Whereas, the Ministry
of Justice has established an arbitration institute under the Office
of the Judicial Affairs to promote and develop conciliation and
arbitration as alternative dispute resolution parallel to judicial
proceedings conducted by the Courts ; it is, therefore, necessary
to issue Arbitration Rules for the Arbitration Institute, Ministry
of Justice as follows : |
ARBITRATION INSTITUTE , MINISTRY OF JUSTICE
| SECTION I DEFINITIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| SECTION II ARBITRATION PROCESS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| SECTION III THE AWARD | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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"Office" means the
Arbitration Office, Ministry of Justice ; |
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"Institute" means the Arbitration
Institute of the Arbitration Office ; |
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"Commission" means the Arbitration
Commission of the Arbitration Office which is appointed by the
cabinet ; |
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"Director" means the Director of
the Arbitration Office ; |
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"Conciliator" means the conciliator
registered with the Office by the advice and consent of the Commission.
It shall include ad hoc conciliator who is appointedby the parties
and whose name does not appear in the list of the Office ; |
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"Arbitrator" means the arbitrator
registered with the Office by the advice and consent of the Commission.
It shall include ad hoc arbitrator who is appointed by the parties
and whose name does not appear in the list of the Office ; |
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"Conciliation Rules" means the
Conciliation Rules of the Institute ; |
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"Arbitration Rules" means the Arbitration
Rules of the Institute. |
The parties to a dispute may stipulate the following arbitration clause in the contract so that the Institute may conduct the arbitration of the dispute arising and apply the Arbitration rules of the Institute to the dispute :
"Any dispute, controversy or claim arising out of or relating to this contract, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the Arbitration Rules of the Arbitration Institute, Ministry of Justice applicable at the time of submission of the dispute to arbitration and the conduct of the arbitration thereof shall be under the auspices of the Arbitration Institute."
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Before submission of thedispute
to arbitration, the Director shall convene the parties to bring
about a settlement. If the Director deems appropriate and the parties
agree, one or more conciliator shall be appointed. |
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The person who is appointed conciliator in
any dispute may not be arbitrator in the same dispute. |
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The Conciliation Rules shall apply to the
conciliation process. |
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Except where the parties agree
otherwise in writing with the consent of the Director, the Arbitration
Rules shall apply to arbitration organized by the Arbitration
Institute. |
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Matters fallen outside the scope of the Arbitration
Rules shall be dealt with by agreement between the parties or
by the discretion of the arbitrator or by the resolution of the
Arbitration Commission respectively. |
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For the purposes of these Rules,
the service of pleadings, notices or other documents shall be valid
when they are received by the other party, its representative or
attorney, or they are delivered at the domicile or place of business
of the addressee ; in case where the domicile or place of business
cannot be found, the same may be delivered at his last-known residence
or place of business. |
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For the purposes of calculating a period of
time under these Rules, such period shall begin to run on the day
followingthe day when a pleading, notice or other communication
is received. If the last day of such period is an official holiday,
the period is extended until the first business day which follows.
Official holidays occurring during the running of the period of
time are included in calculating the period. |
The party initiating recourse to arbitration may submit a statement of claim in the form provided by the Institute to the Director. The statement shall consist of the following particulars:
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A request to settle the dispute by arbitration; |
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Name and addresses of the parties; |
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Applicable arbitration clause or arbitration agreement; |
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The contract or legal relationship which gives rise to the dispute; |
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The facts which form the basis of the claim and the amount claimed ; |
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The relief or remedy sought ; |
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The number of arbitrators, if the parties have not previously agreed upon. |
When a statement of claimis filed with the Institute and the Director is satisfied that the statement conforms with the requirements set forth, the Institute shall, without delay, serve the other party with the statement at his domicile or place of the business by return post or by any other means as it deems appropriate.
When the other party has been
served with the statement of claim, he may file a defence or a
counter-claim in writing with the Director within 15 days from
the day on which the statement of claim is served on him. |
The parties may appoint are
presentative or any other person to assist them in the arbitration
process. The parties shall notify in writing the name and address
of such person to the Director. |
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The Institute shall dispatch, without
delay, an identical list containing at least three names from the
list of arbitrators to the parties ; |
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Within 15 days from the date of the receipt
of this list, each party may return the list to the Institute after
having deleted the name or names to which he objects and numbered
the remaining names on the list in order of his preference ; |
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After the expiration of the above period of
time the Director shall appoint the sole arbitrator from among the
names approved on the lists returned to him and in accordance with
the order of preference indicated by the parties ; |
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If any party fails to perform his duty under
(2), the Director may exercise his discretion in appointing the
sole arbitrator. In making the appointment, the Director shall have
regard to the independence and impartiality of the arbitrator; |
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The parties may, by consensus, appoint a person
not registered with the Institute to be the sole arbitrator. |
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Each party shall appoint one arbitrator.
The two arbitrators thus appointed shall choose the third arbitrator
who will act as the presiding arbitrator of the tribunal ; |
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Rule 11 shall apply tothe appointment of the
presiding arbitrator mutatis mutandis ; |
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The presiding arbitrator and arbitrators shall
have equal vote ; |
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The arbitral award shall be rendered on the
majority basis. |
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The appointment of arbitrator
shall be made in writing, signed by the party who appoints him,
indicating the address, nationality, occupation and other qualifications
of the arbitrator. |
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The arbitrator must consent to the appointment.
