Arbitration Ordinance (Cap. 16) as the courts read it.

The law allows parties to a contract to include in its terms an agreement to refer disputes which may arise to arbitration, and the normal rule is that the courts respect such a reference by staying legal proceedings instituted without honouring such arbitration clause. It appears to me from the wording of section 5 of the Arbitration Ordinance,6(6) that the court should be more disposed to grant stay in matters of this sort unless there is sufficient reason to the contrary. Although the grant of stay of legal proceedings is subject to the discretion of the court, the onus of satisfying the court that there are sufficient grounds not to stay the proceedings remains on the party opposing the stay. The judge’s discretion is not exercised simpliciter but in conformity with well-established principles.

KHOURY v. KHOURY [1962] 1 GLR 98 [1962] SLR (SC) 4 · Supreme Court · 1962 · VAN LARE JSC