When to set aside an arbitral award due to a breach of natural justice
The Singapore Court of Appeal has delivered a judgment that gives clarity on when an arbitral award can be set aside on the grounds of a breach of natural justice, and when the court will refuse to remit an award to the tribunal to eliminate the grounds for setting aside.
The court said a decision that is “manifestly incoherent” demonstrates that an arbitral tribunal had not understood or dealt with the case, and the parties would not be accorded a fair hearing.
Cases should not be remitted to the tribunal if the breach of justice did not rest on a single point, and there was a good chance the tribunal would be tempted to reach the same decision as previously.
Arbitration expert Rakesh Nelson of Pinsent Masons said detailed guidance in both areas was still being developed by the courts, and the judgment in the case of BZV v BZW and another would be a helpful addition for practitioners in the future. read more
Source: Pinsent Masons LLP