| March 19th was a significant date on Hong Kong’s arbitration calendar this year as the Indian government decided to officially recognise China and Hong Kong as jurisdictions to which the New York Convention would apply. Now that China, Hong Kong and Macau have been gazetted as convention jurisdictions, arbitration awards obtained in China, Hong Kong and Macau may now be enforced in India (under the Convention.)
The gazettal is important for various reasons, many of which were highlighted at an engaging Indian Roundtable Event hosted by the Hong Kong International Arbitration Centre (HKIAC) on 20 August 2012. Kumar Ramanathan, Chairman of the Hong Kong Bar Association, Chiann Bao, Secretary General of the HKIAC and Sheila Ahuja, associate at Allen & Overy discussed the merits of the decision and how it would impact upon the Hong Kong landscape. Historically, London, Paris and Singapore have been the seats of choice for many Indian parties, because of their independence and neutrality. Perceived prejudice (now and in the past) against Hong Kong has been rooted in the misconceived notion that Hong Kong did not retain its judicial independence following the Handover in 1997. The fact that Hong Kong’s legal system is steeped in common law heritage, remains transparent and boasts a pool of legal experts are points which (it is hoped) will come to the fore, post- gazettal, according to Ahuja and Bao. This in turn should torpedo the widely held view that Hong Kong’s judicial enforcement regime is infused with or somehow subordinate to China’s, encourage many Indian parties to leave their comfort zone and ultimately “change the status quo,” according to Ahuja. Given that the new gazettal has only been in place for a few months, the reality of what will happen in terms of trends and numbers, and whether or not Indian parties will look to Hong Kong as a seat of choice remains to be seen. |
