The "Benja Bhum"
| Jurisdiction | Singapore |
| Judgment Date | 08 October 1993 |
| Date | 08 October 1993 |
| Docket Number | Admiralty in Rem No 49 of 1993 |
| Court | High Court (Singapore) |
[1993] SGHC 240
L P Thean JA
Admiralty in Rem No 49 of 1993
High Court
Admiralty and Shipping–Admiralty jurisdiction and arrest–Action in rem–Parties agreed in principle to submission of matter to arbitration upon arrest of vessel–Whether such agreement binding–Dispute over terms of banker's guarantee to secure release of vessel–O 70 r 12 (4) Rules of the Supreme Court (Cap 322, R 5, 1990 Ed)
This action arose out of an action in rem against the vessel Benja Bhum (“the vessel”) by the plaintiff claiming remuneration for salvage services. After the plaintiff's arrest of the vessel, parties agreed in principle to the submission of the matter to arbitration. The plaintiff was prepared to release the vessel from arrest upon the defendants furnishing a banker's guarantee on terms acceptable. The plaintiff wanted the undertaking to cover any arbitration award and also any final judgment of a court or tribunal of competent jurisdiction whereas the defendant wanted it stated that the arbitration had “commenced … by reason of an agreement for private submission to arbitration” fax dated 9 February 1993. As the defendant was not prepared to furnish the undertaking in terms required by the plaintiff's solicitors, the plaintiff refused to release the vessel from arrest. The defendant then applied for the release of its vessel from arrest under O 70 r 12 (4) of the Rules of the Supreme Court (Cap 322, R 5, 1990 Ed) and also for damages. The assistant registrar dismissed the application and the defendant appealed.
Held, dismissing the appeal:
(1) Though the parties agreed in principle to refer the plaintiff's claim to arbitration, the terms of the agreement had yet to be agreed at that time. In effect, there was really no binding agreement. The plaintiff had already arrested the vessel and had a security for its claim. It was therefore entitled to insist that the letter of undertaking contained terms which gave it adequate protection or security in replacement of the res it had arrested. The terms required by it were wholly reasonable in the circumstances: at [9].
(2) The words suggested by the defendant were plainly wrong. There was, at that time, no agreement for private submission to arbitration “contained in or evidenced by Haridass Ho & Partners' fax dated 9 February 1993”. The agreement for private submission to arbitration, if at all there was to be one, would be contained in a document yet to be agreed upon: at [10].
...
To continue reading
Request your trial
-
Star-Trans Far East Pte Ltd v Norske-Tech Ltd and Others
......(ii) Fresh agreement to arbitrate? Counsel for Star-Trans contended that there was no fresh agreement to arbitrate as the parties were still negotiating on the details of the arbitration. He relied primarily on The Benja Bhum [1994] 1 SLR 88 . In that case, LP Thean JA held that while the parties may have agreed in principle to refer the claims to arbitration, the terms of the agreement had not been confirmed at that time. In any event, the learned judge opined that there was at least a doubt as to whether there ......
-
PT Tugu Pratama Indonesia v Magma Nusantara Ltd
...in awarding the costs of the preliminary hearing to MNL as such an order was not in accordance with cl 3.18: at [46]. Benja Bhum, The [1993] 3 SLR (R) 242; [1994] 1 SLR 88 (refd) Society of Lloyds v Twinn [2000] EWHC Admin 308 (refd) Star-Trans Far East Pte Ltd v Norske-Tech Ltd [1996] 2 SL......
-
The "Sunwind"
...under the circumstances, but the absence of an order to stay the proceedings made a critical difference: at [16]. Benja Bhum, The [1993] 3 SLR (R) 242; [1994] 1 SLR 88 (distd) Jalamatsya, The [1987] 2 Lloyd's Rep 164 (refd) International Arbitration Act (Cap 143A, 1995 Rev Ed)s 7 (1) (consd......
-
The "ICL Raja Mahendra"
...for the arbitration, then the phrase “any tribunal or court of competent jurisdiction” could be reasonable: at [25].] Benja Bhum, The [1993] 3 SLR (R) 242; [1994] 1 SLR 88 (distd) Cap Bon, The [1967] 1 Lloyd's Rep 543 (refd) Vasso, The [1984] 1 Lloyd's Rep 235 (refd) International Arbitrati......
-
JUDICIAL ASSISTANCE IN MARITIME ARBITRATION: A SINGAPORE PERSPECTIVE
...the CJJA. 22 See The Damavand[1993] 2 SLR 717 at 731, [30]. 23 Supra n 14, at [4]. 24 Supra n 14, at [24]—[26]. See also The Benja Bhum[1994] 1 SLR 88 on whether the security wording should cover an award or a judgment or just an award. 25 Supra n 14, at [24]. 26 [1998] 3 SLR 954. 27 Supra ......
-
ENFORCEMENT OF ARBITRATION AGREEMENTS UNDER THE INTERNATIONAL ARBITRATION ACT 1994
...to arbitrate, albeit not quite…” This illustrates how far the English courts will now go to enforce an arbitration agreement. 29 [1994] 1 SLR 88. 30 See infra, the accompanying text of note 64 on the Harbour Assurance case. 31 See supra, accompanying text to notes 16—17. 32 See, for instanc......