In Tsavliris Salvage (International) Limited v Grain Board of Iraq [2008] EWHC 612 (Comm), the main question before Gross J was whether an arbitration award could be challenged by a state owned entity on grounds of sovereign immunity.

Although he held that on the facts, the award could not be challenged either on jurisdictional or immunity grounds, the significance of this case lies in his consideration of the authorities to distinguish between a department of the government and a separate entity. The case is also of relevance because of the judge's careful analysis of the test to be applied in determining whether the action of a separate entity related to the exercise of sovereign authority.