Total Trading SRL (Formerly known as Triulzi Engineering SRL) v Luigi Nastri and Nastri Nominees Pty Ltd

Total Trading SRL (formerly known as Triulzi Engineering SRL) (the applicant) sought to enforce an Italian arbitral award against Luigi Nastri and Nastri Nominees Pty Ltd (the respondents) in the Supreme Court of Victoria. The dispute arose from a joint venture agreement between the applicant and Mr Nastri, which was terminated. The applicant alleged that Mr Nastri had breached the agreement and sought to recover damages, which were awarded by an Italian arbitral tribunal. The applicant sought to have this award recognised and enforced in Australia under the *International Arbitration Act 1974* (Cth).

The primary legal issue before the Court was whether the arbitral award was enforceable in Australia, specifically concerning whether the respondents had been afforded a fair opportunity to present their case and whether the award was contrary to public policy. The respondents argued that they had not been given adequate notice of the arbitration proceedings and that the award was therefore invalid. They also contended that the award was contrary to Australian public policy because it was obtained in circumstances where they were denied natural justice.

Crennan J considered the provisions of the *International Arbitration Act 1974* (Cth) and the New York Convention, which govern the enforcement of foreign arbitral awards. His Honour found that the respondents had been provided with sufficient notice of the arbitration proceedings and had failed to participate in them, thereby waiving their right to complain about a lack of procedural fairness. The Court determined that the respondents had not established that the award was contrary to public policy, as the alleged procedural irregularities did not offend fundamental notions of justice in Australia.

Consequently, the Court ordered that the Italian arbitral award be recognised and enforced in Australia.