This client alert was originally published in Practical Law Arbitration. Reproduced with permission. This client alert is co-written by Reed Smith Pte Ltd and Resource Law LLC who together form the Reed Smith Resource Law Alliance in Singapore. Reed Smith Pte Ltd is licensed to operate as a foreign law practice in Singapore. Where advice on Singapore law is required, we will refer the matter to and work with licensed Singapore law practices where necessary.
In BASF Intertrade AG Singapore Branch v H&C S Holding Pte Ltd  SGHCR 10, the Singapore High Court considered whether to stay court proceedings in favour of arbitration under section 6 of the International Arbitration Act (IAA) and under its inherent powers of case management.
* Kohe Hasan is a Partner in Reed Smith's Singapore office and a Director of Resource Law LLC. Joyce Fong is an Associate in Reed Smith's Singapore office.
The Singapore High Court has stayed one set of court proceedings in favour of arbitration under section 6 of the International Arbitration Act (IAA) and used its inherent powers of case management to stay another set of court proceedings where section 6 of the IAA was not applicable. Notably, the court's discretion to stay court proceedings was exercised in circumstances where there was significant overlap between the issues to be decided in court proceedings and in arbitration.
While this case affirms the pro-arbitration stance of Singapore's judiciary, it remains to be seen whether the court will adopt this approach as a matter of course, or if the court's decision in this case was heavily dependent on the facts (BASF Intertrade AG Singapore Branch v H&C S Holding Pte Ltd  SGHCR 10).