Section 7 Power to make award on summary basisI1I2

After section 39 of the Arbitration Act 1996 insert—

Power to make award on summary basis

39A

(1)

Unless the parties otherwise agree, the arbitral tribunal may, on an application made by a party to the proceedings (upon notice to the other parties), make an award on a summary basis in relation to a claim, or a particular issue arising in a claim, if the tribunal considers that—

(a)

a party has no real prospect of succeeding on the claim or issue, or

(b)

a party has no real prospect of succeeding in the defence of the claim or issue.

(2)

For the purposes of subsection (1), an arbitral tribunal makes an award “on a summary basis” in relation to a claim or issue if the tribunal has exercised its power under section 34(1) (to decide all procedural and evidential matters) with a view to expediting the proceedings on the claim or issue.

(3)

Before exercising its power under section 34(1) as mentioned in subsection (2), an arbitral tribunal must afford the parties a reasonable opportunity to make representations to the tribunal.