Sui Southern Gas v Habibullah Coastal Power: Gas Supply Agreement Dispute

In a dispute between Sui Southern Gas Company Limited (SSGC) and Habibullah Coastal Power Company (Private) Limited (HCPC), the Singapore High Court addressed SSGC's application to set aside an arbitration award in favor of HCPC. The dispute arose from a Gas Supply Agreement where HCPC claimed SSGC failed to supply sufficient gas. SSGC argued the award was outside the scope of submission to arbitration and against public policy. Prakash J. dismissed the application, upholding the award and ordering SSGC to pay costs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Application dismissed, with costs to be paid by Sui Southern Gas Co Ltd to Habibullah Coastal Power Co (Pte) Ltd, and the Award upheld.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court judgment regarding a gas supply dispute between Sui Southern Gas and Habibullah Coastal Power, concerning breach of contract and arbitration award.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Sui Southern Gas Co LtdPlaintiffCorporationApplication DismissedLost
Habibullah Coastal Power Co (Pte) LtdDefendantCorporationAward UpheldWon

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Kenneth TanM&A Law Corporation
Prakash MulaniM&A Law Corporation
Aftab Ahmad KhanM&A Law Corporation
Tammy Low Wan JunRajah & Tann LLP
Sundraresh MenonRajah & Tann LLP

4. Facts

  1. SSGC and HCPC entered into a Gas Supply Agreement in 1996.
  2. HCPC claimed SSGC breached the agreement by failing to supply sufficient gas.
  3. The dispute was referred to arbitration in Singapore.
  4. The Arbitral Tribunal ruled in favor of HCPC.
  5. SSGC sought to set aside the award, arguing it was outside the scope of submission and against public policy.
  6. The agreement stipulated that HCPC had priority over non-residential users but not residential users.

5. Formal Citations

  1. Sui Southern Gas Co Ltd v Habibullah Coastal Power Co (Pte) Ltd, Originating Summons No 248 of 2009, [2010] SGHC 62

6. Timeline

DateEvent
Amended and Restated Gas Supply Agreement signed
Arbitral Tribunal rendered its award
Originating summons taken out by SSGC
Judgment issued

7. Legal Issues

  1. Scope of Submission to Arbitration
    • Outcome: The court held that the award was within the scope of submission to arbitration.
    • Category: Jurisdictional
    • Sub-Issues:
      • Interpretation of 'pipeline system' in the Gas Supply Agreement
      • Whether the award dealt with issues beyond the scope of the arbitration agreement
  2. Public Policy
    • Outcome: The court held that the award was not in conflict with the public policy of Singapore.
    • Category: Substantive
    • Sub-Issues:
      • Whether the award was contrary to the public policy of Singapore
      • Whether the award was perverse and manifestly unreasonable

8. Remedies Sought

  1. Setting aside of arbitration award

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Arbitration

11. Industries

  • Energy
  • Utilities

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
PT Asuransi Jasa Indonesia (Persero) v Dexia Bank SACourt of AppealYes[2007] SLR(R) 513SingaporeCited as authority that the International Arbitration Act provides the exclusive means to challenge an arbitral award in Singapore.
Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte LtdCourt of AppealYes[2007] 3 SLR(R) 86SingaporeCited as authority that the International Arbitration Act provides the exclusive means to challenge an arbitral award in Singapore.
Associated Provincial Picture Houses v Wednesbury CorporationNot AvailableYes[1948] 1 KB 223England and WalesCited regarding the principle of 'Wednesbury unreasonableness' in administrative law, but distinguished as not applicable to private arbitrations.
Merrill Lynch, Pierce, Fenner & Smith, Inc. v Jack BobkerUnited States courts of appealYes808 F 2d, 930 (2nd Cir, 1986)United StatesCited by the plaintiff regarding 'manifest disregard of the law' as a justification for vacating an arbitration award, but the court did not follow this approach.
Arthur H. Williams v Cigna Financial Advisors IncorporatedUnited States courts of appealYes197 F 3d, 752 (5th Cir, 1999)United StatesCited by the plaintiff regarding 'manifest disregard of the law' as a justification for vacating an arbitration award, but the court did not follow this approach.
ABC Co v XYZ Co LtdNot AvailableYes[2003] 3 SLR(R) 546SingaporeCited for the proposition that Article 34 of the Model Law deals with recourse against an arbitral award.
London and North Western and Great Western Joint Railway Companies v JH Billington, LimitedHouse of LordsYes[1899] AC 79United KingdomCited for the principle that an arbitral tribunal has no jurisdiction to decide any issue not referred to it for determination by the parties.
VV v VWNot AvailableYes[2008] 2 SLR(R) 929SingaporeCited for the principle that assertions of breach of public policy cannot be vague and generalized.
John Holland Pty Ltd (formerly known as John Holland Construction & Engineering Pty Ltd) v Toyo Engineering Corp (Japan)Not AvailableYes[2001] 1 SLR(R) 443SingaporeCited for the principle that a party challenging an award on public policy grounds must identify the specific public policy breached.
Deutsche Schachbau v Shell International Petroleum Co LtdNot AvailableYes[1987] 2 Lloyds’ Rep 246England and WalesCited regarding the definition of public policy in the context of arbitral awards.
Parsons & Whittemore Overseas Co Inc v Societe Generale de L’Industrie du Papier (RAKTA)United States courts of appealYes508 F 2d, 969 (2nd Cir, 1974)United StatesCited regarding the definition of public policy in the context of arbitral awards.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
International Arbitration Act (Cap 143A, 2002 Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Gas Supply Agreement
  • Arbitration Award
  • Pipeline System
  • Daily Contract Quantity
  • Delivery Priority
  • Scope of Submission
  • Public Policy
  • International Arbitration Act
  • UNCITRAL Model Law

15.2 Keywords

  • Gas Supply Agreement
  • Arbitration
  • Breach of Contract
  • Singapore High Court
  • International Arbitration Act

17. Areas of Law

Area NameRelevance Score
Breach of Contract95
International Arbitration Act90
Enforcement of Foreign Arbitral Awards85
Contract Law80
Arbitration75
Gas Supply Agreement70
Commercial Disputes60
Asset Recovery50

16. Subjects

  • Arbitration
  • Contract Law
  • Energy Law