No injustice in arbitration award

Posted: 30th November 2012

In the context of a commercial dispute arising out of the construction of a cement works in the United Arab Emirates, a High Court judge has rejected arguments that a Dirhams 84 Million arbitration award was tainted by serious irregularity and an absence of jurisdiction.

Building Site Scaffold PolesThe defendants had refused to submit to the award made by an arbitrator in London on grounds, inter alia, that it had been made on a basis that had never in fact been put forward by the claimants and which the defendants had had no opportunity to address either factually or legally. In seeking relief under sections 67 and 68 of the Arbitration Act 1996, the defendants had also submitted that the arbitrator exceeded his jurisdiction in resolving the dispute.

However, the Commercial Court rejected the defendants’ plea that they had suffered a ‘substantial injustice’. The arbitration award was upheld and the court issued an anti-suit injunction, forbidding the defendants from challenging the validity of the award in any proceedings world-wide.