(1) The rules of arbitral procedure regulate the constitution, organization and functioning of the arbitration and is applied in the arbitration established by the Association of liquidators and administrators of the Republic of Moldova, appointed for solving the disputes that arise between individuals and/or legal entities.
(2) The organization of this arbitration is made through the International Arbitration under the Association of liquidators and administrators of Moldova, hereinafter referred to as International Arbitration (IA), under its Rules of organization and operation and these Rules as well, established pursuant to the provisions of the Law "On Arbitration" no 23-XVI from 22.02.2008, the Law "On International Commercial Arbitration" no 24-XVI from 22.02.2008, the Code of Civil Procedure of the Republic of Moldova and the Regulations of Arbitration of the United Nations Commission on International Trade Law UNCITRAL.
(3) The International Arbitration (IA) organizes and manages the settlement, by arbitration, of internal or international litigations, which arise, in broad sense, in civil law relations between parties with full legal capacity, provided that the parties have entered into a written arbitration agreement.
(4) Subject to public order or morals observance, and the law mandatory provisions as well, the parties may determine either by arbitration agreement or a written subsequently signed document, either directly or by reference to a specific regulation covering the arbitration, the rules on the arbitral tribunal constitution, the appointment, revocation and replacement of arbitrators, the time and place of arbitration, the procedural rules which the arbitral tribunal must follow within the proceeding proceedings, including a possible prior conciliation procedure, the distribution of arbitration costs between the parties, the content and form of the arbitration award and, in general, any rules on good conduct of arbitration. For lack of such rules, the arbitral tribunal shall regulate the following procedure as it will deem appropriate. If none of the arbitral tribunals has set these Rules, the following provisions will apply.
(5) At any stage of litigation, the arbitration will try to settle it under an agreement of the parties. The arbitration will do its best to facilitate such understandings, so that the litigation subject to arbitration to be solved quicker and more equitable, allowing resumption of normal relations between the parties.
Rights and fundamental principles of the arbitration proceeding.
Article 2. Parties’ adversarial character and equality in procedural rights.
(1) The arbitration procedure is conducted on the principle of parties’ contradictoriness and equalityin procedural rights.
(2) The adversarial charactersupposes the organization of the procedure so that the parties and other participants to the proceeding be able to formulate, argue and prove their position in the proceeding, to choose ways and means of its independent supporting and regardless of arbitration, other authorities and individuals, to express their own opinion on any factual and legal issues related to the arbitrated case and to express their views on arbitration initiatives.
(3) The arbitration examining the litigation reserves the impartiality and objectivity, creates conditions for the exercise of the rights of the participants to legal proceedings, for an objective research of the factual circumstances of the case.
(4) The parties’ equality in the procedural rights is guaranteed and ensured by the creation of equal, sufficient and appropriate opportunities to use all procedural means to support the position on the factual and legal circumstances, so that no party should be disadvantaged as compared with the other one.
Article 3. Availability of rightsof the parties to arbitration proceeding.
(1) The rights’ availabilityisstated in the potential of participants to legal proceedings, firstly the parties’ possibility to freely dispose of the subjective material right or legitimate interest subject to arbitration procedure and to have procedural rights to choose the defence method and means.
(2) The arbitration does not admit to have a right or to use a defence method if such deeds contravene to the rules of law or infringe any rights or legitimate interests of a person.
Article 4. Freedom in establishing the procedure rules.
(1) Under the conditions established by the law, the parties are free to agree on the procedure to be followed by the arbitration in the settlement of a dispute.
(2) For the lack of an agreement specified in p. (1), the arbitration may, as provided by law, to conduct proceedings and settle the dispute the way it deems appropriate. The powers conferred to the arbitration include the right to determine the admissibility, relevance and importance of each evidence.
Article 5. Language of the proceeding and the right to an interpreter.
(1) The parties are free to determine the language or languages to be used in the arbitral procedure. If the parties have so agreed, the arbitration establishes by an award that the arbitration procedure be conducted in Romanian.
(2) The dispute debate with foreign origin element is made in the language determined by an arbitration agreement or, if there hasn’t been otherwise provided in this regard, or if there hasn’t occurred a further understanding, in the language of the contract the dispute had arisen from, or in a language of international circulation set by the constituted arbitral tribunal
(3) The parties’ agreement or the arbitration conclusion on the working language of the arbitration procedure refers to any written statement of the party, any hearing, conclusion, award or other communication of the arbitration.
(3) The persons interested in the case settlement, who do not know or speak the working language of arbitration procedure, are entitled to become familiar with the documents, case materials and to speak at the hearing through an interpreter. Upon his/her request and at his/her own expense, the arbitral tribunal shall provide him/her an interpreter. The parties may participate in debates with their translators.
(4) The arbitration may order that any documentary evidence to be accompanied by translation into the language or languages agreed between the parties or determined by arbitration. The translation of documents is guaranteed by the parties.
Article 6. Law applicable to the merits of the dispute.
(1) The International Arbitration (IA) settles the dispute in compliance with the rules of law which the parties have chosen as being applicable to the merits of the dispute, stated in the contractual or other agreement of the parties. Any designation of a law or a state legal system is interpreted, except for a contrary express stipulation, as a reference to the substantive law of that state and not to its conflicting rules.
(2) If the parties have not agreed on the law applicable to the merits of the dispute, the arbitration applies the rules of law of the Republic of Moldova, taking into account the commercial practices that apply to such transaction and in the settlement of disputes with foreign origin element, the arbitration applies the law established by the conflicting rules that it considers applicable in this case.
