Nanjing Maritime Court recognizes, enforces UK arbitral award in landmark case

Nanjing Maritime Court. [Photo provided to chinadaily.com.cn]

A case handled by Nanjing Maritime Court has been included in the Annotated Typical Cases Concerning Application of the New York Convention from Chinese Courts (Chinese-English Edition), which was compiled by the Fourth Civil Division of the Supreme People's Court (SPC) of China.

The book includes 43 typical cases selected from courts across the country that apply the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention).

In the case handled by Nanjing Maritime Court, the court ruled in favor of Sanyi Haimao Co in its application to recognize and enforce a United Kingdom arbitration award under the New York Convention.

The case centered around a dispute stemming from a ship sale contract in 2018, governed by English law, between Sanyi and three sellers. The sellers involved two Chinese companies and one based in Singapore. The contract stipulated arbitration under the London Maritime Arbitrators Association (LMAA).

In 2019, disputes arose over the vessel's delivery conditions, leading to arbitration in the London Court of International Arbitration. The court ruled on July 18, 2022 in favor of Sanyi, awarding it $12.13 million and an additional $3.25 million plus interest from the sellers.

In July 2024, Sanyi applied to the Nanjing Maritime Court to recognize and enforce the award against the two Chinese companies. The Chinese companies argued that another entity in Singapore should also be included due to the joint liability established by the arbitration award. However, the court ruled on Aug 22, 2025, that Sanyi could only pursue enforcement against the two Chinese entities, as the New York Convention does not mandate the inclusion of all debtors in such applications.

Professor Song Lianbin from China University of Political Science and Law praised the ruling, noting it underscores China's commitment to the New York Convention and clarifies legal issues regarding multi-debtor enforcement.

The court's ruling facilitates the practical applicability and certainty of the New York Convention, supporting arbitration's pro-enforcement bias by allowing selective enforcement against debtors within its jurisdiction, Song said.