SINGAPORE Law and Practice Contributed by: Mathiew Christophe Rajoo, Probin Dass and Tan Hui Tsing, DennisMathiew
7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses The defendant can apply for a stay of proceedings in favour of the arbitration/jurisdiction clause under Section 6 (1) of the International Arbitration Act 1994; see 7.2 Enforcement of Law and Arbitration Clauses Incorporated Into a Bill of Lading . However, a court is also at liberty to impose certain conditions as it may think fit for a stay granted under Section 6 (2) of the International Arbitration Act. For example, in Splosna Plovba International Shipping and Chartering d.o.o. v Adria Orient Line Pte Ltd [1998] SGHC 289, the court imposed that security of USD50,000 be provided for arbitration in London. In KVC Rice Intertrade Co Ltd v Asian Mineral Resources Pte Ltd and another suit [2017] 4 SLR 182, the condi - tion imposed was that the defendant was not permit - ted to raise objections to the jurisdiction of the Presi - dent of the Singapore International Arbitration Centre to appoint an arbitrator if parties were unable to agree to the appointment of an arbitrator. In The “Navios Koyos” [2021] SGCA 99, the question was whether the stay of court proceedings ought to be granted uncon - ditionally or on condition upon a waiver of the time bar defence. The court found, inter alia, that the imposi - tion of such a condition would deprive the respondent of an accrued and substantive defence; hence, the stay was granted unconditionally. 8. Ship-Owners’ Income Tax Relief 8.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies Profits derived from the operation of a Singapore- registered vessel are exempt from Singapore income tax. The exemption applies to the profits gained from the operation of activities outside the limits of the port of Singapore, as set out at Section 13A(1) read with Section 13A(16) of the Income Tax Act 1947. These activities include: • the carriage of passengers, mail, livestock or goods outside the limits of the port of Singapore; • towing or salvage operations outside the limits of the port of Singapore;
stayed upon an application for the same by any party to the arbitration agreement at any time after appear - ance – and before filing pleadings/taking any other step in the court proceedings. The power of the court to grant a stay is found at Section 6 (1) of the Interna - tional Arbitration Act 1994. 7.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards Singapore is a party to the 1958 New York Conven - tion, and the International Arbitration Act 1994 gives effect to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Pursuant to the International Arbitration Act 1994, some grounds to resist enforcement include: • a party’s lack of capacity to agree to arbitrate; • an invalid arbitration agreement is involved; • a party is not given proper notice or is unable to present their case; • the award goes beyond the scope of the arbitration agreement; • the composition of the tribunal or procedure is not in compliance with the agreement or lex arbitri; • the award is not yet binding; • the award is set aside or suspended by a compe - tent authority; • the subject matter of the dispute is not arbitrable; and • the enforcement is against the state’s public policy. 7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction Section 7 of the International Arbitration Act 1994 provides that vessels may be arrested as security for a foreign arbitration. However, the Singapore court has held in DSA Consultancy (FZC) v The “Eurohope” [2017] 5 SLR 934 that a vessel cannot be arrested in Singapore as security for foreign court proceedings. 7.5 Domestic Arbitration Institutes The Singapore Chamber of Maritime Arbitration spe - cialises in maritime claims in the jurisdiction.
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