Key Points:
Your arbitration agreement should be carefully drafted
to maximise the chances of enforcement, particularly when dealing
with counterparts who are domiciled in less arbitration friendly
jurisdictions.
The finality and enforceability of international arbitration
awards are key reasons for the popularity of arbitration in
cross-border transactions. However, the recent Federal Court
decision in Traxys Europe SA v Balaji Coke Industry Pvt Ltd (No 2)
[2012] FCA 276 shows that the enforcement process isn't always
easy (particularly if the unsuccessful party is domiciled in less
arbitration friendly jurisdictions, such as India).
It is a timely reminder that all arbitration agreements need to
be drafted with careful consideration given to which arbitral rules
will apply, the appropriate seat, the applicable law of the
arbitration and any nuances applicable to the jurisdiction in which
your counterparty is domiciled.
