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RUSSIAN FEDERATION 55
Arbitrazh Court of the Ural Circuit, 25 May 2021, Case No. А60-73262/2019
(Lindrex Company Inc. v. Calianson Management Limited)
RUSSIAN FEDERATION 55
A first instance court granted enforcement of an award rendered under the auspices of the Riga International Commercial Arbitration Court. The beneficial owners of the defendant Calianson sought to file a cassation appeal before the Arbitrazh (Commercial) Court against the enforcement decision, on the ground that enforcement would violate their rights and legitimate interests, as it would affect the balance of interest vis-à- the beneficial owner and controlling person of the applicant Lindrex. The Court deemed the appeal inadmissible, finding that the appellants had not participated in the arbitration, and that their interest in the outcome of the case alone did not entitle them to appeal the enforcement decision.
The court discusses questions relating to the general approach taken by the Convention to the grounds for refusal of recognition and enforcement, including its pro-enforcement bias, as well as the system of the Convention, under which recognition and enforcement may only be denied on seven listed grounds and the petitioner has only the obligations set out in Art. IV.