DHZ v DHY: Setting Aside Arbitral Award for Breach of Natural Justice and Jurisdictional Issues
In DHZ v DHY, the General Division of the High Court of Singapore heard an application by DHZ to set aside an arbitral award issued in favor of DHY. DHZ alleged breaches of natural justice and jurisdictional issues. The court, presided over by Justice Chua Lee Ming, dismissed DHZ's application and a related summons, finding no basis to set aside the award. The disputes in the arbitration related to four contracts for the supply of goods and services.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Originating Application and Summons dismissed.
1.3 Case Type
Arbitration
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
DHZ applied to set aside an arbitral award, alleging breaches of natural justice and jurisdictional issues. The court dismissed the application, finding no grounds for setting aside the award.
1.7 Decision Date
2. Parties and Outcomes
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chua Lee Ming | Judge of the High Court | Yes |
4. Counsels
4. Facts
- DHZ challenged findings in an arbitral award issued on 31 October 2023.
- The arbitration was commenced by DHY in Singapore under SIAC Rules.
- The disputes related to four contracts for the supply of goods and services.
- DHZ sought to set aside specific findings in the award under s 48(1)(a)(vii) and/or s 48(1)(a)(iv) of the Arbitration Act 2001.
- DHY obtained leave to enforce the award and DHZ applied to stay the enforcement order.
- The arbitrator found largely in favor of DHY and dismissed DHZ’s counterclaims.
5. Formal Citations
- DHZ v DHY and another matter, Originating Application No 102 of 2024, Originating Application No 21 of 2024 (Summons No 288 of 2024), [2024] SGHC 236
6. Timeline
| Date | Event |
|---|---|
| Arbitral award issued | |
| Respondent’s affidavit in OA 102 filed | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Breach of Natural Justice
- Outcome: The court found no breach of natural justice that prejudiced the rights of the applicant.
- Category: Procedural
- Sub-Issues:
- Failure to provide a fair hearing
- Failure to apply mind to essential issues
- Defective chain of reasoning
- Jurisdictional Error
- Outcome: The court found that the arbitrator did not exceed her jurisdiction.
- Category: Jurisdictional
- Sub-Issues:
- Award deals with a dispute not contemplated by the submission to arbitration
- Decisions on matters beyond the scope of the submission to arbitration
- Estoppel
- Outcome: The court upheld the arbitrator's finding that the respondent was estopped from insisting on its strict legal rights under the contract.
- Category: Substantive
8. Remedies Sought
- Setting aside of arbitral award
- Stay of enforcement order
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | High Court | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the principles to be applied when challenging an arbitration award as being contrary to the rules of natural justice. |
| BZW and another v BZV | High Court | Yes | [2022] 1 SLR 1080 | Singapore | Cited for the principle that a breach of the fair hearing rule can arise from the chain of reasoning that the tribunal adopts in its award. |
| L W Infrastructure Pte Ltd v Lim Chin San Contractors Pte Ltd and another appeal | High Court | Yes | [2013] 1 SLR 125 | Singapore | Cited for the principle that an award cannot be set aside on the ground of breach of natural justice unless prejudice has been caused. |
| CJA v CIZ | High Court | Yes | [2022] 2 SLR 557 | Singapore | Cited for the principle that the court must look at matters in the round to determine whether the issues in question were live issues in the arbitration. |
| Vim Engineering Pte Ltd v Deluge Fire Protection (SEA) Pte Ltd | High Court | Yes | [2021] SGHC 63 | Singapore | Cited by the respondent in support of its case on clause 7(c) of Contract 24, regarding waiver of rights. The Appellate Division disagreed with the High Court's finding. |
| Vim Engineering Pte Ltd v Deluge Fire Protection (S.E.A.) Pte Ltd | Appellate Division | Yes | [2023] 2 SLR 468 | Singapore | Cited for the principle that the contractual stipulation of written notice may be departed from to permit a claim for variation work where there is sufficient proof of waiver or estoppel. |
| Rabiah Bee bte Mohamed Ibrahim v Salem Ibrahim | High Court | Yes | [2007] 2 SLR(R) 655 | Singapore | Cited for the principle that there cannot be a claim in restitution parallel to an inconsistent contractual promise between the parties. |
| ASG v ASH | High Court | Yes | [2016] 5 SLR 54 | Singapore | Cited for the high bar required to establish that a tribunal failed to apply its mind to an essential issue arising from the parties’ arguments. |
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
- Arbitral award
- Setting aside
- Breach of natural justice
- Jurisdictional error
- SIAC Rules
- Milestone payments
- Liquidated damages
- Estoppel
- Quantum meruit
15.2 Keywords
- arbitration
- setting aside
- natural justice
- jurisdiction
- contract
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 90 |
| Recourse against award | 90 |
| Setting aside | 90 |
| Natural justice | 70 |
| Commercial Disputes | 60 |
| Contractual terms | 50 |
| Breach of Contract | 50 |
| International Commercial Arbitration | 40 |
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure