Hong Kong Ordinances

ARBITRATION ORDINANCE - SECT 2GE

Delay in prosecuting claims

(1) There is an implied term in every arbitration agreement that a party who
has a claim under the agreement will prosecute the claim without delay if the
claim relates to a dispute that is capable of settlement by arbitration. This
subsection is subject to any express term in the agreement to the contrary.

(2) In arbitration proceedings before an arbitral tribunal, the tribunal may
make an order-

   (a)  dismissing a party's claim; and

   (b)  prohibiting the party from commencing further arbitration proceedings
        in respect of the claim, if satisfied that the party or the party's
        adviser has unreasonably delayed in bringing or prosecuting the claim.

(3) Such an order may be made either on the initiative of the
arbitral tribunal or on the application of another party to the arbitration
proceedings before the tribunal.

(4) For the purposes of subsection (2), delay is unreasonable if-

   (a)  it gives rise, or is likely to give rise, to a substantial risk that
        the issues in the claim will not be resolved fairly; or

   (b)  it has caused, or is likely to cause, serious prejudice to the other
        parties to the arbitration proceedings.

(5) 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)