Liquidated Damages for Late/Non-Compliance with an Arbitration Award - Dealing with the Prohibition of Riba under Shari'ah in Awarding Post-Award Interest in International Arbitration
-
-
S. Jafari Nodoushan
-
-
E. Jahangard
Published 19 March 2021
Abstract
This article discusses the impact of the prohibition of Riba (interest) under Shari'ah on the ability of dispute settlement body (in particular an arbitral tribunal) to award post-award interest and on the enforcement of such awards in those Islamic countries that their legal systems are strongly influenced by principles of Shari'ah. It argues that this problem can be solved by issuing an award on specific performance combined with an award on liquidated damages for late/non- compliance with the arbitration award. In such circumstances, it is highly recommended that parties agree on such damages in advance. This approach secures the claimant's right to a reasonable interest on damages and provides leverage for voluntary compliance with an arbitration award.
This paper will be part of the TDM Special Issue on "Islamic Finance and Dispute Resolution". More information here www.transnational-dispute-management.com/news.asp?key=1832
To read this article you need to be a subscriber
Subscribe
Fill in the registration form and answer a few simple questions to receive a quote.
Subscribe now
Suggested Citation
S. Jafari Nodoushan; E. Jahangard (2021, forthcoming) "Liquidated Damages for Late/Non-Compliance with an Arbitration Award - Dealing with the Prohibition of Riba under Shari'ah in Awarding Post-Award Interest in International Arbitration"
(TDM, ISSN 1875-4120) March 2021, www.transnational-dispute-management.com
Other recently published material:
The Validity of Arbitral Awards and the Public Policy Nature of International Sanctions
11 March 2024
Now available "Climate Change Arbitration: Using the Energy Charter Treaty to Enforce the New European Green Deal" - TDM 1 (2024)
8 March 2024
Now available "Different Paths to the Same Goal? The Potential of BITs and FTAs for Achieving Climate Objectives" - TDM 1 (2024)
19 February 2024
How China's Anti-Foreign Sanctions Law Affects International Arbitration Proceedings in China
19 February 2024
La "Sede Ciudad de México" en el arbitraje comercial internacional bajo el contexto de la relocalización cercana en México. Consideraciones en base a un precedente judicial reciente
15 February 2024
Complete listing of Advance publication.