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Case 110: MAL 11(3)(b)
Singapore: Chairman, Singapore International Arbitration Centre (SIAC) (Tan Boon Teik, SC)
4 October 1995; SIAC arb. no. 21 of 1995
Original in English
Unpublished
Disputes arose between the parties to a contract to build and operate a chain of hotels in Indonesia, which contained an arbitration clause. The claimant's notice of arbitration named as respondents a party which had signed the contract and four other parties which had not signed it but had participated in negotiations with the claimant regarding the terms of the contract. The claimant applied to SIAC for appointment of an arbitrator under article 11(3)(b) MAL.
The claimant argued that all five respondents named in the notice of arbitration were parties to the contract in that they were all companies within the same group and were inextricably involved in the venture as "affiliates", negotiations regarding the terms of the contract having been undertaken involving all of them. The claimant further argued that all the respondents had to do at that stage was to present an arguable case.
The court held that the issue of joinder of parties was well within the jurisdiction
and competence of the arbitrator under article 16 MAL; and that, while all that the
claimant had to do was to present an arguable case that all five companies were parties to
the contract, the claimant failed to do so. An appointment was made only for an
arbitration between the claimant and the respondent who had signed the contract.
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