Varroc Enforces ICC Arbitration Award Against TYC in British Virgin Islands
In a recent legal victory, Varroc has successfully enforced an arbitration award issued by the International Chamber of Commerce (ICC) in Singapore. This award is the result of disputes arising from TYC’s breaches of the shareholders’ agreement and the articles of association related to their joint ventures, Varroc TYC Auto Lamps Co. Ltd. in Changzhou and Chongqing, China.
Details of the Arbitration Outcome
The arbitration tribunal in Singapore has directed VarrocCorp Holding B.V., based in the Netherlands, to transfer its 50% shareholding in Varroc TYC Corporation, situated in the British Virgin Islands (BVI), to Beste Motors Co. Ltd. The agreed consideration for this transfer is RMB 310.5 million, subject to applicable withholding taxes. This transaction must be completed within 28 days of the award’s enforcement date.
Legal Proceedings in the BVI
Following the ICC’s ruling, Varroc initiated enforcement proceedings in the Eastern Caribbean Supreme Court, also known as the BVI Court. The court has upheld the ICC’s award, facilitating the enforcement of the decision within its jurisdiction. As part of the enforcement proceedings, Varroc has also been granted reimbursement for the related legal costs.
Award Finalization and Impact
The final version of the arbitration award was formally received on April 16, 2025. This enforcement marks a significant step for Varroc in solidifying its interests and addressing the disputes with TYC, emphasizing the importance of arbitration in resolving international business conflicts.
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