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RUSSIAN FEDERATION 2025-1
Arbitrazh Court, West Siberian Circuit, 28 September 2023, Case No. А45-4410/2022
(TOK LLC v. Elevator JSC)
RUSSIAN FEDERATION 2025-1
The Arbitrazh (Commercial) Court confirmed on appeal that an arbitration clause referring disputes to an “arbitration court” at the location of the arbitration claimant was a valid basis for the jurisdiction of the Mongolian National and International Arbitration Center (MNIAC) at the Mongolian National Chamber of Commerce and Industry over the arbitration commenced by the Mongolian claimant, and that exequatur of the award rendered in accordance with the rules of that Center should not be denied on this ground. The Court stressed that an arbitration agreement was only deemed to be unenforceable when it was impossible to ascertain the true intention of the parties in respect of dispute resolution. This was not the case here, as the clause could only refer to MNIAC, the sole permanent arbitral institution in Mongolia.
The court discusses the principle that the procedure for the enforcement of awards under the Convention is governed by the lex fori, as well as procedural issues (such as the competent enforcement court) not falling under the specific cases of ¶¶ 302-307.
The court discusses the overall scheme and/or pro-enforcement bias of the Convention.
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.
Invalidity of the arbitration agreement: The court discusses other cases of invalidity of the arbitration agreement, including that there was no agreement at all or that the party was not a signatory thereto, that the incorrect arbitral institution was chosen, etc.