Abstract

The author examines the problematic issues in regard to the impact insolvency proceedings can have on the resolution of the dispute in arbitration. The case practice shows that there are two possible scenarios. Either the arbitration proceedings shall be stayed until the insolvency procedures are terminated, or arbitration proceedings can continue despite the introduction of insolvency procedures against one of the parties. The reasons and consequences of both decisions are described in the article. For the sake of complicity, the author also examines insolvency legislation of England and France, as two major arbitration jurisdictions, to provide an answer to the question how this problem is decided in other countries.