Specific Performance In Arbitration: Is There A Binding Award?

• Published date: 24 January 2025
• Subject Matter: Litigation, Mediation & Arbitration, Arbitration & Dispute Resolution
• Law Firm: Carey Olsen
• Author: Helen Wang and Nicholas Lee

In Global Mining and Gerald Metals ("Claimants") v China National Gold Group ("Respondents") BVIHCM 2023/0070, the Respondents were unsuccessful in their applications to set aside the BVI Court's order for registration and enforcement of two final partial arbitral awards.

Background

At the conclusion of a HKIAC arbitration, the tribunal issued the "First Final Partial Award" (the "1st FPA") which recognised the Claimants as the rightful owner of shares in a BVI company. The Respondent was directed to transfer the shares to the Claimants at the price specified by the parties' contract.

The 1st FPA anticipated voluntary compliance by the Respondent and thus left the mechanics of the shares transfer to the parties. Having concluded that the Claimants are entitled to an order for specific performance of the obligation to transfer the shares, the 1st SPA indicated that:

'87. The Tribunal hopes that on reading this Partial Award [the Respondent] will provide to [the 1st Claimant] the details of its bank account so that the purchase price can be paid into that account and that it will not be necessary for the order for specific performance to come into effect.

88. 'If [the Respondent] fails to give details of its bank account so as to enable the Claimants to make the required payment, the Tribunal will issue an order for specific performance.'

The...