Natural Justice in International Commercial Arbitration: TCL Air Conditioner (Zhongshan) Co Ltd v Castel Electronics Pty Ltd

• Author: Tanya Shankar
• Position: LLB(Hons) (S.Aust.), Graduate Diploma of Legal Practice (Coll.Law)
• Pages: 113-122

NATURAL JUSTICE IN INTERNATIONAL

COMMERCIAL ARBITRATION:

TCL AIR

CONDITIONER (ZHONGSHAN) CO LTD V CASTEL

ELECTRONICS PTY LTD

TANYA SHANKAR*

International Commercial Arbitration is increasingly becoming

the preferred means by which contractual parties whose

relationship is transnational in nature choose to have their

disputes resolved. The Australian judiciary has confirmed its

minimal role in the arbitral process in the case of

TCL Air

Conditioner (Zhongshan) Co Ltd v Castel Electronics Pty Ltd

(2014)

232 FCR 361. The court for the first time in Australia

addressed how a party may succeed in having an arbitral award

being refused enforceability or set aside on the basis of a denial

of Natural justice in the proceeding. This case note

comprehensively reviews the decision and tracks its judicial

reception and impact on the judicial landscape in Australia.

CONTENTS

I

Introduction ..................................................................................................

113

II

Factual Background .....................................................................................

114

III

Appeal Grounds ...........................................................................................

116

IV

Legal Principles and Factual Application .................................................

116

V

Judicial Reception ........................................................................................

119

VI

Conclusion ....................................................................................................

121

I INTRODUCTION

The growth of International Commercial Arbitration currently spreading

across Australia is not to be understated. Recent legislative amendments,1

* LLB(Hons) (S.Aust.), Graduate Diploma of Legal Practice (Coll.Law). The author is an admitted

Barrister and Solicitor to the Supreme Court of South Australia and is currently undertaking the

White & Case International Arbitration LLM at the University of Miami.

1 The

International Arbitration Act 1974

(Cth) was amended on 6 July 2010 to give effect to the

changes made to the

United Nations Commission on International Trade Law Model Law on

International Commercial Arbitration

in 2006.