Jiangsu Hantong v Sevan: Stay of Proceedings for Arbitration of Ship Building Contract Dispute
Jiangsu Hantong Ship Heavy Industry Co Ltd (“Hantong”) appealed to the High Court of Singapore against Assistant Registrar Lim Jian Yi’s decision to stay proceedings in Suit No 961 of 2008 in favour of arbitration proceedings in London, as per clause 34 of the contract between Hantong and Sevan Pte Ltd (“Sevan”). Hantong had sued Sevan to recover USD 2,854,829.50 allegedly owed for the construction of a vessel. The High Court, Tan Lee Meng J, dismissed the appeal, finding that a dispute existed between the parties and that the matter should be resolved through arbitration in accordance with the contract terms.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding stay of proceedings in favor of arbitration. The High Court dismissed the appeal, enforcing the arbitration agreement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| China National Aero-Technology Imp & Exp Xiamen Corporation | Plaintiff | Corporation | Appeal Dismissed | Lost | |
| Jiangsu Hantong Ship Heavy Industry Co Ltd formerly known as Hantong Ship Machinery Equipment (Tongzhou) Co Ltd | Appellant, Plaintiff | Corporation | Appeal Dismissed | Lost | |
| Sevan Pte Ltd | Respondent, Defendant | Corporation | Appeal Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Lee Meng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Philip Tay Twan Lip | Rajah & Tann LLP |
| S Mohan | Gurbani & Co. |
| Bernard Yee | Gurbani & Co. |
4. Facts
- Hantong and Sevan entered into a contract on 27 May 2006 for Hantong to build a vessel for Sevan.
- Sevan was required to make progress payments to Hantong within 5 banking days of receiving invoices.
- Hantong claimed Sevan owed USD 2,854,829.50 in progress payments as of 12 December 2008.
- Sevan applied for a stay of proceedings in favor of arbitration in London, per clause 34 of the contract.
- Sevan alleged Hantong committed breaches and made cross-claims for liquidated damages.
- Sevan denied admitting liability for the amounts in Hantong's invoices.
5. Formal Citations
- Jiangsu Hantong Ship Heavy Industry Co Ltd formerly known as Hantong Ship Machinery Equipment (Tongzhou) Co Ltd and Another v Sevan Pte Ltd, Suit 961/2008, [2009] SGHC 285
6. Timeline
| Date | Event |
|---|---|
| Contract signed between Hantong and Sevan for construction of Hull 21. | |
| Meeting between Hantong and Sevan regarding payments. | |
| Hantong claimed Sevan owed USD 2,854,829.50. | |
| Suit No 961 of 2008 instituted by Hantong against Sevan. | |
| AR Lim ordered a stay of proceedings. | |
| High Court dismissed Hantong’s appeal. |
7. Legal Issues
- Stay of Proceedings for Arbitration
- Outcome: The court affirmed the decision to stay the proceedings in favour of arbitration.
- Category: Procedural
- Related Cases:
- [2005] 4 SLR 646
- [2009] SGCA 41
- [1990] 2 Lloyd’s Rep 265
- Existence of a Dispute
- Outcome: The court found that a dispute existed between the parties.
- Category: Substantive
- Related Cases:
- [2005] 4 SLR 646
- [2009] SGCA 41
- [1990] 2 Lloyd’s Rep 265
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Arbitration
- Construction Law
11. Industries
- Construction
- Maritime
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 | Cited for the principle that a positive assertion of disputing a claim constitutes a dispute, even if the defense is weak. |
| Tjong Very Sumito and Ors v Antig Investments Pte Ltd | Court of Appeal | Yes | [2009] SGCA 41 | Singapore | Cited for the principle that courts should minimize involvement in matters agreed to be submitted to arbitration and interpret 'dispute' broadly. |
| Hayter v Nelson Home Insurance Co | Not Available | Yes | [1990] 2 Lloyd’s Rep 265 | England | Cited for the elucidation of what constitutes a dispute for the purpose of staying court proceedings in favor of arbitration. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002, Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Stay of Proceedings
- Dispute
- Progress Payments
- Shipbuilding Contract
- London Maritime Arbitrators Association
- Hull 21
15.2 Keywords
- Arbitration
- Stay of Proceedings
- Shipbuilding
- Contract Dispute
- Singapore
- International Arbitration Act
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 85 |
| International Commercial Arbitration | 75 |
| Admiralty and Maritime Law | 70 |
| Shipping Law | 70 |
| Breach of Contract | 60 |
| Contract Law | 50 |
16. Subjects
- Arbitration
- Contract Law
- Construction Dispute