Proceedings arising out of the Code

Restrictions on legal proceedings.
7
1
Legal proceedings arising out of a dispute relating to the application or operation of the Code may be brought in the United Kingdom only in the High Court or the Court of Session; and in this section “the court” means either of those courts.
2
Proceedings arising out of a dispute to which Article 23, paragraph 2 applies (disputes to be resolved within the framework of the national jurisdiction concerned) shall not be entertained by the court except as permitted by that paragraph.
3
The court shall stay proceedings before it if on the application of a party to the proceedings, made after appearance but before delivering any pleadings or taking any other steps in the proceedings, it is shown that the proceedings arise out of a dispute to which Article 23, paragraph 4 applies and that—
a
the dispute has not been referred to conciliation in accordance with that paragraph or has been so referred and cnciliation proceedings are still in progress; or
b
the parties to the dispute have made an agreement to which Article 25, paragraph 1 applies (agreed procedures in lieu of conciliation) which is capable of being, or has been, performed.
4
The court may attach to a stay granted under subsection (3) such conditions as appear to it appropriate, in particular conditions with respect to the institution or prosecution of conciliation or other proceedings; and the court may remove a stay granted under that subsection if any such condition is not complied with or if at any time it appears to the court that the circumstances are such that a new application for the stay would not be granted.
5
In relation to an arbitration agreement to which Article 25, paragraph 1 applies, subsections (3) and (4) apply in place of section 9 of the Arbitration Act 1996 (which also provides for the staying of legal proceedings).
6
In the application of this section to Scotland, for the references to staying proceedings substitute references to sisting proceedings.
Words in s. 7(5) substituted (31.1.1997) by 1996 c. 23, s. 107(1), Sch. 3 para. 38 (with s. 81(2)); S.I. 1996/3146, art. 3 (with art. 4 Sch. 2)