Altain Khuder LLC v IMC Mining Inc

Altain Khuder LLC, a Mongolian company, brought an action against IMC Mining Inc, a Canadian mining company, seeking to enforce a foreign arbitral award made by an arbitral tribunal in Singapore. The award was made against IMC Mining’s subsidiary, IMC Solutions, and was for the sum of approximately A$42 million plus interest. IMC Mining opposed the application on the basis that the award was not binding on it and that there were other defences available under the International Arbitration Act 1974 (Cth) and the New York Convention. The court was required to determine whether the plaintiff had satisfied the requirements of the IAA and the New York Convention in seeking to enforce the arbitral award against IMC Mining and whether IMC Mining had established any defences to enforcement.
The court held that the plaintiff had discharged its onus of proving the existence of an arbitration agreement between the parties and the making of the arbitral award. The court also held that IMC Mining had failed to establish any defences to enforcement under the IAA or the New York Convention. The court found that IMC Mining had not demonstrated any of the grounds for refusing recognition or enforcement of the award under the IAA or the New York Convention, such as corruption or public policy. The court further held that the procedure for applying for recognition and enforcement of the arbitral award was appropriate and that an ex parte application was permissible in the circumstances.

In conclusion, the court dismissed IMC Mining’s summons to set aside the orders of 20 August 2010, which had granted an order for the enforcement of the arbitral award against IMC Solutions. The court found that the plaintiff had satisfied its obligations under the IAA and the New York Convention in seeking to enforce the award against IMC Mining and that IMC Mining had failed to establish any defences to enforcement. The court reserved the question of costs and directed the parties to further submissions on this issue.