CRS: Kuwait Finance House Clears Fabricated Arbitration Award

In a significant legal victory, Charles Russell Speechlys (CRS) has guided Kuwait Finance House (Bahrain) (KFHB) through a complex case in the English High Court involving a disputed arbitration award termed as “a fabrication.” 

KFHB found its bank accounts unexpectedly frozen due to third-party debt orders enforcing the alleged arbitration award, each exceeding £70.6 million, issued by the High Court. However, following a legal challenge by KFHB and other Kuwait Finance House entities, the judge ruled that the supposed arbitration agreement was likely not genuine and deemed the award itself as fabricated. 

Gareth Mills, Partner (pictured), comments on the successful result for KFH Bahrain:  

“The Court has found that a High Court Judgment issued against our client should be set aside as it was obtained under false pretences based on a fictitious set of foreign arbitral proceedings.  

“This is, we believe, a ruling based on a unique set of circumstances. We are delighted to have achieved this excellent result for our client Kuwait Finance House (Bahrain) helping to prevent any further damage to our client’s business and reputation being occasioned by what has found to be a completely fabricated Arbitral Award, said to have been made against it and fellow group companies.”  

The Judge emphasized the exceptional nature of this case, highlighting its uniqueness during the hearing as he was unaware of any similar attempts in court. This underscores the expertise of Charles Russell Speechlys in handling civil fraud matters and underscores the collaborative efforts of their UK and Bahrain offices in managing this complex legal issue.