Issue #17 : You Don’t Fool Me
Happy Monday!
Here are the latest 🌶 legal headlines:
China: China's Nam Tai Property dismisses Kaisa's $146.9 million claim over a disputed private placement
China: Chinese state-owned investor brings ICSID claim against Trinidad and Tobago
India: Pakistan views India's request to begin talks over the review of the Indus Water Treaty as vague
India: Tribunal Court sets aside 4 of 10 directives in Android antitrust case in India
Iran: Iran may initiate arbitration against Pakistan over delay in pipeline construction
Kazakhstan: Kazakhstan initiates arbitration again oil majors operating the Kashagan & Karachaganak oil fields
Malaysia: Malaysia commits to protecting its sovereign rights & interest in the South China Sea
Malaysia: Federal Court denies ex-Prime Minister Najib's bid for review
UAE: 5 Filipino expats have been arrested for posting an offensive TikTok video
Ling Yah
P/S: Know of any interesting seminars happening? Drop us a note at editor@overheard.asia!
You Don't Fool Me
In 2006, Raffles Education Group (“REG”) and Educomp discussed the prospect of entering a JV to provide education-related services in India 🎓.
The Educomp group of companies include India-listed Educomp Solutions (Shantanu Prakash is the chairman & managing director) and wholly owned subsidiary Educomp Asia Pacific (Dennis Liu was a director from 2009-2016).
🍿 What Happened?
According to REG, Shantanu Prakash and Dennis Liu (the “Defendants”) never intended to uphold the JV 😈.
They had conspired and made misrepresentations that caused REG to enter into a share purchase agreement and business advisory agreement.
✍🏻 Verdict
The Singapore High Court found that REG had proven:
Fraudulent misrepresentation pertaining to the business advisory agreement
Inducing breach of the business advisory agreement & share purchase agreement;
Conspiring to injure or cause loss by unlawful means.
REG was awarded $2.9 million in damages.
Pay Up!
Oil is never free.
Even if you’re a country in dire financial straits.
🍿 Background
OVL, the overseas arm of the Indian state-owned Oil and Natural Gas Corporation (“ONGC”), had a 25% stake in the Great Nile Oil Project in Sudan. Other stakeholders include China National Petroleum Corporation (40%), Petronas of Malaysia (30%) and Sudapet of Sudan (5%).
OVL was not paid:
USD 99 million for the 741km pipeline it built from Khartoum to Port Sudan; and
USD 430.69 million for oil that the Sudanese government took since 2011.
Fed up, OVL initiated arbitration proceedings against the Sudanese government & terminated the Exploration and Production Sharing Agreement.
✍🏻 Verdict
ONGC Videsh Ltd has just won a $190 million arbitration award against Sudan in dispute over payment for oil and a pipeline.
Following the arbitration award, OVL has sent demand notices to the Sudanese government seeking payment.
But given the financial state of Sudan, OVL might need to consider more creative solutions to recover payment, such as seizing Sudanese government assets in different countries. Similar to what Cairn Energy did against India in its 2021 retrospective tax case.
But for now, demand notices it is!
A USD 8 billion loss?!
The May 2021 shipwreck of MV X-Press Pearl was the ultimate double-whammy.
Not only did the ship catch fire & sink, but it was also carrying hazardous chemicals and billions of plastic pellets that ended up polluting its beaches, making it the mother of all plastic marine pollution disasters.
💸 Compensation
So far, Sri Lanka has received a measly $7.85 million to cover the cost of the emergency response operations, direct damages and cleanup.
But here’s the kicker.
💣 Sri Lanka faces a ticking time bomb.
According to Sri Lanka’s Prescription Ordinance, Sri Lanka has 2 years to file for environmental damages.
If Sri Lanka misses the 20 May 2023 deadline, it could lose USD 10 billion in compensation!
😳 Another Twist
Sri Lanka’s AG department has set its sights on Singapore as the battlefield for this legal showdown.
It has some cheeky reasons for doing so:
The intended defendants are conveniently based in Singapore;
Singapore is an international recognised maritime hub; and
Also has the legal chops to handle complex maritime disputes.
So while some eyebrows have been raised at Sri Lanka’s choice of battleground (it’s not cheap!), the AG department seems to think that it’s better to go big or go home.
But the clock is ticking, so they’d better hustle!
Spotlight: Abhinav Bhushan (Chief Executive for Asia, 39 Essex Chambers)
⚒️ What do you do?
My current role is Chief Executive, Asia & Member, International Arbitrator at 39 Essex Chambers which I started in late August 2021. 39 Essex Chambers, unlike other English barrister sets, has significant presence in Asia with offices in Singapore & Malaysia and members living in Singapore, Malaysia, Australia, and Hong Kong.
The onward plan is to build further in Asia! I am focusing on increasing our accessibility and providing cohesive advocacy and arbitral services to our clients in Asia. This includes, among others, providing clients, access to 39 Essex’s world-class barristers, arbitrators, adjudicators, and mediators. I am also acting on institutional international arbitrations as an arbitrator.
🏆 What is your proudest achievement?
My proudest achievement has been to contribute to the evolution of arbitration and its practice in jurisdictions that did not have a developed arbitration bar or userbase: through trainings, master classes, arbitration literature, and assisting the next generation of arbitration lawyers.
⌛ There are now 25 hours in a day! How do you spend your extra hour?
Sometimes, I spend that extra hour researching on new restaurants in Singapore (or at my next travel destination), or reading non-law related articles while scrolling on my phone. Sometimes a chunk of that hour is spent on watching “Reels” on Instagram. 😉
🚀 If you weren't a lawyer, what would you do?
An Astro photographer who also has a food & travel blog.
😋 Your favourite food haunt (bonus points if it's off the beaten track!)
Try the Vietnamese Delight Pho 99 at Amoy Street. Quick, healthy, inexpensive and yum!
Food Feature
All. That. Meat. 😍
But did you know it's part of a 50 year broth?!
Wattana Panich serves this famous beef & goat noodle soup, which is stewed for over 8 hours with Chinese herbs and their secret bag of ingredients.
So if you're ever in Thailand, be sure to head over! 😉
Details: Google Maps
Are you a student or young lawyer?
Want to get involved in helping to run Overheard? Meet senior practitioners? Do legal research with real world impact?
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Special thanks to Overheard in Asia's sponsor:
David Grief was described as "the Law's Middleman" (Business Times, 2021). You can reach out to him at dg@davidgrief.com if you need help identifying the right lawyer, arbitrator or expert for your matters, or even if you just want to grab a drink 🍵🍺 with someone who has managed and mentored lawyers for almost 5️⃣0️⃣ years!