Arbitrator’s Power to Assess Costs

M/S Alghanim Industries Inc v Skandia International Insurance Corporation (Technology and Construction Court, Arbitration Law Monthly, September)

Under ss59 to 65 of the Arbitration Act 1996, arbitrators have the power to allocate the costs of the arbitration as between the parties and to determine what costs are recoverable. If they have not done so, any party to the arbitration proceedings may apply to the court to determine the recoverable costs. Does an award of costs ‘to be agreed or taxed in default of agreement’ permit the arbitrator to determine the costs, or does it amount to either a reference to the court or to a failure to determine the costs, enabling the receiving party to apply to the court?