The Commercial Courts of England and Wales, today upheld the prayer of Nigeria and quashed the $11 billion arbitration award in favour of Process & Industrial Developments (P&ID) Limited, on the ground that the ill-fated gas processing contract was obtained by fraud.
Knowles said: “In the circumstances and the reasons I have sought to describe and explain, Nigeria succeeds on its challenge under section 68. I have not accepted all of Nigeria’s allegations. But the awards were obtained by fraud and the awards were and the way in which they were procured was contrary to public policy.
“What happened in this case is very serious indeed, and it is important that Section 68 has been available to maintain the rule of law.
Citing Section 68 (3), Judge Knowles said: “ ‘(3) If there is shown to be serious irregularity affecting the tribunal, the proceedings or the award, the court may – (a) remit the award to the tribunal, in whole or in part, or (c) declare the award to be of no effect, in the whole or in part. The court shall not exercise its power to set aside or to declare an award to be of no effect, in whole or in part, unless it is satisfied that it would be inappropriate to remit the matters in question to the tribunal for reconsideration.’
“I was asked by Lord Wolfson KC in closing that should my judgement conclude in favour of Nigeria, as it does, to leave over the question of the order the court should make so that the parties have the opportunity to present argument once they have considered the judgement. I respect and will hear that argument as soon as that can be arranged.”