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The Director shall notify the names and addresses
of the arbitrators to all parties concerned without delay. |
Upon appointment, the arbitrator shall disclose to the Director any
circumstances likely to give rise to justifiable doubts as to his impartiality
and independence.
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A party may challenge the arbitrator
appointed by another party if circumstances exist that give rise
to justifiable doubts as to the impartiality and independence
of the arbitrator. |
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The challenge shall be made in writing notifying the grounds for challenge and submit to the Director within 15 days from the date of the notification of the name and particulars of the arbitrator. |
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If the other party agrees with
the grounds for challenge of arbitrator submitted by one party
or the arbitrator withdraws after the challenge ; the procedure
provided in Rules 11 and 12 shall apply for the appointment of
the substitute arbitrator, even if during the process of appointing
the challenged arbitrator a party had failed to exercise his right
to appoint or to participate in the appointment. |
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The facts that the other party agrees with the grounds for challenge of arbitrator or that the arbitrator withdraws from the appointment shall not be construed to indicate the validity of the grounds for challenge. |
In case where the other party does not agree with the grounds for challenge and the arbitrator does not withdraw from the appointment, the Director shall submit the matter with advice to the Commission without delay. If the Commission satisfies that the grounds for challenge can be substantiated and orders a replacement of arbitrator, Rule 16(1) shall apply mutatis mutandis.
In case where the new arbitrator under Rule 16, Rule 17 and Rule 18 is a sole arbitrator or is the presiding arbitrator of the tribunal, the arbitral proceedings will commence anew. If the new arbitrator is not a sole arbitrator, the arbitral tribunal shall decide whether to commence the proceedings anew. ARBITRAL PROCEEDINGS
The parties may agree upon the language or languages to be used in the arbitral proceedings.
Subject to these Rules and the agreement
between the parties, the arbitral tribunal may conduct the arbitration
in such manner as it considers appropriate, provided that the parties
are treated with equality and that at any stage of the proceedings each
party is given a full opportunity of presenting his case.
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The parties shall submit all the
documents in support of their claim or defence to the arbitral tribunal
on the first day of the hearings. In case where the arbitral tribunal
deems appropriate, the tribunal may order the parties to submit
to it all the relevant documents. |
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The taking of evidence shall be conducted
by the arbitral tribunal. The tribunal shall note down the testimony
of the witnesses in the memorandum and read it to the witnesses,
the witnesses will then sign the memorandum. The memorandum thus
signed shall be kept in the dossier of the case. |
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The arbitral tribunal may assign an officer
designated by the Institute to record the testimony in the memorandum.
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The hearings shall be held in camera. |
Each party shall have the burden of proving the facts relied upon to support his claim or defence.
The arbitral tribunal may appoint one or more experts to report to it in writing. In such case, the parties shall disclose the facts demanded to the expert.
The Institute shall communicate the report to the parties. If requested, the office shall send a copy of the report to the parties.
The parties may file a request to question the expert witness. If the request is granted the rules of the hearings of evidence under Rule 22 shall apply mutatis mutandis.
The arbitral tribunal may inquire the parties if they have any further proof to offer or witnesses to be heard and submissions to make and, if there are none, it may declare the hearings closed.
Unless otherwise agreed upon, the award shall be made within 180 days from the day on which the last arbitrator was appointed.
The arbitral tribunal shall decide in accordance with legal principle and the rule of justice.
In the interpretation of contract, the tribunal shall take into account its enforceability and the usages of trade applicable to the transaction.
The award shall be made in writing and signed by the arbitrators. It shall contain the date on which and the place where the award was made. In case where an arbitrator fails to sign his name in the award, the tribunal or the Director shall state the reason for such absence.
The award shall state clearly the reasons upon which it is based.
The arbitrator, Director, Institute and the Office shall not disclose the award to the public, unless with the consent of the parties.
When the award is made, the Institute shall without delay, deliver
a copy of the award to the parties concerned. The award shall be final
and binding upon the parties from the day on which it reaches the party.
Within 30 days from the day on which a copy of the award reaches the party, if any reasonable doubt arises concerning the contents of the award, a party may request the arbitral tribunal to interpret such contents. The interpretation shall constitute a part of the award and shall be adhered to in the same manner as the award.
Within 30 days from the day on which a copy of the award reaches the party, either party may request the arbitral tribunal to make an additional award as to any material issue which in the opinion of that party, was not covered in the original award. If the arbitral tribunal considers the request for an additional award to be justified, it shall complete its additional award within 30 days from the day on which the request has been filed.
If the arbitral tribunal is of the opinion that the additional award cannot be made without any further hearings or evidence, it may request further hearings or evidence from the parties. In such case, the arbitral tribunal shall complete its additional award within 60 days from the days on which the request has been filed.
Unless otherwise stated in the arbitration agreement, costs and expenses
in the arbitral process as well as fees of the arbitrators but not including
fees and expenses of legal representation, shall be fixed by the arbitral
tribunal in its award.
Before commencing any arbitral proceedings, if the Director deems appropriate, he may request the party concerned to deposit any expenses incurred. In special circumstances, the Director may request the security of costs and fees from the parties.
In case where the parties fail to pay the required expenses, costs or fees within the period specified by the Director, the Director shall report the same to the arbitral tribunal to consider the suspension or termination of the arbitral proceedings.
Published in the Government Gazette, Volume 107, Part 54, dated 3 rd April 1990