RE: The Court Story So Far22 May 2026 16:03
Not a bad shout considering I wrote this before the case even started.
Lol and we find out on Tuesday that Zheng Zhu stay is upheld lol
Anyway....
Chaebol
Posted in: GST
Posts: 12,512
RE: Court Thursday if not adjourned.
30 Mar 2026 22:15
A critical strategic constraint exists here, Zheng and Zhu cannot file a defence or counterclaim if they intend to invoke Section 6 (of the Arbitration Act) to stay the proceedings and refer the matter back to arbitration. By filing a defence or counterclaim, they would effectively be 'taking a step in the proceedings,' thereby accepting the court’s jurisdiction and waiving their right to arbitrate.
This explains the specific division of their legal strategy
Zheng and Zhu are utilising cost-effective procedural lawyers focused strictly on filing for security for costs and the Section 6 stay.
Daphane, meanwhile, is positioned to handle the counterclaims. This is why she has retained Big 4 legal representation—to manage the heavy lifting of the substantive litigation while the others focus on the jurisdictional pivot.
Under Section 9(3), a party loses their right to move the case to arbitration if they have already taken a "step in the proceedings to answer the substantive claim".
What counts as a "step"? This generally means any action that implies you have accepted the court’s authority to decide the main dispute, such as filing a Defence or a Counterclaim.
What doesn't count? Purely procedural actions, such as acknowledging service of the claim or making an application for security for costs, usually do not waive your right to arbitrate.
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