L W Infrastructure v Lim Chin San: Natural Justice in Arbitration & Additional Awards
The Singapore Court of Appeal heard two appeals, CA 17/2012 by L W Infrastructure Pte Ltd (Defendant) and CA 26/2012 by Lim Chin San Contractors Pte Ltd (Plaintiff), arising from a High Court judgment regarding an arbitration. The dispute concerned a sub-contract for a building project where the Plaintiff failed to complete works, leading to termination by the Defendant. The appeals centered on the rules of natural justice in arbitration, specifically concerning additional awards and the extent of court supervision. The Court of Appeal dismissed both appeals, upholding the High Court's decision to set aside the Additional Award but refusing to declare it a nullity.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Both appeals dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore Court of Appeal judgment on natural justice in arbitration, focusing on the requirements for additional awards and court intervention.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| L W Infrastructure Pte Ltd | Appellant, Defendant | Corporation | Appeal dismissed | Lost | |
| Lim Chin San Contractors Pte Ltd | Respondent, Plaintiff, Appellant | Corporation | Appeal dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Sek Keong | Chief Justice | No |
| Andrew Phang Boon Leong | Justice of the Court of Appeal | No |
| Sundaresh Menon | Justice of the Court of Appeal | Yes |
4. Counsels
4. Facts
- The Plaintiff was the Defendant’s sub-contractor for a building project.
- The Plaintiff failed to complete certain works by the agreed completion date.
- The Defendant terminated the sub-contract.
- The dispute was referred to arbitration.
- The Arbitrator rendered his Final Award on 29 June 2010.
- The Arbitrator rendered his Supplementary Award No 2 (Remitted Issues) on 21 September 2011.
- The Defendant’s solicitors requested an additional award for “pre-award interest” on 17 October 2011.
- The Arbitrator issued the Additional Award on 20 October 2011, without hearing from the Plaintiff.
5. Formal Citations
- L W Infrastructure Pte Ltd v Lim Chin San Contractors Pte Ltd and another appeal, Civil Appeals Nos 17 and 26 of 2012, [2012] SGCA 57
6. Timeline
| Date | Event |
|---|---|
| Notice of arbitration served by the Defendant on the Plaintiff. | |
| Arbitrator rendered his Final Award. | |
| Arbitrator rendered his Supplementary Award No 2 (Remitted Issues). | |
| Defendant's solicitors requested an additional award for “pre-award interest”. | |
| Arbitrator issued the Additional Award. | |
| Plaintiff’s solicitors protested the Additional Award. | |
| Arbitrator issued a final reply regarding the Additional Award. | |
| Plaintiff filed an originating summons in the High Court. | |
| Judgment reserved. |
7. Legal Issues
- Breach of Natural Justice
- Outcome: The court found a breach of natural justice in connection with the making of the additional award.
- Category: Substantive
- Sub-Issues:
- Failure to provide opportunity to be heard
- Decision based on matters not submitted or argued
- Applicability of Section 43(4) of the Arbitration Act
- Outcome: The court determined that the arbitrator should have given the Plaintiff the right to be heard on the applicability of s 43(4) of the Act prior to coming to his decision.
- Category: Procedural
- Sub-Issues:
- Omission of claim
- Tribunal exceeding powers
- Court's Supervisory Jurisdiction over Arbitration
- Outcome: The court held that it does not have the power to declare the Additional Award a nullity.
- Category: Jurisdictional
- Sub-Issues:
- Extent of court intervention
- Power to declare award a nullity
8. Remedies Sought
- Setting aside of Additional Award
- Declaration that Additional Award is a nullity
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Construction Disputes
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lim Chin San Contractors Pte Ltd v L W Infrastructure Pte Ltd | High Court | Yes | [2012] 2 SLR 1040 | Singapore | The decision from which these appeals arose. |
| LW Infrastructure Pte Ltd v Lim Chin San Contractors Pte Ltd | High Court | Yes | [2011] 4 SLR 477 | Singapore | The High Court dismissed the Plaintiff’s appeal and substantially allowed the Defendant’s appeal and the Final Award was remitted to the Arbitrator for his reconsideration and final disposal. |
| Mitsui Engineering & Shipbuilding Co Ltd v Easton Graham Rush and another | Court of Appeal | Yes | [2004] 2 SLR(R) 14 | Singapore | Cited for the principle that courts should only intervene in situations expressly regulated by the Act. |
| Denmark Skibstekniske Konsulenter A/S I Likvidation (formerly known as Knud E Hansen A/S) v Ultrapolis 3000 Investments Ltd (formerly known as Ultrapolis 3000 Theme Park Investments Ltd) | High Court | Yes | [2010] 3 SLR 661 | Singapore | Cited to show that s 48(1)(a)(v) of the Act would have afforded the defendant an appropriate avenue for seeking recourse if the tribunal was functus officio. |
| PT Asuransi Jasa Indonesia (Persero) v Dexia Bank SA | Court of Appeal | Yes | [2007] 1 SLR(R) 597 | Singapore | Cited to support the contention that there may well be occasion for the Court to find that something which purports to be an award is in fact and in substance not an award at all. |
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Court of Appeal | Yes | [2007] 3 SLR(R) 86 | Singapore | Establishes the test for challenging an arbitration award as having contravened the rules of natural justice. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 2002 Rev Ed) | Singapore |
| Arbitration Act, s 43(4) | Singapore |
| Arbitration Act, s 48(1)(a)(vii) | Singapore |
| Arbitration Act, s 47 | Singapore |
| Arbitration Act, s 48(1)(a)(v) | Singapore |
| Arbitration Act, s 22 | Singapore |
| Arbitration Act, s 44 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Natural Justice
- Additional Award
- Pre-award Interest
- Functus Officio
- Audi Alteram Partem
- Omission of Claim
- Arbitral Procedure
- Supervisory Jurisdiction
- Actual Prejudice
15.2 Keywords
- Arbitration
- Natural Justice
- Additional Award
- Singapore
- Construction Dispute
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 95 |
| Natural justice | 75 |
| Contract Law | 40 |
| Commercial Disputes | 30 |
| Civil Procedure | 25 |
16. Subjects
- Arbitration
- Civil Procedure
- Contract Law