State immunity: effect of New York Convention

In Republic of India v CCDM Holdings LLC [2025] FCAFC 2; [2025] Lloyd's Rep Plus 73 the Full Federal Court of Australia answered a question as yet unresolved in England, namely, whether a state's accession to the New York Convention amounted to an agreement to waive state immunity against recognition and enforcement of an award.

The Full Court proceeded on the basis that there was a waiver in principle, but that the reservation adopted by India whereby its ratification of the New York Convention regarding awards arising out of commercial relationships only meant that there was no waiver of immunity for awards arising out of non-commercial relationships. In the present case the award arose out of a non-commercial relationship and thus there was state immunity precluding its recognition or enforcement in Australia.