Singapore High Court Upholds Unless Order: Enforcement of Arbitral Awards Unter the New York Convention Requires Procedural Compliance

In Wuhu Ruyi Xinbo Investment Partnership (Ltd Partnership) v Shandong Ruyi Technology Group Co Ltd and Another [2024] SGHC 308  the court examined an arbitration award enforcement under the New York Convention and the impact of breaching an “Unless Order”.

The claimant, Wuhu Ruyi Xinbo Investment Partnership (Xinbo), obtained a favorable arbitral award against the respondents, Shandong Ruyi Technology Group Co Ltd (Ruyi) and European Topsoho S.àr.l. (ETS) under a tripartite agreement where ETS pledged shares as security for a debt owed by Ruyi to Xinbo. When Xinbo sought enforcement of the award, ETS challenged it, alleging procedural irregularities and requesting document production. The court issued an “Unless Order,” requiring Xinbo’s compliance or dismissal of the enforcement application. After an alleged breach, ETS sought to enforce the order. The Singapore High Court (SGHC) upheld the dismissal, ruling that Xinbo failed to comply and upheld the enforcement of the “Unless Order”.

The court rejected Xinbo’s argument that striking out the enforcement application created a new ground for refusal under Article V of the New York Convention. The SGHC distinguished procedural compliance from substantive refusal of enforcement, emphasizing that Article III of the Convention allows enforcement to be subject to domestic procedural rules, if they are non-discriminatory and equally applied, as in Singapore law. Citing Diag Human v Czech Republic, the court reaffirmed that procedural sanctions, including dismissal for non-compliance, are legitimate enforcement mechanisms under Article III.

The SGHC also dismissed Xinbo’s claim that the ruling conflicted with Singapore’s pro-enforcement policy, clarifying that enforcement is not absolute but must adhere to procedural rules. It also reaffirmed that breaching an “Unless Order” undermines judicial authority and procedural integrity.

Citing Soh Beng Tee & Co v Fairmount Development, the court rejected Xinbo’s reliance on minimal curial intervention, affirming that procedural sanctions in enforcement do not equate to reviewing an award’s merits but rather uphold procedural discipline in enforcement proceedings.