Arbitration Act 1976

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AT 24 of 1976

ARBITRATION ACT 1976

Arbitration Act 1976 Index


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ARBITRATION ACT 1976

Index Section Page

PART I – GENERAL PROVISIONS AS TO ARBITRATION 7

Effect of Arbitration Agreements, etc. 7

1 Authority of arbitrators and umpires to be irrevocable ............................................ 7
2 Death of party .................................................................................................................. 7
3 Bankruptcy....................................................................................................................... 8
4 Staying court proceedings where there is submission to arbitration ...................... 8
5 Staying court proceedings where party proves arbitration agreement .................. 8
6 Reference of interpleader issues to arbitration ........................................................... 9
Arbitrators and Umpires 9

7 When reference is to a single arbitrator ....................................................................... 9
8 Power of parties in certain cases to supply vacancy .................................................. 9
9 Umpires .......................................................................................................................... 10
10 Agreements for reference to three arbitrators .......................................................... 10
11 Power of court in certain cases to appoint an arbitrator or umpire ...................... 11
12 Reference to special referee ......................................................................................... 12
12A Specific powers of arbitrator exercisable by High Court ........................................ 12
Conduct of Proceedings, Witnesses etc. 13

13 Conduct of Proceedings, witnesses, etc ..................................................................... 13
Provisions as to Awards 14

14 Time for making award ............................................................................................... 14
14A Want of prosecution ..................................................................................................... 14
15 Interim awards .............................................................................................................. 15
16 Specific performance .................................................................................................... 15
17 Awards to be final ........................................................................................................ 15
18 Power to correct slips ................................................................................................... 15
Costs, Fees and Interest 16

19 Costs ............................................................................................................................... 16
20 Taxation of arbitrator’s or umpire’s fees ................................................................... 16
20A Power of arbitrator to award interest ........................................................................ 17
21 Interest on awards ........................................................................................................ 17
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Special cases, Remission and Setting aside of Awards, etc. 18

22 Statement of case .......................................................................................................... 18
23 Power to remit award .................................................................................................. 18
24 Removal of arbitrator and setting aside of award ................................................... 18
25 Power of court to give relief where arbitrator is not impartial or the
dispute involves question of fraud ............................................................................ 19
26 Power of court where arbitrator is removed or authority of arbitrator is
revoked .......................................................................................................................... 19
Enforcement of Award 20

27 Enforcement of award ................................................................................................. 20
Miscellaneous 20

28 Power of court to extend time for commencing arbitration proceedings ............ 20
28A Limitation of time for commencing arbitration proceedings ................................. 21
29 Terms as to costs, etc .................................................................................................... 22
30 Government to be bound ............................................................................................ 22
31 Application of Part I to statutory arbitrations .......................................................... 22
PART II – ENFORCEMENT OF CERTAIN FOREIGN AWARDS 22

32 Awards to which Part II applies ................................................................................. 22
33 Effect of foreign awards .............................................................................................. 23
34 Conditions for enforcement of foreign awards ........................................................ 23
35 Evidence......................................................................................................................... 24
36 Meaning of ‘final award’ ............................................................................................. 25
PART III – ENFORCEMENT OF CONVENTION AWARDS 25

37 Replacement of Part II in certain cases ...................................................................... 25
38 Effect of Convention awards ...................................................................................... 25
39 Evidence......................................................................................................................... 25
40 Refusal of enforcement ................................................................................................ 26
PART IV – SUPPLEMENTARY 27

41 Interpretation ................................................................................................................ 27
42 Transitional provisions and savings .......................................................................... 27
43 [Repealed] ...................................................................................................................... 28
44 Short title and commencement ................................................................................... 28
SCHEDULE 1 29

TRANSITIONAL PROVISIONS AND SAVINGS 29
SCHEDULE 2 29

ENDNOTES 31

TABLE OF LEGISLATION HISTORY 31
TABLE OF RENUMBERED PROVISIONS 31
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TABLE OF ENDNOTE REFERENCES 31

Arbitration Act 1976 Section 1


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c i e
ARBITRATION ACT 1976

Received Royal Assent: 27 October 1976
Passed: 21 December 1976
Commenced: See endnotes
AN ACT
to consolidate with amendments the law relating to arbitration, and
for connected purposes.
GENERAL NOTE:
References to a Board of Tynwald are to be construed in accordance
with the Government Departments Act 1987 s 7.
PART I – GENERAL PROVISIONS AS TO ARBITRATION

Effect of Arbitration Agreements, etc.
1 Authority of arbitrators and umpires to be irrevocable

[P1950/27/1]
The authority of an arbitrator or umpire appointed by, or by virtue of, an
arbitration agreement shall, unless a contrary intention is expressed in the
agreement, be irrevocable except by leave of the Court.
2 Death of party

[P1950/27/2]
(1) An arbitration agreement shall not be discharged by the death of any
party thereto, either as respects the deceased or any other party, but shall
in such event be enforceable by or against the personal representative of
the deceased.
(2) The authority of an arbitrator shall not be revoked by the death of any
party by whom he was appointed.
(3) Nothing in this section shall be taken to affect the operation of any
enactment or rule of law by virtue of which any right of action is
extinguished by the death of a person.
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3 Bankruptcy

