Meaning
An ex parte provisional relief mechanism allows an arbitration claimant to restrain a counterparty without prior notice to prevent the frustration of an upcoming interim measure. Under arbitration rules granting authority for a preliminary order, the claimant must demonstrate that prior disclosure of the application would defeat the very purpose of the requested conservatory relief. This mechanism provides an immediate, temporary freeze on assets or preservation of evidence while the counterparty remains unaware.
The order operates as a temporary safeguard pending a full inter partes hearing before the arbitral tribunal.
Procedural Condition
Applying for this urgent order requires the claimant to file a simultaneous application for a comprehensive interim measure supported by substantial evidence of irreparable harm. The arbitral tribunal reviews the application without notifying the respondent, assessing whether prior notification would cause the respondent to dissipate assets or destroy evidence. If the tribunal determines the risk of frustration is acute, it issues the directive immediately alongside strict procedural timetables.
Disclosure Duty
Claimants seeking ex parte relief bear a strict legal duty of full and frank disclosure regarding all relevant material facts. The applicant must reveal all factual circumstances, including legal defenses and evidentiary points that favor the absent respondent. Concealing material facts from the tribunal results in the immediate vacatur of the order, cost sanctions, and liability for all damages suffered by the restrained party.
Expiration Period
A preliminary order expires automatically twenty days after the date on which the arbitral tribunal issues the directive. The tribunal must provide formal notice of the application and the order to the respondent immediately after the measure takes effect. The respondent receives an immediate opportunity to present objections, after which the tribunal decides whether to modify, vacate, or convert the directive into an enduring interim measure.
