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Court refuses to set aside arbitral award and enforces it.
The applicants sought an order under s. 46 of the Arbitration Act, 1991 setting aside an arbitral award.
They argued that the arbitral tribunal exceeded its jurisdiction by determining whether a professional services agreement had been terminated for cause and that the tribunal breached procedural fairness by failing to address a claim raised in a counter-complaint.
The court held that the tribunal had already determined its jurisdiction in a prior award that was not appealed and that the applicants had waived any objection by participating in the arbitration on that basis.
The court further found the tribunal’s reasons intelligible and sufficient, rejecting the allegation of a breach of natural justice.
The application to set aside the award was dismissed and the related application to recognize and enforce the award was granted.
Leave to appeal denied; third party claims against directors and officers personally allowed to proceed.
The third parties, who were directors and officers of the plaintiff company, sought leave to appeal an interlocutory order refusing to strike out third party claims brought against them personally by the defendant auditors.
The defendants had been sued for negligence in performing audits and sought contribution and indemnity from the third parties for their alleged tortious personal conduct.
The Divisional Court dismissed the motion for leave, finding no conflicting decisions and no good reason to doubt the correctness of the motions judge's decision, as the pleadings properly founded a reasonable cause of action against the third parties.
