The Fate of the Award Annulled in the Country of the Seat

The topic of the fate of the award annulled in the legal order of the seat has always been at the center of fervent debates. Once annulled, does the award cease to exist? Is it correct to speak about the extraterritorial and erga omnes effects of the judgment of the courts of the seat annulling the award? Scholars and national courts have tried to give an answer to these questions finding a possible solution in the framework of the New York Convention. However, it is doubtful whether the New York Convention addresses this issue. This article aims at exploring in a critical manner the different theoretical views on the fate of the award annulled in the country of origin, also taking into account case law of national courts on the topic. Three theoretical theses are analyzed and compared. A first thesis affirms that (i) an award annulled in the country of the seat cannot be enforced anywhere else, a second that (ii) the courts of the enforcement States have discretion in deciding whether to grant recognition and enforcement to a foreign award and a third that (iii) the annulment of an award in the State does not constitute a ground to refuse the enforcement of the award.