[P1950/27/3]
(1) Where it is provided by a term in a contract to which a bankrupt is a
party that any differences arising thereout or in connection therewith
shall be referred to arbitration, the said term shall, if the trustee in
bankruptcy adopts the contract, be enforceable by or against him so far
as relates to any such differences.
(2) Where a person who has been adjudged bankrupt had, before the
commencement of the bankruptcy, become a party to an arbitration
agreement, and any matter to which the agreement applies requires to be
determined in connection with or for the purposes of the bankruptcy
proceedings, then, if the case is one to which subsection (1) above does
not apply, any other party to the agreement or the trustee in bankruptcy
may apply to the Court for an order directing that the matter in question
shall be referred to arbitration in accordance with the agreement, and the
Court may, if it is of the opinion that having regard to all the
circumstances of the case, the matter ought to be determined by
arbitration, make in order accordingly.
4 Staying court proceedings where there is submission to arbitration

[P1950/27/4(1)]
Subject to section 5 of this Act, if any party to an arbitration agreement, or any
person claiming through or under him, commences any legal proceedings in the
Court against any other party to the agreement, or any person claiming through
or under him, in respect of any matter agreed to be referred, any party to those
legal proceedings may at any time after appearance, and before delivering any
pleadings or taking any other steps in the proceedings, apply to the Court to
stay the proceedings; and the Court, if satisfied that there is no sufficient reason
why the matter should not be referred in accordance with the agreement, and
that the applicant was, at the time when the proceedings were commenced, and
still remains, ready and willing to do all things necessary to the proper conduct
of the arbitration, may make an order staying the proceedings.
5 Staying court proceedings where party proves arbitration agreement

[P1975/3/1]
(1) If any party to an arbitration agreement to which this section applies, or
any person claiming through or under him, commences any legal
proceedings in the Court against any other party to the agreement, or
any person claiming through him or under him, in respect of any matter
agreed to be referred, any party to the proceedings may at any time after
appearance, and before delivering any pleadings or taking any other
steps in the proceedings, apply to the Court to stay the proceedings; and
the Court, unless satisfied that the arbitration agreement is null and void,
inoperative or incapable of being performed or that there is not in fact
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any dispute between the parties with regard to the matter agreed to be
referred, shall make an order staying the proceedings.
(2) This section applies to any arbitration agreement which is not a domestic
arbitration agreement; and section 4 of this Act shall not apply to an
arbitration agreement to which this section applies.
(3) In this section ‘domestic arbitration agreement’ means an arbitration
agreement which does not provide, expressly or by implication, for
arbitration in a country other than the Island and to which neither —
(a) an individual who is a national of any state other than the United
Kingdom, or who is habitually resident in any country other than
the Island; nor1

(b) a body corporate which is incorporated in, or whose central
management and control is exercised in, any country other than
the Island,
is a party at the time the proceedings are commenced.
(4) In subsection (3), ‘the United Kingdom’ means Great Britain, Northern
Ireland, the Island and the Channel Islands, taken together.2

6 Reference of interpleader issues to arbitration

[P1950/27/5]
Where relief by way of interpleader is granted and it appears to the Court that
the claims in question are matters to which an arbitration agreement, to which
the claimants are parties, applies, the Court may direct the issue between the
claimants to be determined in accordance with the agreement.
Arbitrators and Umpires
7 When reference is to a single arbitrator

[P1950/27/6]
Unless a contrary intention is expressed therein, every arbitration agreement
shall, if no other mode of reference is provided, be deemed to include a
provision that the reference shall be to a single arbitrator.
8 Power of parties in certain cases to supply vacancy

[P1950/27/7]
(1) Subject to subsection (2) below, where an arbitration agreement provides
that the reference shall be to two arbitrators, one to be appointed by each
party, then, unless a contrary intention is expressed therein —
(a) if either of the appointed arbitrators refuses to act, or is incapable
of acting, or dies, the party who appointed him may appoint a
new arbitrator in his place;
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(b) if, on such a reference, one party fails to appoint an arbitrator,
either originally or by way of substitution as aforesaid, for seven
clear days after the other party, having appointed his arbitrator,
has served the party making default with notice to make the
appointment, the party who has appointed an arbitrator may
appoint that arbitrator to act as sole arbitrator in the reference,
and his award shall be binding on both parties as if he had been
appointed by consent.
(2) The Court may set aside any appointment made in pursuance of this
section.
9 Umpires

[P1950/27/8]
(1) Unless a contrary intention is expressed therein, every arbitration
agreement shall, where the reference is to two arbitrators, be deemed to
include a provision that the two arbitrators shall appoint an umpire
immediately after they are themselves appointed.
(2) Unless a contrary intention is expressed therein, every arbitration
agreement shall, where such a provision is applicable to the reference, be
deemed to include a provision that, if the arbitrators have delivered to
any party to the arbitration agreement, or to the umpire, a notice in
writing stating that they cannot agree, the umpire may forthwith enter
on the reference in lieu of the arbitrators.
(3) At any time after the appointment of an umpire, however appointed, the
Court may, on the application of any party to the reference and
notwithstanding anything to the contrary in the arbitration agreement,
order that the umpire shall enter upon the reference in lieu of the
arbitrators and as if he were a sole arbitrator.
10 Agreements for reference to three arbitrators

