Singapore | UK Privy Council Overturns Longstanding English Position Regarding Test For Staying Liquidation Proceedings In Favour Of Arbitration

In Sian Participation Corp (In Liquidation) v Halimeda International Ltd [2024] UKPC 16, the UK Privy Council overturned longstanding English authority on the interplay between insolvency and arbitration, by unanimously holding that where a dispute about a debt is covered by an arbitration agreement, liquidation proceedings in respect of the debt should not be stayed or dismissed in favour of arbitration, unless the debt is disputed on “genuine and substantial grounds”.
 
Director Foo Yuet Min, Associate Director Samuel Koh and Senior Associate Bernice Tan discuss the practical implications of the Privy Council decision in this Legal Update.

Please click here to read the update.