Refusing Recognition and Enforcement of Annulled Foreign Arbitral Awards

Recognition and enforcement of annulled foreign arbitral awards has always been one of the most controversial issues in arbitration law in which courts and arbitral experts have expressed different views in this regard. According to the article 5(1)(e) of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (Iran is a party), annulling the award by a competent authority prevents its recognition and enforcement. However, according to some views, the foreign arbitral award shall be recognized and enforced although it is annulled. Nevertheless, the arbitral experts opinions show the possibility of recognition and enforcement of annulled foreign arbitral awards in two cases that are examined in this article: (first) in special cases, by applying the “residual discretionary power” under the top of article 5(1) of the convention; and (second) if there are more favorable law and by applying “More favorable-right provision” under article 7(1) of the convention.