Sumampow & Ors v Mercator Property Consultants & Anor

The applicants, Sumampow and others, sought to set aside an arbitration award made in favour of the first respondent, Mercator Property Consultants, and the second respondent, Mr. S. The dispute arose from a consultancy agreement concerning the development of a property in Indonesia. The applicants alleged that the arbitration award was invalid due to a lack of jurisdiction on the part of the arbitrator and a breach of natural justice.

The primary legal issues before the Court were whether the arbitrator had jurisdiction to make the award, given that the arbitration agreement was governed by Indonesian law, and whether the applicants had been afforded a fair hearing, constituting a breach of natural justice. Specifically, the Court had to consider the interplay between the *International Arbitration Act 1974* (Cth) and the application of foreign law to the arbitration agreement.

Kirby J found that the arbitration agreement, although governed by Indonesian law, was valid and enforceable under the *International Arbitration Act*. The Court reasoned that the Act provided a framework for the recognition and enforcement of international arbitrations seated in Australia, and that the applicants had not demonstrated any grounds to invalidate the award under the Act. Regarding the natural justice claim, the Court determined that the applicants had been given adequate opportunity to present their case and that there was no evidence of bias or unfairness in the arbitral proceedings.

Consequently, the application to set aside the arbitration award was dismissed.