Zynergy Solar v Phoenix Solar: Setting Aside Arbitral Award for Breach of Natural Justice

In Zynergy Solar Projects & Services Pvt Ltd v Phoenix Solar Pte Ltd, the Singapore High Court dismissed Zynergy Solar's application to set aside an arbitral award in favor of Phoenix Solar. The dispute arose from a debt settlement agreement where Zynergy Solar was obligated to pay Phoenix Solar USD 500,000. Zynergy Solar sought to set aside the award, alleging a breach of natural justice, claiming the arbitrator failed to consider their arguments. Justice Belinda Ang Saw Ean dismissed the application, finding that the arbitrator had considered and rejected Zynergy Solar's arguments. The court ordered Zynergy Solar to pay costs.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Application dismissed with costs.

1.3 Case Type

Arbitration

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court dismisses application to set aside arbitral award, finding no breach of natural justice by arbitrator in dispute over debt settlement agreement.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
ZYNERGY SOLAR PROJECTS & SERVICES PVT LTDPlaintiffCorporationApplication DismissedLostP Padman, Dennis Liu
PHOENIX SOLAR PTE LTDDefendantCorporationJudgment for DefendantWonChong Jia Hao, Sabrina Matthew

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
P PadmanKSCGP Juris LLP
Dennis LiuInfinitus Law Corporation
Chong Jia HaoLegal Standard LLP
Sabrina MatthewLegal Standard LLP

4. Facts

  1. Zynergy Solar's subsidiary, Greatshine, entered into a supply contract with Phoenix Solar for a solar power plant.
  2. The project faced problems despite a completion certificate being issued.
  3. Zynergy Solar entered into a Debt Settlement Agreement (DSA) to pay Phoenix Solar USD 500,000.
  4. Zynergy Solar claimed it entered the DSA based on Phoenix Solar's representation to resolve power plant issues.
  5. Phoenix Solar commenced arbitration against Zynergy Solar for the USD 500,000 under the DSA.
  6. Zynergy Solar counterclaimed for rescission of the DSA or losses due to failures of the power plant.
  7. The arbitrator awarded Phoenix Solar USD 500,000 plus interest.

5. Formal Citations

  1. Zynergy Solar Projects & Services Pvt Ltd v Phoenix Solar Pte Ltd, Originating Summons 209 of 2017, [2017] SGHC 223

6. Timeline

DateEvent
Supply Contract entered into by Greatshine Holdings Pvt Ltd and Phoenix Solar Pte Ltd
Completion certificate issued for the power plant
Debt Settlement Agreement entered into by Phoenix Solar Pte Ltd, Greatshine Holdings Pvt Ltd, and Zynergy Solar Projects & Services Pvt Ltd
Notice of arbitration issued by Phoenix Solar Pte Ltd against Zynergy Solar Projects & Services Pvt Ltd
Arbitral award made in favor of Phoenix Solar Pte Ltd
Zynergy Solar Projects & Services Pvt Ltd applied to set aside the Award
Application dismissed
Reasons for dismissing the application furnished

7. Legal Issues

  1. Breach of Natural Justice
    • Outcome: The court held that there was no breach of natural justice as the arbitrator had considered the relevant arguments.
    • Category: Procedural
    • Sub-Issues:
      • Failure to consider arguments
      • Failure to apply mind to essential issues
    • Related Cases:
      • [2003] 3 SLR(R) 86
      • [2015] 3 SLR 488
      • [2016] 5 SLR 54

8. Remedies Sought

  1. Setting aside of Arbitral Award

9. Cause of Actions

  • Breach of Contract
  • Setting aside of Arbitral Award

10. Practice Areas

  • Arbitration
  • Commercial Litigation

11. Industries

  • Energy
  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte LtdHigh CourtYes[2003] 3 SLR(R) 86SingaporeCited for the principles to be applied when challenging an arbitral award for breach of natural justice.
AKN v ALCCourt of AppealYes[2015] 3 SLR 488SingaporeCited for the high threshold for setting aside an arbitral award for breach of natural justice and the inference that must be drawn.
ASG v ASHCourt of AppealYes[2016] 5 SLR 54SingaporeCited for the principles to be applied when challenging an arbitral award for 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
  • Breach of Natural Justice
  • Debt Settlement Agreement
  • Residual Obligation
  • Supply Contract
  • Misrepresentation
  • Collateral Contract

15.2 Keywords

  • arbitration
  • setting aside
  • natural justice
  • contract
  • solar power

16. Subjects

  • Arbitration
  • Contract Law

17. Areas of Law

  • Arbitration Law
  • Contract Law
  • Civil Procedure