Parties seeking to challenge arbitral appeal awards (including FOSFA and GAFTA awards) must bring any challenge within 28 days from the date of the appeal award and not the date they receive it, according to recent decision.
Facts: The claimant filed an appeal against an award (“Appeal Award”) issued by a Board of Appeal of the Federation of Oils, Seeds and Fats Association (“FOSFA”). The appeal to the Court was made on a question of law pursuant to Section 69 of the Arbitration Act 1996 (“the Act”). The application was filed within 28 days after the appeal award was released to the parties, but more than 28 days after the date of the Appeal Award itself.
The defendant (who had been successful before the Board of Appeal), sought to strike out the application on the basis that it had been brought out of time. It was accordingly necessary for the Court to determine the correct interpretation of section 70(3) of the Act, which provides as follows: “Any application or appeal must be brought within 28 days of the date of the award or, if there has been any arbitral process of appeal or review, of the date when the applicant or appellant was notified of the result of that process.”
Held: The Court was of the view that, based on authority relating to section 70(2) of the Act (which requires parties to exhaust any arbitral process of appeal or review before making a challenge to the English Courts), the words “arbitral process of appeal or review” had to be construed as encompassing appeals to the FOSFA or GAFTA Board of Appeal. Nonetheless, the Court held that time still ran from the date of the Appeal Award on the basis that the words “if there has been any arbitral process of appeal or review” had to be construed as meaning “if there has been a process of arbitral appeal or review from the award that is the subject of the challenge to the Court”. Accordingly, for challenges to the Court in respect of FOSFA or GAFTA appeal awards, time starts running from the date of the award itself unless either party asks the relevant arbitral institution to review or appeal that award.
JSC Kazan Oil Plant v Aves Trade, DMCC [2025] EWHC 2713(Comm)
