The Privy Council’s decision in Sian v Halimeda reaffirms that in England and the British Virgin Islands, arbitration clauses won’t block winding-up petitions unless the debt is genuinely disputed. The Cayman Islands follow suit. Hong Kong adopts a more nuanced, multi-factor approach, while Singapore remains staunchly pro-arbitration, requiring petitions to be stayed unless the defence is plainly abusive.
The authors argue that these divergent approaches reflect differing priorities: creditor protection versus respect for arbitration. The article urges practitioners to stay alert to jurisdictional nuances, especially as legislative reforms loom in Hong Kong.
The takeaway? Arbitration clauses are not a universal shield—creditors may still petition for insolvency where debts are clear and undisputed.
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