National Iranian Oil Company v Crescent Petroleum Company International Ltd & Anor

National Iranian Oil Company v Crescent Petroleum Company International Ltd & Anor

English law governs separability due to the seat of arbitration; the arbitration clause is separable and unaffected by alleged corruption. Consent to assignment was obtained by Board resolution and written guarantee, delivery not required. The award is not unenforceable under English public policy as the contract was not illegal nor procured by bribery, and there is no fresh evidence to justify interference with the arbitral award.

Parties
Claimant: National Iranian Oil Company; First Defendant: Crescent Petroleum Company International Ltd; Second Defendant: Crescent Gas Corporation Ltd
Jurisdiction
England and Wales
Judgment Date
04 March 2016
Procedural Posture
Commercial Arbitration Challenge / Judgment on Preliminary Issues
Outcome
Claimant's applications under s.67 and s.68 of the Arbitration Act 1996 dismissed; s.68(2)(g) challenge struck out as unarguable.
Legal Topics
Separability of Arbitration Agreement, Assignment of Contract, Corruption and Bribery, Enforcement of Arbitral Awards, English Public Policy
Arbitration Contract Law Public Policy Separability of Arbitration Agreement Assignment of Contract Corruption and Bribery Enforcement of Arbitral Awards English Public Policy

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 5 Authorities cited 13 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

National Iranian Oil Company

Claimant

Crescent Petroleum Company International Ltd

First Defendant

Crescent Gas Corporation Ltd

Second Defendant

Procedural Posture

Commercial Arbitration Challenge / Judgment on Preliminary Issues

Legal Issues

  1. 1 Is the issue of separability of the arbitration clause governed by English law?
  2. 2 Is the arbitration clause separable and unaffected by alleged corruption?
  3. 3 Was consent to assignment obtained within Article 16.1 of the GSPC?

Ratio Decidendi

English law governs separability due to the seat of arbitration; the arbitration clause is separable and unaffected by alleged corruption. Consent to assignment was obtained by Board resolution and written guarantee, delivery not required. The award is not unenforceable under English public policy as the contract was not illegal nor procured by bribery, and there is no fresh evidence to justify interference with the arbitral award.

Court Disposition

Claimant's applications under s.67 and s.68 of the Arbitration Act 1996 dismissed; s.68(2)(g) challenge struck out as unarguable.

Orders

  • Issues 1, 2, 5, and 7 resolved in favour of the Defendants.
  • Claimant's s.68 application struck out.