Home » Myanmar Publications » VDB Loi Litigation Team Bags Historic Win: First Myanmar Court Enforcement of Foreign Verdict in Major Arbitration Case
VDB Loi Litigation Team Bags Historic Win: First Myanmar Court Enforcement of Foreign Verdict in Major Arbitration Case

VDB Loi Litigation Team Bags Historic Win: First Myanmar Court Enforcement of Foreign Verdict in Major Arbitration Case

May 25, 2021

Recently a district court in Myanmar has granted an execution order to approve enforcement of a foreign court judgment against defendants in Myanmar. The case concerns a complex foreign arbitration on an infrastructure project which has dragged on for many years. After a foreign party won the foreign arbitration proceeding, the Myanmar defendant refused to comply with the foreign arbitration award. VDB Loi has acted on behalf of the foreign plaintiff to obtain this decision after working on the case for almost 3 years. This is the first successful case for recognition and enforcement of a foreign judgment in the history of (post-colonial) Myanmar

Enforcement of foreign court judgments in Myanmar has been in theory only. Myanmar has been a member of the New York Convention for recognition and enforcement of foreign arbitral award, and the Arbitration Law 2016 also provides legal basis for recognition and enforcement of foreign arbitral in Myanmar. However, due to the past history, lack of precedent and experience of court, in practice we have seen few cases for enforcement for foreign arbitral award, not even mention enforcement of foreign court judgement. The enforcement of foreign court judgement is more challenging than enforcing a foreign arbitral award, because the Myanmar court will not be bound by international treaty like the New York Convention or the Arbitration Law when looking into such case, and it becomes a matter of decision by the court based purely on the domestic laws.

This precedent is a blow in support of Myanmar courts willing to recognize foreign decisions. Some Myanmar courts and decisions are less accepting of foreign arbitration. We look forward that more precedents could be established to provide guidance for enforcement of foreign arbitral awards and foreign court judgment in the near future.

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AUTHOR

Edwin is the senior partner of VDB Loi and a leading foreign legal advisor living in Myanmar since 2012. A frequent advisor to the Government on transactions and privatizations in energy, transportation and telecom, he is widely recognized for his “vast knowledge” (Legal 500) and his ability “to get difficult things through the bureaucracy ” (Chambers, 2016). He advises international financial institutions on their largest Myanmar transactions, oil and gas supermajors, a greenfield multi- billion US$ telecom project and the Japanese Government on the Thilawa SEZ. He assisted two newly licensed foreign banks setup in Myanmar, acted for the sponsor of an 800MUS$ urban infrastructure PPP project and worked on 6 out of 7 power deals inked in 2016.
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