Stay of proceedings: arbitrability of winding-up proceedings

It is settled law that an arbitral tribunal cannot wind up a company. In FamilyMart China Holding Co Ltd v Ting Chuan (Cayman Islands) Holding Corporation [2023] UKPC 33; [2023] 2 Lloyd's Rep 527, an appeal to the Privy Council from the Court of Appeal of the Cayman Islands, the further question was whether the disputes which have given rise to a winding-up petition are arbitrable so that the winding-up petition can be stayed pending the outcome of the arbitration.

The Privy Council ruled that there is no reason why the underlying dispute cannot be arbitrated even though the only remedy sought is winding up.