Arbitration Law Monthly
Challenges to an arbitration award: jurisdiction and natural justice
Kannan Ramesh JC in the Singapore High Court in Prometheus Marine Pte Ltd v King [2017] SGHC 36 has rejected a series of challenges to an award. They were based on want of jurisdiction and failure to adhere to the rules of natural justice. It is obvious from the grounds alleged that this was yet another attempt to challenge the outcome of an award by disguising what was essentially a merits argument as one based on jurisdiction and procedure.
It is somewhat disturbing that this type of challenge
should take up so much judicial time: the judgment is well in excess of 100
paragraphs. Much of that turned upon the factual question of whether the
applicant was an agent or principal. Although both Singapore and England
recognise that a jurisdictional challenge requires a rehearing on the basis
that an arbitration award cannot bind a non-party, there must be some reason to
question whether that is the case for every jurisdictional challenge. Perhaps
some lower standard of review is required in such cases.