President of India v Jadranska Slobodna Plovidba
| Jurisdiction | England & Wales |
| Judgment Date | 26 March 1992 |
| Date | 26 March 1992 |
| Court | Queen's Bench Division (Commercial Court) |
Commercial Court of the Queen's Bench Division
Before Mr Justice Hobhouse
Arbitration - costs - challenging arbitrator's order
Where a party to a dispute which had gone to arbitration applied to the court challenging the arbitrators' final and separate reasoned award in respect of costs, the court no longer had power to remit the award to the arbitrators for further consideration under section 22 of the Arbitration Act 1950. The proper procedure and requirements were set out under section 1 of the Arbitration Act 1979.
Mr Justice Hobhouse so held in a reserved judgment in the Commercial Court of the Queen's Bench Division when he refused the application of the plaintiff charterers that the final award as to costs made by Christopher Moss and Michael Mabbs, arbitrators, on April 24, 1991, should be set aside or remitted to the arbitrators for further coonsideration.
Mr Peregrine Simon, QC, for the charterers; Mr Dominic Kendrick for the owners.
MR JUSTICE HOBHOUSE said that he was bound by the decision of the Court of Appeal in Blexen Ltd v G Percy Trentham LtdUNK ((1990) 42 EG 133) which made it clear that where arbitrators dealt with the question of costs separately and published a separate award, the matter was governed by the 1979 Act.
That decision not only required that a new procedure should be followed in challenging an award on costs but practitioners had also to be aware that at the time of the arbitration hearing they would have to consider whether there might be any decision on costs which they might...
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