Doshion Ltd v Sembawang Engineers: Dispute Over Settlement Agreement and Arbitration Termination

Doshion Ltd, an Indian company, applied to the High Court of Singapore to stop arbitration proceedings against Sembawang Engineers and Constructors Pte Ltd, a Singaporean company, arguing that a settlement agreement had been reached. Choo Han Teck J dismissed the application, holding that the arbitral tribunal had the jurisdiction to determine the existence and validity of the alleged settlement agreement, as the dispute arose from the parties' relationship.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's application dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Indian company Doshion Ltd sought to stop arbitration with Sembawang Engineers, claiming a settlement agreement existed. The court dismissed the application, holding the arbitral tribunal should determine the agreement's existence.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Sembawang Engineers and Constructors Pte LtdDefendantCorporationApplication dismissedWon
Doshion LtdPlaintiffCorporationApplication dismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJYes

4. Counsels

Counsel NameOrganization
Mohan PillayMPillay
Yeo Boon TatMPillay
A VerghisDrew & Napier LLC
Sandra TanDrew & Napier LLC

4. Facts

  1. Doshion Ltd and Sembawang Engineers entered into two sub-contracts.
  2. A dispute arose from the sub-contracts, leading to arbitration proceedings.
  3. Doshion Ltd claimed a settlement agreement was reached, terminating the arbitration.
  4. Sembawang Engineers disputed the existence of the settlement agreement.
  5. The arbitration was scheduled to start on 2011-02-28.
  6. Doshion Ltd applied to the High Court to stop the arbitration.

5. Formal Citations

  1. Doshion Ltd v Sembawang Engineers and Constructors Pte Ltd, Originating Summons No 132 of 2011 (Summons No 767 of 2011), [2011] SGHC 46

6. Timeline

DateEvent
Alleged Settlement Agreement reached
Plaintiff applied to stop the arbitration
Arbitration was scheduled to start
Judgment reserved

7. Legal Issues

  1. Jurisdiction of Arbitral Tribunal
    • Outcome: The court held that the arbitral tribunal has jurisdiction to determine the existence of the settlement agreement.
    • Category: Jurisdictional
    • Sub-Issues:
      • Whether the arbitral tribunal has jurisdiction to determine the existence of a settlement agreement
      • Whether the arbitral tribunal had become functus officio
  2. Termination of Arbitration
    • Outcome: The court held that the arbitration was not terminated.
    • Category: Substantive

8. Remedies Sought

  1. Declaration that a binding settlement agreement existed
  2. Declaration that the arbitration was terminated
  3. Injunction to restrain the defendant from continuing with the arbitration

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Arbitration
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Dawes v Treasure & Son LtdHigh CourtNo[2010] EWHC 3218England and WalesCited regarding the issue of whether an arbitrator is functus officio going to the jurisdiction of the arbitrator.
Fiona Trust & Holding Corp v PrivalovHouse of LordsYes[2007] UKHL 40United KingdomCited for the principle that rational businessmen would likely intend any dispute arising out of their relationship to be decided by the same tribunal.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Section 3 of the International Arbitration Act (Cap. 143A)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Settlement Agreement
  • Arbitration
  • Sub-Contracts
  • Functus Officio
  • Jurisdiction of Arbitral Tribunal

15.2 Keywords

  • Arbitration
  • Settlement Agreement
  • Subcontract
  • Singapore
  • Construction

17. Areas of Law

Area NameRelevance Score
Arbitration90
Jurisdiction70
International Commercial Arbitration60
Contract Law60
International Arbitration Act50
Jurisdiction of Arbitral tribunal50
Breach of Contract50
Construction of Contract40
Interpretation of contractual terms40
Interpretation of Contracts40
International Arbitration Law40
Construction of Contracts40
Contractual estoppel30
Singapore International Arbitration Centre30
Summary Judgement30
Rules of court30
Implied contract30
Existence of arbitration agreement30
Invalidity of arbitration agreement30
Inconsistency between arbitration agreement and jurisdiction clause30
Composition of tribunal not in accordance with agreement30
Choice of jurisdiction20
Formalities20
Arbitrability20
Construction of undertaking20
Validity of arbitral award20
Formation20
Separability Doctrine20
International Commercial Transactions20
Pre-incorporation contracts20
Enforcement of Judgments20
Exclusive Jurisdiction Agreement20
Cross-border disputes20
Electronic Discovery20
Non-reliance clause20
Contra Proferentem Rule20
Fundamental Change of Circumstances20
Assignment of Contractual Rights20
No-Assignment Clause20
Oral Variation of Contract20
Rectification of Contracts20
Breach of oral agreement20
Resolution Agreement20
Choice of Remedies20
Commercial Morality20
Novation Agreements20
Pathological arbitration clause20
Hybrid arbitration20
Good Faith20
Goods Sold and Delivered20
Services Rendered20
Course of Dealings20
Laytime20
Postal Acceptance Rule20
Sub-Contract Agreement20
Bills of Exchange Act20
Supply Agreement20
Subletting Agreement20
Mitigation of Loss20
Shipbuilding Contract20
Service Agreement20
Subcontract20
Novation of Contract20
Consultancy Agreement20
Construction of Insurance Policy20
Alternative Pleadings20
Without Prejudice Rule20
Enforceability of Contract20
Building Agreement20
Conclusive Evidence Clause20
Termination Agreement20
Deed of Personal Guarantee20
Deeds of Understanding20
Subcontracting20
Distribution Agreement20
Sham Contract20
Best Efforts Clause20
Contracts (Rights of Third Parties) Act20
Intention of Parties20
Law of Pleadings20
Restructuring and Insolvency20
Contractual Remedies20
Proper Law of Contract20
Proper Law20
Unilateral mistake20
Compromise Agreement20
Contracts of indemnity20
Sufficiency of consideration20
Estoppel in defiance of statute20
Bars to rescission20
Statements of Intention20
Inducement20
Variation of Contract20
Postal Rule20
Ground for termination of contract20

16. Subjects

  • Arbitration
  • Contract Law
  • Civil Procedure