Man Diesel & Turbo SE v I.M. Skaugen: Enforcement of Foreign Arbitral Award & Adjournment Proceedings
In Man Diesel & Turbo SE v I.M. Skaugen Marine Services Pte Ltd, the Singapore High Court addressed the enforcement of a foreign arbitral award. Man Diesel & Turbo SE sought to enforce a Danish arbitral award against I.M. Skaugen Marine Services Pte Ltd. The defendant challenged the enforcement, citing inability to present its case and public policy concerns. The court dismissed the defendant's application and affirmed the ex parte leave order, finding no valid grounds to refuse enforcement. The court also found that a set-off was appropriate.
1. Case Overview
1.1 Court
High Court of Singapore1.2 Outcome
Defendant's application dismissed; ex parte leave order affirmed.
1.3 Case Type
Arbitration
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court judgment on enforcement of a Danish arbitral award. The court dismissed the defendant's application to refuse enforcement and affirmed the ex parte leave order.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Man Diesel & Turbo SE | Plaintiff | Corporation | Judgment for Plaintiff | Won | Ong Tun Wei Danny, Yam Wern-Jhien, Teo Li Ping, Annabelle |
| I.M. Skaugen Marine Services Pte Ltd | Defendant | Corporation | Application Dismissed | Lost | Teh Kee Wee Lawrence, Loh Jen Wei, Ravin Periasamy |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ong Tun Wei Danny | Rajah & Tann LLP |
| Yam Wern-Jhien | Rajah & Tann LLP |
| Teo Li Ping, Annabelle | Rajah & Tann LLP |
| Teh Kee Wee Lawrence | Dentons Rodyk & Davison LLP |
| Loh Jen Wei | Dentons Rodyk & Davison LLP |
| Ravin Periasamy | Dentons Rodyk & Davison LLP |
4. Facts
- Man Diesel & Turbo SE sought to enforce a Danish arbitral award against I.M. Skaugen Marine Services Pte Ltd.
- The DIA Final Award was decided in favor of the plaintiff by a majority of the three-member tribunal.
- Danish law governs both the underlying contracts and the arbitration agreement.
- The defendant applied to set aside the DIA Final Award in the City Court of Copenhagen.
- The DIA Arbitration was commenced by the plaintiff to compel the defendant to fulfill its outstanding contractual obligations under the Engines Contract and Propellers Contract.
- The defendant contended that it was fraudulently induced by the plaintiff to enter into the Contracts.
- The defendant argued that the Contracts had been terminated sometime in 2012 by mutual agreement between the parties.
5. Formal Citations
- Man Diesel Turbo SE v I.M. Skaugen Marine Services Pte Ltd, HC/OS No 731 of 2017, [2018] SGHC 132
6. Timeline
| Date | Event |
|---|---|
| Engines Contract concluded | |
| Propellers Contract concluded | |
| Delivery of first two engines and propellers (Shipsets 1 and 2) | |
| Scheduled delivery of second two engines and propellers (Shipsets 3 and 4) | |
| DIA Arbitration commenced | |
| Defendant filed Third Pleading in DIA Arbitration | |
| Oral Hearings took place in Copenhagen | |
| DIA Final Award rendered | |
| Defendant commenced new arbitration against plaintiff in Danish Institute of Arbitration | |
| Ex parte Leave Order obtained | |
| Defendant filed application in the Danish Court to set aside the DIA Final Award | |
| Hearing began | |
| Judgment reserved |
7. Legal Issues
- Enforcement of Foreign Arbitral Award
- Outcome: The court affirmed the ex parte leave order and ordered immediate enforcement of the DIA Final Award.
- Category: Substantive
- Sub-Issues:
- Grounds for refusal of enforcement
- Adjournment of enforcement proceedings
- Security for enforcement
- Setting Aside of Arbitral Award
- Outcome: The court found that the defendant had not shown that the Tribunal had acted beyond the bounds of its discretion.
