- AGDM court upholds arbitration agreement despite existence of insolvency proceedings (NMC Healthcare v Dubai Islamic Bank)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Arbitration analysis: Confirming a narrow definition of the term ‘directions’ within the meaning of Art 95(7) of the Abu Dhabi Global Market (ADGM) Insolvency Regulations 2015, the ADGM Court of First Instance (ADGMCFI) rejected an application for directions made by the joint administrators of NMC Healthcare Ltd (NMCH) and its associated companies appointed in accordance with the ADGM Insolvency Regulations 2015. At the same time, the ADGMCFI gave full force to an arbitration agreement that provided for the resolution of all disputes arising from a loan arrangement in the form of a set of Master Morahaba Agreements, granting a stay in favour of arbitration in accordance with section 16(1) of the ADGM Arbitration Regulations 2015. To similar effect and in deference to a prevailing exclusive jurisdiction agreement in favour of another court, the ADGMCFI also stayed proceedings initiated against Dubai Islamic Bank (DIB) and a number of insurers. Written by Gordon Blanke, founding partner at Blanke Arbitration.
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