E - The DIFC's Conduit Jurisdiction Under Attack: Dubai Court Attempts to Reverse Banyan Tree

Background

Following the controversial first decision of the Judicial Tribunal in Daman Real Capital Partners Company LLC v Oger Dubai LLC, JT Case No. 001/2016, there had been significant commentary on the implications for the DIFC's status as a conduit jurisdiction, particularly in connection to enforceability in the DIFC of Dubai- seated arbitral awards, commonly referred to as the ‘Banyan Tree' jurisdiction.

Immediately after Oger v Daman, there was a spate of further developments, including a striking decision of the Dubai Court of the First Instance, which attempted to reverse DIFC Court authority. Together, these developments appear to represent the long-awaited response to what the Dubai Courts see as the DIFC Courts' jurisdiction creep and encroachment into its natural jurisdiction.

Banyan Tree Corporation Pte Ltd v Meydan Group LLC

Although the Judicial Tribunal's decision in Oger v Daman foreshadowed the demise of the Banyan Tree jurisdiction, by creating a situation where award debtors in onshore seated arbitrations are in effect encouraged to commence annulment proceedings, following the Dubai Court of First Instance case, that position now appears to be assured.