[P1950/27/9]
(1) Where an arbitration agreement provides that the reference shall be to
three arbitrators, one to be appointed by each party and the third to be
appointed by the two appointed by the parties, the agreement shall have
effect as if it provided for the appointment of an umpire, and not for the
appointment of a third arbitrator, by the two arbitrators appointed by the
parties.
(2) Where an arbitration agreement provides that the reference shall be to
three arbitrators to be appointed otherwise than as mentioned in
subsection (1) above, the award of any two of the arbitrators shall be
binding.
(3) In any case where —
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(a) an arbitration agreement provides that the reference shall be to
three arbitrators, one to be appointed by each party and the third
to be appointed by the two appointed by the parties or in some
other manner specified in the agreement; and
(b) one of the parties (‘the party in default’) refuses to appoint an
arbitrator or does not do so within the time specified in the
agreement or, if no time is specified, within a reasonable time,
the other party to the agreement, having appointed his arbitrator, may
serve the party in default with a written notice to appoint an arbitrator
and, if the appointment is not made within seven clear days after the
service of the notice, the High Court or a judge thereof may, on the
application of the party who gave the notice, appoint an arbitrator on
behalf of the party in default who shall have the like powers to act in the
reference and make an award (and, if the case so requires, the like duty
in relation to the appointment of the third arbitrator) as if he had been
appointed in accordance with the terms of the agreement.3

(4) Except in a case where the arbitration agreement shows that it was
intended that the vacancy should not be supplied, paragraph (b) of
subsection (3) shall be construed as extending to any such refusal or
failure by a person as is there mentioned arising in connection with the
replacement of an arbitrator who was appointed by that person (or in
default of being so appointed, was appointed under that subsection) but
who refuses to act, or is incapable of acting or has died.4

11 Power of court in certain cases to appoint an arbitrator or umpire

[P1950/27/10]
In any of the following cases —
(a) where an arbitration agreement provides that the reference shall
be to a single arbitrator, and all the parties do not, after
differences have arisen, concur in the appointment of an
arbitrator;
(b) if an appointed arbitrator refuses to act, or is incapable of acting,
or dies, and the arbitration agreement does not show that it was
intended that the vacancy should not be supplied and the parties
do not supply the vacancy;
(c) where the parties or two arbitrators are at liberty to appoint an
umpire or third arbitrator and do not appoint him, or where two
arbitrators are required to appoint an umpire and do not appoint
him;
(d) where an appointed umpire or third arbitrator refuses to act, or is
incapable of acting, or dies, and the arbitration agreement does
not show that it was intended that the vacancy should not be
supplied, and the parties or arbitrators do not supply the vacancy,
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any party may serve the other parties or the arbitrators, as the case may
be, with a written notice to appoint or, as the case may be, concur in
appointing, an arbitrator, umpire or third arbitrator; and, if the
appointment is not made within seven clear days after the service of the
notice, the Court may, on application by the party who gave the notice,
appoint an arbitrator, umpire or third arbitrator who shall have the like
powers to act in the reference and make an award as if he had been
appointed by consent of all parties.
12 Reference to special referee

[P1950/27/11]
(1) The Deemsters may, subject to subsection (3) below, make rules
prescribing the cases in which the jurisdiction or powers, or both, of the
Court may be exercised by special referees and, without prejudice to the
generality of the foregoing, such rules may —
(a) authorise the whole of any cause or matter or any question or
issue therein to be ordered to be tried before, or any question
arising in any cause or matter to be ordered to be referred for
inquiry and report to, any such referee; and
(b) make any provision incidental to any of the matters in respect of
which rules may be made under this subsection.
(2) The decision of a special referee may be called in question in such
manner, whether by —
(a) an appeal to the Staff of Government Division; or
(b) an appeal or application to the Court or to a Deemster in
Chambers; or
(c) an adjournment to the Court or to a Deemster in Chambers.
as may, subject to subsection (3) below, be prescribed by rules made by
the Deemsters.
(3) Rules under subsections (1) and (2) shall be laid before Tynwald as soon
as practicable after they are made, and if Tynwald at the sitting at which
the rules are laid or at the next following sitting resolves that they shall
be annulled, they shall cease to have effect.5

12A Specific powers of arbitrator exercisable by High Court

In any cause or matter proceeding in the High Court in connection with any
contract incorporating an arbitration clause which confers specific powers upon
the arbitrator, the High Court may, if all parties to the proceedings agree,
exercise any such powers.6

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Conduct of Proceedings, Witnesses etc.
13 Conduct of Proceedings, witnesses, etc

[P1950/27/12]
(1) Unless a contrary intention is expressed therein, every arbitration
agreement shall, where such a provision is applicable to the reference, be
deemed to contain a provision that the parties to the reference, and all
persons claiming through them respectively, shall, subject to any legal
objection, submit to be examined by the arbitrator or umpire, on oath or
affirmation, in relation to the matters in dispute, and shall, subject as
aforesaid, produce before the arbitrator or umpire all documents within
their possession or power respectively which may he required or called
for, and do all other things which during the proceedings on the
reference the arbitrator or umpire may require.
(2) Unless a contrary intention is expressed therein, every arbitration
agreement shall, where such a provision is applicable to the reference, be
deemed to contain a provision that the witnesses on the reference shall, if
the arbitrator or umpire thinks fit, be examined on oath or affirmation.
(3) An arbitrator or umpire shall, unless a contrary intention is expressed in
the arbitration agreement, have power to administer oaths to, or take the
affirmations of, the parties to and witnesses on a reference under the
agreement.
(4) Any party to a reference under an arbitration agreement may apply to
the Court for a warrant to summon a witness to give evidence or to
produce documentary evidence, but no person shall be compelled, under
any such warrant, to produce any document which he could not be
compelled to produce on the trial of an action; and the Court may, on
any such application, order that such a warrant shall issue to compel the
attendance of a witness before an arbitrator or umpire, wherever the
witness may be within the Island.
(5) A detainee may be brought up for examination before any arbitrator or
umpire, pursuant to a direction of the Department of Home Affairs given
under section 20(2) of the Custody Act 1995.7

