ERDENET MINING CORPORATION LLC V ICBC STANDARD BANK PLC AND OTHERS

[2017] EWHC 1090 (Comm), Queen's Bench Division, Commercial Court, Sir Jeremy Cooke, 12 May 2017

Arbitration - Appeal against award - Lack of jurisdiction - Conditions for order for grant of security - Arbitration Act 1996, sections 7, 67, 68 and 70(7)

EMC entered into two guarantees of facilities granted by Standard to Just Group. They were signed by Mr Ganzorig on behalf of EMC. Each contained an arbitration clause specifying LCIA arbitration. Standard commenced two arbitrations, and they were held concurrently. The tribunals awarded to Standard a total of some US$51 million plus interest to be determined. EMC appealed against the awards under sections 67 and 68 of the Arbitration Act 1996, arguing that the signatures were forged and that in any event Mr Ganzorig had no authority to sign the guarantees. Standard applied for security for the sum awarded as a condition of the appeals being allowed to go ahead.