Lahore University of Management Sciences

LAW 424 – Law and Practice of International Commercial Arbitration

Spring 2017

Instructor Umer Akram Chaudhry
Room No. TBA
Office Hours TBA
Email umer.chaudhry@rmaco.com.pk
Telephone TBA
Secretary/TA TBA
TA Office Hours TBA
Course URL (if any) TBA

Course Basics
Credit Hours 3
Lecture(s) Nbr of Lectures per week 2 Duration 75 m
Recitation/Lab (per Nbr of Lectures per week None Duration N/A
week)
Tutorial (per week) Nbr of Lectures per week None Duration N/A

Course Distribution
Core No
Elective BA/LLB
Open for Student BA/LLB
Category

1
Close for Student Non-law students: Closed to All
Category


Course Description
With increasing cross-border trade and investments, international arbitration has developed into the mainstream mechanism for resolution of
transnational disputes. Arbitration clauses are now a part of nearly every commercial and investment agreement.

International arbitration gains traction and support from a robust international legal framework. The New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards has 156 signatories. Around 72 States (and 102 jurisdictions) have adopted legislation based on the
UNCITRAL Model Law on International Commercial Arbitration (1985), as amended. Apart from this legal support, arbitration promises
flexibility, neutrality, confidentiality, and efficiency in terms of time and cost. These factors are not usually available in court litigation. The
importance of international arbitration is, therefore, only going to increase with time.

This course explores some of the major issues concerning international arbitration law and practice by focusing on the interaction between
arbitration and domestic courts.

The course is schematically divided into three parts. The first part deals with issues relating to arbitration agreement such as essential terms,
obligations, and enforceability, etc., of the arbitration agreement as well as arbitrability and seperability principles. The second part engages with
the arbitral process: the commencement of arbitration, appointment of arbitrators, challenge to arbitrators, provisional measures, and evidentiary
issues. The third part turns the focus on the arbitral award, its recognition and enforcement, and recourse against international arbitral awards.

Lastly, the course will also engage with the theoretical foundations and some of the major criticisms directed towards arbitration.

Course Prerequisite(s)
None

2
Course Objectives

• Provide an introduction to the law and practice of international arbitration in various jurisdictions and leading seats of international
arbitration;

• Evaluate the major developments in international arbitration law and practice with reference to international legal instruments supporting
international arbitration;

• Familiarize the students with the arbitral agreements, proceedings, and awards to equip them to engage in international arbitration (and
transnational disputes);

• Provide the students with the ability to use international arbitration law as a comparative tool for exploring the practice of ad hoc and
permanent international tribunals.

During the course, the students will review and analyze cases from different jurisdictions. The students will be expected to synthesize this case law
and engage in class discussion on these cases.

Learning Outcomes

• Develop a clear understanding of international arbitration law and practice and its development across jurisdictions;

• Develop the ability to engage with different strategic aspects of arbitral agreement, proceedings, and awards; and

• Develop an interest in dispute resolution in general and transnational dispute resolution in particular and the innovative practices emerging
in these areas.

3
Grading Breakup and Policy
Assignment (s): NA
Home Work: NA
Quiz (s): NA
Class Participation: 20%
Attendance: 5%

Midterm NA
Examination:
Project: 20%
Final Examination: 55%

Examination Detail
Midterm Exam Yes/No: No
Combine/Separate: NA
Duration: NA
Preferred Date: NA
Exam Specifications: NA
Final Exam Yes/No: Yes
Combine/Separate: TBD
Duration: TBA
Exam Specifications: Take Home Exam

Course Overview
Lecture Topics Recommended Readings Objectives/Application
1. Legal Theory of Jan Paulsson, The Idea of Arbitration (2013), Chapter 2 (The Review and analyze the foundational
International Arbitration Legal Foundation of Arbitration), pp 29-50 theories of international arbitration and
differing theses regarding the status of

4
 Optional Reading: arbitration within and in relation to legal
order(s)
Emmanuel Gillard, Legal Theory of International Arbitration
(2010), Chapter 1 (The Representation of International
Arbitration), pp 13-68

2. Arbitration in the Legal TCL Air Conditioner (Zhongshan) Co Ltd v The Judges of the Evaluate and analyze the place of
System Federal Court of Australia (2013) HCA 5 arbitration in a constitutional system, it
relationship with the judicial power of
Optional Reading: the State, and the performance of judicial
functions
Jivraj v Hashwani [2011] UKSC 40

