CPU v CPX: Setting Aside SIAC Arbitration Award for Breach of Natural Justice and Incapacity
The Singapore International Commercial Court dismissed an application by CPU, CPV, and CPW to set aside a Singapore International Arbitration Centre (SIAC) award in favor of CPX. The applicants sought to set aside the award based on claims of incapacity, invalid arbitration agreements under Indian law, and breaches of natural justice by the Tribunal. Sir Henry Bernard Eder IJ found no merit in the applicants' arguments and dismissed the application, ordering the applicants to pay costs.
1. Case Overview
1.1 Court
Singapore International Commercial Court1.2 Outcome
Application to set aside the Award dismissed.
1.3 Case Type
Arbitration
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses application to set aside SIAC arbitration award, finding no breach of natural justice or proof of incapacity.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| CPU | Applicant | Individual | Application Dismissed | Lost | Nakul Dewan of Twenty Essex |
| CPV | Applicant | Individual | Application Dismissed | Lost | Nakul Dewan of Twenty Essex |
| CPW | Applicant | Corporation | Application Dismissed | Lost | Nakul Dewan of Twenty Essex |
| CPX | Respondent | Corporation | Application Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sir Henry Bernard Eder | International Judge | Yes |
4. Counsels
4. Facts
- CPU, CPV, and CPW applied to set aside an arbitration award in favor of CPX.
- The arbitration arose from alleged breaches of a Settlement Agreement and a Supplemental Settlement Contract.
- The applicants claimed the contracts were entered into under duress and coercion.
- The applicants alleged they were of unsound mind when signing the contracts.
- The Tribunal refused to allow the applicants to adduce further evidence in the form of expert medical reports.
- The Tribunal refused to allow the applicants to join ABC Ltd to the Arbitration.
- The governing law of the Contracts is the law of the Republic of India, and the seat of the Arbitration is Singapore.
5. Formal Citations
- CPU and others v CPX and another matter, Originating Summons No 1 of 2022, [2022] SGHC(I) 11
6. Timeline
| Date | Event |
|---|---|
| First Memorandum of Understanding signed. | |
| Binding Heads of Terms signed. | |
| Second Memorandum of Understanding signed. | |
| Joint Venture Agreement signed. | |
| Settlement Contract signed. | |
| Supplemental Settlement Contract signed. | |
| Arbitration commenced by CPX. | |
| Applicants made Joinder Application. | |
| Main hearing conducted. | |
| Main hearing conducted. | |
| Further Hearing held. | |
| Award published by the Tribunal. | |
| Originating Summons No 1 of 2022 and Summons No 8 of 2022 filed. | |
| Hearing of the main application. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Natural Justice
- Outcome: The court found no breach of natural justice.
- Category: Procedural
- Sub-Issues:
- Exclusion of evidence
- Refusal to allow joinder of party
- Failure to invite submissions on applicable law
- Validity of Arbitration Agreement
- Outcome: The court found the arbitration agreement to be valid.
- Category: Substantive
- Sub-Issues:
- Incapacity
- Duress
- Coercion
- Jurisdiction of Tribunal
- Outcome: The court upheld the tribunal's decision regarding its jurisdiction.
- Category: Jurisdictional
8. Remedies Sought
- Setting Aside of Arbitral Award
9. Cause of Actions
- Breach of Contract
- Setting Aside Arbitral Award
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| BLC and others v BLB and another | Singapore High Court | Yes | [2014] 4 SLR 79 | Singapore | Cited for the principle that there is no right of appeal from arbitral awards under the Act and the role of the court is one of minimal curial intervention. |
| AKN and another v ALC and others and other appeals | Singapore High Court | Yes | [2015] 3 SLR 488 | Singapore | Cited for the principle that there is no right of appeal from arbitral awards under the Act and the role of the court is one of minimal curial intervention. |
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Singapore High Court | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the requirements to set aside an arbitral award on the basis that the rules of natural justice have been breached. |
| China Machine New Energy Corp v Jaguar Energy Guatemala LLC and another | Singapore High Court | Yes | [2020] 1 SLR 695 | Singapore | Cited for the high threshold for finding a breach of natural justice and the standard of review for a tribunal's conduct. |
| L W Infrastructure Pte Ltd v Lim Chin San Contractors Pte Ltd and another appeal | Singapore High Court | Yes | [2013] 1 SLR 125 | Singapore | Cited for the requirement of establishing a causal nexus between the breach of natural justice and the award made. |
| PT First Media TBK (formerly known as PT Broadband Multimedia TBK) v Astro Nusantara International BV and others and another appeal | Singapore High Court | Yes | [2014] 1 SLR 372 | Singapore | Cited for the principle that the enquiry under Art 34(2)(a)(i) is essentially concerned with the existence or validity of an arbitration agreement, and consequently the issue of whether the arbitral tribunal has jurisdiction. |
| BXH v BXI | Singapore High Court | Yes | [2020] 1 SLR 1043 | Singapore | Cited for the principle that the enquiry under Art 34(2)(a)(i) is essentially concerned with the existence or validity of an arbitration agreement, and consequently the issue of whether the arbitral tribunal has jurisdiction. |
| AQZ v ARA | Singapore High Court | Yes | [2015] 2 SLR 972 | Singapore | Cited for the principle that where a jurisdictional challenge is concerned, the review undertaken by the court is de novo. |
| Rakna Arakshaka Lanka Ltd v Avant Garde Maritime Services (Pte) Ltd | Singapore Court of Appeal | Yes | [2019] 2 SLR 131 | Singapore | Cited for the principle that the drafters of the Model Law intended for a party who had failed to raise an objection to the tribunal’s jurisdiction by the appropriate time provided for in Art 16(2), to be precluded from raising a challenge at a later stage. |
| BTN and another v BTP and another and other matters | Singapore High Court | Yes | [2021] SGHC 271 | Singapore | Cited for the principle that an applicant who fails to detail the grounds on which he seeks to set aside an arbitral award in the affidavit served with the originating summons may well be precluded from relying on such grounds. |
| Phoenixfin Pte Ltd and others v Convexity Ltd | Singapore Court of Appeal | Yes | [2022] SGCA 17 | Singapore | Cited for the principle that a breach of natural justice occurs when a party does not know the case it has to meet and therefore has not been afforded a proper opportunity to present its case. |
| Turf Club Auto Emporium Pte Ltd and others v Yeo Boong Hua and others and another appeal and other matters | Singapore High Court | Yes | [2017] 2 SLR 12 | Singapore | Cited for the principle that once a settlement agreement is entered into, the obligations contained in the settlement agreement will override the previous dispute between parties. |
| CDX and another v CDZ and another | Singapore High Court | Yes | [2021] 5 SLR 405 | Singapore | Cited for the principle that errors of fact or law are not the proper basis of a challenge to an arbitral award under Singapore law and are not open to review in this court. |
13. Applicable Rules
| Rule Name |
|---|
| Arbitration Rules of the Singapore International Arbitration Centre (6th Edition, 1 August 2016) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
| Indian Contract Act 1872 | India |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Award
- Setting Aside
- Breach of Natural Justice
- Incapacity
- Duress
- Coercion
- Settlement Agreement
- SIAC Rules
- Joinder Application
15.2 Keywords
- arbitration
- singapore
- commercial
- contract
- breach
- natural justice
- incapacity
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Setting Aside Arbitral Award | 95 |
| Recourse against award | 95 |
| Arbitration | 90 |
| International Arbitration | 70 |
| Natural justice | 60 |
| Jurisdiction | 50 |
| Contract Law | 30 |
| Foreign Law | 20 |
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure