Multi-tiered dispute resolution clauses are a common feature of commercial contracts. They generally require parties to attempt resolving the dispute amicably through negotiations or mediation, before referring the dispute to arbitration or litigation.
What happens when an arbitration is commenced even though the prior steps in the multi-tiered dispute resolution clause have yet to be satisfied? In the recent decision of DRO V DRP [2025] SGHC 255, the Singapore High Court held, for the first time, that a failure to satisfy the preconditions to arbitration is a matter of admissibility, rather than jurisdiction, departing from the Court of Appeal’s earlier approach.
The distinction between jurisdiction (i.e. the tribunal’s power to hear the case) and admissibility (i.e. whether it is appropriate for the tribunal to hear the case) is significant because it determines who the ultimate arbiter is. The seat court has the power to decide on the tribunal’s jurisdiction, but only the tribunal may decide issues of admissibility.
The respondent was successfully represented by Avinash Pradhan (Deputy Head) and Jasmine Thng (Senior Associate) from Rajah & Tann Singapore’s International Arbitration Practice. This Update highlights the key points of the Court’s decision.
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