Security for challenges to the award: security and litigation funders

Where a challenge is brought in the English courts to an arbitration award, the court may order the applicant to provide security for the costs of the arbitration (section 70(6) of the Arbitration Act 1996) and may also order the applicant to provide security for the sum awarded (section 70(7) of the 1996 Act).

Progas Energy Ltd and Others v The Islamic Republic of Pakistan [2018] EWHC 209 (Comm) had two features not previously encountered by the courts in security applications: the challenger was funded by commercial funders; and the challenger was the losing claimant in the arbitration so that any order for security for the sum awarded necessarily related only to the costs award in favour of the respondent.