Albon (t/a NA Carriage Co) v Naza Motor Trading Sdn Bhd & Anor (No 4)

Albon (t/a NA Carriage Co) v Naza Motor Trading Sdn Bhd & Anor (No 4)

The English court has jurisdiction to grant an anti-arbitration and anti-suit injunction against Naza Motors, a foreign defendant, because the claim relates to a contract governed by English law and Naza Motors has invoked the court’s jurisdiction by seeking a stay. The injunction is necessary to prevent oppressive and duplicative proceedings in Malaysia, particularly as the authenticity of the JVA is disputed and must be determined by the English court. The injunction should restrain all steps in the arbitration pending determination of the authenticity issue, not merely the arbitrators’ jurisdiction, as the risk of duplication and oppression remains otherwise.

Parties
Claimant: Nigel Peter Albon (trading as N A Carriage Co); First Defendant: Naza Motor Trading Sdn Bhd; Second Defendant: Tan Sri Dato Nasimuddin Amin
Jurisdiction
England and Wales
Judgment Date
31 July 2007
Procedural Posture
Civil Commercial/contract / Interlocutory Application for Anti Arbitration and Anti Suit Injunction
Outcome
Injunction granted (conditional on cross-undertaking in damages)
Legal Topics
Anti Suit Injunctions, Jurisdiction, Foreign Arbitration, Forgery of Contract, Service Out of Jurisdiction

Case Brief

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Parties

Nigel Peter Albon (trading as N A Carriage Co)

Claimant

Naza Motor Trading Sdn Bhd

First Defendant

Tan Sri Dato Nasimuddin Amin

Second Defendant

Procedural Posture

Civil Commercial/contract / Interlocutory Application for Anti Arbitration and Anti Suit Injunction

  1. 1 Whether the court has jurisdiction to grant an anti-arbitration and anti-suit injunction against a foreign defendant
  2. 2 Whether the injunction should restrain all steps in the Malaysian arbitration or only determination of the authenticity of the JVA
  3. 3 Whether permission should be granted to serve the amended claim form and particulars of claim out of jurisdiction

Ratio Decidendi

The English court has jurisdiction to grant an anti-arbitration and anti-suit injunction against Naza Motors, a foreign defendant, because the claim relates to a contract governed by English law and Naza Motors has invoked the court’s jurisdiction by seeking a stay. The injunction is necessary to prevent oppressive and duplicative proceedings in Malaysia, particularly as the authenticity of the JVA is disputed and must be determined by the English court. The injunction should restrain all steps in the arbitration pending determination of the authenticity issue, not merely the arbitrators’ jurisdiction, as the risk of duplication and oppression remains otherwise.

Court Disposition

Injunction granted (conditional on cross-undertaking in damages)

Orders

  • Permission granted to serve Amended Claim Form and Amended Particulars of Claim in Malaysia
  • Naza Motors restrained from taking any steps in the Malaysian arbitration proceedings pending further order, subject to provision of security for cross-undertaking in damages