Principle

No. XIV.3.7 - No suspension in case of bankruptcy of a party

Arbitration proceedings are not suspended if one of the parties goes bankrupt.

Commentary

The Principle is based on the fact that the insolvency administrator is bound by the arbitration agreement concluded by the debtor prior to the insolvency and that the arbitration proceedings which are pending at the moment when the insolvency occurs under the applicable insolvency law may continue despite the insolvency.

Please cite as: "Commentary to Trans-Lex Principle XIV.3.7 - No suspension in case of bankruptcy of a party, https://www.trans-lex.org/970000"

References

Doctrine

Ancel, Pascal, Arbitrage et procedures collectives, Rev.d.Arb. 1983, at 255 et seq.

Derains, Yves, note to ICC Award No. 6057, Clunet 1993, at 1017 et seq.

Derains, Yves, note to ICC Award No. 7205, Clunet 1995, at 1035 et seq.

Jarvin, Sigvard, note to ICC Award No. 4415, Clunet 1984, at 956 et seq.

Mantilla-Serrano, Fernando, International Arbitration and Insolvency Proceedings, Arb.Int'l 1995, at 51 et seq.

Raeschke-Kessler, Hilmar/ Berger, Klaus Peter/ Lehne, Hans K., Recht und Praxis des Schiedsverfahrens., 2nd ed., Cologne 1995

Arbitral Awards

ICC Award No. 2139, YCA 1978, at 220 et seq. (also published in: Clunet 1975, at 929 et seq.).

ICC Award No. 4415, Clunet 1984, at 952 et seq.

ICC Award No. 6057, Clunet 1993, at 1016 et seq.

ICC Award No. 7205, Clunet 1995, at 1031 et seq.