Arbitration is a popular choice as a form of commercial dispute resolution with the advantages of time and streamlined procedures, as well as flexibility, especially for cases with foreign elements. Procedures for resolution of disputes by Arbitration must comply with the provisions of law. So, what is the execution sequence like?
1. Conditions for resolution of disputes by Arbitration
In reality, not all disputes that arise can be resolved through arbitration. Procedures for resolution of disputes by Arbitration are only carried out if the conditions prescribed by law are met:
– Dispute resolution by Arbitration is applicable if the parties have an arbitration agreement. Arbitration agreements can be made before or after a dispute arises.
– In case a party to the Arbitration agreement is an individual who dies or loses legal capacity, the Arbitration agreement remains valid for that person’s heirs or legal representatives, unless the parties have other agreements.
– In case a party to the arbitration agreement is an organization that must terminate its operations, go bankrupt, dissolve, consolidate, merge, divide, separate or convert its organizational form, the arbitration agreement will still be effective. power over the organization that takes over the rights and obligations of that organization, unless the parties agree otherwise.
2. Procedures for resolution of disputes by Arbitration
Procedures for resolving disputes by Arbitration are carried out according to prescribed procedures.
a. File a lawsuit in resolution of dispute by Arbitration
In case of resolution of disputes by Arbitration, the plaintiff must file a lawsuit and send it to the Arbitration Center. In case the dispute is resolved by ad hoc arbitration, the plaintiff must file a lawsuit and send it to the defendant.
The petition includes the following contents:
– Date, month, year of filing the lawsuit;
– Names and addresses of the parties; name and address of witnesses, if any;
– Summary of the content of the dispute;
– Basis and evidence for lawsuit, if any;
– The specific requirements of the plaintiff and the value of the dispute;
– Name and address of the person chosen by the plaintiff as an Arbitrator or requesting appointment of an Arbitrator.
Attached to the petition, there must be an arbitration agreement, originals or copies of relevant documents.
b. Defendant’s self-defense statement and counterclaim in resolution of disputes by Arbitration
For disputes resolved at the Arbitration Center, if the parties do not agree otherwise or the Arbitration Center’s procedural rules do not have other provisions, the defendant must send the Arbitration Center a self-declaration. protect. The deadline for implementation is 30 days from the date of receipt of the petition and accompanying documents. At the request of a party or parties, this deadline may be extended by the Arbitration Center based on the specific circumstances of the case.
For disputes resolved by ad hoc arbitration, if the parties do not agree otherwise, the defendant must send to the plaintiff and the arbitrator a self-defense statement and the name and address of the person he or she chooses to act as arbitrator. The deadline for implementation is 30 days from the date of receipt of the plaintiff’s petition and accompanying documents.
The self-defense copy includes the following contents:
i- Day, month, year as self-protection;
ii- Name and address of the defendant;
iii- Grounds and evidence for self-defense, if any;
iv- Name and address of the person selected by the defendant as Arbitrator or proposed to appoint an Arbitrator.
– In case the defendant believes that the dispute does not fall under the jurisdiction of the Arbitrator, there is no Arbitration Agreement, the Arbitration Agreement is invalid or the Arbitration Agreement cannot be performed, it must clearly state that in the self-defense statement.
– In case the defendant does not submit a self-defense statement according to regulations, the dispute resolution process will still proceed.
The defendant has the right to sue the plaintiff on issues related to the dispute. The defendant’s counterclaim must be sent to the Arbitration Center. In case the dispute is resolved by Ad Hoc Arbitration, the counterclaim must be sent to the Arbitration Council and the plaintiff.
The counterclaim must be filed at the same time as the self-defense statement.
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b. Establishment of Arbitration Council
The establishment of the Arbitration Council can be according to the agreement of the Parties, the procedural rules of the Arbitration Center (in case of dispute resolution at the Arbitration Center) or according to the provisions of the Commercial Arbitration Law.
In cases where the parties do not agree otherwise or the arbitration center’s procedural rules do not stipulate otherwise, the establishment of the Arbitration Council is prescribed as follows:
The composition of the Arbitration Council may include one or more Arbitrators as agreed by the parties. In case the parties do not agree on the number of Arbitrators, the Arbitration Council shall consist of three Arbitrators.
c. Open a dispute resolution meeting
If the parties do not agree otherwise or the Arbitration Center’s procedural rules do not provide otherwise, the time and place of the meeting will be decided by the Arbitration Council.
The summons to attend the meeting must be sent to the parties no later than 30 days before the opening date of the meeting if the parties do not agree otherwise or the arbitration center’s procedural rules do not provide otherwise.
The arbitration council can conduct mediation so that the parties can agree on resolving the dispute at the request of the parties. When the parties reach an agreement on the resolution of the dispute, the Arbitration Council prepares a record of successful conciliation signed by the parties and certified by the Arbitrators. The arbitration Council issues a decision recognizing the parties’ agreement. This decision is final and has the same value as the Arbitration award.
d. Issue an Arbitration award
Based on the results of the Arbitration Dispute Resolution Meeting, the presentation and defense content of the parties, the Arbitration Council will issue a decision based on the following principles:
– The Arbitration Council makes the arbitral award by voting according to the majority principle;
– In case the voting does not reach a majority, the Arbitration award is made according to the opinion of the Chairman of the Arbitration Council.
- Law on Commercial Arbitration 2010.
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