New judgment: IPCO (Nigeria) Ltd v Nigeria National Petroleum Corportation  UKSC 16
01 Wednesday Mar 2017
This appeal concerns the enforcement in England of a Nigerian arbitration award. The issue before the Court is whether the appellant, NNPC, should have to put up a further $100m security in the English enforcement proceedings, as a condition of being entitled to advance a good arguable defence that enforcement should be refused under the Arbitration Act 1996, s 103(3).
Unanimously allowing the appeal, nothing in s 103(2) or (3) (or in the underlying provisions of article V of the New York Convention) provides a power to make an enforcing court’s decision on an issue raised under these provisions conditional on an award debtor providing security in respect of the award.
Similarly, the requirement to provide security could not be justified by reference to general English procedural rules. The conditions for recognition and enforcement set out in articles V and VI of the New York Convention (to which s 103(2), (3) and (5) give effect) constitute a complete code intended to establish a common international approach.