Corruption in International Arbitration

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  • Topic: Arbitration, Contract, Law
  • Pages : 15 (4689 words )
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  • Published : March 2, 2013
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Authored by: Pavan K Rao Polkampally
For 4th Government Law College
International Law Summit, Mumbai

Authored by: Pavan K Rao Polkampally
For 4th Government Law College
International Law Summit, Mumbai
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Corruption in International Arbitration| |
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Corruption in International Arbitration| |
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Introduction
This paper is the result of the research work done by Pavan K Rao Polkampally studying 1st Yr. of BA.LLB. at Damodaram Sanjivayya National Law University, Vizag for the 4th Government Law College International Law Summit. Corruption in International Arbitration presents an in-brief access to the present Arbitration proceedings related to corruption. It shows us how corruption is dealt in the International Arbitration Arena, the International Laws, if any to deal with it and also its nature. Arbitration, as known has been one of the best forms of ADR ( Alternate Dispute Resolution ). It is basically a tribunal, not necessarily a group of people who gives the award upon the complete hearing of the case which does not take a prolonged period unlike the normal cases in courts. As said by a eminent legal personality “Commercial arbitration must have existed since the dawn of commerce.” Corruption on the other hand is a very rapidly growing menace which has to be tackled mainly in the International Arena. Arbitration relating to corruption comes into action when there are cases of Corruption trans-nationally and which needs speedy disbursal of reward, which involves very big amounts at stake. There have been many a laws and a few treaties to stop the crime of corruption which mainly draws its shape into bribing of foreign federal officials. And in the very recent years only, there has been a growing importance for the need of International Laws that can restrain corruption from growing. There has been attention drawn in from as many as 60 nations regarding the prevention of corruption, which has grown into a significant issue. There has been a growing pool of nations that are willing to fight against this fatal cause and the Organization of African Unity Convention on Combating Corruption which adds to itself a pool of another fifty nations. The UN has also been very firm on this issue and also likely to have the convention resulting in the entire UN members to follow the offsprings of the convention. As of now the cases enforcing the laws has been mainly the American. Also, there has been a very respectable number of prosecutions under the foreign bribery laws of other countries.There has been a separate area of jurisprudence that has also been rapidly developing , that area is called as the International Commercial Arbitration. A few cases of Corruption have been summarized in the attached appendix. Many are not reported or are due to the terms of the confidentiality clause in the arbitration proceedings.This paper has been written based on many inputs taken from the “International Arbitration and Corruption” by A. Timothy Martin.

Growing Standards in Arbitration
There are a number of issue that arise in the Intenational Commercial Arbitration cases dealing with the issue of corruption. There a number of views to deal with corruption cases, but as to the date there has been no end result as to how they have to be dealt. Kompetenz – Kompetenz

There has been many awards challenged in the cases in arbitral Tribunals where the tribunal has to decide in a contract involving the charges of corruption. One of the well-known and the famous case is ICC Case No. 1110 in which the sole arbitrator, Judge Lagergren, has dissolved himself as the arbitrator for the case for not having proper jurisdiction to be followed. That case was subsequently very highlighted on the grounds that the agreement of arbitration was a different and distinct from the contractual relationships of the parties. Other than the above mentioned case, many of...
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