Stay of Proceedings Pending Arbitration: Does It Mean Insolvencyproceedings

2855 Words Dec 26th, 2012 12 Pages
STAY OF PROCEEDINGS PENDING ARBITRATION: DOES IT APPLY TO INSOLVENCY PROCEEDINGS?
By Bwire B. Kuboja
There are two main sources of law in Tanzania Mainland regulating stay of proceedings pending arbitration namely section 6 of the Arbitration Act and section
64 of the Civil Procedure Code Act read together with the Second Schedule to the
Civil Procedure Code Act. Under section 6 of the Arbitration Act, a party to a submission against whom a proceeding connected to any matter agreed to be submitted is commenced, is entitled to apply for stay of proceedings pending arbitration at any time before filing a written statement of defense or taking any step in the proceedings. The application under section 6 of the Arbitration Act can
…show more content…
This would however not mean that the stay procedure under the Civil Procedure
Code is an alternative to the procedure under the Arbitration Act. It is my understanding of the law that where the submission is in respect of a subject matter which is within the jurisdiction of the High Court, a party to the proceedings who misses some of the requirements under section 6 of the Arbitration Act cannot make use of the provision of the second schedule to the Civil Procedure Code Act.
This is so because section 64 of the Civil Procedure Code Act expressly subjects the application of the provision of the second schedule to the CPC to the provision of the Arbitration Act so that in case of any conflict the former prevails. This position is
3 According to section 2 of the Civil Procedure Code Act, the Code applies to all proceedings in the High
Court of the United Republic of Tanzania, courts of resident magistrates and District courts.
4 Section 3 of the Arbitration Act. supported by the authority in the case of PRAIDHAN MULJI WALJI V. NURBAI JINA
JERAJ5.
CONDITIONS FOR GRANT OF STAY OF PROCEEDINGS UNDER THE ARBITRATION ACT
For a person to be entitled to petition for stay of proceedings under section 6 of the Arbitration Act he must be a party to a submission or privy to a party thereto against whom a proceedings covered by a submission is commenced. The term submission being, according to section 2 of the Arbitration

Related Documents