Grounds for setting aside arbitration awards

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Commercial action was filed before the Dubai Court by a subcontractor (Party A) against (Parties B and C — together the Defendant Parties).

Party A requested the court to ratify an arbitral award issued on 18 June 2008 in which the Defendant Parties were ordered to jointly and severally pay AED843,912 plus nine per cent legal interest from 12 July 2003 until full payment. Party A was also awarded its legal costs in the amount of AED30,000.

Party A submitted that it had entered into a Sub Contracting Agreement (“The Agreement”) with the Defendant Parties and that the Agreement contained an arbitration clause. Party A’s obligations under the Agreement were to execute carpentry work, being the supply and installation of wooden doors and cupboards in a residential complex in Sharjah. Party A pleaded that it had carried out all the works as stipulated in the Agreement but that the Defendant Parties refused to make the final installment payment, amounting to AED 843,912. Parties B and C requested the court to dismiss the case for the existence of an arbitration clause. Accordingly, Party A amended its plea and requested the court to appoint an arbitrator. As stated above, Party A received an arbitral award to this effect in its favor…

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