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CRIMINAL MATTERS & FRAUD ARE NOT ARBITRABLE

Dictum

Disputes which are subject of an arbitration agreement must be arbitrable. Matters like criminal matters or where fraud is alleged and raised as a matter of public policy are not to be settled privately by arbitration. See B. J. EXPORT & CHEMICAL CO. LTD v. KADUNA PETRO-CHEMICAL CO. LTD. (Supra).

— H.M. Ogunwumiju, JSC. UBA v Triedent Consulting Ltd. (SC.CV/405/2013, July 07, 2023)

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ARBITRAL PROCEEDINGS LACK THE SOPHISTICATION OF REGULAR COURTS

In Celtel Nigeria BV v. Econet Wireless Limited (2014) LPELR-22430(CA) @ 60 explained, succinctly, the nature of arbitral proceedings before an Arbitration Tribunal as follows: “An Arbitral Tribunal is by nature an informal adjudicatory body lacking the sophistication and technical know-how of Judges of regular Courts. Arbitral Tribunals are also not bogged down in the procedural trappings of regular Courts. Arbitral proceedings are therefore treated with a broad, liberal/open mind leaning on the side of dynamism, commercial sense, latitude and common sense.”

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PARTY CAN APPLY TO COURT TO SET ASIDE AN ARBITRATION AWARD

The provisions simply provide any of the parties to an arbitration award a discretionary right to request, pray for or seek from a Court of law, an order refusing or declining to accord judicial recognition or enforcement of the arbitral award between them. By dint of the provisions, a party to an arbitral agreement is vested with and possesses the unfettered right to approach a Court of law to request that the arbitration award between the parties, should not be recognized and enforced by the Court. The provisions merely provide a right of access to a Court of law for the sole purpose of requesting for or seeking an order that would refuse to recognize and/or enforce an arbitral award the parties thereto, to any one of them.

– Garba, JCA. Dunlop v. Gaslink (2018)

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CONSIDERATIONS OF PUBLIC POLICY IN ARBITRAL PROCEEDINGS

As to public policy, in Cuflet Chartering v. Carousel Shipping Co Ltd [2001] 1 Lloyd’s Re 707 Moore-Bick J (as he then was) said: “Considerations of public policy can never be exhaustively defined, but they should be approached with extreme caution … It has to be shown that there is some illegality or that the enforcement of the award would be clearly injurious to the public good or, possibly, that enforcement would be wholly offensive to the ordinary reasonable and fully informed member of the public on whose behalf the powers of the state are exercised.”

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ARBITRATION PANELS ARE SPECIAL QUASI-JUDICIAL PROCEEDINGS

As a foundation, I would state that Arbitration proceedings are special quasi-judicial proceedings which are specifically provided for, regulated and governed by the Arbitration and Conciliation Act as well as the Arbitration Rules provided for in the schedule to the Act. The proceedings are not the same as the usual judicial proceedings in the determination of disputes which are also governed and regulated by the different Rules of procedure and practice enacted for such Courts.

– Garba, JCA. Dunlop v. Gaslink (2018)

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ISSUE OF JURISDICTION CAN ONLY BE RAISED AT THE ARBITRATION PANEL

The law therefore is that although in the regular Courts, the issue of jurisdiction can be raised at all stages of the proceedings of a case; from the trial to the final appellate, where a statute prescribed the stage at which the issue is to be raised in the course of the proceedings of a case, the issue cannot be validly and properly raised at any other stage other than the one stipulated in the statute. The general principle applies only where there was no statutory provision as to the particular or specific stage of the proceedings of a case at which the issue of jurisdiction is to be raised by a party.

– Garba, JCA. Dunlop v. Gaslink (2018)

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WRONG FACT FINDING CANNOT SET ASIDE AN ARBITRAL AWARD

In arbitration proceedings, the general principle is that facts finding by an Arbitrator is not a ground for setting aside an award on the ground that it is wrong nor on the ground that there is no evidence on which the facts could be found because that would be mere error of law.

– Garba, JCA. Dunlop v. Gaslink (2018)

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