Module: | MODULE A: INTERNATIONAL BANKING
Q223: Consider the following statements regarding dispute resolution mechanisms available to entities in the smart city:
Statement 1: To ensure swift and globally recognized dispute resolution, an International Arbitration Centre has been established within the smart city to specifically handle complex commercial and financial disputes between offshore entities.
Statement 2: Rulings and arbitral awards issued by the International Arbitration Centre are strictly advisory in nature and must be fully retried and ratified by the domestic Supreme Court before they can be enforced against foreign entities.
Statement 2: Rulings and arbitral awards issued by the International Arbitration Centre are strictly advisory in nature and must be fully retried and ratified by the domestic Supreme Court before they can be enforced against foreign entities.
✅ Correct Answer: A
A critical pillar of any successful international financial centre is the legal certainty and enforcement speed provided to foreign investors.
Statement 1 is correct.
The smart city legally hosts an International Arbitration Centre specifically designed to provide a neutral, highly efficient, and globally benchmarked forum for resolving cross-border commercial and financial disputes without burdening the traditional domestic court system.
Statement 2 is incorrect.
The rulings and arbitral awards issued by the International Arbitration Centre are absolutely not advisory.
Under the domestic Arbitration and Conciliation Act and international treaties such as the New York Convention, these awards are legally binding and are directly enforceable in participating jurisdictions globally, completely without the need for a full retrial by the domestic Supreme Court.
Statement 1 is correct.
The smart city legally hosts an International Arbitration Centre specifically designed to provide a neutral, highly efficient, and globally benchmarked forum for resolving cross-border commercial and financial disputes without burdening the traditional domestic court system.
Statement 2 is incorrect.
The rulings and arbitral awards issued by the International Arbitration Centre are absolutely not advisory.
Under the domestic Arbitration and Conciliation Act and international treaties such as the New York Convention, these awards are legally binding and are directly enforceable in participating jurisdictions globally, completely without the need for a full retrial by the domestic Supreme Court.