CKG v CKH [2021] SGHC(I) 5 (18 June 2021)

CKG v CKH [2021] SGHC(I) 5 (18 June 2021)

The tribunal failed to consider and determine the Principal Debt Issue, which was a material issue before it and common ground between the parties. This failure constituted a breach of the rules of natural justice under section 24(b) of the IAA and Article 34(2)(a)(iii) of the Model Law, as it prejudiced the plaintiff's rights by omitting a significant sum from the net calculation of liabilities. However, the tribunal did not fail to determine the Freight Interest Issue, as it was addressed in the award, albeit without detailed reasoning.

Citation
[2021] SGHC(I) 5
Parties
Plaintiff: CKG; Defendant: CKH
Jurisdiction
Singapore
Judgment Date
18 June 2021
Procedural Posture
Originating Summons (setting Aside Arbitral Award) / Judgment on Application to Set Aside Arbitral Award
Outcome
Partial suspension of setting aside proceedings; remission to tribunal on Principal Debt Issue; application to set aside Freight Interest Issue denied.
Legal Topics
Setting Aside Arbitral Awards, Natural Justice in Arbitration, UNCITRAL Model Law Article 34, International Arbitration Act (singapore), Set Off and Counterclaims in Arbitration
Arbitration Commercial Law Setting Aside Arbitral Awards Natural Justice in Arbitration UNCITRAL Model Law Article 34 International Arbitration Act (singapore) Set Off and Counterclaims in Arbitration

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Parties

CKG

Plaintiff

CKH

Defendant

Procedural Posture

Originating Summons (setting Aside Arbitral Award) / Judgment on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the arbitral tribunal failed to consider and determine the Principal Debt Issue (debt owed by defendant to plaintiff) and the Freight Interest Issue (interest rate on freight counterclaim)
  2. 2 Whether such failure constitutes a breach of natural justice under section 24(b) of the International Arbitration Act and/or Article 34(2)(a)(iii) of the UNCITRAL Model Law

Ratio Decidendi

The tribunal failed to consider and determine the Principal Debt Issue, which was a material issue before it and common ground between the parties. This failure constituted a breach of the rules of natural justice under section 24(b) of the IAA and Article 34(2)(a)(iii) of the Model Law, as it prejudiced the plaintiff's rights by omitting a significant sum from the net calculation of liabilities. However, the tribunal did not fail to determine the Freight Interest Issue, as it was addressed in the award, albeit without detailed reasoning.

Court Disposition

Partial suspension of setting aside proceedings; remission to tribunal on Principal Debt Issue; application to set aside Freight Interest Issue denied.

Orders

  • Proceedings to set aside the award are suspended to allow the tribunal to determine the quantum of the Principal Debt and accrued interest to be set off against damages awarded to the defendant.
  • Application to set aside the award on the Freight Interest Issue is denied.