The New York Convention

The first case to reach the Supreme Court on the interpretation of the New York Convention, Dallah Real Estate and Tourism Holding Co v The Ministry of Religious Affairs, Government of Pakistan [2010] UKSC 46, has resolved important questions on the extent to which a ruling by an arbitration tribunal on its own jurisdiction is to be given effect in England where that ruling has been contested in England at the enforcement stage. The leading judgments in the Supreme Court, delivered by Lords Mance and Collins, clearly establish the principles applicable in those circumstances, more or less in the terms laid down by Aikens J and the Court of Appeal. The outcome is that in both domestic and enforcement cases, the English court will assert the final say in a full hearing on the jurisdiction of the arbitrators.

Dallah: the background

Dallah was a member of a Saudi Arabian group of companies which provided services to Muslims, including accommodation, transportation and medical facilities for pilgrims visiting Mecca. The Pakistani Ministry of Religious Affairs was a part of the Government of Pakistan and had responsibility for ensuring the welfare and safety of pilgrims in pilgrimages beyond Pakistan. On 24 July 1995 Dallah entered into a memorandum of understanding with the Pakistani Government, through MORA. The effect of the agreement was that Dallah would acquire land in Mecca for the construction of housing facilities for Pakistani pilgrims, and that the houses would be leased for 99 years to the Government of Pakistan. Financing issues were at that point not resolved. On 18 November 1995 Dallah acquired some 43,000 sq m of land in Mecca for the purpose of implementing the agreement.