New York Court Upholds Pre-Award Attachment of Assets in Singapore Arbitration

In Matter of Sojitz Corp. v. Prithvi Information Solutions Ltd., a New York appellate court held that pursuant to New York procedural rules [CPLR 7502(c)], a creditor can attach assets in New York, for security purposes, in anticipation of an award that will be rendered in an arbitration  proceeding in a foreign country, where there is no connection by way of subject matter or personal jurisdiction. (The creditor is a Japanese company, the debtor is an Indian company, the arbitration is subject to English law, the situs of the arbitration is Singapore and the attached asset is an obligation owed to the debtor by an entity domiciled in New York.) While not an issue in this case, it should be noted that CPLR 7502(c) is applicable “…only upon the ground that the award to which the applicant may be entitled may be rendered ineffective without such provisional relief…”.  Furthermore, the arbitration must be commenced within 30 days from the date of attachment.

Matter of Sojitz Corp. v. Prithvi Information Solutions Ltd.