(3) In order to establish the presence and content of law or another foreign legislative act, the arbitration shall require, as provided, the assistance of the competent authorities. In case of impossibility to obtain the necessary information about a law or another foreign legal act, although rigorous measures having already been taken, the arbitration will apply the national law.
(3) If at the settlement of litigation there is established that a law or another normative act does not comply with a law or a normative act with a superior legal power, the arbitration shall apply rules of law or another normative act having a superior legal force.
(4) If there is a lack of a law rule to govern the disputed legal relationship, the arbitration applies the rule of law governing similar relationships (law analogy), and if there is no such rules, it follows the principles of law and the sense of the normative act ( law analogy). It is not allowed the application by analogy of the rule of law that derogates from the general provisions, restricts rights or establishes additional penalties.
(5) If the international treaty provides other rules than those provided by law, the arbitration applies the international treaty regulations in dispute settlement.
(6) The arbitration tries in equity or as an amiable mediator only if the parties have expressly authorized it to do so.
Article 7. Right to legal assistance.
Parties and other participants to legal proceedings are entitled to be assisted in arbitration sittings by a lawyer or another representative, appointed as provided by law. The legal assistance may be provided at any stage of the arbitration proceeding.
Article 8. Methods of rights, freedoms and legitimate interests’ protection.
The arbitration exercise rights, freedoms and legitimate interests on the order of fulfillment of obligations, by declaring the existence or nonexistence of a legal relationship, by establishing a fact that has legal value by other ways.
Article 9. Leading role of arbitration.
(1) The arbitration plays a leading role in organizing and carrying out arbitration proceeding, which boundaries and contents are set out in these Rules and law.
(2) The arbitration shall be impartial and shall approach the arbitration case in a practical and expeditious manner.
(3) The arbitration procedure shall ensure the parties, under the sanction of arbitration award nullity, the treatment equality, the observance of the right of defence and of the adversarial principle. In this regard, the arbitration shall explain the Parties to the arbitration procedure the procedural rights and obligations, shall prevent them on the consequences that may be caused by the exercise or non-exercise of procedural document, assists them in exercising their rights, shall order at the request of the parties and other participants to the proceeding, the presentation of evidence that would facilitate the approval of as well-founded award , shall lead arbitral debates and take the necessary measures for a proper carrying out of proceeding, shall bring into the debates of parties and other participants to the proceeding of any factual or legal circumstances, and shall carry out other actions provided by these Rules.
Article 10. Use of technical means.
For the documentation of the arbitration sittings’ works and for the preservation of evidence, the arbitration may use any technical means in accordance with these Rules.
Article 11. Confidential nature of arbitration disputes.
(1) The dispute is examined, usually in closed session. The examination of the dispute in open session is allowed only with the consent of both parties.
(2) The arbitration shall keep the confidentiality of data, information and documents, taken into consideration within the arbitration disputes, which are related to the trade secrets of the parties and/or the person's intimate life.
(3) The litigation case is confidential. No person, except those involved in the relevant litigation, has access to the record without the written consent of the parties.
(4) As an exception, the arbitration may disclose information or provide documents from the arbitration case to third parties, not involved in the arbitration proceedings, unless the information was known before it has been obtained from the parties; the information was received from a non-confidential source; the disclosure of information has been made prior to this written consent; the information was public on the day of its disclosure; the arbitration was legally bound to disclose the information.
(5) The arbitration awards may be published only with the full consent of the parties. They can however be published in part or in summary or commented in terms of legal issues arising in periodicals, papers or collected works of arbitral practice, without giving names or denominations of parties, or data that could harm their interests.
(6) The Chairman of the arbitration sitting of the International Arbitration (IA) may authorize, in case of need, the examination of records of the proceedings for scientific or documentary purposes after the settlement of litigation and only if there were made irrevocable award s in those records.
Jurisdiction of International Arbitration
Article 12. Definition of arbitration agreement.
(1) The arbitration agreement means the agreement under which the parties submit to arbitration all disputes, or certain litigations which have arisen or may arise between them with respect to legal contractual or non-contractual relationship.
(2) The parties may establish, by an arbitration agreement, either directly or by reference to a specific regulation covering the arbitration, the rules of arbitration constitution; the appointment, revocation and replacement of arbitrators; the time and place of arbitration; the procedural rules which the arbitration must follow within settlement of a dispute; rules of arbitration costs and their distribution; the content and form of the arbitration award; other rules on good conduct of arbitration.
Article 13. Form of arbitration agreement.
(1) The arbitration agreement is concluded in writing, under penalty of nullity.
(2) The arbitration agreement is made in written form if its content is recorded in any form, regardless of whether the contract was concluded orally, by conclusive actions or by other means.
(3) The condition of an arbitration agreement written conclusion is comprised in an electronic communication if the information contained in it is available for further (subsequent) references. The electronic communication means any communication that the parties do though data message. The latter means information generated, sent, received or stored by electronic, magnetic, optical or similar means, including electronic data interchange, electronic mail (e-mail), telegram, telex or telescoping, but not limited to them.
(4) An arbitration agreement is written, if it consists in an exchange of request for arbitration and reference where its existence is alleged by a party and not challenged by the other party.
(5) The reference in a contract to a document containing an arbitration clause is worth as a written arbitration agreement if the reference is able to make the clause a part of the contract.
(6) A deficiency of the arbitration agreement form may be removed in arbitration proceeding by submitting a reference unless at the latest together with the reference there is not made any objection to the deficiency.
Article 14. Types of arbitration agreement.
(1) An arbitration agreement may be conclude either as an arbitration clause entered in the principal contract or as an independent agreement called compromise agreement.
