Victorian Consolidated Legislation

Commercial Arbitration Act 1984 - SECT 46

Delay in prosecuting claims

46. Delay in prosecuting claims



(1) Unless a contrary intention is expressed in the arbitration agreement, it
is an implied term of the agreement that in the event of a dispute arising to
which the agreement applies it is the duty of each party to the agreement to
exercise due diligence in the taking of steps that are necessary to have the
dispute referred to arbitration and dealt with in arbitration proceedings.

(2) Where there has been undue delay by a party, the Court may, on the
application of any other party to the dispute or an arbitrator or umpire, make
orders-



   (a)  terminating the arbitration proceedings;

   (b)  removing the dispute into Court; and

   (c)  dealing with any incidental matters.

(3) The Court shall not make an order under subsection (2) unless it is
satisfied that the delay-

   (a)  has been inordinate and inexcusable; and

   (b)  will give rise to a substantial risk of it not being possible to have
        a fair trial of the issues in the arbitration proceedings or is such
        as is likely to cause or to have caused serious prejudice to the other
        parties to the arbitration proceedings.