Discretionary Suspension of an Award Subject to Foreign Enforcement Proceedings by the Court of the Seat: The Emerging Position in England and Wales - Chapter 55 - Reflections on International Arbitration
Article V of the New York Convention permits refusal of the recognition and/or enforcement of an arbitral Award “by a competent authority of the country in which … that award was made.” That principle is given statutory effect in England and Wales by section 103(2) of the Arbitration Act 1996. There is, however, no express statutory provision dealing with the ‘suspension’ of English arbitral Awards with a view to hindering their enforcement overseas in foreign Courts. This chapter explores the English case law on this issue – one of significant practical importance to parties – and examines: (i) whether the English Court has an inherent power to suspend English arbitral Awards within the meaning of Article V; and (ii) on the basis of what principles a power to suspend may be exercised by the court at the seat. There is only limited guidance on this issue from the English Court, but in view of the issue’s importance, this chapter seeks through an analysis of the case law to summarise the present position and to explore the possible future development of this jurisdiction.