- Category: Substantive
- Sub-Issues:
- Inability to present case
- Violation of arbitration agreement
- Public policy
8. Remedies Sought
- Enforcement of Arbitral Award
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Marine
- Engineering
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| H & C S Holdings Pte Limited v RBRG Trading (UK) Limited | English High Court | Yes | [2015] EWHC 1665 | England and Wales | Cited for the distinction between the powers of a court at the enforcement stage and after entry of judgment. |
| Far Eastern Shipping Company v Sovcomflot | Not available | Yes | [1995] 1 Lloyd’s Rep 520 | England and Wales | Cited for the principle that upon converting an award into a judgment, procedural rules appertaining to the enforcement of judgments ought to apply. |
| Continental Transfer Technique Limited v The Federal Government of Nigeria | Not available | Yes | [2010] EWHC 780 | England and Wales | Cited for the principle that the relevant discretion is that which can be invoked to stay enforcement of any judgment of the court. |
| Dardana Ltd v Yukos Oil Company | Not available | Yes | [2002] 2 Lloyd’s Rep 326 | England and Wales | Cited regarding the powers of the court to adjourn the enforcement proceedings and to order security. |
| IPCO (Nigeria) Ltd v Nigerian National Petroleum Corporation | UK Supreme Court | Yes | [2017] 1 WLR 970 | United Kingdom | Cited for the principle that security is viewed as the price of an adjournment. |
| Soleh Boneh International Ltd and anor v Government of the Republic of Uganda and National Housing Corporation | Not available | Yes | [1993] 2 Lloyd’s Rep 208 | England and Wales | Cited for guidelines on considering the strength of the argument that the award is invalid and the ease or difficulty of enforcement of the award. |
| IPCO (Nigeria) Ltd v Nigerian National Petroleum Corporation | Not available | Yes | [2005] 2 Lloyd’s Rep 326 | England and Wales | Cited for the principle that the English Arbitration Act furnishes no threshold test in respect of the grant of an adjournment and the power to order security. |
| Dowans Holding SA and another v Tanzania Electric Supply Co Ltd | Not available | Yes | [2012] 1 All ER 820 | England and Wales | Followed the guidelines in Soleh Boneh and IPCO (2005 HC). |
| Travis Coal Restructured Holdings LLC v Essar Global Fund Ltd | Not available | Yes | [2014] 2 Lloyd’s Rep 494 | England and Wales | Followed the guidelines in Soleh Boneh and IPCO (2005 HC). |
| Anatolie Stati, Gabriel Stati, Ascom Group S.A., Terra Raf Trans Traiding Ltd. v The Republic of Kazakhstan | Not available | Yes | [2015] EWHC 2542 | England and Wales | Followed the guidelines in Soleh Boneh and IPCO (2005 HC). |
| Europcar Italia S.p.A. v Alba Tours International Inc. | Not available | Yes | [1997] OJ No 133 | Canada | Considered the Article VI equivalent of Article 36 of the UNCITRAL Model Law on International Commercial Arbitration. |
| RJR - MacDonald Inc. v Canada (Attorney General) | Supreme Court of Canada | Yes | [1994] 1 SCR 311 | Canada | Referenced the three-part test for injunctive relief for the purposes of an adjournment application pending the setting aside proceedings in the seat-court. |
| Powerex Corp (formerly British Columbia Power Exchange Corporation) v Alcan Inc (formerly Alcan Aluminium Limited) | Supreme Court of British Columbia | Yes | (2004) BCSC 876 | Canada | Adopted the three-part test in Europcar and appeared to take the view that the “serious issue to be tried” requirement is a threshold test. |
| Empresa Minera Los Quenuales S.A. v Vena Resources Inc | Not available | Yes | [2015] ONSC 4408 | Canada | Declined to apply the three-part test; adopting instead, a refined approach where the court determines if there is an issue to be tried and the balance of convenience of the parties. |
| Pacific Recreation Pte Ltd v S Y Technology Inc and another Appeal | Not available | Yes | [2008] 2 SLR(R) 491 | Singapore | Cited for the principle that foreign law is treated as a question of fact. |
| Dongwoo Mann+Hummel Co Ltd v Mann+Hummel GmbH | Not available | Yes | [2008] 3 SLR(R) 871 | Singapore | Cited for the principle that a tribunal is master of its own procedure and has wide discretionary powers to conduct the arbitration in any way it sees fit. |
| Xiamen Xinjingdi Group Ltd v Eton Properties Ltd and another | Not available | Yes | [2008] HKCFI 540 | Hong Kong | Cited for the principle that the Court should not second guess an arbitration award. |
| Prometheus Marine Pte Ltd v Ann Rita King | Not available | Yes | [2018] 1 SLR 1 | Singapore | Cited for the principle that the evidential threshold for establishing fraud is a high one. |
| Anatolie Stati, Gabriel Stati, Ascom Group S.A. and Terra Raf Trans Trading Ltd v The Republic of Kazakhstan | Not available | Yes | [2017] EWHC 1348 | England and Wales | Cited for a summary of the applicable principles in establishing fraud. |
| RBRG Trading (UK) Ltd v Sinocore International Co Ltd | English Court of Appeal | Yes | [2018] EWCA 838 | England and Wales | Illustrative of the high evidential requirement to prove fraud and further demonstrates the need to show a causal connection between the alleged fraud and the tribunal’s decision. |
| AJU v AJT | Not available | Yes | [2011] 4 SLR 739 | Singapore | Cited for the principle that mere errors of fact or law do not itself justify the court’s intervention. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 2014 Rev Ed), O 69A |
| Rules of Court, O 69A r 6 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
| International Arbitration Act (Cap 143A, 2002 Rev Ed), s 29 | Singapore |
| International Arbitration Act (Cap 143A, 2002 Rev Ed), s 31 | Singapore |
| Danish Arbitration Act of 2005 | Denmark |
| Danish Arbitration Act of 2005, Section 37 | Denmark |
| Evidence Act (Cap 97, 1997 Rev Ed), section 40 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- DIA Final Award
- Engines Contract
- Propellers Contract
- Ex parte Leave Order
- Setting aside application
- Enforcement proceedings
- Security
- Adjournment
15.2 Keywords
- Arbitration
- Enforcement
- Foreign Award
- Singapore
- Danish Arbitration
- International Arbitration Act
- Adjournment
- Security
16. Subjects
- Arbitration
- Enforcement of Foreign Awards
- International Law
- Civil Procedure
17. Areas of Law
- Arbitration Law
- International Arbitration
- Civil Procedure