Hong Kong Ordinances

ARBITRATION ORDINANCE - SECT 2GD

Power to extend time for arbitration proceedings

(1) This section applies to an arbitration agreement to refer future disputes
to arbitration that provides for a claim to be barred, or for a claimant's
right to be extinguished, unless the claimant, before a time or within a
period fixed by the agreement, takes a step-

   (a)  to commence arbitration proceedings; or

   (b)  to commence some other dispute resolution procedure that must be
        exhausted before arbitration proceedings can be commenced.

(2) On the application of a party to an arbitration agreement to which this
section applies, an arbitral tribunal may, in accordance with this section,
make an order extending the period for taking a step of the kind referred to
in subsection (1).

(3) An application may be made only after a claim has arisen and after
exhausting any available arbitral procedure for obtaining an extension of
time.

(4) An applicant must give notice of the application to the other parties
within 7 days after making it. Those other parties are entitled to be heard
when the application is determined.

(5) An arbitral tribunal may make an order under this section extending a
period only if it is satisfied that-

   (a)  the circumstances were such as to be outside the reasonable
        contemplation of the parties when they entered into the arbitration 
        agreement, and that it would be just to extend the period; or

   (b)  the conduct of one party makes it unjust to hold the other parties to
        the strict terms of the agreement.

(6) An arbitral tribunal may extend a period for such further period and on
such terms as it thinks fit, and may do so even though the period previously
fixed (whether by agreement or by a previous order) has expired.

(7) This section does not affect the operation of any enactment that limits
the period for commencing arbitration proceedings.

(8) The power conferred on an arbitral tribunal by this section is exercisable
by the Court or a judge of the Court if at the relevant time there is not in
existence an arbitral tribunal that is capable of exercising it. (Added 75 of
1996 s. 7)