K1 & Ors v B (Re An Arbitration Claim) [2025] EWHC 2539 (Comm) (07 October 2025)

K1 & Ors v B (Re An Arbitration Claim) [2025] EWHC 2539 (Comm) (07 October 2025)

A challenge under section 68(2)(g) of the Arbitration Act 1996 cannot be based solely on the alleged illegality of the underlying contract or its performance where the issue was not raised before the tribunal and there is no allegation of serious irregularity in the arbitral process. Section 68(2)(g) is concerned with the process by which the award was obtained, not the merits of the contract claim.

Citation
[2025] EWHC 2539 (Comm)
Parties
Claimant / Respondent in the Arbitration: K1; Claimant / Respondent in the Arbitration: K2; Claimant / Respondent in the Arbitration: D; Defendant / Claimant in the Arbitration: B
Jurisdiction
England and Wales
Judgment Date
07 October 2025
Procedural Posture
Arbitration Claim / Application to Amend Arbitration Claim Form to Add Section 68(2)(g) Challenge
Outcome
Application dismissed
Legal Topics
Serious Irregularity Under Arbitration Act 1996 Section 68, Public Policy in Arbitration, Fraud in Arbitral Awards, Jurisdictional Challenge Under Section 67
Arbitration Commercial Law Serious Irregularity Under Arbitration Act 1996 Section 68 Public Policy in Arbitration Fraud in Arbitral Awards Jurisdictional Challenge Under Section 67

Case Brief

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Parties

K1

Claimant / Respondent in the Arbitration

K2

Claimant / Respondent in the Arbitration

D

Claimant / Respondent in the Arbitration

B

Defendant / Claimant in the Arbitration

Procedural Posture

Arbitration Claim / Application to Amend Arbitration Claim Form to Add Section 68(2)(g) Challenge

Legal Issues

  1. 1 Whether the claimants may amend their arbitration claim to introduce a challenge under section 68(2)(g) of the Arbitration Act 1996 alleging serious irregularity on grounds of public policy and fraud
  2. 2 Whether the alleged illegality of the underlying contract or its performance can ground a section 68(2)(g) challenge where the issue was not raised before the tribunal

Ratio Decidendi

A challenge under section 68(2)(g) of the Arbitration Act 1996 cannot be based solely on the alleged illegality of the underlying contract or its performance where the issue was not raised before the tribunal and there is no allegation of serious irregularity in the arbitral process. Section 68(2)(g) is concerned with the process by which the award was obtained, not the merits of the contract claim.

Court Disposition

Application dismissed

Orders

  • Application to amend arbitration claim form to add section 68(2)(g) challenge is dismissed