National Iranian Oil Company v Crescent Petroleum Company International Ltd & Anor [2016] EWHC 1900 (Comm) (18 July 2016)

National Iranian Oil Company v Crescent Petroleum Company International Ltd & Anor [2016] EWHC 1900 (Comm) (18 July 2016)

There was no exclusion of NIOC-appointed arbitrators from the decision-making process; Dr Noori was not excluded from the conclave and was treated appropriately as a dissenting member. No substantial injustice or procedural irregularity was established under s.68 or s.33 of the Arbitration Act 1996. The Notice of Discontinuance was set aside as an abuse of process, and the remaining grounds of appeal were dismissed on their merits.

Citation
[2016] EWHC 1900 (Comm)
Parties
Claimant/arbitration Respondent: National Iranian Oil Company; Defendant/arbitration Claimant: Crescent Petroleum Company International Limited; Defendant/arbitration Claimant: Crescent Gas Corporation Limited
Jurisdiction
England and Wales
Judgment Date
18 July 2016
Procedural Posture
Arbitration Appeal Under Arbitration Act 1996 / Judgment on Remaining Grounds of Appeal and Application to Set Aside Notice of Discontinuance
Outcome
Appeal dismissed; Notice of Discontinuance set aside; costs awarded to Defendants on indemnity basis.
Legal Topics
Serious Irregularity Under S.68 Arbitration Act 1996, Due Process in Arbitration, Dismissal of Appeal, Notice of Discontinuance, Costs
Arbitration Commercial Law Serious Irregularity Under S.68 Arbitration Act 1996 Due Process in Arbitration Dismissal of Appeal Notice of Discontinuance Costs

Case Brief

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Parties

National Iranian Oil Company

Claimant/arbitration Respondent

Crescent Petroleum Company International Limited

Defendant/arbitration Claimant

Crescent Gas Corporation Limited

Defendant/arbitration Claimant

Procedural Posture

Arbitration Appeal Under Arbitration Act 1996 / Judgment on Remaining Grounds of Appeal and Application to Set Aside Notice of Discontinuance

Legal Issues

  1. 1 Whether NIOC-appointed arbitrators were excluded from the decision-making process amounting to a serious irregularity under s.68(2)(i) Arbitration Act 1996
  2. 2 Whether the majority failed to maintain proper civility and decorum, resulting in loss of appearance of justice and breach of s.33 Arbitration Act 1996
  3. 3 Whether the Notice of Discontinuance should be set aside as an abuse of process

Ratio Decidendi

There was no exclusion of NIOC-appointed arbitrators from the decision-making process; Dr Noori was not excluded from the conclave and was treated appropriately as a dissenting member. No substantial injustice or procedural irregularity was established under s.68 or s.33 of the Arbitration Act 1996. The Notice of Discontinuance was set aside as an abuse of process, and the remaining grounds of appeal were dismissed on their merits.

Court Disposition

Appeal dismissed; Notice of Discontinuance set aside; costs awarded to Defendants on indemnity basis.

Orders

  • Permission granted to set aside Notice of Discontinuance.
  • Appeal on remaining grounds dismissed.