COURT REFUSES TO EXTEND TIME FOR COMMENCEMENT OF ARBITRATION

Harbour and General Works Limited v Environment Agency [1999] BLR 409

The decision of the Court of Appeal in Harbour and General Works Limited v Environment Agency [1999] BLR 409 highlights the substantial changes which have taken place since the Arbitration Act 1996 came into force. Before the Act, a party which was late in commencing arbitration proceedings could apply to the court for an extension of time under s27 of the Arbitration Act 1950. The court’s discretion to extend time under that section if undue hardship would otherwise be caused was generally applied rather liberally in favour of granting the extension. However this approach has now changed, as this case illustrates where the court refused to allow the appellant an extension of time where it had not read the relevant provisions of its contract with the respondent.