DIFC court declines to stay proceedings in favour of LCIA arbitration
By Henry Quinlan and Natalie Wainwright
The Dubai International Financial Centre (DIFC) court has declined to stay proceedings in favour of an LCIA arbitration in London, despite finding that the arbitration clause was valid. In rendering its judgment, the court concluded that the presently drafted DIFC Arbitration Law failed to implement the New York Convention.
Injazat Technology Fund BSC (ITF) had entered into a share purchase subscription (SSA) with Broadlink Research FZ in 2006, pursuant to which ITF subscribed for 35 per cent of the shares in Broadlink in consideration of funding of $3m (£1.8m). The two other shareholders in Broadlink (the guarantors) were also parties to the SSA and gave certain warranties in favour of ITF in the agreement.
ITF subsequently considered that Broadlink was in breach and therefore did not make the final tranche payment under the SSA. ITF then commenced ICC arbitration proceedings against the guarantors for recovery of the sums paid and obtained an award in the amount of $3.5m, representing recovery of the initial payments together with interest and costs…
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