Imposition of conditions

In England, stay of judicial proceedings is mandatory where the court is satisfied that there is a valid and subsisting arbitration agreement. In Singapore the position is the same where the arbitration is an international one (under the International Arbitration Act), but if the arbitration is domestic in that both parties are from Singapore then the court merely has a discretion to stay (under the Arbitration Act). In practice, however, stays are generally granted. A common issue under both regimes is, however, whether the court has power to impose conditions on the grant of a stay or whether it must be unconditional. In Drydocks World-Singapore Pte Ltd v Jurong Port Pte Ltd [2010] SGHC 185 Nathaniel Khng AR has ruled that the power to impose conditions is to be exercised sparingly.

Drydocks: the facts

Under three contracts entered into in 2000, 2001 and 2003, Drydocks agreed to supply, install and commission nine quay cranes for Jurong Port. The contracts contained identical dispute resolution provisions. In the event of a dispute there had to be an initial reference to the Superintending Officer. There was then a right to refer the dispute to arbitration if either party was dissatisfied with the decision or if the Superintending Officer failed to give a decision within 30 days of the reference.