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

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

The Notice of Discontinuance was set aside as an abuse of process because the undertaking offered by NIOC was insufficient to prevent relitigation of the same grounds in other forums. The remaining grounds of appeal were dismissed on their merits: there was no exclusion of NIOC-appointed arbitrators from the decision-making process, no substantial injustice, and no breach of s.33 or s.68 of the Arbitration Act 1996.

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 / Judgment on Application to Set Aside Notice of Discontinuance and Determination of Remaining Grounds of Appeal
Outcome
Appeal dismissed; Notice of Discontinuance set aside; costs awarded to Defendants on indemnity basis.
Legal Topics
Setting Aside Arbitration Award, Procedural Irregularity, Costs, Supervisory Jurisdiction, Section 68 Arbitration Act 1996
Arbitration Commercial Law Setting Aside Arbitration Award Procedural Irregularity Costs Supervisory Jurisdiction Section 68 Arbitration Act 1996

Case Brief

Summary, issues, holding and outcome

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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 / Judgment on Application to Set Aside Notice of Discontinuance and Determination of Remaining Grounds of Appeal

Legal Issues

  1. 1 Whether the claimant was improperly excluded from the arbitration decision-making process
  2. 2 Whether the conduct of the arbitration breached s.33 of the Arbitration Act 1996 (duty of fairness and civility)
  3. 3 Whether the Notice of Discontinuance should be set aside as an abuse of process

Ratio Decidendi

The Notice of Discontinuance was set aside as an abuse of process because the undertaking offered by NIOC was insufficient to prevent relitigation of the same grounds in other forums. The remaining grounds of appeal were dismissed on their merits: there was no exclusion of NIOC-appointed arbitrators from the decision-making process, no substantial injustice, and no breach of s.33 or s.68 of the Arbitration Act 1996.

Court Disposition

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

Orders

  • Notice of Discontinuance set aside
  • Remaining grounds of appeal dismissed