(2) By the arbitration clause the parties agree that disputes, arising from the contract where this clause is a part of it or in connection with this contract should be settled by arbitration, by pointing out the names of arbitrators or the method of their appointment. For lack of such pointing out and if the arbitration organization has been entrusted to the arbitral tribunal, the arbitrators shall be appointed under these Rules.
(3) The validity of the arbitration clause is independent from that of the contract where it has been included.
(4) By a compromise agreement the parties agree that any dispute arising between them shall be settled by arbitration, pointing out, under nullity sanction, the dispute subject. The compromise agreement shall also include the names of the arbitrators or the way of their appointment, or the case of appointment of an arbitrator by an authorized person. For lack of such specification, since the organization of arbitration was directly assigned to the International Arbitration under the Association of Liquidators and Administrators of the Republic of Moldova, the appointment of arbitrators and the examination of dispute shall be made under these Rules.
(5) The arbitration agreement may result from the submission by a claimant of a request for arbitration and the respondent's acceptance of this request to be settled by arbitration.
(6) The arbitration clause may be legally provided in a disposition for cause of death or in another unilateral act that is not based on any agreement (extra-conventional arbitration).
Article 15. Effects of the arbitration agreement.
(1) The termination of the arbitration agreement excludes, for the dispute that is its subject matter, the jurisdiction of courts.
(2) Any act of obstruction or delay of the dispute constitutes a breach of the arbitration agreement.
(3) The establishment of contract nullity does not imply de jure the nullity of the arbitration agreement included in the contract. To this end, the arbitration clause provided in the contract should be interpreted as an agreement separate from the other contractual clauses.
Article 16. Compatibility of the arbitration agreement with precautionary action.
Is consistent with the arbitration agreement the request submitted by a party to the court prior the arbitration proceeding or during its conducting by taking precautionary measures and adopting a conclusion for taking such measures.
Article 17. Determination of its own jurisdiction.
(1) The International Arbitration (IA) may refuse the organization of arbitration if there are doubts or challenges about the existence of arbitration agreement or if it appears that it is obsolete or inoperative. If, however, the parties or one of them persist in the organization of arbitration, the International Arbitration (IA) will put it in action, following that the arbitral tribunal makes a award on the existence or validity of the arbitration agreement.
(2) The arbitration is entitled to decide on its own jurisdiction, the dispute and in this respect, on the validity of the arbitration agreement. The award under which the arbitration is declared competent can be appealed in ordinary court only together with the final award on the merits of dispute. The arbitration award on the contract nullity does not entail de jure the nullity of the arbitration clause.
(3) The statement on the arbitration lack of jurisdiction in dispute settlement may be done at latest when submitting objections to action. The fact that a party has appointed an arbitrator or participated in his appointment does not deprive him/her of the right make such statement. The arbitration excess of its jurisdiction should be invoked immediately after the case, which in the party’s opinion, overcomes the arbitration jurisdiction, is put in arbitration procedure. In all these cases, the arbitration may admit the statement on the excess power made later provided that the delay is justified.
(4) The arbitration may decide on the statement of lack of jurisdiction by am award as on a preliminary matter or in the award on the merits of dispute. If the arbitral tribunal decides, as a preliminary matter, that it is competent to settle the dispute, the conclusion in this regard can be abolished only by revocatory action brought against the arbitration award, as provided by the Code of Civil Procedure of the Republic of Moldova.
Article 18. Arbitrability.
(1) Under these Rules, the arbitration shall settle any dispute (litigation) with the participation of individuals and/or legal entities, including between the shareholder (partner, participant or member) and commercial or non-commercial company, arising from civil legal relations; economic relations; obligation contractual and non-contractual relationships, such as sale and purchase, services providing, execution of works and others; or arising from property and other real rights, including intellectual property right; from a commercial agreement, including as to its conclusion, interpretation, execution, cancellation and invalidation or termination, as well as from other legal economic and trade relations.
(2) The claims relating to the family law, claims arising from contracts of lease (rent) of accommodations, including the disputes on the conclusion, validity, termination and qualification of such contracts, claims and property rights on housing cannot make the subject of an arbitration agreement.
(3) The dispute is international if it arises from a contract or other legal or commercial relations of international trade interests in civil relations, either from civil legal relations with foreign origin elements relevant enough to debate the application of foreign law, even if the actually applied law is that of the Republic of Moldova. In this case, the following are subject to international arbitration settlement:
a) the disputes arising from contractual and other civil legal relations arising from the execution of international commercial contracts and other international economic relations, whether the head office of at least one party is located abroad the Republic of Moldova;
b) the disputes arisen between foreign investment enterprises and associations, international organizations founded in Moldova, the disputes between their members, and disputes between them and other legal subjects of the Republic of Moldova.
(4) These Rules do not affect any legislative act in virtue of which certain disputes may not be submitted to arbitration or may be submitted only in compliance with other provisions than those of these Rules.
(5) The arbitration settles arbitration cases with the participation of citizens of the Republic of Moldova, foreign citizens, stateless persons, individual enterprises, farms, legal entities for profit and non-profit purposes, foreign organizations, foreign investment organizations, international organizations, etc.
Article19.Place of arbitration proceeding.
(1) The arbitration proceeding shall be initiated and conducted at the premises of the International Arbitration under the Association of Liquidators and Administrators of Moldova. The parties may agree upon written agreement on another place for the arbitration case examination. In this respect, within 3 days after signing the agreement, they shall notify the arbitration on the new place of arbitration set for the case examination.
