Australia / 06 September 2002 / Australia, Supreme Court of Victoria / CTA International Pty Ltd v. Sichuan Changhong Electric Co. / 4278 of 2001
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|Court||Australia, Supreme Court of Victoria|
|Date||06 September 2002|
|Parties||CTA International Pty Ltd v. Sichuan Changhong Electric Co.|
|Case number||4278 of 2001|
|Applicable NYC Provisions||II | II(3)|
 VSC 374, online: AustLII
|Summary||In January 2001, the plaintiff, CTA International Pty Ltd (“CTA”), initiated proceedings in the Supreme Court of Victoria against the defendant, Sichuan Changhong Electric Co. (“SCHEC”), seeking damages for breach of a distribution agreement by which SCHEC granted to CTA the exclusive rights to sell SCHEC’s electrical equipment in Australia and New Zealand. The agreement was signed in Mianyang City, Sichuan Province, China. It contained a clause providing for the submission of any dispute arising in connection with the agreement “for arbitration to an arbitration body where the dispute arises”. In April 2001, SCHEC initiated arbitration before the Mianyang Arbitration Commission in Sichuan Province. In June 2002, SCHEC applied for a stay of the court proceedings pursuant to s 7 of the International Arbitration Act 1974 (Cth) (“the Act”) (giving effect to NYC Article II(3) by providing that where proceedings instituted by a party to an arbitration agreement to which the Court determines the NYC applies are pending in a court, on the application of another party to the arbitration agreement, the court must stay the proceedings and refer the parties to arbitration). The Supreme Court granted the stay application, finding first, that the arbitral clause contained in the distribution agreement was an agreement to which s 7(2)(a) of the Act applied, and second, that all of the parties’ claims were “matters” capable of settlement by arbitration within the meaning of s 7(2)(b) of the Act.|
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