Housing Authority vs. Top Symphony Sdn. Bhd (Fiji)
The Housing Authority (a statutory body in Fiji) and Top Symphony (a Malaysian company) entered an agreement to develop a housing project. The agreement included a multi-tiered dispute resolution clause requiring parties to follow specified steps before resorting to arbitration or court proceedings. When a dispute arose between the parties due to the termination of the development agreement by the Housing Authority, Top Symphony resorted to arbitration. The Housing Authority refused arbitration and initiated court proceedings, claiming that the arbitration agreement had been repudiated and that it was void due to Top Symphony's failure to follow the pre-arbitral steps specified. Top Symphony, on the other hand, applied for a stay of the court proceedings.
The court held that the arbitral tribunal is competent to arbitrate upon the issues raised by the parties, including the question of repudiation. The tribunal may have its say if illegality or the failure to take a preliminary step affects its competency to adjudicate. The tribunal gains its jurisdiction from the agreement of the parties.