Conditional Awards and Implied Reservation of Jurisdiction in Arbitration – Voltas Ltd v York International Pte Ltd [2024] 1 SLR 559 [case comment]
Ng Kim Beng and Benny Santoso
[2024] SAL Prac 27
Abstract:
When seeking to resolve a dispute, parties generally aim for a final resolution to the dispute. In arbitration, this takes the form of a final arbitral award. Once a final award is issued, the arbitrator becomes functus officio – he/she no longer has jurisdiction over the dispute and may not issue a further award in relation to the arbitration, save for limited exceptions. This ensures the finality of the arbitration and prevents a party from re-opening the dispute. However, what if an award includes conditions to be met before one party’s liability to pay accrues? Can it still be considered a final award, or would the arbitral tribunal retain jurisdiction to issue a further award if the parties are in dispute over whether the conditions are met? Must the tribunal’s jurisdiction be expressly reserved, or can jurisdiction be retained by implication? These questions were answered by the Court of Appeal in Voltas Ltd v York International Pte Ltd [2024] 1 SLR 559, where it found that (a) a conditional award may be a final award; and (b) a tribunal cannot reserve its jurisdiction by implication.