ARMADA SHIP MANAGEMENT (S) PTE LTD V SCHISTE OIL AND GAS NIGERIA LTD

[2021] EWHC 1094 (Comm), Queen’s Bench Division, Commercial Court, Mrs Justice Cockerill, 28 April 2021

Arbitration – Jurisdiction – Preliminary ruling on jurisdiction – Whether ruling should be made where respondent refused to participate in the arbitration – Arbitration Act 1996, sections 32 and 72

In August 2016 Armada Ship Management (S) Pte Ltd (ASM) chartered its vessel Armada Tuah 101 to Schiste Oil and Gas Nigeria Ltd (SOGN). The charterparty was in BIMCO form and provided for arbitration in London, although the standard BIMCO arbitration clause had been modified to provide for a sole arbitrator rather than a three-member tribunal. Unfortunately, the rest of the clause contained conflicting provisions as to how the appointment was to be made. Following a dispute as to payment of hire, an appointment was made by the LMAA on ASM’s application. SOGN refused to participate in the arbitration. The arbitrator noted that the arbitration clause was confusing and gave permission to ASM to apply to the court under section 32 of the Arbitration Act 1996 for a preliminary ruling on the validity of the appointment and the meaning of the arbitration clause.