City of London v Sancheti [2008] EWCA Civ 1283 (21 November 2008)

City of London v Sancheti [2008] EWCA Civ 1283 (21 November 2008)

Section 9 of the Arbitration Act 1996 does not apply where the claimant in the court proceedings is not a party to the arbitration agreement; the Corporation of London is not a party to the BIT arbitration agreement, and the lease contains a non-exclusive jurisdiction clause in favour of the English courts, precluding a stay. Roussel-Uclaf v GD Searle & Co Ltd was wrongly decided on this point and should not be followed.

Citation
[2008] EWCA Civ 1283
Parties
Respondent/claimant: THE MAYOR AND COMMONALTY & CITIZENS OF THE CITY OF LONDON; Appellant/defendant: ASHOK SANCHETI
Jurisdiction
England and Wales
Judgment Date
21 November 2008
Procedural Posture
Civil Appeal / Application for Permission to Appeal and Substantive Appeal in the Court of Appeal
Outcome
Permission to appeal granted; appeal dismissed.
Legal Topics
Stay of Proceedings, Bilateral Investment Treaty (bit) Arbitration, Jurisdiction of English Courts, Section 9 Arbitration Act 1996, Contractual and Treaty Claims Distinction
Arbitration International Law Landlord and Tenant Stay of Proceedings Bilateral Investment Treaty (bit) Arbitration Jurisdiction of English Courts Section 9 Arbitration Act 1996 Contractual and Treaty Claims Distinction

Case Brief

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Parties

THE MAYOR AND COMMONALTY & CITIZENS OF THE CITY OF LONDON

Respondent/claimant

ASHOK SANCHETI

Appellant/defendant

Procedural Posture

Civil Appeal / Application for Permission to Appeal and Substantive Appeal in the Court of Appeal

Legal Issues

  1. 1 Whether section 9 of the Arbitration Act 1996 applies to stay proceedings where the claimant is not a party to the arbitration agreement under a BIT
  2. 2 Whether the Corporation of London is a party to the arbitration agreement by virtue of being an emanation of the state
  3. 3 Whether a stay should be granted under the inherent jurisdiction of the court

Ratio Decidendi

Section 9 of the Arbitration Act 1996 does not apply where the claimant in the court proceedings is not a party to the arbitration agreement; the Corporation of London is not a party to the BIT arbitration agreement, and the lease contains a non-exclusive jurisdiction clause in favour of the English courts, precluding a stay. Roussel-Uclaf v GD Searle & Co Ltd was wrongly decided on this point and should not be followed.

Court Disposition

Permission to appeal granted; appeal dismissed.