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
Doshion LtdPlaintiffCorporationApplication dismissedLostA Verghis, Sandra Tan
Sembawang Engineers and Constructors Pte LtdDefendantCorporationApplication dismissedWonMohan Pillay, Yeo Boon Tat

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJYes

4. Counsels

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

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

16. Subjects

  • Arbitration
  • Contract Law
  • Civil Procedure

17. Areas of Law

  • Arbitration Law
  • Contract Law
  • Civil Procedure