An international commercial arbitration decision annulled by a state court at the place of its issuance in one state is often enforced in another state. An arbitrary interpretation of article 5 of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 allows for the enforcement of cancelled decisions. When interpreting this rule, State courts do not take into account the purpose of this Convention.
The purpose of this study is to interpret the provisions of the 1958 New York Convention regarding the recognition and enforcement of foreign arbitral awards annulled at the place of their rendering.
By means of analysis, synthesis, induction, deduction, generalization as well as by means of formallogical and formal-legal methods, the evaluation of the enforcement of annulled arbitral awards from the point of view of general principles of law was conducted.
The author determined that the recognition and enforcement of foreign arbitral awards annulled by the state court at the place of their issuance violates the principles of legal certainty, lis pendens, res judicata, and also leads to negative consequences for the participants in the arbitration proceedings. Based on the provisions of the New York Convention, it has been revealed that the arbitration award and the acts adopted in relation to the annulled arbitration award form an interconnected structure. The elements of this structure are defined. It is proved that the execution of cancelled arbitral awards contradicts the logic laid down by the New York Convention. It is proposed to eliminate the ambiguous interpretation of the provisions of the Convention on the Enforcement of Foreign Arbitral Awards Annulled at the place of their issuance by establishing at the international legal level a clear provision on the impossibility of enforcement of annulled arbitral awards.
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