National Iranian Oil Company v Crescent Petroleum Company International Ltd & Anor [2023] EWCA Civ 826 (13 July 2023)

National Iranian Oil Company v Crescent Petroleum Company International Ltd & Anor [2023] EWCA Civ 826 (13 July 2023)

A decision on a section 73 preliminary issue in the context of a section 67 challenge is a decision 'under' section 67 for the purposes of section 67(4), so only the first instance court can grant permission to appeal; the Court of Appeal has no jurisdiction to grant such permission. On the merits, the arbitration clause (even under Iranian law) is wide enough to cover the claim for CGC's liability to CNGC, and NIOC's section 67 challenge has no real prospect of success.

Citation
[2023] EWCA Civ 826
Parties
Appellant/claimant: National Iranian Oil Company; Respondent/defendant: Crescent Petroleum Company International Limited; Respondent/defendant: Crescent Gas Corporation Limited
Jurisdiction
England and Wales
Judgment Date
13 July 2023
Procedural Posture
Appeal From High Court (commercial Court) – Arbitration Act 1996, S.67 Challenge / Court of Appeal Judgment on Appeal and Cross Appeal
Outcome
Appeal dismissed; cross-appeal dismissed for want of jurisdiction.
Legal Topics
Arbitration Act 1996 S.67, Arbitration Act 1996 S.73, Jurisdiction of Arbitral Tribunal, Summary Dismissal of Jurisdictional Challenge, Permission to Appeal Procedures
Arbitration Commercial Law Arbitration Act 1996 S.67 Arbitration Act 1996 S.73 Jurisdiction of Arbitral Tribunal Summary Dismissal of Jurisdictional Challenge Permission to Appeal Procedures

Case Brief

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Parties

National Iranian Oil Company

Appellant/claimant

Crescent Petroleum Company International Limited

Respondent/defendant

Crescent Gas Corporation Limited

Respondent/defendant

Procedural Posture

Appeal From High Court (commercial Court) – Arbitration Act 1996, S.67 Challenge / Court of Appeal Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 Whether the Court of Appeal has jurisdiction to grant permission to appeal on a section 73 preliminary issue decided in the context of a section 67 challenge under the Arbitration Act 1996
  2. 2 Whether the arbitral tribunal had substantive jurisdiction to award damages for CGC's liability to CNGC under a separate contract governed by different law and arbitration clause
  3. 3 Whether NIOC had lost the right to object to the tribunal's jurisdiction under section 73

Ratio Decidendi

A decision on a section 73 preliminary issue in the context of a section 67 challenge is a decision 'under' section 67 for the purposes of section 67(4), so only the first instance court can grant permission to appeal; the Court of Appeal has no jurisdiction to grant such permission. On the merits, the arbitration clause (even under Iranian law) is wide enough to cover the claim for CGC's liability to CNGC, and NIOC's section 67 challenge has no real prospect of success.

Court Disposition

Appeal dismissed; cross-appeal dismissed for want of jurisdiction.

Orders

  • NIOC's appeal against summary dismissal of its section 67 challenge is dismissed.
  • Crescent's application for permission to cross-appeal on the section 73 issue is dismissed for want of jurisdiction.