CMA-CGM MARSEILLE V PETRO BROKER INTERNATIONAL

[2011] EWCA Civ 461, Court of Appeal, Lord Justice Laws, Lord Justice Jackson and Lord Justice Tomlinson, 19 April 2011

Arbitration - Enforcement of award - Injunction to prevent enforcement - Payment into court - Injunction withdrawn - Whether payment into court should be returned - Arbitration Act 1996, sections 44 and 66 - CPR 3.1(6A)

Petroval supplied bunker fuel to CMA under a contract which provided for no set-off of claims and also provided for London arbitration. Petroval commenced arbitration proceedings against CMA, and the arbitrators made two awards in favour of Petroval even though CMA had asserted counterclaims under other contracts: the arbitrators relied upon the "no set-off" clause to reach this conclusion. CMA provided guarantees by way of security for the awards, but its challenges to the awards in the English courts were rejected. CMA then obtained a freezing injunction under section 44 of the Arbitration Act 1996 restraining Petroval from calling in the guarantees, although the court required CMA to pay into court the sums awarded. Subsequently CMA withdrew its application for an injunction and applied to have the sum paid into court released. Hamblen J ordered the release, and at the same time gave judgment for Petroval in the terms of the award under section 66 of the 1996 Act. Petroval appealed against the discharge of the security.