Jurisdiction of the Arbitral Tribunal in International Arbitration Proceedings

Facts

The [X.] A.S., a Turkish stock corporation, and the [Y. GmbH] , a German company, concluded a contract on July 3, 2003, for the modernization of a sulfuric acid plant. The contract contained an arbitration clause, which provided that all disputes arising from the contract would be decided by an arbitral tribunal in accordance with the Rules of Arbitration of the International Chamber of Commerce in Paris.

The [Y. GmbH] initiated arbitration proceedings and requested that the [X.] A.S. be ordered not to claim against Bank [A.] under the bank guarantee. The [X.] A.S. filed an appeal against the partial award of the arbitral tribunal, which had ordered it not to claim against the guarantee in excess of EUR 1'000'000.--.

The [X.] A.S. argued that the arbitral tribunal lacked jurisdiction, as the dispute concerned the legal relationship between the [X.] A.S. and Bank [A.] . The [Y. GmbH] argued that the arbitral tribunal had jurisdiction, as the dispute arose from the contract of July 3, 2003.

Considerations

The FSCA examined the jurisdiction of the arbitral tribunal and concluded that the arbitral tribunal had jurisdiction, as the dispute arose from the contract of July 3, 2003. The FSCA found that the arbitration clause in the contract was comprehensive and covered all disputes arising from the contract.

The FSCA also rejected the complaint of the [X.] A.S. that the arbitral tribunal had violated the grounds for appeal under Art. 190 para. 2 lit. b IPRG by wrongly declaring itself competent. The FSCA found that the respondent derived its claims from the…