(6) Subject to subsection (7) below, the Court shall have, for the purpose of
and in relation to a reference, the same power of making orders in
respect of —
(a) security for costs;
(b) discovery of documents and interrogatories;
(c) the giving of evidence by affidavit;
(d) examination on oath of any witness before an officer of the Court
or any other person, and the issue of a commission or request for
the examination of a witness out of the jurisdiction;
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(e) the preservation, interim custody or sale of any goods which are
the subject matter of the reference;
(f) securing the amount in dispute in the reference;
(g) the detention, preservation or inspection of any property or thing
which is the subject of the reference or as to which any question
may arise therein, and authorising for any of the purposes
aforesaid any persons to enter upon or into any land in the
possession of any party to the reference, or authorising any
samples to be taken or any observation to be made or experiment
to be tried which may be necessary or expedient for the purpose
of obtaining full information or evidence; and
(h) interim injunctions of the appointment of a receiver,
as it has for the purpose of and in relation to an action or matter in the
Court.
(7) Nothing in subsection (6) above shall be taken to prejudice any power
which may be vested in an arbitrator or umpire of making orders with
respect to any of the matters mentioned in that subsection.
Provisions as to Awards
14 Time for making award

[P1950/27/13]
(1) Subject to the provisions of section 23(2) of this Act, and anything to the
contrary in the arbitration agreement, an arbitrator or umpire shall have
power to make an award at any time.
(2) The time, if any, limited for making an award, whether under this Act or
otherwise, may from time to time be enlarged by order of the Court,
whether that time has expired or not.
(3) The Court may, on the application of any party to a reference, remove an
arbitrator or umpire who fails to use all reasonable dispatch in entering
on and proceeding with the reference and making an award, and an
arbitrator or umpire who is removed by the Court under this subsection
shall not be entitled to receive any remuneration in respect of his
services.
(4) For the purposes of subsection (3) above, ‘proceeding with a reference’
includes, in a case where two arbitrators are unable to agree, giving
notice of that fact to the parties and to the umpire.
14A Want of prosecution

(1) Unless a contrary intention is expressed in the arbitration agreement, the
arbitrator or umpire shall have power to make an award dismissing the
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claim in a dispute referred to him if it appears to him that the conditions
mentioned in subsection (2) are satisfied.
(2) The conditions are —
(a) that there has been inordinate and inexcusable delay on the part
of the claimant in pursuing the claim; and
(b) that the delay —
(i) will give rise to a substantial risk that it is not possible to
have a fair resolution of the issues in that claim; or
(ii) has caused, or is likely to cause or to have caused, serious
prejudice to the respondant.8

15 Interim awards

[P1950/27/14]
Unless a contrary intention is expressed therein, every arbitration agreement
shall, where such a provision is applicable to the reference, be deemed to
contain a provision that the arbitrator or umpire may, if he thinks fit, make an
interim award, and any reference in this Part to an award includes a reference to
an interim award.
16 Specific performance

[P1950/27/15]
Unless a contrary intention is expressed therein, every arbitration agreement
shall, where such a provision is applicable to the reference, be deemed to
contain a provision that the arbitrator or umpire shall have the same power as
the Court to order specific performance of any contract other than a contract
relating to land.
17 Awards to be final

[P1959/27/16]
Unless a contrary intention is expressed therein, every arbitration agreement
shall, where such a provision is applicable to the reference, he deemed to
contain a provision that the award to be made by the arbitrator or umpire shall
be final and binding on the parties and the persons claiming under them
respectively.
18 Power to correct slips

[P1950/27/17]
Unless a contrary intention is expressed in the arbitration agreement, the
arbitrator or umpire shall have power to correct in an award any clerical
mistake or error arising from any accidental slip or omission.
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Costs, Fees and Interest
19 Costs

[P1950/27/18]
(1) Unless a contrary intention is expressed therein, every arbitration
agreement shall be deemed to include a provision that the costs of the
reference and award shall be in the discretion of the arbitrator or umpire,
who may direct to and by whom and in what manner those costs or any
part thereof shall be paid, and may tax or settle the amount of costs to be
so paid or any part thereof, and may award costs to be paid as between
attorney and client.
(2) Any costs directed by an award to be paid shall, unless the award
otherwise directs, be taxable by the Taxing Master.
(3) Subject to subsection (4) below, any provision in an arbitration
agreement to the effect that the parties or any party thereto shall in any
event pay their or his own costs of the reference or award or any part
thereof shall be void, and this Part shall, in the case of an arbitration
agreement containing any such provision, have effect as if that provision
were not contained therein.
(4) Nothing in subsection (3) above shall invalidate such a provision when it
is a part of an agreement to submit to arbitration a dispute which has
arisen before the making of that agreement.
(5) If no provision is made by an award with respect to the costs of the
reference, any party to the reference may, within fourteen days of the
publication of the award or such further time as the Court may direct,
apply to the arbitrator for an order directing by and to whom those costs
shall be paid, and thereupon the arbitrator shall, after hearing any party
who may desire to be heard, amend his award by adding thereto such
directions as he may think proper with respect to the payment of the
costs of the reference.
(6) Section 12 of the Advocates’ Act 1874 (which empowers a court before
which any proceeding is being heard or is pending to charge property
recovered or preserved in the proceeding with the payment of advocates’
costs) shall apply as if an arbitration were a proceeding in the Court, and
the Court may make declarations and orders accordingly.
20 Taxation of arbitrator’s or umpire’s fees