(2) The arbitration, taking into account the circumstances of the case, as well as the accessibility for the parties, may meet at any place it shall consider appropriate, unless the parties otherwise agree, for consultations between the arbitrators, hearing of parties, witnesses or experts, for the examination of goods and documents. If neither parties nor arbitration have determined the place of arbitration it will be deemed the place of arbitration the place of arbitration award delivery.
Article20. Court intervention limits.
The relations governed by these Rules shall not accept any intervention from the ordinary courts, except as provided by law and these Rules.
Article21. Jurisdiction declining and transmission of the dispute to arbitration.
(1) The court where the action is brought on the dispute that makes the subject of an arbitration agreement, at the request of a party made not later than his/her first statement on the merits of the dispute, shall withdraw the claim and forward the dispute to arbitration.
(2) Invoking the arbitration agreement at a later stage of the procedure remains without effect, except if the party had a legal reason not to invoke it but did so as soon as the reason has ceased to exist.
(3) The civil case in the jurisdiction of the courts of common law or of the specialized ones can be forwarded, up to the award rendering, to arbitration proceeding if the parties agree and if such transmission is not prohibited by law.
(4) The transmission of the case from the ordinary court to the arbitration court shall be made pursuant to a well-founded award of the court where the suit is filed. The procedural acts performed by the court which had filed the suit prior to the case transmission, have legal effect to the extent that the arbitration considers that it is no need to amend them.
Article22. Hold of the case for settlement by the court.
(1) In the event the parties to the proceedings have concluded an arbitration agreement and one of them claims in court, the latter shall check its jurisdiction. The court shall hold the case for settlement if:
a)the respondent has formulated the statement of defence on the merits with no reserve, founded on the arbitration agreement;
b)the arbitration agreement is invalid and is no longer in force or cannot be executed;
c)the arbitration cannot be constituted for reasons obviously imputable to the respondent.
(2) The party loses the right to invoke the arbitration agreement in court to withhold the initiated lawsuit if:
a)it/he/she has rejected the request for arbitration of the other party;
b)it/he/she has not appointed an arbitrator in due time;
c)it/he/she has not paid in due time the arbitration costs.
(3) If the dispute is sent for settlement to ad-hoc arbitration, any of the parties to the dispute may bring an action to the court that would have the jurisdiction to settle the dispute in effect in the first instance, if there is no arbitration agreement, in order to remove the impediments occurring in the organization and conduct of arbitration procedure.
(4) In cases other than those mentioned in par. (A), the court at the request of a party, decline jurisdiction if it will establish the existence of an arbitration agreement.
Article23. Resolution of conflicts of jurisdiction.
(1) The court before which the conflict of jurisdiction has been brought shall suspend ex officio the lawsuit and submit the case to a higher court to settle the conflict of jurisdiction.
(2) The competent court of jurisdiction that has to judge the conflict of jurisdiction shall settle the dispute without summoning the parties to the legal proceedings, by rendering an award which is not subject to any appeal.
(3) Upon submission of objections of jurisdiction under the arbitration agreement to the court before which the action has been brought, the arbitration procedure may be initiated or continued and the arbitration award may be rendered, while the conflict of jurisdiction shall be settled in ordinary court.
Composition of Arbitration Court. Cessation of powers.
Appointment of Arbitrators.
Article 24. Arbitrators.
(1) An arbitrator may be any person having full legal capacity, who has consented to arbitrate and who, according to the opinion of the party concerned, is competent to settle the dispute.
(2) The arbitrators are entered with their written consent in a list which shall include: name and, as appropriate, occupation, specialty, titles and a brief presentation of each arbitrator’s professional activity. The arbitration panel is approved by the Bureau AO "ALARM", as set forth therein, and has a recommendation character. If an arbitrator refuses the exercise his/her powers without any ground, he/she shall be removed from the list.
(3) In general, the parties are free to appoint the arbitrators and persons not included in the arbitration panel of the International Arbitration to the extent that they, by their competence and honesty, enjoy their confidence and comply with the requirements set out in these Rules. This opportunity is not given however in case of a sole arbitrator and a presiding arbitrator, who shall be appointed from the arbitration panel.
(4) The arbitrators are independent and impartial and shall enjoy immunity during the fulfillment of their judicial duties. They cannot be the representatives of the parties.
(5) An arbitrator cannot be the person;
a)who is under guardianship or trusteeship;
b)has criminal records;
c)has lost his/her status of judge, lawyer, notary, public prosecutor, prosecuting officer or law enforcement employee for committing acts incompatible with hi/her professional activity;
d) who cannot be elected (appointed) in such position due to his/her office established by law.
(6) No person may be deprived of the right to be appointed as arbitrator because of his/her citizenship, unless the parties have otherwise agreed.
Article 25.Number of Arbitrators.
(1) The parties are free to determine whether the dispute is settled by a single arbitrator or two or more arbitrators.
(2) If the parties have not fixed the number of arbitrators, the dispute shall be tried by three arbitrators, two of them appointed by each party, and the third - the presiding arbitrator (chairman of the arbitration sitting of the panel) - appointed by the two arbitrators. The parties and arbitrators may decide that the presiding arbitrator to be appointed from the two arbitrators appointed by the parties.
(3) If there are a lot of claimants or respondents, the parties with common interests shall appoint a sole arbitrator. In case of disagreement, the arbitrator shall be appointed by the Chairman of the International Arbitration (IA).
(4) In the event the litigation value is reduced or the brought up legal issues are obviously simple, the Chairman of International Arbitration, with the parties' consent, may decide that the arbitral tribunal to be composed of one arbitrator.
(5) Neither party has the right to appoint an arbitrator instead of the other party or to have more arbitrators than the other party.
