Issue #61: A Rosy Start to 2025?!
Welcome to the 61st edition of OIA and the first edition for 2025!
Here are the latest 🌶 headlines in APAC:
Ling Yah
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Silence is NOT golden
Can a non-participating party to an arbitration challenge an arbitral award on the grounds that the arbitrator had failed to consider a point that was not put in issue?
Apparently not!
🍿 What Happened?
The case of DEM v. DEL [2025] SGCA 1 stemmed from a franchise sale dispute where the Appellant, Mr. Z, was sued by the Respondent for allegedly diverting clients and staff to a competitor. Despite receiving proper notice via the agreed-upon email address, Mr. Z chose not to participate in the SIAC arbitration.
The Singapore Court of Appeal held inter alia that:
Parties cannot raise an "infra petita" challenge (alleging the arbitrator failed to consider an issue) if the issue was not properly brought before the tribunal.
The party seeking to set aside an arbitration award bears the legal burden to prove they “were not given proper notice of the appointment of an arbitrator or arbitral proceedings or were otherwise unable to present their case.”
👀 Conclusion
In arbitration, your silence might just be your loudest statement - and not in a good way.
Water Wars
India has just prevailed in its ongoing water war with Pakistan over the Kishenganga and Ratle hydropower projects.
🍿 What Happened?
As mentioned in earlier OIA editions, this water dispute revolves around Pakistan's objections to two hydropower projects in Jammu and Kashmir.
After initially requesting a neutral expert in 2015, Pakistan unilaterally retracted and sought a court of arbitration. India consistently maintained that only the neutral expert could resolve these differences, refusing to participate in parallel Permanent Court of Arbitration proceedings.
👀 Now What?
On 20 January, the World Bank-appointed neutral expert, Michel Lino, president of the International Commission on Large Dams, confirmed his competence to adjudicate the differences between the two countries under the 1960 Indus Waters Treaty, effectively backing India’s position in this ongoing dispute.
Settled!
We’re usually reporting about s*** hitting the fan, so imagine our surprise (ahem pleasure) when we come bearing news of a rosy settlement!
🍿 What Happened?
The settlement stems from a 20-year LNG supply agreement signed in 2012 between state-owned gas utility GAIL (India) Ltd (“GAIL“) and SEFE Marketing & Trading Singapore (“SEFE“), a former unit of Russian energy giant Gazprom, with GAIL agreeing to buy as much as 2.85 million tonnes per annum of LNG with Russian energy giant Gazprom.
SEFE failed to deliver 30 LNG cargoes during 2022-2023, citing force majeure due to the Russia-Ukraine conflict and the German government's takeover. SEFE resumed supplies March 2023. In the meanwhile, GAIL sought USD 1.817 billion in damages for the period of non-supply.
Matters escalated when GAIL initiated London Court of International Arbitration proceedings in December 2023.
👀 Thoughts
On 15 January 2025, parties announced that they had settled for a ‘paltry’ USD 285 million while emphasising their commitment to maintaining a long-term relationship.
The future looks quite rosy, doesn’t it?
Spotlight: Sherly Gunawan
Counsel at SIAC
Food Reveal
Siem Reap nights: culture, flavour, and a dash of spectacle.
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