International Commercial Arbitration: Key Highlights From The Recent Appeal No. 49/2016: Unitech Limited v. Cruz City 1 Mauritius Holdings

The recent ruling given on 13/11/2024 addresses the enforcement of a foreign arbitral award issued by the London Court of International Arbitration, shedding light on the interplay between the New York Convention and local laws in Cyprus.

Key Findings:

1. Application for Enforcement: The respondent sought to enforce the arbitral award under the New York Convention and local legislation (Law 84/1979), aimed at facilitating the recognition of foreign arbitral awards.
2. Jurisdictional Concerns: The court noted that both parties were foreign companies, raising questions about the authority of local courts to enforce the award, emphasising the need for a balance between national laws and international obligations.
3. Burden of Proof: The applicant was required to provide necessary documentation, including a certified copy of the award, to establish the case for enforcement.
4. Primacy of the New York Convention: The court ruled that the New York Convention takes precedence over local law, asserting that local residency or asset presence should not hinder the enforcement of foreign arbitral awards, thus promoting accessibility in international arbitration.
5. Public Policy: While the court acknowledged public policy as a ground for refusal, it emphasised that this should not undermine the objectives of the New York Convention.
6. Final Ruling: The appeal was dismissed, as the appellant failed to present valid grounds for overturning the initial enforcement decision, resulting in a cost order of €3,000 to the respondent.

Conclusion

This judgment reinforces the recognition and enforcement of foreign arbitral awards in Cyprus, highlighting the importance of the New York Convention as a guiding principle. It encourages stakeholders in international arbitration to understand both treaty obligations and local laws, ensuring effective protection of their rights in cross-border disputes.

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