Legal Updates

The Court’s auxiliary powers regarding arbitration are contingent on the existence of an arbitration agreement and not on the actual conduct of an arbitration proceeding

March 25, 2025
Print

A party to an arbitration agreement moved the Court for interim relief, despite the fact that no arbitration proceedings actually took place.

The Supreme Court held that temporary relief may be granted even in the absence of an actual arbitration proceeding. Israeli Arbitration Law grants the Court the authority to grant a variety of remedies, including injunctions, foreclosure of assets, and more. These powers vests with the Court once there is an arbitration agreement between the parties and there is no need for an actual arbitration proceeding to take place. Here, the appointment of the arbitrator was made in contravention of the arbitration agreement and therefore no actual arbitration proceeding took place. However, as there was a valid arbitration agreement between the parties, the Court had the authority to grant the remedies prescribed by law.