Scope of Section 72 of the Arbitration Act 1996

Summary

On 11 October 2010 in Broda Agro Trade (Cyprus) Limited v Alfred C. Toepfer International GmbH  the Court of Appeal gave a judgment interpreting section 72 of the Arbitration Act 1996  (the "Act"). When a person considers that he is not bound by an arbitration agreement and as a result refuses to participate in the arbitration proceedings, section 72 offers him the right to seek a declaration from the courts that the arbitrators had no jurisdiction. That right is not subject to the 28-day time limit applicable to normal challenge applications under section 67. In this judgment, the Court made it clear that the scope of section 72 was limited and only available to parties who have not taken any part in the arbitral proceedings, whether by way of a challenge to the arbitrators' jurisdiction or in relation to the merits of the case.