Arbitration Act, 1965 (Act No. 42 of 1965)Effect of Arbitration Agreements5. Insolvency or winding-up of a party to an arbitration agreement |
| (1) | Unless the agreement otherwise provides, an arbitration agreement or any appointment of an arbitrator or umpire thereunder shall not be terminated by the sequestration of the estate of any party thereto, or, if such party be a corporate body, by the winding-up of the corporate body or the placing of the corporate body under judicial management. |
| (2) | If the estate of any party to an arbitration agreement is sequestrated or if, in the case of a corporate body which is a party to such an agreement, a petition for the winding-up of the corporate body or for placing the corporate body under judicial management is presented or an order for winding-up the corporate body or for placing the corporate body under judicial management is made, the provisions of any law relating to the sequestration of insolvent estates or, as the case may be, any law relating to the winding-up or judicial management of the corporate body concerned, shall apply in the same manner as if a reference of a dispute to arbitration under the arbitration agreement were an action or proceeding or civil proceedings or legal proceedings or civil legal proceedings within the meaning of any such law. |
| (3) | For the purposes of the application of the laws referred to in subsection (2)— |
| (a) | a reference of a dispute to arbitration shall be deemed to be an action or proceeding or civil proceedings or legal proceedings or civil legal proceedings by or against any person or corporate body instituted or pending in any court of law having jurisdiction if any party to the dispute has served on the other party or parties thereto a written notice requiring him or them to appoint or to agree to the appointment of an arbitrator, or, where the arbitrator is named or designated in the arbitration agreement, requiring the dispute to be referred to the arbitrator so named or designated; and |
| (b) | a reference of a dispute to arbitration shall be deemed to be an action or proceeding which is being or is about to be instituted against a corporate body, if any party to the dispute is taking steps to serve or is about to serve on the corporate body a written notice such as is referred to in paragraph (a). |
| (4) | Any period of time fixed by or under this Act which is interrupted by any stay, suspension or restraint resulting from the application of any law referred to in subsection (2), shall be extended by a period equal to the period of such interruption. |