Ecom Agroindustrial Corp Ltd v Mosharaf Composite Textile Mill Ltd [2013] EWHC 1276 (Comm) (20 May 2013)

Ecom Agroindustrial Corp Ltd v Mosharaf Composite Textile Mill Ltd [2013] EWHC 1276 (Comm) (20 May 2013)

The Bangladeshi proceedings were commenced in clear breach of a broadly worded arbitration clause requiring all disputes to be referred to ICA arbitration under English law. No strong reasons were advanced to refuse an anti-suit injunction, and the Defendant's arguments regarding forum, delay, submission to jurisdiction, comity, and the form of relief were rejected. The Claimant was entitled to both prohibitive and mandatory injunctive relief, as well as declaratory relief confirming the Defendant's obligations under the arbitration agreement.

Citation
[2013] EWHC 1276 (Comm)
Parties
Claimant: ECOM AGROINDUSTRIAL CORP. LTD; Defendant: MOSHARAF COMPOSITE TEXTILE MILL LTD
Jurisdiction
England and Wales
Judgment Date
20 May 2013
Procedural Posture
Arbitration Claim / Commercial Court / Final Determination at First Instance
Outcome
Claim allowed. Relief granted as sought.
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Jurisdiction, Declaratory Relief
Arbitration Commercial Law Anti Suit Injunctions Arbitration Agreements Jurisdiction Declaratory Relief

Case Brief

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Parties

ECOM AGROINDUSTRIAL CORP. LTD

Claimant

MOSHARAF COMPOSITE TEXTILE MILL LTD

Defendant

Procedural Posture

Arbitration Claim / Commercial Court / Final Determination at First Instance

Legal Issues

  1. 1 Whether the Bangladeshi proceedings are in breach of the arbitration clause in the contract
  2. 2 Whether an anti-suit injunction should be granted to restrain the Defendant from continuing foreign proceedings
  3. 3 Whether declaratory relief should be granted confirming the Defendant's obligations under the arbitration agreement

Ratio Decidendi

The Bangladeshi proceedings were commenced in clear breach of a broadly worded arbitration clause requiring all disputes to be referred to ICA arbitration under English law. No strong reasons were advanced to refuse an anti-suit injunction, and the Defendant's arguments regarding forum, delay, submission to jurisdiction, comity, and the form of relief were rejected. The Claimant was entitled to both prohibitive and mandatory injunctive relief, as well as declaratory relief confirming the Defendant's obligations under the arbitration agreement.

Court Disposition

Claim allowed. Relief granted as sought.

Orders

  • Defendant prohibited from taking further steps in the Bangladeshi proceedings (save to discontinue them) or commencing further proceedings in relation to the contract.
  • Defendant ordered to take immediate steps to discontinue the Bangladeshi proceedings.