DCC 132/2012

This case involved a request not to enforce an arbitration ruling on the basis it was null because of the agreement and who had signed it. Only the court where the arbitration was seated had jurisdiction to confirm such nullity. The argument that the interest rate was higher than allowed in sharia was also rejected.

Background

A Plaintiff filed proceedings against the Defendant seeking the enforcement of two arbitral awards that it had procured from an arbitration in the UK against the Defendant.

The Plaintiff filed the proceedings before the Dubai Court of First Instance under case (268/2010) seeking enforcement of the awards against the Defendant for two million AED.

The Plaintiff had previously, under a valid contract between it and the Defendant, initiated arbitral proceedings before the LCIA in London and procured an award in its favour for both merits of its case and costs.

The Plaintiff filed said proceedings for the enforcement of the award according to the New York Convention.

The Defendant counterclaimed against the awards seeking an order for nullification.

The Court of First Instance, satisfied with the Plaintiff's case, ruled in its favour and dismissed the Defendant's request for nullification.