Minister of Justice, Abubakar Malami
Formal insolvency law procedures are usually collective and centralised, overriding certain pre-insolvency agreements in order to achieve laid down objective(s) for the benefit of all creditors. In contrast, arbitration favours privity of contracts and party autonomy. Parties agreement to arbitrate their dispute is considered as sacrosanct regardless of the circumstances. There is therefore a potential for conflict when a dispute touches on these two regimes. In United States Line, 197 F. 3d 631 at 640 (1999), a US court described such as a conflict of near polar extremes given that the insolvency policy exerts an inexorable pull towards centralisation while arbitration policy advocates a decentralised…
Read the full article at: http://guardian.ng/features/law/are-insolvency-and-arbitration-like-oil-and-water/