3. Arbitral Agreements (I) Nokia Maillefer SA v Mazzer (Vaud Court of Appeals 1993) XXI Evaluate and analyze the essential
Y.B. Comm. Arb. 687 (1996) elements of the arbitration agreement, the
issues regarding formal and substantive
Kahn Lucas Lancaster Inc v Lark International Ltd 186 F3d 210 validity of the arbitration agreement, and
(1999, 2nd Cir) the judicial approaches in the
interpretation and construction of
Whitworth Street Estates Ltd v. Miller [1970] A.C. 583 arbitration agreement

Lucky-Goldstar International v Ng Moo Kee England [1994]

ADRLJ 49

Insigma Technology v Alstom Technology [2009] 3 SLR 936

Lea Tei Textile Co v Manning Fabrics Inc 411 F. Supp. 1404

(SDNY 1975)

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4. Arbitral Agreements (II) Habaş Sinai Ve Tibbi Gazlar Isthisal Endüstri AŞ v Sometal SAL
[2010] EWHC 29 (Comm)
Astel-Peiniger Joint Venture v Argos Engineering & Heavy
Industries Co Ltd [1994] 3 HKC 328
Bautista v. Star Cruises, 396 F.3d 1289 (11th Cir. 2005)
Evaluate and analyze the essential
elements of the arbitration agreement, the
issues regarding formal and substantive
validity of the arbitration agreement, and
the judicial approaches in the
interpretation and construction of
arbitration agreement

Ledee v. Ceramiche Ragno, 684 F.2d 184, 186 (1st Cir. 1982)

Rhone Mediterranee Compagnia Francese di Assicurazioni e

Riassicurazioni v. Achille Lauro (3rd Cir. 1983)

Food Corporation of India v. Antclizo Shipping Corporation (The

“Antclizo”) [1988] 2 Lloyd's Rep. 93

5. Seperability Principle Prima Paint Corp. v. Flood & Conklin Mfg. Co., 388 U.S. 395
(1967)
Buckeye Check Cashing Inc v Cardenga, 546 US 440 (2006)
Fiona Trust & Holding Corp v Yuri Privalov [2007] UKHL 40
Review the seperability principle as
articulated by the courts in different
jurisdictions and the status of the
arbitration agreement in relation to the
main contract in which it is found

Ashapura Mine-Chem Ltd v. Gujarat Mineral Development

Corporation, 2015 (5) SCALE 379

Lakhra Power Generation Company Ltd v Karadeniz Powership

Kaya Bey 2014 CLD 337

6
 Hub Power Company Ltd. v. Pakistan WAPDA, PLD 2000 SC
841

6. Arbitrability and Non- Scherk v Alberto-Culver, 417 US 506 (1974) Explore the arbitrabilty doctrine: what
Arbitrability kind of disputes can be referred to
Mitsubishi Motors Corp v Soler Chrysler-Plymouth Inc, 473 US arbitration and what cannot be arbitrated?
614 (1985) Review the evolution of the doctrine in
the cases and consider the cases which
Fulham Football Club (1987) Ltd v Richards [2011] EWCA Civ straddle the line between arbitrability and
855 non-arbitrability

Booz Allen & Hamilton v SBI Home Finance Ltd, AIR 2011 SC
2507

Tomolugen Holdings Ltd v Silica Investors Ltd [2015] SGCA 57

Optional Reading:

HDFC Banking Ltd v Satpal Singh Bakhshi, ILR (2013) I Delhi

583

7. Applicable Laws (I) Sulamerica CIA Nacional De Seguros SA v Enesa Engenharia SA Review, analyze, and explore the systems
[2012] EWCA Civ 638 of laws that are applicable in the
arbitration process and the judicial
Arsanovia Ltd and others v Cruz City 1 Mauritius Holdings approaches in determining the law of the
[2012] EWHC 3702 (Comm) arbitration agreement

