In November 2001, Claimant, a US company, initiated arbitration against Respondent, a French company. In July 2002, Respondent became subject to bankruptcy proceedings in France. The arbitral tribunal issued a partial award in which it addressed the Claimant's claim for unpaid sums with interest. Respondent subsequently claimed that this award violated French insolvency law as it was made prior to the declaration of a debt and that the debt was declared after the allotted time limit, with the result that the arbitration had become void. The arbitral tribunal addressed this renewed challenge to its jurisdiction in its final award.

'4. The claim for unpaid invoices

4.1 The claim

Claimant claims . . . in respect of unpaid sums due under 12 invoices. . . .

4.4 Tribunal's decision

In these circumstances, we are in no doubt that the invoiced sum of . . . is due and owing from Respondent to Claimant.

4.5 Effect of French bankruptcy proceedings

Since Respondent is subject to a "redressement judiciaire" procedure under French commercial law (Articles 620-1 et seq. Code de Commerce), according to Article 621-41 of the Code de Commerce, court proceedings are suspended until after the creditor has filed a declaration on his claim. Thereafter the proceedings are resumed but with the only aim to determine the claims and their amount. Accordingly, the judge may not condemn a party under bankruptcy proceedings to pay any amount. Only after the declaration as to the existence of such claim is made the judges may decide on the claim in dispute. French courts have acknowledged the applicability of this principle in international arbitration proceedings referring to the former law no. 85-98 dated 25th January 1985, now incorporated in the above Article 621-41 of the Code de Commerce (Cass. Civ. 1, 8 March 1988, Société Thinet vs Labrely ès-qualites, in Revue de l'arbitrage, 1989, p. 473). We therefore declare that Respondent is liable for the amount of . . ., as set out above.

5. Interest on the invoiced sums

Claimant claims interest on the invoiced sums referred to in section 4 above. The claim for interest is divided into two parts.

5.1 Pre-award interest

. . . . . . . . .

5.2 Post-award interest

. . . . . . . . .

5.3 Effect of French bankruptcy proceedings

Since Respondent is subject to a "redressement judiciaire" procedure under French commercial law (Articles 620-1 et seq. Code de Commerce) as set out in section 4.5, according to Article 621-41 of the Code de Commerce court proceedings are suspended until after the creditor has filed a declaration on his claim. Thereafter the proceedings are resumed but with the only aim to determine the claims and their amount. We therefore decide that Respondent is also liable for the amount of . . . as set out in section 5.1 above and for post-award interest, as set out in section 5.2 above.'