In a Commercial List application arising from a share purchase transaction, the applicant sought to compel arbitration of post-closing inventory, working capital, and holdback adjustment disputes, along with declarations concerning ownership of inventory and equipment.
The respondents argued that arbitration was premature because the court first had to determine what constituted inventory and whether the arbitrator had jurisdiction.
The court rejected that position, applied the competence-competence principle, and held that the arbitral process mandated by the SPA had to proceed.
The court also declared that the applicant owned the disputed inventory and equipment, vacated prior interim access orders, and refused to convert the application into an action.