Decision of the Supreme Court of Sweden, 2 January 2003, Case No. Ö 3504-01/NJA 2003 s. 3
Summary: The appellant objected to the creditors’ right to be determined by way of arbitration proceedings, alleging that the arbitration clause did not bind the creditors as it had been agreed prior to the bankruptcy. The Supreme Court of Sweden found that the fact that the Swedish Arbitration Act does not regulate this issue, does not rule out the creditors’ right to intervene in arbitration proceedings. The Court explained that the opinion that the debtor’s arbitration clauses bind the creditors in the bankruptcy in contractual matters is consistent with the provision of Section 16 of the Swedish Bankruptcy Act. This provision establishes that if the right of any creditor depends on the outcome of a particular trial, the court shall determine that creditor’s right in the amount that might be the result of a judgment in that case. The Supreme Court of Sweden thus found the creditors to be bound by the arbitration clause entered into by the appellant prior to the bankruptcy.