Introduction 

[1] This case raises an important question of law. What are the principles governing the jurisdiction to issue an injunction restraining international arbitration proceedings commenced in accordance with an arbitration clause agreed to by the parties to the court proceedings? This question arises against the following background. 

Background 

[2] British Caribbean Bank Limited (“BCB”) appeals to this Court against the interlocutory order made by the Court of Appeal restraining it from continuing certain foreign arbitration proceedings. The arbitration proceedings were instituted to resolve disputes arising from the compulsory acquisition by the Government of Belize (“GOB”) of loan and mortgage debenture facilities having a face value of US$24 million owed to BCB from Belize Telemedia Limited (“Telemedia”). 

[3] Recourse by BCB to arbitration was based upon a Bilateral Investment Treaty (“BIT”)1 concluded on 30th April 1982, between the governments of Belize and the United Kingdom. The Agreement contained a provision for the resolution of disputes arising from any breach of the BIT by international arbitration and it applied to nationals and companies of either contracting party. By Exchange of Letters the Agreement was extended to the Turks and Caicos Islands. BCB is a large financial institution registered in the Turks and Caicos Islands.