CHINA MERCHANTS HEAVY INDUSTRY COMPANY LIMITED (FORMERLY KNOWN AS YIU LIAN ENGINEERING & HEAVY INDUSTRY LIMITED) (Plaintiff) v JGC CORPORATION (Defendant)

Read the full judgment text of CACV 112/2001 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 4 July 2001 before Keith JA and Cheung J.

Contract — Arbitration Agreement — Clause 12 provides for disputes unresolved by mutual agreement to be decided initially by JGC with a right for the Plaintiff to refer disputes to arbitration within 15 days — Plaintiff failed to give such notice — Whether failure rendered arbitration agreement 'inoperative' under Art. 8(1) UNCITRAL Model Law — Court holds no, agreement remains operative and court must stay proceedings. Arbitration clause’s reference to binding decisions 'until Completion of the Works' does not limit right to arbitrate disputes arising after completion; rather it ensures no disruption before completion. Appeal dismissed; Plaintiff ordered to pay costs.

Legal issues: Inoperability of the arbitration agreement under Art. 8(1) UNCITRAL Model Law · Effect of 'until Completion of the Works' in clause 12 arbitration provision

Outcome: Appeal dismissed; stay of proceedings affirmed