Commercial Dispute Resolution Briefing | January 2011

Arbitration

Supreme Court refuses to enforce foreign arbitral award

Dallah Real Estate and Tourism Company (Dallah) v The Government of Pakistan (2010)

This case constitutes a rare refusal by the English courts to enforce an international arbitration award and confirms that the English courts will consider afresh the validity of the arbitration agreement at the point of enforcement. It stands as a reminder of the importance of ensuring that arbitration agreements are clear and binding on all relevant parties.

The appellant, Dallah, was part of a Saudi conglomerate. It concluded a Memorandum of Understanding with the Government of Pakistan for the provision of housing for pilgrims in Mecca. Subsequently, the Government established the Awami Hajj Trust as a vehicle for the project. Dallah put forward revised proposals for the project and, after negotiations with the Government, the Trust rather than the Government, entered into an agreement with Dallah. The