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Singapore High Court: breach of natural justice where tribunal decides on unpleaded point without hearing the parties; award remitted rather than set aside

Published on: 23 October 2024

Published by a LexisNexis Arbitration expert
Legal News
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Article summary

Vietnam Oil and Gas Group v Joint Stock Company (Power Machines-ZTL, LMZ, Electrosila Energomachexport) and another matter [2024] SGHC 244

What are the practical implications of this case?

This decision arose from an attempt to set aside specific findings within an arbitral award on the basis that they breached the principles of natural justice. Those principles require that each side in a dispute is given a fair chance to advance its case and to answer the assertions made against it. In this matter, the court recognised that the arbitration had indeed fallen foul of those safeguards. Nevertheless, the court chose not to invalidate the award as a whole. Instead, it determined that the appropriate course was to remit the affected issues to the Tribunal for fresh consideration. The outcome is noteworthy, as it reflects the court’s inclination to permit the original Tribunal to cure the identified defects rather than to strike down the entire award—a step that could otherwise invite further delay and procedural complexity...

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