Insolvency law contains summary processes for dealing with
claims and protections against certain proceedings commencing or
continuing. There has been some debate, and recent case law,
concerning the primacy of these rules over agreements to arbitrate.
In the following article, we look at what the current position is
under English law and beyond.
General position under English law
Arbitration agreements, or the authority of validly appointed
arbitrators, are not discharged by insolvency. However, when
arbitrating with an insolvent entity, there may be issues of
capacity or practical problems with enforcing an award, as well as
issues with proceedings being stayed by statute.
Office-holders acting in the various forms of insolvency
proceeding can generally bring arbitration proceedings under their
statutory powers.
