Giant Light Metal v Aksa Far East: Stay of Proceedings Under International Arbitration Act
Giant Light Metal Technology (Kunshan) Co Ltd sued Aksa Far East Pte Ltd in the Singapore High Court to claim a debt arising from a PRC judgment. Aksa Far East applied for a stay of proceedings under section 6 of the International Arbitration Act, arguing the dispute should be arbitrated according to their contract. The High Court dismissed the application, holding that the claim was based on the PRC judgment, not directly on the contract's terms, and therefore did not fall under the arbitration agreement.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendant's application to stay the action pursuant to section 6 of the International Arbitration Act is dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Application for stay of proceedings under s 6 of the IAA pending arbitration. The court dismissed the application, finding the claim was for a debt arising from a foreign judgment.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Giant Light Metal Technology (Kunshan) Co Ltd | Plaintiff | Corporation | Application to stay dismissed | Won | |
| Aksa Far East Pte Ltd | Defendant | Corporation | Application to stay dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Terence Tan Zhong Wei | Assistant Registrar | Yes |
4. Counsels
4. Facts
- The parties entered into a contract for the sale and purchase of generator sets.
- The contract contained an arbitration agreement.
- The plaintiff commenced proceedings against the defendant in the PRC court for breach of contract.
- The PRC court granted judgment in favor of the plaintiff.
- The defendant did not participate in the PRC proceedings or appeal the PRC judgment.
- The plaintiff commenced the Suit in Singapore to claim the debt arising from the PRC judgment.
- The defendant applied for a stay of the Suit pursuant to section 6 of the IAA.
5. Formal Citations
- Giant Light Metal Technology (Kunshan) Co Ltd v Aksa Far East Pte Ltd, Suit No 105 of 2012/M (Summons No 983 of 2012/L), [2012] SGHCR 2
6. Timeline
| Date | Event |
|---|---|
| Contract signed for the sale and purchase of two generator sets. | |
| Confirmation agreement signed acknowledging the sale and purchase of the generator sets. | |
| Deadline for appeal against the PRC judgment expired. | |
| Plaintiff's solicitors sent a letter of demand to the defendant for payment of the PRC judgement sums and the requisite interest. | |
| Plaintiff commenced the Suit in the Singapore High Court. | |
| Defendant took out an application to stay the Suit pursuant to section 6 of the IAA. | |
| Judgment reserved. |
7. Legal Issues
- Stay of Proceedings
- Outcome: The court dismissed the defendant's application for a stay of proceedings.
- Category: Procedural
- Enforcement of Foreign Judgments
- Outcome: The court noted that the plaintiff was claiming a debt arising from the PRC judgment, not seeking to register the judgment.
- Category: Substantive
8. Remedies Sought
- Payment of sums ordered in the PRC judgment
- Accrued judgment interest
- Costs
9. Cause of Actions
- Claim for debt arising from a foreign judgment
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- Manufacturing
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tjong Very Sumito and others v Antig Investments Pte Ltd | Court of Appeal | Yes | [2009] 4 SLR(R) 732 | Singapore | Cited for the principles regarding stay of proceedings in favour of arbitration under section 6 of the International Arbitration Act. |
| Bellezza Club Japan Co Ltd v Matsumura Akihiko and others | High Court | Yes | [2010] 3 SLR 342 | Singapore | Cited for the principle that foreign judgments in personam may be enforced by a claim in proceedings in Singapore if the foreign judgment is a money judgment of a court of competent jurisdiction, and that the judgment pronounced by the foreign court is final and conclusive as between the parties. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
| Reciprocal Enforcement of Foreign Judgments Act (Cap 265, 2001 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration agreement
- Stay of proceedings
- International Arbitration Act
- PRC judgment
- Foreign judgment
- Debt
- Breach of contract
15.2 Keywords
- arbitration
- stay of proceedings
- foreign judgment
- Singapore
- International Arbitration Act
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 70 |
| Recognition and Enforcement of Foreign Arbitral Awards | 60 |
| International Arbitration Act | 50 |
| Contract Law | 50 |
| Judgments and Orders | 40 |
| Jurisdiction | 30 |
16. Subjects
- Arbitration
- Civil Procedure
- Conflict of Laws
- Enforcement of Judgments