Model of arbitration clause will recognise awards

National

The New York Convention 1958, a model of an arbitration clause to be introduced in PNG, will give the country recognition on arbitration awards, a conference has been told.
Koh Swee Yen, a representative of the Wong Partnership LLP, told the international mediation and arbitration conference in Port Moresby yesterday that the document had six articles which upheld international arbitration processes in more than 150 countries dealing which contractual disputes.
An arbitration clause is a clause in a contract that requires aggrieved parties of a contract to resolve their duties in a negotiated process.
Although such clause may or may not specify that arbitration occurs within a specific jurisdiction, it binds parties to a resolution outside court.
The six articles in the document provides jurisdictions to scope of an application, obligation to recognise arbitration agreements and refer parties to arbitration, obligation to recognise international arbitral awards as binding and enforcing them, requirements for formal proof of arbitral awards, grounds for refusing recognition and enforcement of arbitral awards, and procedure during pendency of setting aside application.
Swee-Yen said if an application for a suspension of an award was made to a competent authority, the authority before which the award was sought to be relied upon may adjourn the decision on the on the enforcement of the award.