BLC v BLB: Setting Aside Arbitral Award for Breach of Natural Justice
In BLC and others v BLB and another, the Singapore Court of Appeal heard an appeal regarding the High Court's decision to set aside part of an arbitral award due to a breach of natural justice. The central issue was whether the arbitrator failed to address the respondents' counterclaim. The Court of Appeal allowed the appeal, finding that the arbitrator had addressed the disputed counterclaim.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Written Judgment
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal addressed setting aside an arbitral award based on a breach of natural justice, focusing on whether the arbitrator addressed a counterclaim.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| BLC and others | Appellant | Corporation | Appeal Allowed | Won | |
| BLB and another | Respondent | Corporation | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of Appeal | No |
| Andrew Phang Boon Leong | Justice of Appeal | Yes |
| Judith Prakash | Judge | No |
4. Counsels
4. Facts
- Appellants and Respondents entered into a joint venture agreement.
- Disputes arose regarding the quality of goods manufactured by the joint venture.
- Appellants claimed rectification costs for defective goods.
- Respondents counterclaimed for amounts owed for goods sold and delivered.
- Arbitrator found in favor of Appellants on some claims but dismissed Respondents' counterclaims.
- Respondents applied to set aside the arbitral award, alleging a breach of natural justice.
- The High Court agreed with the Respondents and set aside part of the award.
5. Formal Citations
- BLC and others v BLB and another, Civil Appeal No 135 of 2013, [2014] SGCA 40
- BLB and another v BLC and others, , [2013] 4 SLR 1169
6. Timeline
| Date | Event |
|---|---|
| Negotiations between the parties to form a commercial joint venture. | |
| Agreements entered into between the parties, including the Asset Sale Agreement, Shareholders Agreement, Business Operations Agreement, and Licence Agreement. | |
| Joint venture commenced. | |
| Problems started to surface with the joint venture. | |
| Appellants issued debit notes to Respondents. | |
| Appellants issued debit notes to Respondents. | |
| Respondents demanded payment from Appellants for goods sold and delivered. | |
| Appellants denied owing the amount demanded by Respondents. | |
| Respondents reiterated their demand for payment. | |
| Respondents demanded the transfer of bank balances from Appellants. | |
| Appellants denied their obligation to transfer the bank balances. | |
| Respondents reiterated their demand for the transfer of bank balances. | |
| Appellants commenced arbitration proceedings against Respondents regarding the Business Operations Agreement and the Licence Agreement. | |
| Appellants commenced separate arbitration proceedings against Respondents regarding the Shareholders Agreement. | |
| Respondents applied to set aside the entire arbitral award. | |
| Judgment reserved. | |
| Court of Appeal delivered judgment. |
7. Legal Issues
- Breach of Natural Justice
- Outcome: The court held that there was no breach of natural justice.
- Category: Procedural
- Sub-Issues:
- Failure to consider essential issues
- Failure to apply mind to critical arguments
- Related Cases:
- [2013] 4 SLR 1169
- [2007] 3 SLR(R) 86
8. Remedies Sought
- Setting aside of arbitral award
- Remission of the disputed counterclaim to a new tribunal
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Manufacturing
- Automotive
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| BLB and another v BLC and others | High Court | Yes | [2013] 4 SLR 1169 | Singapore | Decision from which the appeal arose, concerning the setting aside of an arbitral award. |
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Court of Appeal | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the principle of minimal curial intervention in arbitral proceedings. |
| Atkins Limited v The Secretary of State for Transport | English High Court | Yes | [2013] EWHC 139 (TCC) | England and Wales | Cited for the 'generous approach' the court ought to take in reviewing arbitral awards for breaches. |
| Zermalt Holdings SA v Nu-Life Upholstery Repairs Ltd | English Court of Appeal | Yes | [1985] 2 EGLR 14 | England and Wales | Cited for the principle that an award should be read in a reasonable and commercial way. |
| TMM Division Maritima SA de CV v Pacific Richfield Marine Pte Ltd | Singapore High Court | Yes | [2013] 4 SLR 972 | Singapore | Referred to Atkins and Zermalt cases in relation to the 'generous approach' in reviewing arbitral awards. |
| Sinclair v Woods of Winchester Ltd and another | English High Court | Yes | [2005] EWHC 1631 (QB) | England and Wales | Cited regarding the exhaustion of recourse under s 57 of the 1996 UK Act before applying to set aside an award. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitral award
- Natural justice
- Counterclaim
- Joint venture
- Defective goods
- Minimal curial intervention
- UNCITRAL Model Law
- Setting aside application
- Remission
15.2 Keywords
- arbitration
- natural justice
- arbitral award
- Singapore
- contract
- joint venture
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 90 |
| International Arbitration | 90 |
| UNCITRAL Model Law | 80 |
| Natural justice | 70 |
| Contract Law | 50 |
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure