SINGAPORE HIGH COURT grants stay in favour of London arbitration pursuant to Sec 6 IAA

In Maersk Tankers v Owner and/or Demise Charterer of the vessel “SWIFT WINCHESTER”  [2025] SGHCR 7 the High Court had to deal with the following issues:

1. Whether a claimant can apply to stay proceedings it commenced under Sec 6 of the International Arbitration Act 1994 (IAA)?
   The court confirmed that a claimant may apply to stay proceedings it commenced, based on the plain reading of Sec 6(1) IAA: "any party to the agreement" and that includes the claimant. The court further held that legitimate reasons exist for claimants to seek stays rather than discontinuance. This preserves security rights that would be lost through discontinuance.
   
   
2. Whether the stay application satisfied the timeframe and substantive requirements under Sec 6 IAA?
   By relying on the Navigator Investment Services test, the Court confirmed that “the substantive claim has been sufficiently crystallised”. 

This judgment provides valuable guidance on balancing a court’s jurisdiction with arbitration agreements in maritime disputes. The decision demonstrates the Singapore courts' pro-arbitration stance while recognizing practical commercial realities, particularly in maritime disputes where security considerations are paramount.