PT Thiess Contractors Indonesia v PT Kaltim Prima Coal & Anor

PT Thiess Contractors Indonesia v PT Kaltim Prima Coal & Anor

The dispute in the English action arises under the CDA, which contains a non-exclusive jurisdiction clause in favour of the English courts, and not under the OAMS arbitration clause. The substance of the controversy does not arise under or in connection with the OAMS so as to attract the mandatory stay under s.9 Arbitration Act 1996. The parties did not agree to refer CDA disputes to arbitration, and only the English court can bind the bank. Therefore, the application for a stay is refused.

Parties
Claimant: PT Thiess Contractors Indonesia; First Defendant: PT Kaltim Prima Coal; Second Defendant: Standard Chartered Bank, Singapore Branch
Jurisdiction
England and Wales
Judgment Date
14 July 2011
Procedural Posture
Commercial Court Application (stay of Proceedings) / Ruling on Application for Stay of Proceedings Pending Arbitration
Outcome
Application for stay refused
Legal Topics
Stay of Proceedings, Jurisdiction Clauses, Arbitration Agreements, Security Pending Arbitration, Multi Contract Disputes
Arbitration Commercial Law Contract Law Stay of Proceedings Jurisdiction Clauses Arbitration Agreements Security Pending Arbitration Multi Contract Disputes

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Parties

PT Thiess Contractors Indonesia

Claimant

PT Kaltim Prima Coal

First Defendant

Standard Chartered Bank, Singapore Branch

Second Defendant

Procedural Posture

Commercial Court Application (stay of Proceedings) / Ruling on Application for Stay of Proceedings Pending Arbitration

Legal Issues

  1. 1 Whether the English court proceedings should be stayed under s.9 Arbitration Act 1996 due to an arbitration agreement in a related contract
  2. 2 Whether the dispute under the Cash Distribution Agreement (CDA) falls within the arbitration clause of the Operating Agreement – Mining Services (OAMS)
  3. 3 Whether the court should exercise its inherent jurisdiction to stay the proceedings

Ratio Decidendi

The dispute in the English action arises under the CDA, which contains a non-exclusive jurisdiction clause in favour of the English courts, and not under the OAMS arbitration clause. The substance of the controversy does not arise under or in connection with the OAMS so as to attract the mandatory stay under s.9 Arbitration Act 1996. The parties did not agree to refer CDA disputes to arbitration, and only the English court can bind the bank. Therefore, the application for a stay is refused.

Court Disposition

Application for stay refused

Orders

  • The application for a stay of the English proceedings is refused.