[P1950/27/19]
(1) If, in any case, an arbitrator or umpire refuses to deliver his award except
on payment of the fees demanded by him, the Court may, on application
for the purpose, order that the arbitrator or umpire shall deliver the
award to the applicant on payment into court by the applicant of the fees
demanded, and further that the fees demanded shall be taxed by the
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Taxing Master, and that out of the money paid into Court, there shall be
paid out to the arbitrator or umpire, by way of fees, such sum as may be
found reasonable on taxation, and that the balance of the money, if any,
shall be paid out to the applicant.
(2) An application for the purposes of this section may be made by any
party to the reference unless the fees demanded have been fixed by a
written agreement between him and the arbitrator or umpire.
(3) A taxation of fees under this section may be reviewed in the same
manner as a taxation of costs.
(4) The arbitrator or umpire shall be entitled to appear and be heard on any
taxation or review of taxation under this section.
20A Power of arbitrator to award interest

(1) Unless a contrary intention is expressed therein, every arbitration
agreement shall, where such provision is applicable to the reference, be
deemed to contain a provision that the arbitrator or umpire may, if he
thinks fit, award simple interest at such rate as he thinks fit —
(a) on any sum which is the subject of the reference but which is paid
before the award for such period ending not later than the date of
the payment as he thinks fit; and
(b) on any sum which he awards, for such period ending not later
than the date of the award as he thinks fit.
(2) The power to award interest conferred on an arbitrator or umpire by
subsection (1) above is without prejudice to any other power of an
arbitrator or umpire to award interest.9

21 Interest on awards

[P1995/42/3]
(1) A sum directed to be paid by an award shall, unless the award otherwise
directs, carry interest from the date of the award.
(2) The rate of interest shall be —
(a) the rate specified in or prescribed under section 9 of the
Administration of Justice Act 1981 at the date of the award, or
(b) if the power under subsection (3) is exercised, the rate specified in
the award.
(3) Where the sum is expressed in a currency other than sterling, the award
may specify such rate as the arbitrator or umpire thinks fit instead of the
rate mentioned in subsection (2)(a).10

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Special cases, Remission and Setting aside of Awards, etc.
22 Statement of case

[P1950/27/21]
(1) An arbitrator or umpire may, and shall if so directed by the Court,
state —
(a) any question of law arising in the course of the reference; or
(b) an award or any part of an award,
in the form of a special case for the decision of the Court.
(2) A special case with respect to an interim award or with respect to a
question of law arising in the course of a reference may be stated, or may
be directed by the Court to be stated, notwithstanding that proceedings
under the reference are still pending.
(3) An appeal shall lie to the Staff of Government Division from a decision of
the Court under this section, but no appeal shall lie from the decision of
the Court on any case stated under subsection (1)(a) without the leave of
the Staff of Government Division.11

23 Power to remit award

[P1950/27/22]
(1) In all cases of reference to arbitration, the Court may from time to time
remit the matters referred, or any of them, to the reconsideration of the
arbitrator or umpire.
(2) Where an award is remitted, the arbitrator or umpire shall, unless the
order otherwise directs, make his award within three months after the
date of the order.
24 Removal of arbitrator and setting aside of award

[P1950/27/23]
(1) Where an arbitrator or umpire has misconducted himself or the
proceedings, the Court may remove him.
(2) Where an arbitrator or umpire has misconducted himself or the
proceedings, or an arbitration or award has been improperly procured,
the Court may set the award aside.
(3) Where an application is made to set aside an award, the Court may order
that any money made payable by the award shall be brought into court
or otherwise secured pending the determination of the application.
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25 Power of court to give relief where arbitrator is not impartial or the

dispute involves question of fraud

[P1950/27/24]
(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 arbitration or umpire, the Court may refuse to
stay any action brought in breach of the agreement.
26 Power of court where arbitrator is removed or authority of arbitrator is

revoked

[P1959/27/25]
(1) Where an arbitrator (not being a sole arbitrator) or two or more
arbitrators (not being all the arbitrators) or an umpire who has not
entered on the reference is or are removed by the Court, the Court may,
on the application of any party to the arbitration agreement, appoint a
person or persons to act as arbitrator or arbitrators or umpire in place of
the person or persons so removed.
(2) Where the authority of an arbitrator or arbitrators or umpire is revoked
by leave of the Court, or a sole arbitrator or all the arbitrators or an
umpire who has entered on the reference is or are removed by the Court,
the Court may, on the application of any party to the arbitration
agreement, either —
(a) appoint a person to act as sole arbitrator in place of the person or
persons removed; or
Section 27 Arbitration Act 1976


Page 20 AT 24 of 1976 c

(b) order that the arbitration agreement shall cease to have effect with
respect to the dispute referred.
(3) A person appointed under this section by the Court as an arbitrator or
umpire shall have the like power to act in the reference, and to make an
award, as if he had been appointed in accordance with the terms of the
arbitration agreement.
(4) Where it is provided (whether by means of a provision in the arbitration
agreement or otherwise) that an award under an arbitration agreement
shall be a condition precedent to the bringing of an action with respect to
any matter to which the agreement applies, the Court, if it orders
(whether under this section or under any other enactment) that the
agreement shall cease to have effect as regards any particular dispute,
may further order that the provision making an award a condition
precedent to the bringing of an action shall also cease to have effect as
regards that dispute.
Enforcement of Award
27 Enforcement of award

[P1950/27/26]
An award on an arbitration agreement may, by leave of the Court, be enforced
in the same manner as a judgment or order to the same effect; and, where leave
is so given, judgment may be entered in terms of the award.
Miscellaneous
28 Power of court to extend time for commencing arbitration proceedings

