Arbitration Act 2005 · Updated to 1 Nov 2018 · Chapter 2
10. Arbitration agreement and substantive claim before court
Feedback & supportA court before which proceedings are brought in respect of a matter which is the subject of an arbitration agreement shall, where a party makes an application before taking any other steps in the proceedings, stay those proceedings and refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed.
arbitration agreement
“arbitration agreement” means an arbitration agreement as defined in section 9;
The court, in granting a stay of proceedings pursuant to subsection (1), may impose any conditions as it deems fit.
Where admiralty proceedings are stayed pursuant to subsection (1), the court granting the stay may, if in those proceedings property has been arrested or bail or other security has been given to prevent or obtain release from arrest—
order that the property arrested be retained as security for the satisfaction of any award given in the arbitration in respect of that dispute; or
order that the stay of those proceedings be conditional on the provision of equivalent security for the satisfaction of any such award.
Subject to any rules of court and to any necessary modifications, the same law and practice shall apply in relation to property retained in pursuance of an order under subsection (2a)
as would apply if it were held for the purposes of proceedings in the court making the order.
For the purpose of this section, admiralty proceedings refer to admiralty proceedings under Order 70 of the *Rules of the
High Court 1980 [P.U. (A) 50/1980] and proceedings commenced pursuant to paragraph 24(b) of the Courts of Judicature Act 1964
High Court
“High Court” means the High Court in Malaya and the High Court in Sabah and Sarawak or either of them, as the case may require;
[Act 91].
Where the proceedings referred to in subsection (1) have been brought, arbitral proceedings may be commenced or continued, and an award may be made, while the issue is pending before the court.
award
“award” means a decision of the arbitral tribunal on the substance of the dispute and includes any final, interim or partial award and any award on costs or interest but does not include interlocutory orders;
This section shall also apply in respect of an international arbitration, where the seat of arbitration is not in Malaysia.
international arbitration
“international arbitration” means an arbitration where— (a) one of the parties to an arbitration agreement, at the time of the conclusion of that agreement, has its place of business in any State other than Malaysia; (b) one of the following is situated in any State other than Malaysia in which the parties have their places of business: (i) the seat of arbitration if determined in, or pursuant to, the arbitration agreement; (ii) any place where a substantial part of the obligations of any commercial or other relationship is to be performed or the place with which the subject matter of the dispute is most closely connected; or Arbitration 9 (c) the parties have expressly agreed that the subject matter of the arbitration agreement relates to more than one State;