Article 26. Appointment of Arbitrators.
(1) The arbitrators are appointed, dismissed or replaced in compliance with the arbitration agreement and/or under these Rules. The parties by arbitration agreement may agree that the appointment of a sole arbitrator or arbitrators to be made by the Chairman of the International Arbitration (IA) without prior or subsequent consent of the parties on the candidacy of the appointed arbitrator. The award of the Chairman of the International Arbitration (IA) on the appointment of a sole arbitrator or the arbitral panel is not subject to any appeal.
(2) If the sole arbitrator or, as appropriate, arbitrators have not been appointed by arbitration agreement and the way of appointment being not provided, the party who wants to resort to arbitration, before or upon request for arbitration, sends personally or through the International Arbitration (IA), a written notification to the other party, whereby the latter is requested to appoint an arbitrator.
(3) The notification under item (2) must refer to the arbitration agreement, state in brief their claims and grounds (subject of the dispute), specify the name, address and professional information of the proposed sole arbitrator or the arbitrator appointed by the party who wants to resort to arbitration.
(4) By a notification or a separate notice to the International Arbitration (IA) and/or the claimant within a period of 15 days from the receipt of the notification, and in case of disputes with foreign origin element within a period of 30 days from the receipt of the notification, the respondent shall appoint an arbitrator by stating his/her name or, as appropriate, shall reply to the claimant’s proposal on the settlement of the dispute by a sole arbitrator and to his person.
(5) A party who has notified the other party on the appointment of the arbitrator may not revoke without the consent of the other participants such made appointment. The appointment of an arbitrator by a party does not limit his/her right to invoke arbitration lack of jurisdiction.
(6) If the appointed arbitrator is not listed, the party shall specify the name, address and telephone number or fax number, and other data as provided by these Rules of that arbitrator or his/her substitute is such has been appointed.
(7) The parties are recommended upon the appointment of an arbitrator to appoint a substitute arbitrator. At the party’s request the arbitrator and his/her substitute are appointed by the Chairman of the International Arbitration (IA), who is bound in this case to notify the other party.
(8) If the respondent does not reply in due time or does not put in action the request on the appointment of an arbitrator, or there are disagreements between the parties over the appointment of a sole arbitrator or if the two arbitrators fail to agree on the appointment of a presiding arbitrator, the Chairman of the International Arbitration (IA) or his lawful substitute, after the deadlines provided in these Rules for appointment and acceptance, shall appoint a sole arbitrator or, as appropriate, the defendant’s arbitrator or the presiding arbitrator with the prior consent of the appointed arbitrator. This provision applies to ad hoc arbitration.
(9) The appointment is made within 5 days and in case of disputes with foreign origin element within not more than 15 days from the date when the Chairman of the International Arbitration (IA) became aware of the circumstances described in item 8, from the arbitrators of the Arbitration panel, unless otherwise provided in the arbitration agreement.
(10) The award delivered by the Chairman of the International Arbitration (IA) or his lawful substitute, as stipulated in goods 8 and 9 shall not be subject to any appeal. Upon the appointment of an arbitrator or the presiding arbitrator, the Chairman of the International Arbitration (IA) shall take into account all requirements submitted by the parties as to the arbitrator qualification, as well as the considerations that can ensure the appointment of an independent and impartial arbitrator.
(11) If, however, after the appointment of an arbitrator under goods 8 and 9, the respondent shall appoint the arbitrator at the latest prior to the constitution of arbitration, the appointment made under those circumstances will become obsolete.
Article 27. Acceptance of arbitrator’s powers.
(1) The appointment of an arbitrator or presiding arbitrator shall be made with his/her prior written consent obtained by the party proposing him/her or, in case of a presiding arbitrator, by the two arbitrators.
(2) If the appointed arbitrator or presiding arbitrator is included in the arbitration panel of the International Arbitration, his consent shall be obtained through the Secretariat of the International Arbitration (IA).
(3) The arbitrator’s consent shall contain a written declaration showing under signature, if he had any relationship with the parties, or if there were no conflicts of interest and any other facts or circumstances that may prejudice his/her independence and impartiality. If such relationships, conflicts of interest, facts and circumstances occur during the dispute, the arbitrator will immediately state them. The initial statement and the subsequent statements shall be enclosed to the dispute record for the parties become acquainted with their contents.
(4) The consent or non-acceptance to be an arbitrator in a dispute shall be communicated in writing and groundlessly to the Secretariat of the International Arbitration (IA) and/or to the parties within five days from the receipt by the arbitrator of the proposal.
(5) If the arbitration is composed of three arbitrators, two appointed arbitrators shall proceed to choose the presiding arbitrator from the arbitrators entered on the list within 10 days, and in case of disputes with foreign origin element not later than 30 days from the date of the last acceptance or the date of receipt of notice that the International Arbitration (IA) has done in this respect.
Article 28. Arbitration Secretariat.
(1) The communication of claims, documents, information on the dispute is made though the Secretariat of the International Arbitration, the arbitrators not having direct connection with the parties.
(2) The Secretariat at the request of constituted arbitration, appoints a clerk who shall perform the procedural acts which help to prepare and debate the case in arbitration sitting , notify the parties to the proceedings on the place, date and time of debates, checks their presence at the arbitration hearing, clears up the reasons of their absence and communicates them to the arbitration court, makes the minutes of the hearing, complies with the arbitration court instructions for a proper organization and conduct.
(3) If required, the Secretariat of the International Arbitration (IA) may replace ex officio the secretary nominated for the arbitration proceeding by another secretary. The replacement of the secretary does not reopen the arbitration proceeding.
