• Section 5: Section 5: Jurisdiction of Arbitral Panel

    • Article 21 - Competence of Arbitral Panel to rule on its jurisdiction

      (1) The Arbitral Panel may rule on its own jurisdiction, including any objections with respect to the existence or validity of the Arbitration Agreement. For that purpose, an 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 Panel that the contract is null and void shall not by itself determine the invalidity of the arbitration clause.
      (2) A plea by a respondent or other party that the Arbitral Panel does not have jurisdiction shall be raised not later than the submission of his defence or, for another party, his first written statement in the Arbitration. A party is not precluded from raising such a plea by the fact that he has appointed, or participated in the appointment of, an arbitrator. A plea that the Arbitral Panel is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is identified during the arbitral proceedings. The Arbitral Panel may, in either case, admit a later plea if it considers the delay justified.
      (3) The Arbitral Panel may rule on a plea referred to in paragraph 21(2) of this Article either as a preliminary question or in an Award on the merits. If the Arbitral Panel rules as a preliminary question that it has jurisdiction, any party may request, within thirty days after having received notice of that ruling, the QFC Tribunal to decide the matter, which decision shall be subject to no appeal; while such a request is pending, the Arbitral Panel may continue the arbitral proceedings and make an Award.

    • Article 22 - Power of Arbitral Panel to order interim measures

      (1) Unless otherwise agreed by the parties, the Arbitral Panel may, at the request of a party, grant interim measures of protection.
      (2) An interim measure of protection is any temporary measure whether in the form of an Award or in another form by which, at any time prior to the issuance of the award by which the dispute is finally decided, the Arbitral Panel orders a party to:
      (A) maintain or restore the status quo pending determination of the dispute;
      (B) take action that would prevent, or refrain from taking action that is likely to cause, current or imminent harm, or to prejudice the arbitral process itself;
      (C) provide a means of preserving assets out of which a subsequent award may be satisfied; or
      (D) preserve evidence that may be relevant and material to the resolution of the dispute.
      (3) The party requesting the interim measure of protection shall satisfy the Arbitral Panel that:
      (A) harm not adequately reparable by an award of damages is likely to result if the measure is not ordered, and such harm substantially outweighs the harm that is likely to result to the party against whom the measure is directed if the measure is granted; and
      (B) there is a reasonable possibility that the requesting party will succeed on the merits, provided that any determination on this possibility shall not affect the discretion of the Arbitral Panel in making any subsequent determination.
      (4) The Arbitral Panel may require the requesting party or any other party to provide appropriate security in connection with such interim measure of protection.
      (5) The requesting party shall promptly make disclosure of any material change in the circumstances on the basis of which the party made the request for, or the Arbitral Panel granted, the interim measure of protection.
      (6) The Arbitral Panel may modify, suspend or terminate an interim measure of protection it has granted, at any time, upon application of any party or, in exceptional circumstances, on the Panel's own initiative, upon prior notice to the parties.
      (7) The requesting party shall be liable for any costs and damages caused by the interim measure of protection to the party against whom it is directed, if the Arbitral Panel later determines that, in the circumstances, the interim measure should not have been granted. The Arbitral Panel may order an award of costs and damages at any point during the proceedings.

    • Article 23 - Recognition and enforcement of interim measures of protection

      (1) An interim measure of protection issued by an Arbitral Panel shall be recognised as binding and, unless otherwise provided by the Arbitral Panel, enforced upon application to the QFC Tribunal, irrespective of the country in which it was issued, subject to the provisions of this Article.
      (2) The QFC Tribunal may refuse to enforce an interim measure of protection, only:
      (A) at the request of the party against whom it is invoked, if the QFC Tribunal is satisfied that:
      (i) such refusal is warranted on the grounds set forth in Article 43(1)(A)(i), (ii), (iii) or (iv); or
      (ii) any requirement to provide appropriate security in connection with the interim measure issued by the Arbitral Panel has not been complied with; or
      (iii) the interim measure has been terminated or suspended by the Arbitral Panel or, where so empowered, by the Court of the state in which the Arbitration takes place or under the law of which that interim measure was granted; or
      (B) if the QFC Tribunal finds that:
      (i) the interim measure is incompatible with the powers conferred upon the QFC Tribunal, unless the QFC Tribunal decides to reformulate the interim measure to the extent necessary to adapt it to its own powers and procedures for the purposes of enforcing that interim measure and without modifying its substance; or
      (ii) any of the grounds set forth in Article 43(1)(B)(i) or (ii) apply to the enforcement of the interim measure.
      (3) Any determination made by the QFC Tribunal on any ground in paragraph 23(2) of this Article shall be effective only for the purposes of the application to recognise and enforce the interim measure of protection. The QFC Tribunal where recognition or enforcement is sought shall not, in exercising that power, undertake a review of the substance of the interim measure.
      (4) The party who is seeking or has obtained recognition or enforcement of an interim measure of protection shall promptly inform the QFC Tribunal of any termination, suspension or modification of that interim measure.
      (5) The QFC Tribunal where recognition or enforcement is sought may if it considers it proper require the requesting party to provide appropriate security, if the Arbitral Panel has not al made a determination with respect to security, or where such a decision is necessary to protect the rights of third parties.