Issue #3: Don’t Mess with These Giants
Happy Monday!
Hope you've had some time to digest all that rendang & haggis at the ICC Indonesia Arbitration Day and the ICCA Congress in Edinburgh.
It's been a quiet week, but here are some headlines in the world of APAC disputes:
Hong Kong: Hong Kong's Court of Appeal dismissed China Merchants' request to file a second appeal (featured below)
India: The Quebec Court of Appeal overturned an earlier hearing to seize USD 17 million worth of funds belonging to Air India (featured below)
India: Reliance Infrastructure filed a USD 1.7 billion claim over the sale of a power distribution business (featured below)
See you in 2 weeks' time!
Ling Yah
USD 17 million richer
Long-standing bad blood is never fun. But when USD 111 million is at stake, you take what you can.
🔖 Background
In 2005, Antrix Corporation (the commercial arm of the Indian Space Research Organisation) leased 2 communications satellites to Devas along with the required spectrum, for Devas to provide multimedia services.
But in 2011, the Indian government annulled the agreement with Devas, alleging irregularities in the spectrum sale and need of the spectrum for India's security needs.
Devas investors were understandably upset 😡 & have been targeting Indian government assets abroad to recover USD 111 million in compensation through various international courts. This includes claiming against Air India, which Devas argues is an alter ego of the Indian state.
🎯 The Latest Saga
On 20 September, the Quebec Court of Appeal overturned a ruling that authorised the seizure of USD 17 million in funds belonging to Air India, as it refused to pierce the corporate veil.
That veil could be pierced only if it was shown that India was using Air India to hide fraud, abuse rights or violate public order - none of which were alleged here.
How deep are your pockets?
It's not looking good for the Republic of Djibouti.
DP World (one of the world's largest port operators) just won the latest court battle in a string of court rulings (8, but who's counting?) to defend its rights as a shareholder & concessionaire of Djibouti's Doraleh Container Terminal.
Their grievance?
👉🏻 The government of Djibouti kicked them out & handed the Doraleh terminal to China Merchants.
It seems like the international community is siding with DP World. With the Court of Appeal of Hong Kong dismissing China Merchants' request to file a second appeal, Djibouti now owes DP World a whopping total of $686.5 million, plus accruing interest.
DP World may have been kicked out of its ports, but its payday is looking pretty swell. 🌊
Power... Out?
Reliance Infrastructure has filed a USD 1.7 billion claim at the Mumbai Centre for International Arbitration over the sale of a power distribution business to Adani Transmission Ltd.
The claim is based off a breach of terms in a December 2017 agreement, but details are iffy.
Given that this is a fight between India's largest private sector transmission and power distribution entity (Adani Transmission) and one of India's largest infrastructure companies (Reliance Infrastructure), this fight between giants is one to watch out for!
Spotlight - Christopher Moger QC
⚒️ What do you do?
I work exclusively as an international commercial arbitrator with a major focus on disputes in Asia.
Among current arbitrations are ones involving China, Myanmar, Korea, the USA and Laos involving English Law, Hong Kong Law, Korean Law, Chinese Law, Swiss Law and (a first for me) Finnish Law.
🏆 What is your proudest achievement?
Apart from my sons (obviously!), and taking 8 wickets for 10 runs in my first school cricket match 🏏, establishing myself in a new practice in International Commercial Arbitration in my late 40s.
⌛ There are now 25 hours in a day! How do you spend your extra hour?
A lesson in something I have always wanted to do and, to my shame, have never done – playing the piano 🎹.
🚀 If you weren't a lawyer, what would you do?
A land agent managing (other people’s) rural estates 💰.
😋 Your favourite food haunt (bonus points if it's off the beaten track!)
Currently – The White Horse, Sutton, West Sussex, UK
Food Reveal
One of Kuala Lumpur's most famous pork noodles.
Ooi's Pork Noodles is a shop located within Money's Corner (a food court) but you'll soon notice that almost every table is ordering the same pork noodles! You can't go wrong - just choose between a small/large bowl, and whether it comes with eggs.
It's located right beside KL Sentral, so you're just a train ride away from the airport too!
Details: Google Maps, Tripadvisor
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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!