[P1950/27/27]
Where the terms of an agreement to refer disputes to arbitration provide that
any claims to which the agreement applies shall be barred unless notice to
appoint an arbitrator is given or an arbitrator is appointed or some other step to
commence arbitration proceedings is taken within a time fixed by the
agreement, and a dispute arises to which the agreement applies, the Court, if it
is of the opinion that, in the circumstances of the case, undue hardship would
otherwise be caused, and notwithstanding that the time so fixed has expired,
may, on such terms, if any, as the justice of the case may require, but without
prejudice to the provisions of any enactment limiting the time for the
commencement of arbitration proceedings, extend the time for such period as it
thinks proper.
Arbitration Act 1976 Section 28


c AT 24 of 1976 Page 21

28A Limitation of time for commencing arbitration proceedings

[P1939/21/27]
(1) The statutes of limitation shall apply to arbitrations as they apply to
proceedings in the Court.
(2) Notwithstanding any term in an arbitration agreement to the effect that
no cause of action shall accrue in respect of any matter required by the
agreement to be referred until an award is made under the agreement, a
cause of action shall, for the purpose of the statutes of limitation
(whether in their application to arbitrations or to other proceedings), be
deemed to have accrued in respect of any such matter at the time when it
would have accrued but for that term in the agreement.
(3) For the purpose of this section and for the purpose of the statutes of
limitation as applying to arbitrations, an arbitration shall be deemed to
be commenced when one party to the arbitration agreement serves on
the other party or parties a notice requiring him or them to appoint an
arbitrator or to agree to the appointment of an arbitrator, or, where the
arbitration agreement provides that the reference shall be to a person
named or designated in the agreement, requiring him or them to submit
the dispute to the person so named or designated.
(4) Any such notice as is mentioned in subsection (3) may be served
either —
(a) by delivering it to the person on whom it is to be served; or
(b) by leaving it at the usual or last known place of abode or business
in the Island of that person; or
(c) by sending it by post by the recorded delivery service addressed
to that person at his usual or last known place of abode;
as well as in any other manner provided in the arbitration agreement;
and where a notice is sent by post in accordance with paragraph (c),
service shall, unless the contrary is proved, be deemed to have been
effected at the time at which the letter would have been delivered in the
ordinary course of post.
(5) Where the Court orders that an award be set aside or orders, after the
commencement of an arbitration, that the arbitration shall cease to have
effect with respect to the dispute referred, the Court may further order
that the period between the commencement of the arbitration and the
date of the order of the Court shall be excluded in computing the time
prescribed by the statutes of limitation for the commencement of
proceedings (including arbitration) with respect to the dispute referred.
(6) This section shall apply to an arbitration under any enactment as well as
to an arbitration pursuant to an arbitration agreement, and
subsections (3) and (4) shall have effect, in relation to an arbitration
under an enactment, as if for the references to the arbitration agreement
there were substituted references to such of the provisions of the
Section 29 Arbitration Act 1976


Page 22 AT 24 of 1976 c

enactment or of any public document made thereunder as relate to the
arbitration.
(7) In this section the words ‘the statutes of limitation’ includes any
enactment limiting the time within which any particular proceeding may
be commenced.12

29 Terms as to costs, etc

[P1950/27/28]
Any order made under this Part may be made on such terms as to costs or
otherwise as the authority making the order thinks just.
30 Government to be bound

[P1950/27/30]
(1) This Part shall apply to any arbitration to which the Government is a
party.
(2) In this section ‘the Government’ includes a Board of Tynwald and a
Statutory Board.
31 Application of Part I to statutory arbitrations

[P1950/27/31]
(1) This Part, except the provisions thereof specified in subsection (2) below,
shall apply to every arbitration under any other Act (whether passed
before or after the appointed day) as if the arbitration were pursuant to
an arbitration agreement and as if that other Act were an arbitration
agreement, except in so far as this Act is inconsistent with that other Act
or with any rules or procedure authorised or recognised thereby.
(2) The provisions referred to in subsection (1) above are sections 2(1), 3, 5 6,
19(3), 25, 26 and 28.
PART II – ENFORCEMENT OF CERTAIN FOREIGN AWARDS

32 Awards to which Part II applies

[P1950/27/35]
(1) Subject to section 37 of this Act, this Part applies to any award made after
the 28th July 1924 —
(a) in pursuance of an agreement for arbitration to which the Protocol
applies; and
(b) between persons of whom one is subject to the jurisdiction of
some one of such Powers as Her Majesty may, by Order in
Council, have declared to be parties to the Geneva Convention
Arbitration Act 1976 Section 33


c AT 24 of 1976 Page 23

and of whom the other is subject to the jurisdiction of some other
of the Powers aforesaid; and
(c) in one of such territories as Her Majesty may, by Order in
Council, have declared to be territories to which the Geneva
Convention applies,
and an award to which this Part applies is, in this Part, referred to as ‘a
foreign award’.
(2) In this section, ‘Order in Council’ means an Order in Council which is in
force and which —
(a) has been made under subsection (1)(b) or, as the case may be,
subsection (1)(c) of section 35 of the Arbitration Act 1950 (an Act of
Parliament); or
(b) has effect, by virtue of subsection (3) of that section, as if it had
been so made.
33 Effect of foreign awards

