In Altain Khuder, which concerned the enforcement of an arbitral award from Mongolia, it was alleged that the award was made against a party who was not party to the arbitration agreement (see Legal update, Victorian Supreme Court enforces Mongolian award and clarifies the court's role in determining parties). The decision of the Victorian Supreme Court dealt with the proper approach to be taken to the enforcement of arbitral awards, both in a procedural context and as regards the scope of arguments that can properly be raised before the enforcing court. In a subsequent costs decision, the action of opposing enforcement resulted in an indemnity costs order.

The Court of Appeal division of the Supreme Court has heard the arguments and a decision is expected shortly. Whatever the outcome, the decision is likely to provide significant guidance on the proper approach to be taken by Australian courts in the enforcement of arbitral awards.