SAVANNA PRIDE LIMITED vs. HANERGY GLOBAL SOLAR AND SAVANNA SOLAR LIMITED

The plaintiff commenced an action after obtaining leave to issue and serve its writ out of jurisdiction on the 1st defendant, a foreign company. The plaintiff sought, among other reliefs, annulment of a Shares Sale and Purchase Agreement, abrogation of a shareholders’ agreement, re-transfer of 70% shares in Savanna Solar Ltd from the 1st defendant to the plaintiff, and damages for breach of contract and fraud. The plaintiff’s case was that the 1st defendant had misrepresented its financial status and presented fictitious financial statements, thereby inducing the plaintiff to transfer 70% of its shares in the 2nd defendant. The defendants responded by applying for a stay of proceedings in favour of arbitration pursuant to clause 14.2 of the parties’ agreement, which required disputes arising out of or in connection with the agreement, including questions of validity or termination, to be referred to arbitration in Singapore under SIAC Rules. Portion of judgment: “By leave granted the Plaintiff for the issuance of the writ and service of a notice thereof out of the jurisdiction... the Plaintiff claim per its writ issued the following reliefs...” and “Plaintiff/Respondent has resisted the invocation of clause 14:2 of the Agreement on the grounds that he has made allegations of fraud against the 1st Defendant in its acquisition of 70% shares...”