CA-2024-002477 - [2025] EWCA Civ 1054

I need say very little about the parties’ underlying dispute. It arises out of a Deed of Indemnity dated 19^th December 2003 (the ‘2003 Deed of Indemnity’) which was entered into between Mr Eronat, CNPC International (Chad) Ltd (‘CNPC’), Cliveden Petroleum Co Ltd (‘Cliveden’), and a third party, CITIC Energy Inc (‘CITIC’). It was governed by the laws of Hong Kong, but provided for arbitration with an English seat in accordance with the LCIA Rules.

The 2003 Deed of Indemnity was part of a transaction whereby CNPC acquired a 25% share in Cliveden from Mr Eronat, who had previously been its 100% shareholder. Later, in 2006, CNPC acquired what was then Mr Eronat’s remaining 50% stake in Cliveden, together with the 25% stake held by CITIC, with the result that it became the 100% owner of Cliveden.

On 3^rd April 2006 Mr Eronat, CNPC and Cliveden concluded a Deed of Release, governed by English law, releasing Mr Eronat from all claims, liabilities or causes of action arising directly or indirectly from the ownership of shares in Cliveden.

In 2018 a third party (‘Carlton’) brought a claim against CNPC and Cliveden, who sought in turn to be indemnified against that claim pursuant to the 2003 Deed of Indemnity. That gave rise to a dispute between CNPC and Cliveden on the one hand and Mr Eronat on the other whether Carlton’s claim fell within the scope of the indemnity in the 2003 Deed of Indemnity and, if it did, whether it had been released by the 2006 Deed of Release.

On 30^th November 2021 CNPC and Cliveden filed a Request for Arbitration with the LCIA pursuant to the LCIA Rules 2020, claiming to recover from Mr Eronat the US $324 million which had been paid to Carlton under the terms of a settlement concluded between them and Carlton. The claim was made under the 2003 Deed of Indemnity.

The arbitrators found in favour of CNPC and Cliveden, awarding them the US $324 million which had been paid to Carlton together with interest and costs, as well as making various declarations.

The award is dated 11^th April 2024, which was a Thursday, and was signed by the arbitrators on that day. However, it was only sent to the parties by the LCIA Secretariat on the following Tuesday, 16^th April 2024. On 1^st May 2024 Mr Eronat’s then legal representative wrote to the tribunal seeking clarification whether ‘the Tribunal prescribed a period for submitting an Appeal and if so from what period’. The presiding arbitrator replied on the same day, correctly, that ‘it is not appropriate for the Tribunal to provide any guidance to counsel’.

In the event Mr Eronat did not issue his arbitration claim form seeking to appeal against the award until 16^th May 2004, 30 days after receipt of the award, but 35 days after the award was made.