Winding-Up Proceedings Should Be Stayed When There Is A Valid Arbitration Agreement

The winding-up process in Singapore is no longer available in respect of debt claims that are subject to a valid arbitration clause, except in extremely limited circumstances.

On April 7, 2020, the Singapore Court of Appeal handed down its judgment in AnAn Group (Singapore) Pte Ltd v VTB Bank (Public Joint Stock Company) [2020] SGCA 33. In this judgment, the court held that winding-up proceedings will be stayed or dismissed where (i) there is a valid arbitration agreement between the parties; and (ii) there is a dispute that falls within the scope of the arbitration agreement.

The Court of Appeal's decision means that, except in extremely limited circumstances, the winding-up process in Singapore is no longer available in respect of debt claims that are subject to a valid arbitration clause, and attempts to circumvent the arbitration process by presenting a winding-up petition will not be permitted. One of the court's reasons for rejecting the "triable issue"