Navayo International AG v Ministry of Defence: Enforcement of Arbitral Award & Costs
Navayo International AG and MEHIB – Hungarian Export Credit Insurance Pte Ltd, the Plaintiffs, sought enforcement of an arbitral award against the Ministry of Defence, Government of Indonesia, the Defendant. The Defendant's applications to set aside the enforcement order and for related relief were dismissed by the Singapore International Commercial Court. This judgment addresses the determination of costs, with the court ordering the Defendant to pay $233,887.70 to the Plaintiffs.
1. Case Overview
1.1 Court
Singapore International Commercial Court1.2 Outcome
Costs of the applications to be paid by the Ministry of Defence, Government of Indonesia to the Plaintiffs at $233,887.70.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court determines costs after dismissing the MOD's application to set aside enforcement of an arbitral award. Key issues include fraud allegations and procedural compliance.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Navayo International AG | Plaintiff | Corporation | Costs awarded | Won | |
| MEHIB – Hungarian Export Credit Insurance Pte Ltd | Plaintiff | Corporation | Costs awarded | Won | |
| Ministry of Defence, Government of Indonesia | Defendant | Government Agency | Costs to be paid | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| S Mohan | Judge of the High Court | No |
| Sir Jeremy Lionel Cooke | International Judge | No |
| Roger Giles | International Judge | Yes |
4. Counsels
4. Facts
- Navayo and MEHIB obtained leave to enforce an arbitral award against the MOD for US$16m.
- The MOD applied to set aside the enforcement order and for related relief.
- The MOD's applications were dismissed by the SICC.
- The court ordered that the costs of the applications be paid by the MOD to the Plaintiffs.
- The MOD's solicitors ceased to act for it, raising procedural issues regarding representation.
- The MOD argued that costs should be limited to disbursements due to alleged fraud.
- The Plaintiffs claimed a total of $250,887.70 in costs and disbursements.
5. Formal Citations
- Navayo International AG and another v Ministry of Defence, Government of Indonesia, Originating Summons No 2 of 2023 (Summonses Nos 11, 589, 606 and 607 of 2023), [2024] SGHC(I) 28
6. Timeline
| Date | Event |
|---|---|
| Originating Summons No 2 of 2023 filed | |
| Summonses Nos 11, 589, 606 and 607 of 2023 filed | |
| Judgment issued dismissing SUM 11 and SUM 589, allowing SUM 606, and dismissing SUM 607 | |
| MOD's solicitors filed an application to discharge themselves | |
| Order made that MOD's solicitors cease to act | |
| MOD was told of O 5 r 6(2) and that it should engage new counsel | |
| Directions given for filing costs submissions | |
| Plaintiffs filed and served their costs submissions | |
| MOD sent its costs submissions by email | |
| Plaintiffs submitted that the Court should disregard the MOD’s costs submissions | |
| Plaintiffs filed and served reply submissions | |
| Judgment reserved | |
| Judgment delivered |
7. Legal Issues
- Costs
- Outcome: The court determined the costs to be paid by the Ministry of Defence, Government of Indonesia to the Plaintiffs at $233,887.70.
- Category: Procedural
- Fraud
- Outcome: The court found an arguable case of fraud in the procurement, execution, and performance of the Navayo Agreement, but this did not disentitle the Plaintiffs to costs.
- Category: Substantive
8. Remedies Sought
- Costs
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Offshoreworks Global (L) Ltd v POSH Semco Pte Ltd | High Court | Yes | [2021] 1 SLR 27 | Singapore | Cited regarding the prohibition on a body corporate carrying on proceedings otherwise than by a solicitor and the grant of leave to enter an appearance. |
| Lao Holdings NV v Government of the Lao People’s Democratic Republic and another matter | High Court | Yes | [2023] 4 SLR 77 | Singapore | Cited as a reference point for pre-transfer costs awarded in similar applications. |
| Deutsche Telekom AG v The Republic of India | High Court | Yes | [2024] 3 SLR 1 | Singapore | Cited as a reference point for pre-transfer costs awarded in similar applications. |
| Senda International Capital Ltd v Kiri Industries Ltd | Court of Appeal | Yes | [2023] 1 SLR 96 | Singapore | Cited to explain the SICC costs regime and the main consideration that a successful litigant should not be unfairly out of pocket. |
| Navayo International AG and another v Ministry of Defence, Government of Indonesia | Singapore International Commercial Court | Yes | [2024] 6 SLR 1 | Singapore | The judgment in which the applications were decided, and to which the current judgment relates to costs. |
13. Applicable Rules
| Rule Name |
|---|
| O 5 r 6(2) of the Rules of Court (2014 Rev Ed) |
| O 1 r 9(2) of the Rules of Court (2014 Rev Ed) |
| O 110 r 46 of the Rules of Court (2014 Rev Ed) |
| O 64 r 3 of the Rules of Court (2014 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (2014 Rev Ed) | Singapore |
| State Immunity Act 1979 (2020 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitral award
- Enforcement order
- Costs
- Disbursements
- Fraud
- SICC
- Singapore International Commercial Court
15.2 Keywords
- arbitration
- costs
- Singapore
- international commercial court
- fraud
- enforcement
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Costs | 95 |
| Arbitration | 70 |
| Enforcement of Foreign Judgments | 65 |
| Civil Litigation | 60 |
| Jurisdiction | 50 |
| Commercial Disputes | 40 |
| International Commercial Law | 35 |
16. Subjects
- Civil Procedure
- Costs
- International Arbitration