Sian Participation Corp (In Liquidation) v Halimeda International Ltd (Virgin Islands)
[2024] UKPC 16
Generally, Cayman Islands law, like English law, respects parties' right to arbitrate disputes.
Cayman Islands case law and the Arbitration Act 2012
Section 4 of the Foreign Arbitral Awards Enforcement Act (FAAEA) mandates a stay of legal proceedings if a matter is agreed to be arbitrated, unless the arbitration agreement is inoperative.
FAAEA, section 4
A court has exclusive jurisdiction to wind up a company on the 'just and equitable' ground.
Companies Act (2022 Revision), sections 90, 92, 95
An arbitration agreement is inoperative if the subject matter is non-arbitrable or the remedies sought are beyond the arbitrator's jurisdiction.
Privy Council case law
A 'matter' for the purposes of a stay under section 4 of the FAAEA is a substantial issue relevant to the claim or defence, capable of separate arbitration.
Privy Council case law, interpreting FAAEA, section 4 and drawing from various jurisdictions
The Privy Council allowed Ting Chuan's appeal.
While the court has exclusive jurisdiction to wind up a company, certain matters within the winding-up petition were arbitrable. The dispute centered around breaches of the SHA and loss of trust, which are capable of being resolved through arbitration without encroaching on the court's exclusive jurisdiction to order a winding up.
[2024] UKPC 16
[2023] EWHC 1189 (Comm)
[2024] EWHC 1532 (Ch)
[2024] EWHC 291 (Ch)
[2023] EWHC 126 (Comm)