Article 29. Constitution of the arbitral tribunal.
(1) The arbitration shall be deemed constituted upon acceptance of the presiding arbitrator or, if required, upon acceptance by the sole arbitrator, when the arbitration is composed of two arbitrators, upon the last acceptance.
(2) Since its foundation, the arbitration is vested with the examination of the request for arbitration and other requests on arbitration proceedings, except for requests, which by mandatory provisions of the normative acts, are of the ordinary courts’ jurisdiction.
Cessation of powers.
Article 30. Grounds for arbitrator’s challenge.
(1) An arbitrator may be subject to challenge for reasons that prejudice his/her independence and impartiality. The grounds for challenge are those provided by law for judges’ challenge, and namely if:
a)the judge have previously participated in the settlement of a case as a witness, expert, specialist, interpreter, representative or arbitration clerk;
b)the arbitrator is related in kinship up to the third degree inclusively or in affinity up to the second degree including with any party, other participants to proceeding or their representatives;
c)the arbitrator is the guardian, curator or adopter of a party;
d)the arbitrator has exposed his/her opinion on the case which is settled by arbitration;
e)the arbitrator has a personal interest, either directly or indirectly, in the settlement of the case, or there are other circumstances that cast doubt on his objectivity and fairness.
(2) The arbitration that settles the case may not be composed of persons who are related in kinship or marriage.
(3) A challenge may occur in case of failure to fulfill the qualification conditions or other conditions relating to arbitrators under the arbitration agreement. A party cannot challenge the appointed arbitrator or in whose appointment has participated, except for occurred or examined cases after the appointment, or after the participation in the appointment.
(4) A person knowing that there is a reason for his/her challenge shall notify the other party and arbitrators before accepting the arbitrator assignment, and if such cases occur after the acceptance, as soon as he/she finds out about it.
(5) This person cannot attend the hearing unless the parties, notified under the preceding paragraph notify in writing that they understand not to require the challenge. Even in this case, he/she has the right to withhold from trying the case in such way that the withholding would not mean the acceptance of the challenge.
Article 31.Grounds to challenge an expert, specialist, interpreter and clerk of the arbitration.
(1) The provisions of the preceding Article shall apply accordingly to the expert, specialist, interpreter and secretary of the arbitration. In this case, the challenge is settled by arbitration.
(2) The expert and specialist may not participate in the examination of the case and if:
a)they depend or depended, on the service line or another line, on the parties or their representatives;
b)they have conducted a review which materials served as grounds for initiating the proceeding or, which are used to resolve the relevant matter.
(3) That participation of the expert, specialist, interpreter or arbitration secretary in the same capacity prior to the examination of the matter does not constitute grounds to challenge them.
Article 32. Challenge procedure and withholding from arbitration.
(1) If there are any grounds for challenge, the judge, expert, specialist, interpreter and arbitration secretary shall be bound to refrain from examining the case. On the same grounds, the challenge may be done by each party to the proceedings.
(2) The parties are free to agree on a challenge procedure. In the absence of an agreement between the parties, the challenge shall be required, under penalty of forfeiture, within 15 days after the party became aware of the appointment of an arbitrator or, as appropriate, upon occurrence of a matter of challenge.
(3) The arbitrator who is proposed for challenge may state that he/she withholds from. If the arbitrator proposed for challenge does not challenge himself/herself or if the other party does not agree with his challenge, the arbitration court before which the action has been brought, including the challenged arbitrator shall state on the challenge.
(4) Where the request for challenge concerns a sole arbitrator, it shall be settled by the Chairman of the arbitration sitting of the International Arbitration (IA) or by an arbitrator appointed by him.
(5) The examination of the request for challenge may occur on the same day, or may be postponed for a period not exceeding 10 days from the receipt of notification. The arbitral tribunal shall decide on the challenge, in the Council Chamber without the presence of the parties with the hearing of the person whose challenge is requested, if he/she wishes to provide pleadings. The oath or interrogation is not admitted as means of evidence of the challenge grounds. Within the request for challenge examination there shall not be made any procedural document. The award on the challenge shall be delivered in arbitration sitting.
(6) It is not allowed within the arbitration proceedings to repeatedly file the challenge of the same arbitrator and for the same reasons if his challenge has been previously withdrawn. It is also not allowed:
a)the challenge of the arbitrator for his/her impartiality suspicion, if not known the legal and factual grounds for filing the challenge;
b)the challenge of the arbitrator entrusted with checking of the validity of a challenge declared to an arbitrator;
c)the challenge of arbitrators, who are not involved in the examination of the case.
(7) Not all the arbitrators included in the arbitration panel of the arbitration court can be subject to challenge.
(8) The challenge of the expert, specialist, interpreter and secretary is of the jurisdiction of the arbitration court which is examining the case.
(9) If the request for challenge is admitted, the arbitrator shall withdraw from the examination of the case, being replaced by another arbitrator, presiding arbitrator or a sole arbitrator, who shall be appointed in compliance with these Rules. The award, under which the withholding has been admitted or rejected, the same as the one under which the challenge has been accepted, is not subject to any appeal. In the award, under which the challenge has been accepted, there is stated the extent to which the deeds performed by the challenged arbitrator are to be maintained.
(10) In case the request for challenge is not accepted, the case shall be tried by the nominated arbitrators.
(11) If a challenge cannot be obtained under any procedure agreed between the parties or this article, the party requesting the challenge may, within 30 days from the receipt of notification on the award about his/her challenge withdrawal, under penalty of forfeiture, shall request the Chairman of the arbitration sitting of the International Arbitration (IA) to decide on the challenge upon an award. This award is not subject to appeal. Before the Chairman of the arbitration sitting of the International Arbitration makes an award, the arbitral tribunal, including the arbitrator filed with a challenge, may continue the arbitration proceedings and may deliver the arbitration award.
