Ruler of Qatar v. International Marine Oil Co. Ltd

Award of June 1953, 20 I.L.R. 534 (1953)

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Ruler of Qatar v. International Marine Oil Co. Ltd

Panel of Arbitration
Award of June 1953, 20 I.L.R. 534 (1953)

Facts

In August 1949, the Shaikh of Qatar (the Ruler) entered an agreement with Sir Hugh Weightman, who was acting on behalf of the Central Mining Investment Corporation, and with Robert Morton Allan Jr., who was acting on behalf of Superior Oil Company. The Ruler subsequently assigned his rights under the agreement to his son, Shaikh Ali Bin Abdulla Al-Thani (Shaikh) (plaintiff). In October 1950, Superior Oil and Central Mining Investment Corporation assigned their rights under the agreement to the International Marine Oil Company (International Marine) (defendant). The agreement between the Shaikh and International Marine allowed International Marine to explore and to drill for oil in the waters claimed by the Ruler of Qatar in June 1949. The agreement between the Shaikh and International Marine contained an arbitration agreement that provided the parties would refer all disputes to arbitration with two arbitrators and a referee chosen by the parties. In 1952, a dispute arose between the parties, and each party nominated an arbitrator. The parties also nominated Sir Alfred Bucknill as the referee. The arbitral tribunal heard the parties’ arguments on certain payments under the contract. The Shaikh argued that the law governing Qatar, Islamic law, governed the contract, while International Marine objected to the application of Islamic law. At the conclusion of those arguments, the arbitral tribunal submitted questions to Sir Bucknill, asking the referee to determine whether Islamic law or the principles of natural justice and equity governed the contract.

Rule of Law

Issue

Holding and Reasoning (Bucknill, J.)

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