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New York Court allows attachment in aid of a foreign arbitration.

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Deepto Roy

The Kluwer Arbitration Blog discusses the decision of the New York Supreme Court, Appellate Division in Sojitz Corp. v. Prithvi Information Solutions Ltd., 2011 N.Y. Slip Op. 1741; 2011 N.Y. App. Div. LEXIS 1709. The case involved a dispute between Sojitz Corp (“Sojitz”), a Japanese Company and Prithvi Information Solutions Ltd., (“Prithvi”), an Indian company. Sojitz and Prithvi had entered into an agreement for supply of Chinese produced telecommunications equipment to India. The contract was governed by English law and provided for arbitration in Singapore.

Sojitz made the necessary supplies under the contract, but received only a part of the payment due to it, with Prithvi citing cash flow problems. Sojitz initiated arbitration and also sought an ex parte order attaching a debt owed to the respondent by a New York-domiciled customer.

The Court held that, pursuant to § 7502(c) of the New York’s Civil Practice Law and Rules, a New York court can allow pre-award attachment of assets located in New York in connection with an arbitration regardless of where it is seated. This power exists even though the Court had no personal jurisdiction over Prithvi.

For the full text of the article see http://kluwerarbitrationblog.com/blog/2011/04/18/new-york-court-grants-pre-award-attachment-in-aid-of-a-foreign-seated-international-arbitration/

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