V Medical Services M Sdn Bhd v Swissray Asia Healthcare Co. Ltd

02f-1-02-2024w Federal Court (Mahkamah Persekutuan) 20 January 2025 • 02(f)-1-02/2024(W) • 76 min read

22 cases cited (6 SG, 16 foreign)

Catchwords

Fortuna injunction threshold test for grant of a stay, dismissal or a Fortuna injunction in cases where the debt in issue was subject to an arbitration clause arbitration vis a vis winding up statutory interpretation section 17A of the Interpretation Acts 1948 and 1976 each Act should be construed within its own context and in line with its unique legislative intent cannot import provisions from one statute to another a statute is meant to be construed in light of its own terms and not by the terms of another statute Salford Estates (No 2) Ltd v Altomart Ltd (No 2) [2014] EWCA Civ 1575 Sian Participation Corp (In Liquidation v Halimeda international Ltd [2024] UKPC 16) mandatory stay under Art 8 of the Model Law mandatory stay under section 10 of our Arbitration Act 2005 purpose and object of the Arbitration Act 2005 genuinely disputed debt on substantial grounds nature and purpose of winding up proceedings purpose and object of the insolvency provisions under the Companies Act 2016

Practice Areas

Fortuna injunction threshold test for grant of a stay, dismissal or a Fortuna injunction in cases where the debt in issue was subject to an arbitration clause arbitration vis a vis winding up statutory interpretation section 17A of the Interpretation Acts 1948 and 1976 each Act should be construed within its own context and in line with its unique legislative intent cannot import provisions from one statute to another a statute is meant to be construed in light of its own terms and not by the terms of another statute Salford Estates (No 2) Ltd v Altomart Ltd (No 2) 2014 EWCA Civ 1575 Sian Participation Corp (In Liquidation v Halimeda international Ltd 2024 UKPC 16) mandatory stay under Art 8 of the Model Law mandatory stay under section 10 of our Arbitration Act 2005 purpose and object of the Arbitration Act 2005 genuinely disputed debt on substantial grounds nature and purpose of winding up proceedings purpose and object of the insolvency provisions under the Companies Act 2016

Judges (3)

Amar Abang Iskandar bin Abang Hashim Coram Nallini Pathmanathan Delivered Zabariah binti Mohd Yusof Coram

Counsel (6)

Haris Ibrahim Kandiah Partnership Firm Zaid Ibrahim & Co Firm Alani Farhah binti Mohd Farouk Counsel Appellant Chuah Jo-Shua Counsel Respondent Eugene Jayaraj Williams A/L Chellathurai Counsel Appellant Surein Wei Counsel Respondent

Parties (2)

Swissray Asia Healthcare Co. Ltd Respondent V Medical Services M Sdn Bhd Appellant

Case Significance

V Medical Services M Sdn Bhd v Swissray Asia Healthcare Co. Ltd is a Federal Court (Mahkamah Persekutuan) decision dated January 20, 2025 (citation: 02f-1-02-2024w). <p>V Medical Services sought a Fortuna injunction to restrain winding-up proceedings initiated by Swissray Asia Healthcare based on a disputed debt subject to an arbitration clause. The Federal Court addressed the tension between arbitration and winding-up proceedings, holding that where a debt is subject to an arbitration agreement and is bona fide disputed on substantial grounds, the dispute must be referred to arbitration. The appeal was allowed and the Fortuna injunction was reinstated.</p> The panel comprised Amar Abang Iskandar bin Abang Hashim, Nallini Pathmanathan and Zabariah binti Mohd Yusof, with Nallini Pathmanathan delivering the judgment. Counsel appearing: Alani Farhah binti Mohd Farouk (counsel for appellant), Chuah Jo-Shua (counsel for respondent), Eugene Jayaraj Williams A/L Chellathurai (counsel for appellant), Surein Wei (counsel for respondent).

Key issues: Fortuna injunction.

Summary

V Medical Services sought a Fortuna injunction to restrain winding-up proceedings initiated by Swissray Asia Healthcare based on a disputed debt subject to an arbitration clause. The Federal Court addressed the tension between arbitration and winding-up proceedings, holding that where a debt is subject to an arbitration agreement and is bona fide disputed on substantial grounds, the dispute must be referred to arbitration. The appeal was allowed and the Fortuna injunction was reinstated.

What was the outcome of V Medical Services M Sdn Bhd v Swissray Asia Healthcare Co. Ltd?

<p>V Medical Services sought a Fortuna injunction to restrain winding-up proceedings initiated by Swissray Asia Healthcare based on a disputed debt su...

Statutes Cited

Arbitration Act

s 18

Arbitration Act 2005 (Cap 646)

BVI Insolvency Act

s 162(1)(b)

Companies Act 2016 (Cap 777)

s 465(1)(e)

English Arbitration Act 1996

s 9

English Arbitration Act 1996

s 9

English Insolvency Act 1986

s 122(1)

Interpretation Act

s 17A

Cases Cited (22)

SG (3)

[2011] SGCA 21 [2019] SGHC 81 [2020] SGCA 33

SLR (3)

[2016] 5 SLR 977 [2016] 5 SLR 997 [2023] 2 SLR 554

UK (7)

[1968] 1 WLR 1091 [1976] 1 All ER 25 [1976] 3 WLR 41 [1980] 1 All ER 241 [2002] 1 WLR 713 [2014] EWCA Civ 1575 [2024] UKPC 16

MY (8)

[2007] 3 MLJ 316 [2007] 4 MLJ 355 [2010] MLJU 2217 [2011] 1 CLJ 947 [2017] MLJU 900 [2019] MLJU 1365 [2023] 7 MLJ 155 [2025] MLJU 199

HK (1)

[2019] HKCA 873