P.T. Bayan Resources TBK & Anor v BCBC Singapore Pte Ltd

The parties to this proceeding were P.T. Bayan Resources TBK and another (the applicants) and BCBC Singapore Pte Ltd (the respondent). The dispute concerned the enforcement of an arbitral award made in Singapore. The applicants sought to set aside an order of the Federal Court of Australia which had granted leave to the respondent to enforce the award in Australia. The matter came before Gummow ACJ in the original jurisdiction of the High Court of Australia.

The primary legal issue before the Court was whether the applicants had established grounds to resist the enforcement of the arbitral award under Article 36(1) of the Fourth Schedule to the International Arbitration Act 1974 (Cth). Specifically, the Court had to consider whether the applicants had been unable to present their case, or whether the award dealt with matters outside the scope of the submission to arbitration, or whether the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties.

Gummow ACJ reasoned that the applicants had failed to demonstrate any of the grounds for refusing enforcement under Article 36(1). His Honour noted that the applicants had participated in the arbitration proceedings and had not raised the objections they sought to rely upon in resisting enforcement before the arbitral tribunal. The Court applied the principles of international comity and the New York Convention, as incorporated into Australian law, which favour the enforcement of arbitral awards unless strong grounds exist to refuse it. The Court found that the applicants' arguments were without merit and that the award was enforceable.

The application to set aside the order granting leave to enforce the award was dismissed.