Hong Kong Ordinances

ARBITRATION ORDINANCE - SECT 26

Power of Court to give relief where arbitrator is not impartial or the dispute involves question of fraud

(1) Where an agreement between any parties provides that disputes which may
arise in the future between them shall be referred to an arbitrator named or
designated in the agreement, and after a dispute has arisen any party applies,
on the ground that the arbitrator so named or designated is not or may not be
impartial, for leave to revoke the authority of the arbitrator or for an
injunction to restrain any other party or the arbitrator from proceeding with
the arbitration, it shall not be a ground for refusing the application that
the said party at the time when he made the agreement knew, or ought to have
known, that the arbitrator, by reason of his relation towards any other party
to the agreement or of his connection with the subject referred, might not be
capable of impartiality.

(2) Where an agreement between any parties provides that disputes which may
arise in the future between them shall be referred to arbitration, and a
dispute which so arises involves the question whether any such party has been
guilty of fraud, the Court shall, so far as may be necessary to enable that
question to be determined by the Court, have power to order that the agreement
shall cease to have effect and power to give leave to revoke the authority of
any arbitrator or umpire appointed by or by virtue of the agreement.

(3) In any case where by virtue of this section the Court has power to order
that an arbitration agreement shall cease to have effect or to give leave to
revoke the authority of an arbitrator or umpire, the Court may refuse to stay
any action brought in breach of the agreement. [cf. 1950 c. 27 s. 24 U.K.]