TCL Air Conditioner (Zhongshan) Co Ltd v The Judges Of The Federal Court Of Australia [2013] HCA 5

The High Court today has unanimously dismissed an appeal in the case of TCL Air Conditioner (Zhongshan) Co Ltd v The Judges Of The Federal Court Of Australia [2013] HCA 5.

TCL Air Conditioner (Zhongshan) Co Ltd (TCL) entered into a written distribution agreement with Castel Electronics Pty Ltd (Castel). The agreement provided for the submission of disputes to arbitration. Following an arbitration, awards were made which required TCL to pay Castel a sum of money. 

In default of payment, Castel applied to the Federal Court for enforcement of the awards in accordance with Article 35 of the UNCITRAL Model Law on International Commercial Arbitration.

In separate proceedings instituted in the High Court, TCL applied for a constitutional writ restraining the judges of the Federal Court from enforcing the awards, and for an order quashing decisions of that Court in relation to the awards.

Under the UNCITRAL Model Law on International Commercial Arbitration, the Federal Court has no power to refuse to enforce an arbitral award on the ground that an error of law is apparent on the face of the award. TCL argued that consequently, the jurisdiction conferred on the Federal Court under the Act requires that Court to act in a manner which substantially impairs its institutional integrity. The High Court unanimously dismissed the application.

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