NAUTICAL SUPREME SDN BHD v. JAYA SUDHIR JAYARAM & ORS
COURT OF APPEAL, PUTRAJAYA
BADARIAH SAHAMID JCA, SURAYA OTHMAN JCA, STEPHEN CHUNG JCA
[CIVIL APPEAL NO: W-02(IM)(NCC)-2296-11-2017]
17 JANUARY 2019
[2019] CLJ JT (3)

CIVIL PROCEDURE: Injunction - Injunction to restrain arbitration proceedings - White knight invested in project based on alleged collateral understanding with shareholders that shares in joint venture company would be held on trust in his favour - Part of shares transferred to white knight - Allegation that transfer of shares in contravention of shareholders' agreement - Shareholders and joint venture company proceeded with arbitration to resolve dispute in accordance with arbitration clause in shareholders' agreement - White knight applied for injunction to restrain arbitration proceedings - Whether non-party to arbitration agreement could restrain parties to arbitration agreement from continuing with arbitration proceedings - Test applicable to non-party - Arbitration Act 2005, s. 10(1) & (3)

ARBITRATION: Proceedings - Injunction to restrain arbitration proceedings - White knight invested in project based on alleged collateral understanding with shareholders that shares in joint venture company would be held on trust in his favour - Part of shares transferred to white knight - Allegation that transfer of shares in contravention of shareholders' agreement - Shareholders and joint venture company proceeded with arbitration to resolve dispute in accordance with arbitration clause in shareholders' agreement - White knight applied for injunction to restrain arbitration proceedings - Whether non-party to arbitration agreement could restrain parties to arbitration agreement from continuing with arbitration proceedings - Test applicable to non-party - Arbitration Act 2005, s. 10(1) & (3)