[P1950/27/36]
(1) A foreign award shall, subject to the provisions of this Part, be
enforceable in the Island either by action or in the same manner as the
award of an arbitrator is enforceable by virtue of section 27 of this Act.
(2) Any foreign award which would be enforceable under this Part shall be
treated as binding for all purposes on the persons as between whom it
was made, and may, accordingly, be relied on by any of those persons by
way of defence, set off or otherwise in any legal proceedings in the
Island, and any references in this Part to enforcing a foreign award shall
be construed as including references to relying on an award.
34 Conditions for enforcement of foreign awards

[P1950/27/37]
(1) In order that a foreign award may be enforceable under this Part, it must
have —
(a) been made in pursuance of an agreement for arbitration which
was valid under the law by which it was governed;
(b) been made by the tribunal provided for in the agreement or
constituted in the manner agreed upon by the parties;
(c) been made in conformity with the law governing the arbitration
procedure;
(d) become final in the country in which it was made;
(e) been in respect of a matter which may lawfully be referred to
arbitration under the law of the Island,
Section 35 Arbitration Act 1976


Page 24 AT 24 of 1976 c

and the enforcement thereof must not be contrary to the public policy or
the law of the Island.
(2) Subject to the provisions of this subsection, a foreign award shall not be
enforceable under this Part if the Court is satisfied that —
(a) the award has been annulled in the country in which it was made;
or
(b) the party against whom it is sought to enforce the award was not
given notice of the arbitration proceedings in sufficient time to
enable him to present his case, or was under some legal incapacity
and was not properly represented; or
(c) the award does not deal with all the questions referred or contains
decisions on matters beyond the scope of the agreement for
arbitration;
but, if the award does not deal with all the questions referred, the Court
may, if it thinks fit, either postpone the enforcement of the award or
order its enforcement subject to the giving of such security by the person
seeking to enforce it as the court may think fit.
(3) If a party seeking to resist the enforcement of a foreign award proves that
there is any ground other than the non-existence of the conditions
specified in subsection (1)(a), (b) and (c) above, or the existence of the
conditions specified in subsection (2)(b) and (c) above, entitling him to
contest the validity of the award, the Court may, if it thinks fit, either
refuse to enforce the award or adjourn the hearing until after the
expiration of such period as appears to the Court to be reasonably
sufficient to enable that party to take the necessary steps to have the
award annulled by the competent tribunal.
35 Evidence

[P1950/27/38]
(1) The party seeking to enforce a foreign award must produce —
(a) the original award or a copy thereof duly authenticated in the
manner required by the law of the country in which it was made;
(b) evidence proving that the award has become final; and
(c) such evidence as may be necessary to prove that the award is a
foreign award and that the conditions mentioned in
section 34(1)(a), (b) and (c) of this Act are satisfied.
(2) In any case where any document required to be produced under
subsection (1) above is in a foreign language, it shall be the duty of the
party seeking to enforce the award to produce a translation certified as
correct by a diplomatic or consular agent of the country to which that
party belongs, or certified as correct in such other manner as may be
sufficient according to the law of the Island.
Arbitration Act 1976 Section 36


c AT 24 of 1976 Page 25

(3) Subject to the provisions of this section, rules of court may be made with
respect to the evidence which must be furnished by a party seeking to
enforce an award under this Part.
36 Meaning of ‘final award’

[P1950/27/39]
For the purposes of this Part, an award shall not be deemed final if any
proceedings for the purpose of contesting the validity of the award are pending
in the country in which it was made.
PART III – ENFORCEMENT OF CONVENTION AWARDS

37 Replacement of Part II in certain cases

[P1975/3/2]
Sections 38 to 40 of, and paragraph 5 of Schedule 1 to, this Act shall have effect
with respect to the enforcement of Convention awards; and, where a
Convention award would, but for this section, be also a foreign award within
the meaning of Part II of this Act, that Part shall not apply to it.
38 Effect of Convention awards

[P1975/3/3]
(1) A Convention award shall, subject to the following provisions of this
Part, be enforceable either by action or in the same manner as the award
of an arbitrator is enforceable by virtue of section 27 of this Act.
(2) Any Convention award which would be enforceable under this Part shall
be treated as binding for all purposes on the persons as between whom it
was made, and may, accordingly, be relied on by any of those persons by
way of defence, set off or otherwise in any legal proceedings in the
Island; and any reference in this Part to enforcing a Convention award
shall be construed as including references to relying on such an award.
39 Evidence

[P1975/3/4]
The party seeking to enforce a Convention award must produce —
(a) the duly authenticated original award or a duly certified copy of
it;
(b) the original arbitration agreement or a duly certified copy of it;
and
(c) where the award or agreement is in a foreign language, a
translation of it certified by an official or sworn translator or by a
diplomatic or consular agent.
Section 40 Arbitration Act 1976


