Sacofa Sdn Bhd v Super Sea Cable Networks: Arbitration Award Setting Aside & Jurisdiction

Sacofa Sdn Bhd, a Malaysian company, applied to the General Division of the High Court of Singapore to set aside an arbitral award in favor of Super Sea Cable Networks Pte Ltd and SEAX Malaysia Sdn Bhd, the respondents. The dispute arose from a telecommunications project in Malaysia. The claimant argued that the tribunal exceeded its jurisdiction and that the award conflicted with Singapore's public policy due to alleged illegality under Malaysian law. The court dismissed the application, finding that the tribunal did not exceed its jurisdiction, the award did not conflict with Singapore's public policy, and the claimant was estopped from raising its illegality objections.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Application dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Application to set aside an arbitral award. The court dismissed the application, finding no excess of jurisdiction or conflict with public policy.

1.7 Decision Date

2. Parties and Outcomes

3. Judges

Judge NameTitleDelivered Judgment
Wong Li Kok, AlexJudicial CommissionerYes

4. Counsels

4. Facts

  1. Sacofa and Super Sea Cable Networks entered into a Strategic Alliance Agreement (SAA) in 2013.
  2. Sacofa and Super Sea Cable Networks entered into a Lease Agreement (LA) in 2019.
  3. A dispute arose when Sacofa re-entered the land leased to Super Sea Cable Networks in October 2022.
  4. Super Sea Cable Networks commenced arbitration against Sacofa pursuant to the SAA.
  5. Sacofa commenced a suit in the Johor Bahru High Court (JBHC) seeking a declaration that the LA is illegal.
  6. The arbitral tribunal ruled in favor of Super Sea Cable Networks, ordering delivery-up of the Built Facilities.
  7. Sacofa applied to set aside the arbitral award, arguing excess of jurisdiction and conflict with public policy.

5. Formal Citations

  1. Sacofa Sdn Bhd v Super Sea Cable Networks Pte Ltd and another, , [2024] SGHC 54
  2. Sacofa Sdn Bhd v Super Sea Cable Networks Pte Ltd and another, Originating Application No 1057 of 2023, Originating Application No 1057 of 2023

6. Timeline

DateEvent
Strategic Alliance Agreement signed
Lease Agreement signed
Claimant re-entered the Demised Land
Claimant commenced JBHC Suit
Respondents applied for a stay of the JBHC Suit
Respondents commenced Arbitration
Claimant applied for an anti-arbitration injunction in the JBHC Suit
JBHC dismissed the anti-arbitration injunction application
Malaysian CA dismissed the motion
Malaysian CA dismissed the appeal
Arbitral award No 089 of 2023 was made
First respondent obtained an order from the KLHC to register and enforce the Award
Claimant applied to stay the enforcement of the Award
Claimant brought the application to set aside the Award
Ad interim order varied to grant the first respondent limited access to the Demised Land
Hearing date
Hearing date
Judgment date

7. Legal Issues

  1. Excess of Jurisdiction
    • Outcome: The court held that the tribunal did not exceed its jurisdiction.
    • Category: Jurisdictional
    • Sub-Issues:
      • Scope of arbitration agreement
      • Center of gravity of dispute
      • Proprietary nature of remedy
    • Related Cases:
      • [2014] 3 SLR 1217
      • [2010] 2 SLR 821
      • [2021] 3 SLR 1422
  2. Public Policy
    • Outcome: The court held that the award was not in conflict with Singapore's public policy.
    • Category: Substantive
    • Sub-Issues:
      • Conflict with foreign law
      • Breach of Singapore public policy
      • Illegality under Malaysian law
    • Related Cases:
      • [2020] 5 SLR 184
      • [2021] 3 SLR 22
  3. Transnational Issue Estoppel
    • Outcome: The court held that transnational issue estoppel applied to the claimant's illegality objections but not to the jurisdictional objections.
    • Category: Procedural
    • Sub-Issues:
      • Finality of foreign judgment
      • Commonality of parties
      • Identity of subject matter
    • Related Cases:
      • [2023] SGCA(I) 10

8. Remedies Sought

  1. Setting aside of arbitral award

9. Cause of Actions

  • Conversion

10. Practice Areas

  • Arbitration
  • Commercial Litigation

11. Industries

  • Telecommunications

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Oei Hong Leong v Goldman Sachs InternationalHigh CourtYes[2014] 3 SLR 1217SingaporeCited for the principle of determining the center of gravity of a dispute when competing dispute resolution clauses exist.
Transocean Offshore International Ventures Ltd v Burgundy Global Exploration CorpHigh CourtYes[2010] 2 SLR 821SingaporeCited for the principle that a claim should be subject to the dispute resolution regime of the agreement with which it is more closely connected.
Silverlink Resorts Ltd v MS First Capital Insurance LtdHigh CourtYes[2021] 3 SLR 1422SingaporeCited for the principle of interpreting dispute resolution clauses to determine the parties' objective intention.
PT Thiess Contractors Indonesia v PT Kaltim Prima CoalHigh Court of JusticeYes[2011] EWHC 1842 (Comm)England and WalesCited for the principle that courts should give effect to parties' agreements even if it results in fragmentation of dispute resolution.
CRW Joint Operation v PT Perusahaan Gas Negara (Persero) TBKHigh CourtNo[2011] 4 SLR 305SingaporeCited for the principle that an error of law is not a basis for setting aside an arbitral award.
CBX v CBZSingapore International Commercial CourtYes[2020] 5 SLR 184SingaporeCited for the principle that the issue of foreign public policy is not a matter that Singapore courts can decide of its own accord and without evidence.
Gokul Patnaik v Nine Rivers Capital LtdHigh CourtYes[2021] 3 SLR 22SingaporeCited for the test of whether upholding an arbitral award would shock the conscience or violate basic notions of morality and justice.
AKN and another v ALC and others and other appealsCourt of AppealYes[2016] 1 SLR 966SingaporeCited for the principle of res judicata in arbitration.
The Republic of India v Deutsche Telekom AGCourt of AppealYes[2023] SGCA(I) 10SingaporeCited for the doctrine of transnational issue estoppel.
Humpuss Sea Transport Pte Ltd (in compulsory liquidation) v PT Humpuss Intermoda Transportasi TBK and anotherHigh CourtYes[2016] 5 SLR 1322SingaporeCited for the principle that a foreign judgment is final even if subject to appeal.
Goh Nellie v Goh Lian Teck and othersHigh CourtYes[2007] 1 SLRI 453SingaporeCited for the principle that the court does not take a narrow view of the requirement of commonality of parties.
BAZ v BBAHigh CourtYes[2020] 5 SLR 266SingaporeCited for the principle of primacy of the seat court.
Morguard Investments Ltd v De SavoyeSupreme CourtYes[1990] 3 SCR 1077CanadaCited for the principle of comity.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Communications and Multimedia (Licensing) Regulations 2000 (PU(A) 129/2000) (M’sia)Malaysia
Communications and Multimedia Act 1998 (No 588 of 1998) (M’sia)Malaysia
Telecommunications Act 1999 (2020 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitration
  • Strategic Alliance Agreement
  • Lease Agreement
  • Excess of Jurisdiction
  • Public Policy
  • Transnational Issue Estoppel
  • Conversion
  • Built Facilities
  • Demised Land
  • Delivery-up

15.2 Keywords

  • arbitration
  • setting aside
  • jurisdiction
  • public policy
  • telecommunications
  • singapore
  • malaysia

17. Areas of Law

16. Subjects

  • Arbitration
  • Contract Law
  • Telecommunications Law