Orascom Telecom Holding SAE v Republic of Chad & Ors

Orascom Telecom Holding SAE v Republic of Chad & Ors

The Borrowers’ Account at Citibank was established and operated specifically for the purposes of commercial transactions, namely to receive proceeds from contracts for the supply of goods or services and to facilitate repayment of loans by the World Bank and European Investment Bank. Therefore, it falls within the commercial purposes exception in s13(4) of the State Immunity Act 1978, and is not immune from execution. The certificate from Chad’s Ambassador was not persuasive and was outweighed by the evidence. The issue of waiver by submission to ICC Arbitration was not finally determined as the first issue was dispositive.

Parties
Claimant: Orascom Telecom Holding SAE; First Defendant: The Republic of Chad; Second Defendant: La Societe des Telecommunications du Tchad (Sotel Tchad); Third Party: Citibank N.A.; Intervenor: International Bank for Reconstruction and Development; Intervenor: European Investment Bank
Jurisdiction
England and Wales
Judgment Date
28 July 2008
Procedural Posture
Commercial Enforcement / Arbitration Award Enforcement / Final Application for Third Party Debt Order (garnishee Order)
Outcome
Application granted
Legal Topics
Enforcement of Arbitration Awards, State Immunity From Execution, Waiver of Immunity, Third Party Debt Orders
Commercial Law Arbitration State Immunity Enforcement of Arbitration Awards State Immunity From Execution Waiver of Immunity Third Party Debt Orders

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Orascom Telecom Holding SAE

Claimant

The Republic of Chad

First Defendant

La Societe des Telecommunications du Tchad (Sotel Tchad)

Second Defendant

Citibank N.A.

Third Party

International Bank for Reconstruction and Development

Intervenor

European Investment Bank

Intervenor

Procedural Posture

Commercial Enforcement / Arbitration Award Enforcement / Final Application for Third Party Debt Order (garnishee Order)

Legal Issues

  1. 1 Whether the Borrowers’ Account at Citibank is property in use or intended for use for commercial purposes under s13(4) State Immunity Act 1978, permitting execution against it
  2. 2 Whether Chad waived immunity from execution by agreeing to ICC Arbitration and Article 28(6) of the ICC Rules

Ratio Decidendi

The Borrowers’ Account at Citibank was established and operated specifically for the purposes of commercial transactions, namely to receive proceeds from contracts for the supply of goods or services and to facilitate repayment of loans by the World Bank and European Investment Bank. Therefore, it falls within the commercial purposes exception in s13(4) of the State Immunity Act 1978, and is not immune from execution. The certificate from Chad’s Ambassador was not persuasive and was outweighed by the evidence. The issue of waiver by submission to ICC Arbitration was not finally determined as the first issue was dispositive.

Court Disposition

Application granted

Orders

  • Final Third Party Debt Order made against Citibank in respect of the Borrowers’ Account for the outstanding sum pursuant to the unpaid award (£3,980,410.38)
  • Chad to pay Orascom’s costs (except costs of French law reports, as to which no order was made)