International Arbitration: Limited Discretion Not To Enforce Foreign Award

It is unusual to see the courts of England and Wales refusing to enforce an award of an international arbitral tribunal. In a recent decision, the Court of Appeal re-confirmed an earlier Commercial Court decision on the enforceability of an ICC arbitral award. The Court of Appeal found that the award was invalid under section 103 of the Arbitration Act 1996 (the Act), which specifies the grounds on which recognition or enforcement of an international arbitral award may be refused.

Please click here to read our earlier Law-Now on the Commercial Court's decision.

The appeal

Dallah and the Government of Pakistan had submitted a dispute over a construction agreement to ICC arbitration, in accordance with an arbitration clause contained in that agreement. The ICC tribunal found in Dallah's favour and awarded damages. Dallah sought to enforce that award in England.