SRS Middle East FZE v Chemie Tech DMCC (Rev 1)

SRS Middle East FZE v Chemie Tech DMCC (Rev 1)

An interim anti-suit injunction is granted because the defendant has not shown good reason for pursuing the Sharjah Claim contrary to the arbitration agreement. There is no evidence that stopping the Sharjah Claim will result in loss of provisional measures, and if such loss would occur only by breaching the arbitration agreement, that cannot justify refusing the injunction. The defendant must consent to the stay of the Sharjah Claim in favour of arbitration.

Parties
Claimant: SRS Middle East FZE; Defendant: Chemie Tech DMCC
Jurisdiction
England and Wales
Judgment Date
02 November 2020
Procedural Posture
Arbitration Claim / Anti Suit Injunction / Interim Application for Anti Suit Injunction, Pre Trial
Outcome
Interim anti-suit injunction granted pending trial or further order.
Legal Topics
Anti Suit Injunctions, Enforcement of Arbitration Agreements, Interim Relief, Foreign Proceedings, Jurisdiction, Provisional Measures

Case Brief

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Parties

SRS Middle East FZE

Claimant

Chemie Tech DMCC

Defendant

Procedural Posture

Arbitration Claim / Anti Suit Injunction / Interim Application for Anti Suit Injunction, Pre Trial

  1. 1 Whether the defendant's pursuit of substantive proceedings in Sharjah breaches the arbitration agreement
  2. 2 Whether interim anti-suit injunction should be granted to restrain foreign proceedings contrary to arbitration agreement
  3. 3 Whether preservation of provisional measures in Sharjah constitutes good reason to refuse injunction

Ratio Decidendi

An interim anti-suit injunction is granted because the defendant has not shown good reason for pursuing the Sharjah Claim contrary to the arbitration agreement. There is no evidence that stopping the Sharjah Claim will result in loss of provisional measures, and if such loss would occur only by breaching the arbitration agreement, that cannot justify refusing the injunction. The defendant must consent to the stay of the Sharjah Claim in favour of arbitration.

Court Disposition

Interim anti-suit injunction granted pending trial or further order.

Orders

  • Defendant restrained from taking further steps in Sharjah Claim except as necessary to consent to Article 8 Application or as directed by arbitrators under Article 28(1) ICC Rules.
  • Defendant required to consent to claimant's Article 8 Application in Sharjah Court to stay the Sharjah Claim in favour of arbitration.