RE FRED KHOURY & MAGID KHOURY PARTNERSHIP

OLLENNU J.

As to the first preliminary point raised: although there are cases in which submission to arbitration can only be effective when an arbitrator is named, the general rule is that consent to submit becomes a good submission as soon as a dispute or controversy arises, see Parkers v. Smith (1850) 15 Q.B. 297, and Halsbury (3rd ed.) Vol. 2, pages 5-6, note “s”.

It also appears from section 8 of the Arbitration Act 1961, Act 38 that the Act regards an arbitration agreement as a submission to arbitration as soon as a dispute arises under the contract between the parties which contains the agreement to refer. I am strengthened in this view by the earlier judgment of the Supreme Court delivered by van Lare, J.S.C. There his lordship said inter alia,

“The law allows parties to a contract to include in its terms an agreement to refer disputes which may arise to arbitration, and the normal rule is that the courts respect such a reference by staying legal proceedings instituted without hon…