FirstLink Investments Corp Ltd v GT Payment Pte Ltd and others

[2014] SGHCR 12

7
8. Applicable Laws (II) Union of India v McDonnel Douglas [1993] 2 Lloyd's Rep. 48
(Comm)
Buyer from Mozambique v Seller from the Netherlands,
Preliminary Award, ICC Case No. 5505, 1987
Hitachi Ltd v Rupali Polyester, 1998 SCMR 1618
Societe Generale De Surveillance SA v Pakistan, 2002 SCMR
1694
9. Non-Singatories Dallah Real Estate and Tourism Holding Company v. The
Ministry of Religious Affairs, Government of Pakistan [2010]
UKSC 46
Government of Pakistan, Min of Religious Affairs v Dallah Real
Estate & Tourism Holding Co., XXXVI Y.B. Comm. Arb. 590
Bridas Sapic v Government of Turkemistan, 345 F3d 347 (5th Cir
2003)
Interim Award in ICC Case No 1431, (1984) IX Y.B. Comm.
Arb. 131 (1984)
Award in ICC Case No 8385 (2003)
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Review, analyze, and explore the systems
of laws that are applicable in the
arbitration process and the judicial
approaches in determining the law of the
arbitration agreement
Compare foreign judicial approach with
the domestic approach of courts in
Pakistan
Consider the approach that advances the
purposes of international arbitration in
general
Explore the theories that allow the claims
involving parties that have not signed the
arbitration agreement – i.e., the non-
signatories – in relation to the arbitration
agreement
 Peterson Farms Inv v C&M Farming Ltd [2004] 1 Llyods Rep
603 (QB)
10. Effect of Arbitration Japan Educational Corporation v. Kenneth J. Feld, High Court, Explore, review and analyze the
Agreement Tokyo, 30 May 1994 obligations imposed on the parties under
the arbitration agreement in relation to
South India Shipping Corporation, Inc. v. Bremer Vulkan the New York Convention and the
Schiffbau und Maschinenfabrik [1981] AC 909 remedies available to the parties to seek
enforcement of arbitration agreement
Far Eastern Impex (Pvt.) Ltd. v. Quest International Nederland
BV, 2009 CLD 153

Travel Automation (Pvt) Ltd. v Abacus International (Pvt) Ltd.,

2006 CLD 497

11. Pre-Arbitral Procedures Himpurna California Energy Ltd v PR (Persero) Perusahaan
Listruik Negara, Final Award (1999)
Manufacturer v Manufacturer, Final Award, ICC Case No 8445
(1994)
United Group Rail Services Ltd v Rail Corporation New South
Wales [2009] NSWCA 177
Emirates Trading Agency LLC v Prime Mineral Exports Private
Limited [2014] EWHC 2104 (Comm)
Explore the contractual procedures that
the parties are required to comply prior to
the commencement of arbitration, the
nature and enforceability of these
procedures, and consequences to non-
compliance with these procedures
Analyze the evolution of principle
requiring compliance with pre-arbitral
procedures

International Research Corp Plc v Lufthansa Systems Asia

Pacific Pte Ltd [2013] SGCA 55

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 BG Group Plc v. The Republic of Argentina 134 S.Ct. 1198
(2014;

12. Commencement of Act I: Case Strategy and Written Advocacy, Arbitration Explore the main strategic considerations
Arbitration; International, Vol 21 Issue 4 (2005), pp 541 – 560 at play in referring a claim to arbitration;
Appointment and
Selection of Arbitrators Sumukan Ltd v Commonwealth Secretariat [2007] EWCA Civ Review the different modes of
1148 appointment of arbitration – through an
appointing authority, mutual consent, and
XL Ins Ltd v Toyota Motor Sales USA Inc (unreported) (QB 14 judicial forums;
July 1999)
Analyze the differing judicial approaches
Haji Naimatullah v Federation of Pakistan, PLD 2013 Karachi in appointing arbitrators in reference to
406 the agreement of the parties and whether
the parties’ approach in appointments are
Gary Born, International Arbitration: Cases and Materials (2nd any different
Ed), Chapter 8, Section C (Identity Requirements for Arbitrators
in International Arbitration), pp 708-711

13. Independence and Veritas Shipping Ltd v Anglo-Canadian Cement Ltd [1996] 1 Explore the obligations of the arbitrators
Impartiality Lloyd's Rep 76 (QB 1965) in an arbitration in relation to
independence, impartiality, and
Commonwealth Coatings Corp. v. Continental Casualty Co. disclosure and cases in which the
(1968) 393 U.S. 145 arbitrator’s independence and
impartiality may be compromised
ASM Shipping Ltd of India v TTMI Ltd of England [2005] EWHC
2238

