Powers of the arbitrators: peremptory orders

Section 41(4) of the Arbitration Act 1996 permits the arbitral tribunal to make a peremptory order where a party has failed to comply with any order or direction made by the tribunal. Such an order is generally in “unless” form, so that if it is not complied with then the tribunal can adopt various sanctions.

Those include preventing reliance on material or proceeding to an award. However, by way of security for the tribunal, section 42 of the 1996 Act allows (in the absence of contrary agreement) the court to make an order requiring compliance with the tribunal’s peremptory order. In Patley Wood Farm LLP v Brake [2013] EWHC 4035 (Ch) Peter Smith J discussed the circumstances in which a court should exercise its discretion to enforce a peremptory order.