Celtic Bioenergy Ltd v Knowles Ltd

Celtic Bioenergy Ltd v Knowles Ltd

The award was obtained by fraud as Knowles deliberately withheld material correspondence from the arbitrator, creating a misleading impression about compliance with the ad hoc arbitration agreement, causing substantial injustice to CBL. The application for extension of time was justified due to the timing of CBL's discovery and absence of prejudice to Knowles.

Parties
Claimant: Celtic BioEnergy Limited; Defendant: Knowles Limited
Jurisdiction
England and Wales
Judgment Date
16 March 2017
Procedural Posture
Application to Set Aside/vary/remit Arbitral Award / Judgment on Application
Outcome
Application allowed; extension of time granted; challenged parts of award remitted to arbitrator.
Legal Topics
Serious Irregularity, Fraud in Arbitration, Public Policy, Extension of Time, Remittal of Award
Arbitration Commercial Law Serious Irregularity Fraud in Arbitration Public Policy Extension of Time Remittal of Award

Case Brief

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Parties

Celtic BioEnergy Limited

Claimant

Knowles Limited

Defendant

Procedural Posture

Application to Set Aside/vary/remit Arbitral Award / Judgment on Application

Legal Issues

  1. 1 Whether the arbitral award was obtained by fraud or contrary to public policy under s.68(2)(g) Arbitration Act 1996
  2. 2 Whether Knowles deliberately withheld material correspondence from the arbitrator
  3. 3 Whether substantial injustice was caused to CBL

Ratio Decidendi

The award was obtained by fraud as Knowles deliberately withheld material correspondence from the arbitrator, creating a misleading impression about compliance with the ad hoc arbitration agreement, causing substantial injustice to CBL. The application for extension of time was justified due to the timing of CBL's discovery and absence of prejudice to Knowles.

Court Disposition

Application allowed; extension of time granted; challenged parts of award remitted to arbitrator.

Orders

  • Extension of time for application granted.
  • Parts of the arbitral award challenged are remitted to the arbitrator for reconsideration in light of full facts.