The contract provided for arbitration under the International Arbitration Rules of the Zurich Chamber of Commerce. The arbitrators considered an assertion of illegality by NKAP, and rejected it with reasons. Thereafter a decision of a Russian court, in proceedings at which only NKAP and the public prosecutor were present, held that the contract was illegal. A Swiss court was then asked to have the arbitration award revised and refused to do so. The issue was whether NKAP should have an extension of time for applying to set aside an order that a Swiss arbitration award be enforced as a judgment.
Held: Waller LJ: ‘I am unpersuaded that it is arguable that under English law enforcement of this award would be contrary to English public policy. The reasons are separate and distinct. First it is the award with which the English court is concerned and not the underlying contract . The question of illegality having been raised and dealt with by the Arbitrators, and there being no requirement as a result to perform some act which English law would regard as illegal under English law or contrary to the recognised morals of this country, the public policy is if anything in favour of abiding by the terms of the convention and enforcing the award. Second in any event if an offence will be committed by NAKP in Russia as a party to the award in paying the same, that is the result of their own failure to obtain the requisite consents, and English public policy would in my view be offended if that relieved that party from its obligation to meet the award.’
Judges:
Waller LJ, Chadwick, Phillips LJJ
Citations:
[1997] EWCA Civ 3014
Jurisdiction:
England and Wales
Cited by:
Cited – Soleimany v Soleimany CA 4-Mar-1998
The parties were Iranian Jews, father and son. The son arranged to export carpets from Iran in contravention of Iranian law. The father and son fell into dispute about their contracts and arranged for the issues to be resolved by the Beth Din . .
Lists of cited by and citing cases may be incomplete.
Arbitration
Updated: 04 July 2022; Ref: scu.143413