Celtic Bioenergy Ltd v Knowles Ltd [2017] EWHC 472 (TCC) (16 March 2017)

Celtic Bioenergy Ltd v Knowles Ltd [2017] EWHC 472 (TCC) (16 March 2017)

The award was obtained by fraud because Knowles deliberately withheld material correspondence from the arbitrator that was inconsistent with its case on compliance with the arbitration agreement, thereby misleading the arbitrator on key issues. This constituted a serious irregularity under s.68(2)(g) Arbitration Act 1996 and caused substantial injustice to CBL. An extension of time to challenge the award was justified due to the short delay and absence of prejudice to Knowles.

Citation
[2017] EWHC 472 (TCC)
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 Under S.68(2)(g) Arbitration Act 1996
Outcome
Application granted
Legal Topics
Serious Irregularity in Arbitration, Fraud in Arbitral Proceedings, Public Policy in Arbitration, Extension of Time for Challenge to Award
Arbitration Commercial Law Serious Irregularity in Arbitration Fraud in Arbitral Proceedings Public Policy in Arbitration Extension of Time for Challenge to Award

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 11 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Celtic Bioenergy Limited

Claimant

Knowles Limited

Defendant

Procedural Posture

Application to Set Aside/vary/remit Arbitral Award / Judgment on Application Under S.68(2)(g) Arbitration Act 1996

Legal Issues

  1. 1 Whether the arbitral award was obtained by fraud or in a manner 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 the failure to disclose the March correspondence caused substantial injustice to CBL

Ratio Decidendi

The award was obtained by fraud because Knowles deliberately withheld material correspondence from the arbitrator that was inconsistent with its case on compliance with the arbitration agreement, thereby misleading the arbitrator on key issues. This constituted a serious irregularity under s.68(2)(g) Arbitration Act 1996 and caused substantial injustice to CBL. An extension of time to challenge the award was justified due to the short delay and absence of prejudice to Knowles.

Court Disposition

Application granted

Orders

  • Extension of time to challenge the award granted
  • Relevant parts of the award remitted to the arbitrator for reconsideration in light of the full facts