Article 33. Termination of office and replacement of arbitrator.
(1) The powers of the arbitrator shall terminate upon acceptance of challenge or self-challenge submitted under these Rules, upon death, inability to participate de facto or de jure in the examination of a dispute or upon his/her resignation or if the arbitrator doe not participate in the examination of the dispute within an unreasonable long period. Thus, the arbitrator’s powers shall cease upon adjudication.
(2) In case of vacancy for any cause, challenge, revocation, withholding, withdrawal, prevention, death, delay or non-participation in the examination of the case the arbitrator shall be replaced with the nominated substitute or a recently appointed arbitrator under these Rules. The replacement of arbitrator is made by an award which is not subject to appeal, made by the Chairman of the arbitration sitting of the International Arbitration (IA) at the request of the party who appointed him/her submitted within 10 days from the moment he became aware of the occurrence of such circumstances. If the party fails to submit the request for replacement or does not appoint an arbitrator within that period, the Chairman of the arbitration sitting of the International Arbitration (IA) appoints another arbitrator ex officio. These provisions shall apply accordingly to the presiding arbitrator as well.
(3) The replacement of arbitrator leads to the reopening of the arbitration proceedings.
(4) The arbitrator’s groundless refusal to exercise his/her powers, in relation to the gravity of a malefaction, leads to his removal from the Arbitration panel. The removal is decided by the Panel of the International Arbitration at the suggestion of the Chairman of the arbitration sitting of the International Arbitration.
Parties to the arbitration proceedings. Procedural rights and obligations.
Article 34. Parties to the arbitration proceedings.
(A) Party to a case (the complainant or respondent) can be any natural or legal person who has full legal capacity, presumed upon institution of legal proceedings, as the subject of litigious material relationship.
(2) The associations or companies not having legal personality may participate in arbitration as a party, if they have their own management bodies.
(3) A party to the arbitration proceedings may be the state, represented by the Government and the bodies authorized to exercise a part of government functions, as well as the administrative-territorial units of the state, represented by their plenipotentiaries as provided by law.
Article 35. Enjoyment and exercise of procedural rights.
(1) Those who have the ability to fully exercise, either personally or through a representative, the procedural rights and obligations in arbitration (the ability to exercise civil procedural rights) are individuals of 18 years old and legal persons, and in cases provided by law, the entities without legal personality, but which have their own governing bodies.
(2) People who do not exercise their rights cannot stand in the arbitration proceedings. The lack of legal capacity for procedural rights may be invoked at any stage of the case.
(3) The procedural acts performed by those who have no legal capacity to exercise the civil procedural rights are voidable. The legal representative of the ineligible or his/her trustee may confirm any such acts or only some of them.
(4) The minor who has reached the age of 16 years may exercise their procedural rights and procedural obligations independently, provided the declaration of his/her full legal capacity (emancipation) or marriage.
Article 36. Procedural rights and obligations.
(1) The parties to proceedings are entitled to become familiar with the case materials, to make extracts and copies, to request challenges, to present evidence and participate in their research, to put questions to other participants to the proceeding, as witnesses, experts and experts, make requests, to report evidence, to give oral and written pleadings to arbitration, to state arguments and considerations on the problems that arise in arbitration debates, to submit objections against the applications, considerations and arguments of other participants, to appeal against the arbitration acts and exercise all the procedural rights under these Rules and law.
(2) The parties to the proceedings enjoy equal rights and equal procedural obligations, with some exceptions set out in these Rules and law depending on the position they hold in the proceedings. Thus, the complainant in addition to the rights specified in the preceding paragraph is entitled to alter the action ground or object, to increase or reduce the amount of claims in proceedings, or to withdraw the action, and the respondent is entitled to accept the action. The parties may terminate the proceeding by a transaction.
(3) No action shall be considered altered if there have been made the following: the completion of the action and circumstances grounds, the increase or decrease of claims in the proceedings or claims’ accessories, request for reimbursement of the value of lost or destroyed goods, the replacement of an action in finding by an action in achieving.
(4) The arbitration court is not entitled to amend ex officio the action grounds or object.
(5) The parties to the proceedings are bound to use with good faith their procedural rights. In case of abuse of these rights or procedural non-compliance, whether the abuse is intended to mislead or delay the proceedings, the arbitration court shall apply monetary penalties fixed by these Rules.
Article 37. Procedural co-participation.
(1) More persons can be together claimants or respondents if the case object is a right or a common obligation or if their rights or obligations have the same cause.
(2) For quick and fair consideration of disputes, the arbitration is entitled to allow the examination of multiple claims brought by several claimants against the same respondent or by a claimant against several respondents or by several claimants against several respondents (including the case where each claim can be examined and executed independently), when they are in connection with by the legal material relationship between the co-participants, by the filed claims or common evidence and if there is the opportunity to examine them in the same procedure and by the same arbitration.
(3) Each claimant or respondent participate in the proceedings independently from the other party. The co-participants may entrust the support of proceeding to one or more co-participants. The procedural acts, the statements of defence and opinions of one of the claimants or respondents shall neither be used by others nor prejudice their interests.
(4) If by the nature of the legal relationship the award effects cover all claimants or respondents, the procedural acts performed only by some of them, or the deadlines entrusted only to some of them to perform these procedural acts, shall be used by others as well. When the procedural acts made by some are contrary to those made by others, there shall be taken into account the more favorable acts. The claimants or respondents who have not appeared or performed a procedural act in due time shall continue to be summoned.
