Jakarta, 2022. Our firm wins at the Supreme Court, representing our client, PT Boustead Maxitherm Industries, part of Boustead Singapore, as the Defendant, against the largest electrial company in Indonesia as the Claimant, on a cancellation claim of arbitration award.

The main target by the Claimant was to cancel the arbitration award. The Claimant’s main reason is that the arbitration award was made as a result of a deceit by one of the parties in the arbitration proceeding as per the Article 70 letter (c) of the Arbitration and ADR Law. The district court admitted the Claimant’s claim but later overturned by the Supreme Court.

The Supreme judges essentially consider two crucial points. First, there was no deceit since all matters have been disclosed in the arbitration proceeding and has been considered by the panel of arbitrators. Any “claims and evidence before the Panel of Arbitrators in this case were not an action of overturning the fact or a deceit as set forth in Article 70 letter (c) of Arbitration Law.” Second, without any forged or hid document by one party, “the court is not authorized to assess the reasons and considerations made by the Panel of Arbitrators over the substance of application.” Responding to the Supreme Court’s decision, our Eddy M. Leks says, “There are two elements in the Article 70 letter (c) of Arbitration and ADR Law. One is there is a deceit by one party. The other is that the decision is made as a result of that deceit. These two elements must be carefully assessed before the case can be decided. In addition, based on the various sources including jurisprudences, the ‘deceit’ (tipu muslihat) can be understood as ‘a lie intentionally made by one of the parties by way of submitting evidence which they have known as invalid or is not legally binding at the arbitration proceeding.”

Leks&Co is recommended on commercial dispute resolution by Legal500, asialaw Profiles, and Benchmark Litigation. One Client said, as quoted by Legal500 2022, “Leks & Co team has a very committed team and they put their best effort.”

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