Emergency Arbitral Interim Orders in Cross Border Offshore Holdings
Emergency arbitral orders freeze offshore asset transfers and share registers within fourteen days, protecting equity value during joint venture deadlocks.
Section 12 Singapore IAA
Meaning
Statutory clause within the Singapore International Arbitration Act that defines the powers of a tribunal to order interim measures such as preservation of assets or security for costs. This provision allows the tribunal to act before a final award is issued. It gives the proceedings the same weight as a court order in terms of compliance requirements.
Tribunal Authority
Arbitrators gain the power to grant relief that protects the subject matter of the dispute. Use of section 12 singapore iaa ensures that a party cannot dissipate funds while the case is ongoing. This authority extends to the examination of witnesses and the preservation of evidence.
Court Support
The High Court of Singapore maintains a concurrent power to issue orders when the tribunal cannot act effectively. While section 12 singapore iaa provides the primary route for relief, the court intervenes to enforce these orders against third parties. This relationship ensures an effective legal framework for international commercial disputes.
Order Enforcement
Parties must comply with the directions issued under the statute or face legal penalties. A failure to follow a direction under section 12 singapore iaa is treated as a breach of the arbitral agreement. The successful party can apply to the court to have the interim order enforced as if it were a judicial judgment.