China Nanhai Oil Joint Service Corporation, Shenzhen Branch v. Gee Tai Holdings

[1994] 20 Y.B. Comm. Arb. 671, 2 H.K.L.R. 215 (1995)

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China Nanhai Oil Joint Service Corporation, Shenzhen Branch v. Gee Tai Holdings

Hong Kong High Court
[1994] 20 Y.B. Comm. Arb. 671, 2 H.K.L.R. 215 (1995)

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Facts

China Nanhai Oil Joint Service Corporation, Shenzhen Branch (Nanhai) (plaintiff) and Gee Tai Holdings (Gee Tai) (defendant) entered into a contract that called for disputes to be arbitrated in Beijing under the rules of China International Economic and Trade Arbitration Commission (CIETAC). A dispute arose, and Nanhai initiated arbitration proceedings before CIETAC in Shenzhen. The list of CIETAC arbitrators approved for Beijing arbitrations was different from the list of arbitrators approved for Shenzhen arbitrations. Gee Tai’s attorney informally alerted one of the officials that the arbitration should be held in Beijing according to the arbitration agreement. The official stated that he thought the Shenzhen panel had jurisdiction. Gee Tai did not make any formal objection or submissions regarding the Shenzhen panel’s lack of jurisdiction during the proceedings, and Gee Tai participated in the arbitration for approximately two years. The arbitral panel in Shenzhen issued an award in favor of Nanhai, and Nanhai sought to have the award enforced in Hong Kong. Gee Tai argued against enforcement on the ground that the arbitral panel in Shenzhen did not have jurisdiction over the dispute.

Rule of Law

Issue

Holding and Reasoning (Kaplan, J.)

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