PT Perusahaan Gas Negara v CRW Joint Operation: Setting Aside Arbitral Award

PT Perusahaan Gas Negara (Persero) TBK (PGN) applied to the High Court of Singapore to set aside an arbitral award in favor of CRW Joint Operation (Indonesia) and an order permitting enforcement of the award. The High Court, presided over by Justice Vinodh Coomaraswamy, dismissed PGN's applications, finding the award consistent with the parties' contract and Singapore's international arbitration legislation. The underlying dispute concerned a contract for the design, procurement, installation, testing, and pre-commissioning of a natural gas pipeline. The court ordered PGN to pay CRW costs of $20,000, excluding disbursements.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Applications dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Application to set aside arbitral award. High Court dismissed PGN's application, finding the award consistent with contract and legislation.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
PT Perusahaan Gas Negara (Persero) TBKDefendant, ApplicantCorporationApplications DismissedLost
CRW Joint Operation (Indonesia)Plaintiff, RespondentOtherApplications DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Vinodh CoomaraswamyJudgeYes

4. Counsels

Counsel NameOrganization
Philip Antony JeyaretnamRodyk & Davidson LLP
Wong Wai HanRodyk & Davidson LLP
Cavinder BullDrew & Napier LLC
Foo Yuet MinDrew & Napier LLC
Lim May JeanDrew & Napier LLC
Ho Ping DarrylDrew & Napier LLC

4. Facts

  1. PGN and CRW entered into a contract in 2006 for a gas pipeline project.
  2. A dispute arose regarding variation claims made by CRW.
  3. The dispute was referred to a dispute adjudication board (DAB).
  4. The DAB decided that CRW was entitled to US$17,298,834.57.
  5. PGN failed to pay CRW pursuant to the DAB decision.
  6. CRW commenced arbitration to compel PGN to pay.
  7. PGN applied to set aside the arbitral award in favor of CRW.

5. Formal Citations

  1. PT Perusahaan Gas Negara (Persero) TBK v CRW Joint Operation (Indonesia) and another matter, Originating Summons No 683 of 2013, [2014] SGHC 146
  2. PT Perusahaan Gas Negara (Persero) TBK v CRW Joint Operation (Indonesia) and another matter, Originating Summons No 585 of 2013, [2014] SGHC 146
  3. PT Perusahaan Gas Negara (Persero) TBK v CRW Joint Operation (Indonesia) and another matter, Summons No 3923 of 2013, [2014] SGHC 146

6. Timeline

DateEvent
Contract entered into between PGN and CRW.
Dispute arose between CRW and PGN regarding variation claims.
Dispute adjudication board held that CRW had become entitled to US$17,298,834.57.
CRW commenced first arbitration.
High Court agreed with PGN that the final award should be set aside.
Court of Appeal dismissed CRW’s appeal.
CRW commenced second arbitration.
Majority arbitral award issued in favor of CRW.
PGN applied to set aside the arbitral award and order permitting enforcement.
High Court dismissed PGN's applications.

7. Legal Issues

  1. Setting Aside Arbitral Award
    • Outcome: The High Court dismissed the applications to set aside the arbitral award.
    • Category: Procedural
    • Sub-Issues:
      • Excess of jurisdiction
      • Breach of natural justice
      • Arbitral procedure not in accordance with parties’ agreement
  2. Interim Finality of DAB Decision
    • Outcome: The High Court held that the arbitral award was consistent with the interim finality of the DAB decision.
    • Category: Substantive

8. Remedies Sought

  1. Setting Aside Arbitral Award

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation
  • Arbitration
  • Construction Law

11. Industries

  • Construction
  • Energy

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Lee Wee Lick Terence (alias Li Weili Terence) v Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) and another appealCourt of AppealYes[2013] 1 SLR 401SingaporeCited for the purpose of security of payment regime.
Denmark Skibstekniske Konsulenter a/s I Likvidation (formerly known as Knud E Hansen A/S) v Ultrapolis 3000 Investments Ltd (formerly known as Ultrapolis 3000 Theme Park Investments Ltd)Court of AppealYes[2011] 4 SLR 997SingaporeCited for the doctrine of abuse of process.
Goh Nellie v Goh Lian TeckHigh CourtYes[2007] 1 SLR(R) 453SingaporeCited for the doctrine of abuse of process.
PT Perusahaan Gas Negara (Persero) TBK v CRW Joint OperationHigh CourtYes[2010] 4 SLR 672SingaporeDiscusses the conditions precedent to arbitrating the secondary dispute.
CRW Joint Operation v PT Perusahaan Gas Negara (Persero) TBKCourt of AppealYes[2011] 4 SLR 305SingaporeCited for the interpretation of the Red Book's dispute resolution regime and the one-dispute approach.
R (Kadhim) v Brent London Borough Council Housing Benefit Review BoardCourt of Appeal (Civil Division)Yes[2001] 1 QB 955England and WalesCited for the definition of ratio decidendi.
PT First Media TBK (formerly known as PT Broadband Multimedia TBK) v Astro Nusantara International BV and others and another appealCourt of AppealYes[2014] 1 SLR 372SingaporeCited for the legislative history of section 19B of the International Arbitration Act.
Tang Boon Jek Jeffrey v Tan Poh Leng StanleyCourt of AppealYes[2001] 3 SLR 327SingaporeCited for the principle that an arbitral tribunal is not functus officio until it has determined every aspect of the dispute.
Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte LtdCourt of AppealYes[2007] 3 SLR(R) 86SingaporeCited for the requirements to challenge an award on the basis of a breach of natural justice.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

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

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitral Award
  • Dispute Adjudication Board
  • Interim Award
  • International Arbitration Act
  • Red Book
  • Security of Payment Regime
  • Interim Finality
  • Provisional Award
  • One-Dispute Approach
  • Two-Dispute Approach

15.2 Keywords

  • arbitration
  • construction
  • contract
  • DAB
  • award
  • international arbitration act
  • security of payment

17. Areas of Law

Area NameRelevance Score
Arbitration90
International Arbitration Act60
Contract Law50
Recognition and Enforcement of Foreign Arbitral Awards50
Breach of Contract40
Res Judicata30
Civil Procedure30
Appeal30
Asset Recovery20
Estoppel20
Construction Contract20

16. Subjects

  • Arbitration
  • Contract Law
  • Construction Dispute