Recognition and enforcement of foreign arbitral awards set aside in the country of origin

1958 New York Convention on Recognition and Enforcement of Foreign Arbitral Awards which contains provisions regulating the recognition and enforcement of foreign arbitral awards has been ratified by many countries around the world. Article V of the Convention lists grounds in which regocnition and enforcement of the award "may be" refused. As for constituting the main objective of our study, Article V(1)(e) of the Convention states that recognition and enforcement of the award may be refused, only if the party furnishes to the competent authority where the recognition and enforcerment is so sought, proof that the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, the award was made. Additionally, Article VII of the Convention forms the other basis of the arguments regarding whether awards thats have been set aside in the country of origin are capable of being recognised and enforced by the courts of another State. Article V(1)(e) and Article VII were interpreted differrently by different State courts which led to conflicting decisions. Hence, some State courts are in the opinion that annulled awards could be recognised and enforced and some came into the conclusion that recognition and enforcement of annulled awards should be refused for various reasons that will be throughly anaylsed in the following chapters of our study. Therefore, the main focus of this study is to discuss this contentious matter and to propose various solutions in preventing conflicting judgments to be given by different State courts. v Our study is comprised of three parts. The first part contains general information on recognition and enforcement of foreign arbitral awards. In this context, a detailed analysis of the Turkish law regulating recognition and enforcement of foreign awards and the ratified international agreements have been laid down. Subsequently, the second part of our study focuses on finding an answer to the question whether set aside awards could be recognised and enforced under the 1958 New York Convention. In this context, a detailed analysis was made taking into account different views in the doctrine as well as international agreements, regulations and foreign court decisions. The third and last part of our study lays down different solution proposals to avoid the controversy created by the different interpretations of Article V(1)(e) and Article VII of the New York Convention. Key words: Foreign arbitral awards, recognition, enforcement, set aside, New York Convention.