This morning the High Court of Australia delivered the landmark
decision, TCL Air Conditioner v The Judges of the Federal Court of
Australia [2013] HCA 5, that confirmed the constitutionality of the
International Arbitration Act 1974, the legal framework which
governs international arbitration in Australia.
The decision reaffirms Australia as a highly desirable neutral
seat for the hearing of international arbitration in the
Asia-Pacific region.
The nature of TCL's objections to the International
Arbitration Act
The proceedings arose out of a dispute under a distribution
agreement entered into between TCL Air Conditioner
("TCL") based in China and Castel
Electronics based in Australia and involved the intervention of the
Commonwealth Solicitor General, the Western Australian, South
Australian, New South Wales, Queensland and Victorian Attorneys
General, and a coalition of Australia's arbitral
institutions.
