The Federal Government of Nigeria has won the legal case against Process & Industrial Developments (P&ID) Limited in a London court on Monday.
Justice Robin Knowles of the Commercial Courts of England and Wales has ruled in favor of Nigeria regarding the enforcement of an $11 billion arbitration award against the country, initially awarded to Process & Industrial Developments Limited (P&ID).
The judgment, delivered both physically in open court and electronically via email to the concerned parties on Monday, signifies Nigeria’s successful effort to prevent the enforcement of the award that was originally in favor of P&ID.
According to the judge, the award against Nigeria by the company was obtained by fraud. “In the circumstances and for 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,” Justice Knowles ruled.
In January 2017, a private arbitration tribunal ordered Nigeria to pay $6.6 billion to P&ID, with interest dating back to May 2013. Prior to the verdict, the interest, fixed at seven percent (equating to $1 million daily), had accrued to over $11 billion.
Nigeria subsequently appealed against the enforcement of the award, and the court granted the country’s request in September 2020. Nigeria’s argument was based on substantial evidence that the contract and the arbitration award were obtained through fraudulent means. The country also pointed out that individuals involved in the case were facing charges related to money laundering and corruption.
In his ruling, the judge not only agreed that the arbitration awards were obtained by fraud but also that they were procured was contrary to public policy. He said, “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. 576. Section 68 (3) provides: “(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, for reconsideration,
“(b) set the award aside in whole or in part, or
“(c) declare the award to be of no effect, in 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 judgment 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 judgment. I respect that request and will hear that argument as soon as that can be arranged.” More to follow…
