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The claimant contracted to buy 50,000 metric tonnes of fuel oil from the respondent on f.o.b. terms for delivery Yosu, South Korea. The vessel nominated by the claimant to receive the cargo allegedly exceeded the allowed loading time and the claimant requested demurrage. However, that request was dismissed in arbitration and the claimant applied for leave to appeal to the High Court. The respondent raised a preliminary objection to the effect that the High Court had no jurisdiction to review the award since it resulted from an "international" arbitration falling within the International Arbitration Act, 1994, which enacts MAL.

Both parties had their places of business in Singapore and Singapore law was the governing law of the contract. The payment and nomination obligations were performed in Singapore. However, the other parts of the contract, i.e., providing the cargo, the tendering of notice of readiness, the transfer of risks and the loading operations were all performed in Yosu, Korea. Further, the demurrage claimed was alleged to have been incurred at loading port Yosu, Korea.

Applying Section 5(2) of the International Arbitration Act, 1994 (Article 1(3)(b) MAL) the High Court held that the place of substantial performance of the contract as well as the place with which the subject matter of the dispute was most closely connected was Yosu, Korea. Accordingly, the arbitration being an "international" arbitration, the High Court rejected the application for leave to appeal.

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