Singaporean arbitration award enforced in favour of IFS AB against Informatics

Wednesday, 20 September 2017 00:00 - - {{hitsCtrl.values.hits}}

IFS AB saw yet another victory in the legal battle between IFS AB and Informatics Lanka Ltd. in the Commercial High Court on 15 September. The case was filed by IFS the Swedish based global software vendor giant against Informatics in order to enforce a Singaporean arbitration award given in favour of IFS.

Despite many attempts made by Informatics to stifle the enforcement proceedings before the Commercial High Court, IFS emerged victorious as M.A.R. Marikar of the Commercial High Court delivered judgement in favour of the Petitioner, IFS, enforcing the arbitration award.

Mid way into the enforcement proceedings, the Respondent (Informatics) made an application to the Commercial High Court to lay by the enforcement proceedings on the basis that an appeal stemming from a derivative action originally heard by the Commercial High Court was pending before the Supreme Court. Counsel for Informatics argued that the matter before the Supreme Court and the enforcement proceedings before the Commercial High Court were identical in subject matter and therefore, the enforcement of the arbitration award ought to be laid-by until the final determination of the Appeal before the Supreme Court.

Counsel for the Petitioner, IFS, Avindra Rodrigo whilst distinguishing between the two cases, i.e. enforcement before the Commercial High Court and the Leave to Appeal application before the Supreme Court, stated that the two are distinctly different actions independent of each other. Counsel further reiterated that the Leave to Appeal application before the Supreme Court stems from a Derivative Action under the Companies Act of Sri Lanka whilst the instant case was instituted under the Arbitration Act seeking to enforce a foreign arbitration award.

Counsel for Informatics further resisted enforcement of the arbitration award on the basis that it is contrary to public policy, however, did not provide reasons for such argument. Having heard the oral submissions made by both counsel and after having considered the written submissions filed by both parties, Commercial High Court delivered judgement on 8 September enforcing the arbitration award after the lapse of three years since the said award.

Meanwhile, the Leave to Appeal petition stemming from the derivative action filed in the Commercial High Court was taken up in the Supreme Court on 2 August and Avindra Rodrigo raised a preliminary objection on behalf of IFS to the Leave to Appeal Petition filed by Informatics. Counsel, whilst stating the law and citing several judgments, informed Court that the Petitioner (Informatics) had failed to comply with proper procedure in preferring the Leave to Appeal to the Supreme Court and the matter should therefore be dismissed in the first instance. The judges of the Supreme Court held with Counsel for IFS and refused to grant Leave to Proceed with the appeal preferred by Informatics.

With the enforcement of the arbitration award in favour of IFS, the long-dawn-out multipronged legal battle finally came to an end with IFS emerging victorious in all the legal actions before the Commercial High Court and the Superior Courts.

Avindra Rodrigo with Rozali Fernando instructed by F.J. & G de Sarams appeared for IFS whilst S. Sriskantha instructed by Bushra Hassim appeared for Informatics.