Arbitration Act, 1954

Provisions in case of bankruptcy.

11.—(1) In this section the word “assignee” means the Official Assignee in Bankruptcy and includes the assignee (if any) chosen by the creditors to act with the Official Assignee in Bankruptcy.

(2) Where an arbitration agreement forms part of a contract to which a bankrupt is a party, the agreement shall, if the assignee or trustee in bankruptcy does not disclaim the contract, be enforceable by or against him so far as it relates to any difference arising out of, or in connection with, such contract.

(3) Where—

(a) a person who has been adjudged bankrupt had, before the commencement of the bankruptcy, become a party to an arbitration agreement, and

(b) any matter to which the agreement applies requires to be determined in connection with or for the purposes of the bankruptcy proceedings, and

(c) the case is one to which subsection (2) of this section does not apply,

then, any other party to the agreement or the assignee or, with the consent of the committee of inspection, the trustee in bankruptcy may apply to the court having jurisdiction in the bankruptcy proceedings for an order directing that the matter in question shall be referred to arbitration in accordance with the agreement and that court may, if it is of opinion that having regard to all the circumstances of the case, the matter ought to be determined by arbitration, make an order accordingly.