JUDGMENT

Ravinthran Paramaguru JCA:

Introduction

[1] The appellant appeals against the decision of the High Court which overturned the decision of the Senior Assistant Registrar to stay proceedings under s 10 of the Arbitration Act 2005. The principal issue in this appeal is whether the appellant may invoke the benefit of an arbitration agreement contained in a main contract to which it is not a party, merely by reference to the said main contract in a separate agreement to which it is a party.

Background Facts

[2] The dispute arises out of a contract entered into between VME Process Asia Pacific Pte Ltd ("VME"), the respondent, and Sandakan Offshore (M) Sdn Bhd ("SOM"), a subsidiary of the appellant, MTC Engineering Sdn Bhd ("MTC"). For convenience, we shall refer to the parties by their abbreviated names.

[3] VME is a company incorporated in Singapore specialising in the supply of oil and gas topside processing modules for production facilities. MTC, a Malaysian company based in Shah Alam, Selangor, provides engineering and technical consultancy services within the oil and gas sector. Its subsidiary, SOM, is similarly engaged in project development and engineering works in the same i