Previously the court of the first instance (Commercial Court of Moscow) rejected the application of a BVI company to enforce USD 23 mln HKIAC award against our Client, Russian film producer. The court of cassation has now upheld the lower court order, rejecting arguments of the appellant in their entirety.
The Court of cassation has accepted our arguments that the arbitral tribunal, which conducted arbitral proceedings under HKIAC arbitration rules, had no jurisdiction to order repayment of the outstanding debt under the loan agreement. The loan agreement had its own arbitration clause in favour of LCIA, while the arbitral proceedings under HKIAC arbitration rules had been initiated pursuant to the arbitration clause in the pledge and security agreement. The Court of cassation has also arrived at the conclusion that the enforcement the HKIAC award will violate foreign currency control rules and, thus, Russian public policy.
Our team in this case was represented by advocates Kirill Trukhanov and Konstantin Semin.
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