Page 26 AT 24 of 1976 c

40 Refusal of enforcement

[P1975/3/5]
(1) Enforcement of a Convention award shall not be refused except in the
cases mentioned in this section.
(2) Enforcement of a Convention award may be refused if the person against
whom it is invoked proves —
(a) that a party to the arbitration was (under the law applicable to
him) under some incapacity; or
(b) that the arbitration agreement was not valid under the law to
which the parties subjected it or, failing any indication thereon,
under the law of the country where the award was made; or
(c) that he was not given proper notice of the appointment of the
arbitrator or of the arbitration proceedings or was otherwise
unable to present his case; or
(d) subject to subsection (4) below, that the award deals with a
difference not contemplated by, or not falling within the terms of,
the submission to arbitration or contains decisions on matters
beyond the scope of the submission to arbitration; or
(e) that the composition of the arbitral authority or the arbitral
procedure was not in accordance with the agreement of the
parties or, failing such agreement, with the law of the country
where the arbitration took place; or
(f) that the award has not yet become binding on the parties, or has
been set aside or suspended by a competent authority of the
country in which, or under the law of which, it was made.
(3) Enforcement of a Convention award may also be refused if the award is
in respect of a matter which is not capable of settlement by arbitration, or
if it would be contrary to public policy to enforce the award.
(4) A Convention award which contains decisions on matters not submitted
to arbitration may be enforced to the extent that it contains decisions on
matters submitted to arbitration which can be separated from those on
matters not so submitted.
(5) Where an application for the setting aside or suspension of a Convention
award has been made to such a competent authority as is mentioned in
subsection (2)(f) above, the Court may, if it thinks fit, adjourn the
proceedings and may, on the application of the party seeking to enforce
the award, order the other party to give security.
Arbitration Act 1976 Section 41


c AT 24 of 1976 Page 27

PART IV – SUPPLEMENTARY

41 Interpretation

[P1950/27/32; P1975/3/7]
(1) In this Act, unless the context otherwise requires —
“the appointed day
” means the day on which this Act takes effect;
“arbitration agreement
” means —
(a) in section 5 and in the definition below of ‘Convention award’, an
agreement in writing (including an agreement contained in an
exchange of letters or telegrams) to submit to arbitration present
or future differences capable of settlement by arbitration; and
(b) elsewhere, a written agreement to submit present or future
differences to arbitration, whether an arbitrator is mentioned
therein or not;
“Convention award
” means an award made in pursuance of an arbitration
agreement in the territory of a State, other than the United Kingdom,
which is a party to the New York Convention;
“the Court
” means the High Court;
“the Geneva Convention
” means the Convention on the Execution of Foreign
Arbitral Awards signed at Geneva on behalf of His late Majesty, King
George V, on the 26th September 1927;
“the New York Convention
” means the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards adopted by the United Nations
Conference on International Commercial Arbitration on the 10th June
1958;
“the Protocol
” means the Protocol on Arbitration Clauses signed on behalf of
His late Majesty, King George V, at a Meeting of the Assembly of the
League of Nations held on the 24th September 1923.
(2) If Her Majesty by Order in Council declares that any State specified in
the Order is a party to the New York Convention, the Order shall, while
in force, be conclusive evidence that that State is a party to that
Convention.
42 Transitional provisions and savings

The transitional provisions and savings in Schedule 1 to this Act shall have
effect.
Section 43 Arbitration Act 1976


Page 28 AT 24 of 1976 c

43 [Repealed]
13

44 Short title and commencement

(1) This Act may be cited as the Arbitration Act 1976.
(2) This Act shall come into operation when the Royal Assent thereto has
been by the Governor announced to Tynwald and a certificate thereof
has been signed by the Governor and the Speaker of the House of Keys,
but shall not take effect until such day as the Governor may by order
appoint.14

Arbitration Act 1976 Schedule 1



c AT 24 of 1976 Page 29

SCHEDULE 1

TRANSITIONAL PROVISIONS AND SAVINGS

Sections 37 and 42
1. Any proceedings under Part I of the Arbitration (Foreign Awards) Act 1931
which are uncompleted on the appointed day may be carried on and completed under
Part II of this Act as if they had been instituted thereunder.
2. Notwithstanding the repeal by this Act of the Arbitration Act 1910, the
Arbitration Clauses (Protocol) Act 1925 and the Arbitration Act 1935, those Acts shall
continue to have effect to arbitrations commenced before the appointed day.
3. Any reference in any enactment or other document to any enactment repealed
by this Act shall be construed as including a reference to the corresponding provision
of this Act.
4. Nothing in Part II of this Act shall —
(a) prejudice any rights which any person would have had of
enforcing in the Island any award, or of availing himself in the
Island of any award, if neither that Part nor Part I of the said Act
of 1931 had been enacted; or
(b) apply to any award made on an arbitration agreement governed
by the law of the Island.
5. Nothing in Part III of this Act shall prejudice any right to enforce or rely on an
award otherwise than under that Part or under Part II of this Act.
6. Nothing in this Schedule shall prejudice the provisions of section 10 of the
Interpretation Act 1970 (which relates to repeals).
SCHEDULE 2
15

Arbitration Act 1976 Endnotes


c AT 24 of 1976 Page 31

ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References

1
Para (a) substituted by Statute Law Revision Act 1983 Sch 1 deemed operative
1/1/1983. 2
Subs (4) added by Statute Law Revision Act 1983 Sch 1 deemed operative 1/1/1983. 3
Subs (3) added by High Court Act 1991 Sch 3. 4
Subs (4) added by High Court Act 1991 Sch 3. 5
Subs (3) substituted by Administration of JustIce Act 2008 s 30(2). 6
S 12A inserted by High Court Act 1991 Sch 3. 7
Subs (5) substituted by Custody Act 1995 Sch 4. 8
S 14A inserted by High Court Act 1991 Sch 3. 9
S 20A inserted by High Court Act 1991 Sch 3. 10
S 21 substituted by Law Reform Act 1997 s 29 with saving. 11
Subs (3) substituted by High Court Act 1991 Sch 3. 12
S 28A inserted by Limitation (Miscellaneous Provisions) Act 1981 s 3. 13
S 43 repealed by Statute Law Revision Act 1983 Sch 2. 14
ADO (s 2) 21/1/1977 (GC17/77); (remaining provisions) 1/7/1977 (GC142/77). 15
Sch 2 repealed by Statute Law Revision Act 1983 Sch 2.