(5) The arbitration award under which there has been accepted or rejected the request for co-participation is not subject to any appeal.
Others persons who may participate in arbitration.
Article 38. Grounds for participation in arbitration of other persons.
With the agreement of the parties and with the arbitration consent, there may involve other people as well in the arbitration proceeding on the settlement of a dispute.
Article 39. Intervention.
(1) If the parties agree, every person concerned may intervene in an arbitration proceeding that takes place between other persons.
(2) The intervention may be of personal interest if the one who intervenes invokes his/her right on the subject of the dispute or in the interest of a party when supporting only his/her statement of defence.
(3) The person who acts in self-interest has the rights and obligations of a claimant with claims against one or both parties.
(4) The person who acts in the interests of one party acquires the procedural rights and obligations of the party he/she joins, except the right to change the grounds and subject of the action, to increase or reduce the amount of claims in the proceedings, as well as to waive the action, to recognize a claim or conclude transaction, to file a counterclaim or to require the enforcement or cancellation of the arbitration award and may make any procedural document that is not averse to the interest of the party for the benefit of whom he/she intervenes.
(5) To intervene in the proceedings, the person shall submit a request to the arbitration before the commencement of settlement of the substantive dispute, by showing the interest of intervention, his right on subject of the dispute in case of self-interest intervention, or the part he/she joins in case of accessory intervention. In both cases of intervention the person shall attach to the application the declaration to join in the arbitration agreement between the parties and agrees that the dispute be settled by the set up arbitration, as provided by these Rules of arbitration procedure.
(6) After hearing the parties and the intervening person, the arbitration by an award that is not subject to revocation shall decide on the acceptance or withdrawal of the intervention in principle.
(7) After the acceptance in principle, the court shall order the communication of the intervention and, in case the reference is mandatory, shall fix a period within which it shall be submitted. The one who intervenes shall take the procedure in the state it was at the time of intervention acceptance, the following procedural acts shall be achieves towards the one who intervenes as well.
(8) The intervention shall be tried together with the main claim. But when the adjudication would be delayed by the self-interest or the intervention is incompatible with the dispute, the arbitration court may decide to refuse the concomitant examination of the request for intervention with the main claim. In such cases, the person with self-interest intervention shall have the right to request the institution of legal proceedings on a general basis.
(9) The arbitration award shall be opposable to persons who have intervened in the proceedings in their own interest or the interest of a party.
(10) The request for revocation (abrogation) of the arbitration award made by the person who intervenes in the interest of a party is considered void and is left without examination, if the party for who the person has intervened didn’t made the request itself.
Article 40. Call to proceedings of other persons.
(1) Any party may call in arbitration another person who may claim the same rights as the claimant.
(2) The claim made by the respondent shall be filed together with the reference or not later than the first day of appearance, and the claim made by the claimant shall de submitted at the latest before the closure of arbitration proceedings.
(3) The claim shall be well-founded and communicated to the claimant and the adverse party. To the copy of the claim addressed to the called party there shall be enclosed the request for arbitration, the reference and, as appropriate, the copies of the file.
(4) If the one called in arbitration has declared within 10 days from the receipt of the claim that he/she recognizes the party’s allegations and agrees to intervene in arbitration proceedings with his/her own claims, the arbitration, by an award that is not subject to appeal, grants him/her the intervener status in his/her own interest in the instigated arbitration proceedings and shall fix a term within which the called one has to submit his/her own claims. The provisions of the preceding Article shall apply accordingly.
(5) If the respondent called in arbitration for money debt recognizes the debt and declares that he/she wants to execute it towards the one who shall set his/her right in arbitration, then he/she will be removed from the arbitration proceedings if he/she pays the due amount. In this case, the arbitration shall be conducted only between the claimant and the one called as intervener with his/her own claims.
Article 41. Call under warranty.
(1) The party may call under warranty another person against whom it could proceed, if he/she were unsuccessful with a warranty claim or damages.
(2) Under the same conditions, the called one under warranty may, in his turn, to call under warranty another person.
(3) The claim shall be made under proper form conditions for the request for arbitration.
(4) The request made by the respondent shall be submitted at latest on the first day of the appearance and the claim of call under warranty made by the claimant can be submit up to the closure of arbitration proceedings. In both cases, the claim shall be communicated to the called party under warranty and the adverse party as well.
(5) If the person called under warranty within 10 days from the receipt of claim communicates that he/she agrees to forward the arisen dispute to the constituted arbitration, as provided by these Rules of arbitration procedure, the arbitration by an award that is not subject to any appeal, engages the person in the arbitration proceedings in the capacity of respondent towards the person who called him/her in the proceedings and shall fix the term within which the called one shall submit the reference.
(6) The claim of call under warranty shall be examined together with the main claim.
(7) If the examination of the main claim is delayed by the call under warranty the arbitration may have order their separation in order to be settled separately.
Article 42. Nomination of the holder of right.
(1) The respondent who holds a thing for another or exercises on the behalf of another a right on a thing shall nominate the one on behalf of whom he holds or exercises the right on such a thing if he/she has been called in arbitration by a person claiming a real right on the thing.
(2) The claim relating to the nomination of the holder of right shall be founded and shall be submitted along with the reference or latest on the first day of appearance.
(3) The claim shall be communicated to the one nominated as the holder, along with the summons, copies of the claim and if necessary with the file documents.
(4) If the person nominated as the holder recognizes within 10 days the respondent’s supports and the claimant agrees, then he/she will take