Presscrete Engineering v SsangYong-Wai Fong: Stay of Proceedings for Arbitration
In Presscrete Engineering Pte Ltd v SsangYong-Wai Fong Joint Venture, the High Court of Singapore heard an appeal regarding the stay of court proceedings in favor of arbitration. Presscrete Engineering, the claimant, sought damages for unpaid ground improvement works related to the North South Corridor tunnel project. SsangYong-Wai Fong Joint Venture, the defendant, applied for a stay of proceedings under Section 6 of the Arbitration Act, arguing that the dispute fell within the scope of the arbitration agreement in their subcontract. The High Court allowed the defendant's appeal, finding that the dispute was connected to the subcontract and therefore subject to arbitration.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court granted a stay of court proceedings in favor of arbitration, finding that the dispute over payment for ground improvement works fell within the scope of the arbitration agreement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Presscrete Engineering Pte Ltd | Claimant, Respondent | Corporation | Appeal Dismissed | Lost | Twang Kern Zern, Simone Bamapriya Chettiar |
| SsangYong-Wai Fong Joint Venture | Defendant, Appellant | Partnership | Appeal Allowed | Won | Luis Inaki Duhart Gonzalez |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| S Mohan | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Twang Kern Zern | Central Chambers Law Corporation |
| Simone Bamapriya Chettiar | Central Chambers Law Corporation |
| Luis Inaki Duhart Gonzalez | Selvam LLC |
4. Facts
- The claimant and defendant entered into a subcontract for ground improvement works.
- A dispute arose over payment for works performed, with the claimant alleging failure to pay.
- The defendant applied for a stay of court proceedings in favor of arbitration, relying on the arbitration agreement in the subcontract.
- The claimant argued that the disputed works fell outside the scope of the subcontract.
- The defendant contended that the disputed works fell within the original scope of the subcontract.
- The Assistant Registrar dismissed the stay application, finding that the dispute did not fall within the scope of the arbitration agreement.
- The High Court allowed the defendant's appeal, ordering a stay of proceedings.
5. Formal Citations
- Presscrete Engineering Pte Ltd v SsangYong-Wai Fong Joint Venture, Originating Claim No 28 of 2022 (Registrar’s Appeal No 269 of 2022), [2023] SGHC 8
6. Timeline
| Date | Event |
|---|---|
| Claimant submitted a quotation for Jet Grout Pile and Wet Speed Mixing works. | |
| Defendant issued a letter of intent to award the ground improvement works to the claimant. | |
| Parties entered into a subcontract for the ground improvement works. | |
| Works commenced. | |
| Claimant commenced claim for damages stemming from the defendant’s failure to pay for works performed. | |
| Defendant filed application seeking a stay of the whole of the claim pursuant to s 6 of the Arbitration Act 2001. | |
| Assistant Registrar dismissed the defendant’s stay application. | |
| High Court heard the appeal. | |
| High Court allowed the defendant’s appeal. | |
| High Court issued full grounds of decision. |
7. Legal Issues
- Stay of Court Proceedings
- Outcome: The court granted a stay of court proceedings in favor of arbitration.
- Category: Procedural
- Sub-Issues:
- Scope of arbitration agreement
- Scope of Arbitration Agreement
- Outcome: The court held that the dispute fell within the scope of the arbitration agreement.
- Category: Substantive
- Sub-Issues:
- Interpretation of contract terms
- Whether the dispute falls within the ambit of the arbitration agreement
8. Remedies Sought
- Monetary Damages
- Declaratory Judgment
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Construction Disputes
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Tomolugen Holdings Ltd and another v Silica Investors Ltd and other appeals | Court of Appeal | Yes | [2016] 1 SLR 373 | Singapore | Cited for the test to determine whether a dispute falls within the scope of an arbitration agreement. |
| Maybank Kim Eng Securities Pte Ltd v Lim Keng Yong and another | Unknown | Yes | [2016] 3 SLR 431 | Singapore | Cited to support the application of the Tomolugen Holdings test under the Arbitration Act. |
| Tjong Very Sumito and others v Antig Investments Pte Ltd | Court of Appeal | Yes | [2009] 4 SLR(R) 732 | Singapore | Cited for the principle that the subject matter of proceedings falls outside an arbitration agreement if there is no dispute or the dispute is unrelated to the contract. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act 2001 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration Agreement
- Stay of Proceedings
- Ground Improvement Works
- Subcontract
- Scope of Works
- Variation Works
- Jet Grout Pile
- Wet Speed Mixing
15.2 Keywords
- arbitration
- stay of proceedings
- construction
- subcontract
- dispute resolution
16. Subjects
- Arbitration
- Construction Law
- Contract Law
17. Areas of Law
- Arbitration Law
- Construction Law
- Civil Procedure