10
 June Science Information Technology Co Ltd. v ZTE Corp [2008]
4 HKLRD 776

Surriya Rehman v Seimens Pakistan Engineering Company Ltd,

PLD 2011 Karachi 571

14. Removal & UNCITRAL Arbitration Rules 1976, Articles 12-15 Explore the mechanism for removal and
Replacement of replacement of arbitrators under the
Arbitrators Clyde Croft et al, A Guide to the UNCITRAL Arbitration Rules UNCITRAL Arbitration Rules
(2013), pp 139-165

15. Procedure & Evidence Act II: Pre-Hearing Advocacy, Arbitration International, Vol 21
Issue 4 (2015), pp 561 - 580
Elektrim SA v Vivendi Universal SA [2007] EWHC 571 (QB)
Order dated 7 February 2012 in Civil Petition No 796 of 2007,
Maulana Haq Baloch v Government of Balochistan, Supreme
Court of Pakistan
Explore the main strategic considerations
at play before the hearing of a case in an
arbitration
Explore and review the intervention of
the courts in the arbitral procedures

Tajik Aluminium Plant v. Hydro Aluminium AS [2005] EWCA

Civ 1218

Optional Reading:

Interim Award in ICC Case No 5029 XII YB Comm 113 (1987)

Final Award in ICC Case No 7626 XII YB Comm Arb 132

11
 (1997)

16. Witness Evidence & Act III: Advocacy with Witness Testimony, Arbitration Explore the strategic considerations in
Confidentiality International, Vol 21 Issue 4 (2015), pp 583 – 611 presentation of witness testimony before
an arbitral tribunal
Esso Australia Resources Ltd v Plowman (1995) 183 CLR 10
Analyze the principle of confidentiality
Optional Reading: in international arbitration

Act IV: Oral Advocacy, Arbitration International, Vol 21 Issue 4

(2015), pp 613 – 630

17. Provisional Measures Interim Award on ICC Case No 8786, 11(1) ICC Ct Bull 81 Explore the forums available for seeking
(2000) provisional measures in international
arbitration proceedings and the judicial
Sperry International Trade Inc v Government of Israel, 689 F.2d approach in granting interim measures in
301 (2d Cir. 1982) aid of domestic and foreign arbitral
proceedings
Halki Shipping Corp v Sopex Oils Ltd [1998] 1 Lloyd’s Rep 49
(QB)

Maldives Airports v GMR Malé International Airport [2013] 2

SLR 449

Gerald Metals SA v Timis [2016] EWHC 2327 (Ch)

Optional Reading:

Channel Tunnel Group Ltd v Balfour Beauty Construction Ltd

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 [1993] AC 334

18. Multi-Party Issues Gary Born, International Arbitration: Cases and Materials (2nd Explore, review, and analyze the issues
Ed), Chapter 11 (Multiparty Issues in International Arbitration), arising from consolidation and joinder in
pp 933-960 international arbitration

19. Arbitral Awards: Legal Gary Born, International Arbitration: Cases and Materials (2nd Review the options available to the
Framework Ed), Chapter 14, Section B (Jurisdictional Requirements of parties after the issuance of the arbitral
International Arbitral Awards Under International and National award
Arbitration Regimes), pp 1070-1093
Review the scheme of the New York
Abdullah v CNAN Group SPA, PLD 2014 Sindh 349 Convention

20. Choice of Remedies PT First Media TBK and Astro Nusantara International BV and Demarcate and distinguish between the
others [2013] SGCA 57 active and passive remedies available in
international arbitration and their
Astro Nusantara International BV v PT First Media TBK HCCT interaction with the principles of waiver
45 of 2010 and estoppel

Karachi Dock Labour Board v Quality Builders Ltd, PLD 2016

SC 121
21. Grounds for Refusal to Dallah Real Estate and Tourism Holding Company v. The Review and analyze Article V(1)(a) of
Recognize (I): Ministry of Religious Affairs, Government of Pakistan [2010] the New York Convention
Incapacity of the UKSC 46
Parties; Invalidity of the
Arbitration Agreement First Options of Chicago, Inc. v Kaplan, 514 U.S. 938 (1995)

China Minmetals Materials Imp. & Exp. Co. v Chi Mei Corp, 334

13
 F.3d 274 (3d Cir. 2003)

Optional Reading:

