In a ruling that underscores the non-negotiable status of procedural fairness in commercial dispute resolution, the Singapore Court of Appeal has confirmed the setting aside of a significant arbitral award, declaring that the underlying hearing process was tainted by bias and incurable unfairness.
The judgment, delivered on 11 November, also denied the common remedy of remission, sending a clear message that a breach of natural justice can definitively void an arbitration’s outcome.
The case involved a high-value commercial dispute where one party successfully challenged the arbitral award at the High Court level, arguing that the tribunal’s conduct had created an imbalanced and unjust hearing process.
The losing party appealed, but the Court of Appeal upheld the decision to set the award aside entirely. The court found that “the procedural unfairness in this instance was so fundamental that it rendered the entire process incurable,” adding that “the integrity of the arbitral process is paramount.” The court awarded full costs to the party that had challenged the award, a move that signals the seriousness of the breach.
This judgment is one of five major arbitration precedents set by Singaporean courts in 2025, solidifying the city-state’s reputation for maintaining a delicate balance between being pro-arbitration,favouring the finality of awards and ensuring that basic standards of justice are met.
For the global business community, which channels disputes worth hundreds of millions of dollars through Singapore’s arbitration centre, the ruling offers reassurance that the system contains robust checks against procedural abuse.
However, it also serves as a caution to arbitrators that efficiency cannot trump fairness, and may encourage more challenges to awards on natural justice grounds, potentially influencing arbitration practices across the Asia-Pacific region and impacting the hub’s £16 million annual revenue.
Sources: Morgan Lewis (morganlewis.com).
Written by Were Kelly
