Jiangsu Hantong v Sevan Holding: Stay of Action for Arbitration
Jiangsu Hantong Ship Heavy Industry Co Ltd ("Hantong") appealed against the decision to stay its action against Sevan Holding I Pte Ltd (“Sevan”) in favour of arbitration. Hantong sued Sevan in the High Court of Singapore for money owed under a contract for the construction of a vessel. Sevan applied for a stay of the action, which was granted. The High Court dismissed Hantong's appeal, affirming the stay in favour of arbitration proceedings in London, as per the contract's arbitration clause, finding that a dispute existed between the parties.
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 action in favor of arbitration. The court affirmed the stay, citing the presence of a dispute and the arbitration clause.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Jiangsu Hantong Ship Heavy Industry Co Ltd | Appellant, Plaintiff | Corporation | Appeal Dismissed | Lost | Philip Tay Twan Lip |
| China National Aero-Technology Imp & Exp Xiamen Corporation | Appellant, Plaintiff | Corporation | Appeal Dismissed | Lost | Philip Tay Twan Lip |
| Sevan Holding I Pte Ltd | Respondent, Defendant | Corporation | Appeal Allowed | Won | S Mohan, Bernard Yee |
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 for the construction of a vessel.
- Hantong claimed Sevan owed USD 3,646,208 as of 12 December 2008.
- Sevan applied for a stay of the action in favour of arbitration.
- Sevan claimed it had substantial counterclaims against Hantong.
- The contract contained an arbitration clause requiring disputes to be resolved through arbitration in London.
5. Formal Citations
- Jiangsu Hantong Ship Heavy Industry Co Ltd and Another v Sevan Holding I Pte Ltd, Suit 963/2008, RA 106/2009, [2009] SGHC 288
6. Timeline
| Date | Event |
|---|---|
| Meeting held between Hantong and Sevan | |
| Hantong's solicitors demanded payment of USD 3,646,208 from Sevan | |
| Hantong instituted Suit No 963 of 2008 | |
| AR Lim stayed the action in favour of arbitration | |
| Appeal dismissed |
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:
- [2009] SGCA 41
- Existence of a Dispute
- Outcome: The court found that a dispute existed between the parties, justifying the stay of proceedings.
- Category: Substantive
- Related Cases:
- [2009] SGCA 41
- [1990] 2 Lloyd’s Rep 265
- [2005] 4 SLR 646
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- Construction
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tjong Very Sumito 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 that a dispute exists unless the defendant has unequivocally admitted the claim is due and payable. |
| Hayter v Nelson Home Insurance Co | N/A | Yes | [1990] 2 Lloyd’s Rep 265 | N/A | Cited for the principle that a dispute can exist even if one party is clearly right and the other is clearly wrong. |
| Dalian Hualiang Enterprise Group Co Ltd v Louis Dreyfus Asia Pte Ltd | N/A | Yes | [2005] 4 SLR 646 | Singapore | Cited for the principle that a dispute exists if the defendant makes a positive assertion that he is disputing the claim, even if he is wrong. |
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
- Counterclaims
- Construction Contract
15.2 Keywords
- arbitration
- stay of proceedings
- contract
- dispute
- construction
- shipping
16. Subjects
- Arbitration
- Contract Law
- Construction Dispute
17. Areas of Law
- Arbitration Law
- Contract Law
- Civil Procedure