Patricia Nacimiento, Article V(1)(a), in Herbert Kronke, Patricia

Nacimiento , et al. (eds), Recognition and Enforcement of
Foreign Arbitral Awards: A Global Commentary on the New
York Convention (2010), pp. 205 - 230

22. Grounds for Refusal to Parsons & Whittemore Overseas Co. v. Société Générale de Review and analyze Article V(1)(b) of
Recognize (II): L'Industrie Du Papier 508 F.2d 969 (2d Cir. 1974) the New York Convention
Right to be Notified;
Due Process Exception Soh Beng Tee v Fairmount Development [2007] 3 SLR 86

L W Infrastructure v Lim Chin San Contractors [2012] SGCA 57

Triulzi Cesare SRL v XinyiGroup (Glass) Co Ltd [2014] SGHC

220

Optional Reading:

Andrés Jana, Angie Armer, et al., Article V(1)(b), in Herbert

Kronke, Patricia Nacimiento , et al. (eds), Recognition and
Enforcement of Foreign Arbitral Awards: A Global Commentary
on the New York Convention (2010), pp. 231 - 256

23. Grounds for Refusal to Nicola Christine Port, Scott Ethan Bowers, et al., Article V(1)(c), Review and analyze Article V(1)(c) of
Recognize (III): in Herbert Kronke , Patricia Nacimiento , et al. (eds), Recognition the New York Convention
Excess of Authority and Enforcement of Foreign Arbitral Awards: A Global

14
 Commentary on the New York Convention (2010), pp. 257 - 280
24. Grounds for Refusal to Patricia Nacimiento, Article V(1)(d), in Herbert Kronke, Patricia Review and analyze Article V(1)(d) of
Recognize (IV): Nacimiento , et al. (eds), Recognition and Enforcement of the New York Convention
Irregular Arbitration Foreign Arbitral Awards: A Global Commentary on the New
Procedures York Convention (2010), pp. 281 – 300

25. Grounds for Refusal to Nadia Darwazeh, Article V(1)(e,) in Herbert Kronke, Patricia Review and analyze Article V(1)(e) of
Recognize (V): Non- Nacimiento , et al. (eds), Recognition and Enforcement of the New York Convention
Binding Awards Foreign Arbitral Awards: A Global Commentary on the New
York Convention (2010), pp. 301 - 344

26. Grounds for Refusal to Hub Power Company Ltd. v. Pakistan WAPDA PLD 2000 SC 841 Review and analyze Article V(2) of the
Recognize (VI): Public New York Convention and difference
Policy Optional Reading: between Article V(1) and V(2)

Dirk Otto and Omaia Elwan, Article V(2) in Herbert Kronke, Explore the elements of the principle of
Patricia Nacimiento , et al. (eds), Recognition and Enforcement public policy vis-à-vis recognition and
of Foreign Arbitral Awards: A Global Commentary on the New enforcement of arbitral awards
York Convention (2010), pp. 345 - 414

27. Critical Analyses of Sundaresh Menon, Some Cautionary Notes for an age of
International Arbitration Opportunity (2012)

Lord Thomas, Developing commercial law through the courts:

rebalancing the relationship between the courts and arbitration
(2016)

Charles Brower et al, So is there anything really wrong with

international arbitration as we know it? (2012)

15
28. Course Overview Review the three aspects of the
arbitration law and procedure –
arbitration agreement, arbitral process,
and the arbitration award

Revisit the theoretical foundations of

international arbitration and review them
with the knowledge and understanding of
the law and procedures of international
arbitration

Analyze, in relation the criticism towards

international arbitration, whether the
arbitration provides a speedy and cheaper
mode of dispute resolution in comparison
to courts

Textbook(s)/Supplementary Readings

Textbooks / Supplementary Readings:

Blackaby, Partasides, et al., Redfern and Hunter on International Arbitration, Sixth Edition (2015)

Clyde Croft et al, A Guide to the UNCITRAL Arbitration Rules (2013), pp 139-165

Gary Born, International Arbitration: Cases and Materials, Second Edition (2015)

16
Herbert Kronke, Patricia Nacimiento, et al. (eds), Recognition and Enforcement of Foreign Arbitral Awards: A Global Commentary on the New
York Convention (2010)

Legislations/Rules/Instruments:

Arbitration Act, 1940

Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958

UNCITRAL Model Law on International Commercial Arbitration, 1985 (as amended)

UNCITRAL Arbitration Rules (as revised in 2010)

17