JuniorNationalLawConference 16th 18th November

Competence C t Competence
AReviewofSection11oftheArbitrationAct A Review of Section 11 of the Arbitration Act No:11of1995ofSriLanka

Dr.AsangaGunawansa AttorneyatLaw & Dilshan Jayasuriya AttorneyatLaw

Introduction
Sri Lanka soliciting Foreign Direct Investments vigorously SriLankasolicitingForeignDirectInvestmentsvigorously. Concernsofforeigninvestors (1)returnontheirinvestments and(2)theprotectionoftheirinvestments. ( ) p Inmanyinvestmentagreements,theagreedmethodof disputeresolutionbeingArbitration. TheModelLawonInternationalCommercialArbitration adoptedbytheUnitedNationsCommissiononInternational ( ) TradeLaw UNCITRAL (ModelLaw) SriLankanArbitrationAct 11of1995fashionedbothonthe UNCITRALModelLawandtheSwedishArbitrationAct.

Competence of the Arbitral Tribunal to rule on its jurisdiction

Section11oftheArbitrationActNo:11of1995 Section 11 of the Arbitration Act No: 11 of 1995 11 (1)AnArbitralTribunalmayruleonitsjurisdictionincludingany question,withrespecttotheexistenceorvalidityofthearbitration ti ith t t th it lidit f th bit ti agreementorastowhethersuchagreementiscontrarytopublicpolicy orisincapableofbeingperformed;butanypartytothearbitral proceedingsmayapplytotheHighCourtforadeterminationofanysuch proceedings may apply to the High Court for a determination of any such question. (2)WhereanapplicationhasbeenmadetotheHighCourtundersub (2) Wh li ti h b d t th Hi h C t d b section(1)thearbitraltribunalmaycontinuethearbitralproceedings pendingthedeterminationofsuchquestionbytheHighCourt.

Competence Competence: What is the Legal Position in Sri Lanka?

Where can a challenge to jurisdiction in the first instance be raised? Before the Arbitral Tribunal? or before the High Court? If a party fails in its endeavor to challenge the p y g jurisdiction before the Arbitral Tribunal, is the party aggrieved, entitled to appeal against such determination of the Arbitral Tribunal to the High d f h b l b l h h Court?

Competence Competence: What is the Legal Position in Sri Lanka?

Challenging jurisdiction in the High Court is it an ChallengingjurisdictionintheHighCourt isitan alternativetochallengingjurisdictionbeforethe ArbitralTribunal? Canpartywhohasfailedinitsendeavortochallenge p y g jurisdictionbeforetheArbitralTribunalagain endeavortodosobeforetheHighCourt,inthe absenceofarightofappealagainstsucharuling? b f h f l h l

Competence Competence: UNCITRAL Model Law

UNCITRAL Model Law Article 16 Challenge to UNCITRALModelLaw Article16 Challengeto jurisdictionoftheArbitralTribunal.
16 (1) The arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. F that purpose, an lidi f h bi i For h arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause clause.

Competence Competence: UNCITRAL Model Law

UNCITRAL Model Law Article 16 Challenge to UNCITRALModelLaw Article16 Challengeto jurisdictionoftheArbitralTribunal.
(2) A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of d f f defence. A party i not precluded f is l d d from raising such a plea ii h l by the fact that he has appointed, or participated in the appointment of, an arbitrator. A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings The arbitral tribunal proceedings. may, in either case, admit a later plea if it considers the delay justified.

Competence Competence: UNCITRAL Model Law

UNCITRAL Model Law Article 16 Challenge to UNCITRALModelLaw Article16 Challengeto jurisdictionoftheArbitralTribunal.
(3)Thearbitraltribunalmayruleonapleareferredtoin paragraph(2)ofthisarticleeitherasapreliminaryquestion orinanawardonthemerits.Ifthearbitraltribunalrulesas i d h i If h bi l ib l l apreliminaryquestionthatithasjurisdiction,anypartymay request,within30daysafterhavingreceivednoticeofthat ruling,thecourtspecifiedininArticle6todecidethematter, whichdecisionshallbesubjecttonoappeal;whilesucha requestispending,thearbitraltribunalmaycontinuethe request is pending the arbitral tribunal may continue the arbitralproceedingsandmakeanaward.

Competence Competence: UNCITRAL Model Law v Sri Lankan Arb Act v. Arb.
Comparison of Section 11 of the Arbitration Act and o pa so o Sec o o e b a o c a d Article 16 of the UNCITRAL Model law relating to the challenge of jurisdiction of Arbitral Tribunals. The position in Sri Lanka Interpretations given in legal text. The Opinion of the Panel What is the position in Sri Lanka as regards the challenging of jurisdiction of an arbitral tribunal, both before the Arbitral Tribunal and before the High Court?