Gilmar SpA v Bondi Iceburgs Club Co-Op Limited

Gilmar SpA (the applicant) sought to enforce an arbitral award against Bondi Iceburgs Club Co-Op Limited (the respondent). The dispute arose from a contract for the supply of goods, which contained an arbitration clause. Following a dispute, an arbitral tribunal rendered an award in favour of Gilmar SpA. Bondi Iceburgs Club Co-Op Limited subsequently sought to set aside the award in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the arbitral award should be set aside pursuant to section 18 of the International Arbitration Act 1974 (Cth) (the Act), which incorporates the grounds for setting aside an award under Article 34 of the UNCITRAL Model Law on International Commercial Arbitration. Specifically, the Court had to consider whether the arbitral tribunal had exceeded its powers or whether the award was in conflict with the public policy of Australia.

The Court found that the tribunal had not exceeded its powers, as the matters determined by the tribunal fell within the scope of the arbitration agreement. Furthermore, the Court held that the award did not offend the public policy of Australia. The Court reasoned that the grounds for setting aside an award under Article 34 are to be interpreted narrowly and that mere errors of fact or law by the tribunal do not constitute a breach of public policy. The Court emphasised that public policy in this context refers to fundamental notions of justice and morality.

The application to set aside the arbitral award was dismissed.