Competence-Competence in Maritime Arbitration: Jurisdiction of the Arbitral Tribunal under Egyptian Law

In maritime arbitration, a fundamental preliminary question is whether the arbitral tribunal has jurisdiction to hear and determine the dispute.

Under Article 22 of Egyptian Arbitration Law No. 27 of 1994, the arbitral tribunal is competent to rule on objections concerning its own jurisdiction, including objections alleging the non-existence, extinction or invalidity of the arbitration agreement.

This reflects the internationally recognized competence-competence principle, under which an arbitral tribunal has the authority to determine the limits of its own jurisdiction.

When Must a Jurisdictional Objection Be Raised?

The timing of the objection is critical. Under Article 22(2), an objection concerning the non-existence, extinction or invalidity of the arbitration agreement must be raised no later than the submission of the respondent's statement of defence.

Importantly, the appointment of an arbitrator by a party does not, by itself, prevent that party from subsequently raising a jurisdictional objection.

How Does the Tribunal Determine Jurisdiction?

The tribunal may determine the jurisdictional objection as a preliminary matter, before deciding the merits; or together with the merits in the final award.

The Separability of the Arbitration Agreement

A related principle is the separability of the arbitration agreement. Under Article 23, an arbitration clause is treated as an agreement independent of the other terms of the underlying contract.

Why Does This Matter in Maritime Arbitration?

Jurisdictional objections may determine whether a maritime dispute proceeds to the merits at all. For shipowners, charterers, cargo interests, P&I Clubs, ship managers and other participants in international maritime commerce, jurisdiction should be addressed as an early strategic issue.