KB-2025-001929 - [2025] EWHC 2966 (KB)

The defendant did not put any precedent before the court as authority for the proposition that an application for a section 9 stay removes the requirement to make a Part 11 application to dispute jurisdiction. Its submission rested on the natural and ordinary words of the statute and Part 62. Section 9 of the Act provides:

“9 Stay of legal proceedings.

(1)

A party to an arbitration agreement against whom legal proceedings are brought (whether by way of claim or counterclaim) in respect of a matter which under the agreement is to be referred to arbitration may (upon notice to the other parties to the proceedings) apply to the court in which the proceedings have been brought to stay the proceedings so far as they concern that matter.

(2)

An application may be made notwithstanding that the matter is to be referred to arbitration only after the exhaustion of other dispute resolution procedures.

(3)

An application may not be made by a person before taking the appropriate procedural step (if any) to acknowledge the legal proceedings against him or after he has taken any step in those proceedings to answer the substantive claim.

(4)

On an application under this section the court shall grant a stay unless satisfied that the arbitration agreement is null and void, inoperative, or incapable of being performed.

(5)

If the court refuses to stay the legal proceedings, any provision that an award is a condition precedent to the bringing of legal proceedings in respect of any matter is of no effect in relation to those proceedings.”

It should be noted that section 4 of the Act provides that Schedule 1 will list those parts of the Act that are mandatory. Section 9 is one of the mandatory provisions.

CPR Part 62, as relevant, provides:

“62.3

(2)

An application under section 9 of the 1996 Act to stay legal proceedings must be made by application notice to the court dealing with those proceedings.

62.8

(1)

An application notice seeking a stay of legal proceedings under section 9 of the 1996 Act must be served on all parties to those proceedings who have given an address for service.

(2)

A copy of an application notice under paragraph (1) must be served on any other party to the legal proceedings (whether or not he is within the jurisdiction) who has not given an address for service, at –

(a)

his last known address; or

(b)

a place where it is likely to come to his attention.

(3)

Where a question arises as to whether –

(a)

an arbitration agreement has been concluded; or

(b)

the dispute which is the subject-matter of the proceedings falls within the terms of such an agreement,

the court may decide that question or give directions to enable it to be decided and may order the proceedings to be stayed pending its decision.”