China / 17 October 1990 / China, 广州海事法院 (Guangzhou Maritime Court) / Guangzhou Ocean Shipping Co., Ltd v. Marships of Connecticut Company
|China, 广州海事法院 (Guangzhou Maritime Court)
|17 October 1990
|Guangzhou Ocean Shipping Co., Ltd v. Marships of Connecticut Company
|Applicable NYC Provisions
|On 25 October, 7 November and 19 November 1988, Guangzhou Ocean Shipping Co., Ltd. (“Guangzhou Ocean Shipping”) entered into three charter-party agreements with Marships of Connecticut Company Limited (“Marships”) under which Guangzhou Ocean Shipping leased three shipping vessels to Marships. Marships failed to pay the freight dues. Guangzhou Ocean Shipping rescinded the three charter-party agreements and initiated ad hoc arbitration in London against Marships pursuant the arbitration clauses contained within the three charter-party agreements. Each party appointed an arbitrator that constituted the arbitral tribunal. On 7, 15 and 25 August 1989, three arbitral awards were rendered respectively in favour of Guangzhou Ocean Shipping. When Marships only effected partial satisfaction of the arbitral awards, Guangzhou Ocean Shipping applied on 6 July 1990 for recognition and enforcement of the arbitral awards before the Guangzhou Maritime Court (广州海事法院) in order to appropriate payment to a third company, China National Foreign Trade Corporation (“CNFTC”), owed to Marships. The Guangzhou Maritime Court opined that all three arbitral awards should be recognised and enforced. In particular, the court held that the application for recognition and enforcement had satisfied the necessary requirements and that there were no grounds for refusal under Article V NYC. In addition, the court found that the application for recognition and enforcement was filed within the required time limit prescribed under Chinese law. Accordingly, the appropriation of CNFTC’s payment to Marships could be regarded as property subject to enforcement.
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