- Positive assertion of dispute
- Arbitration clause
- Supplementary agreement
- Early settlement
- Balance Purchase Price
15.2 Keywords
- Arbitration
- Stay of proceedings
- International Arbitration Act
- Contract dispute
- Singapore High Court
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure
17. Areas of Law
- Arbitration Law
- Contract Law
- Civil Procedure