Approving
the
Arbitration
Rules of the
Dubai
International Arbitration Centre[1]
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (2) of 1975 Establishing the Dubai Chamber of Commerce and
Industry and its amendments;
Decree No. (2) of 1994 Approving the Rules of Commercial Conciliation and
Arbitration of the Dubai Chamber of Commerce and Industry;
Decree No. (10) of 2004 Establishing the Dubai International Arbitration
Centre; and
The Draft Arbitration Rules of the Dubai International Arbitration
Centre attached hereto,
Do hereby issue this Decree.
The Arbitration Rules of the Dubai International Arbitration
Centre attached to this Decree are hereby approved.
Article (2)
The Rules of
Commercial Conciliation and Arbitration of the Dubai Chamber of Commerce and
Industry approved pursuant to the above-mentioned Decree No. (2) of 1994 are
hereby repealed. Any provision in any other legislation will also be repealed
to the extent that it contradicts the provisions of this Decree.
Article (3)
This Decree will be published in the Official Gazette and
will come into force on the day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued
in Dubai on 6 May 2007
Corresponding to 19 Rabi
al-Thani 1428 A.H.
Contents
Arbitration Rules of the Dubai
International Arbitration Centre
|
Article |
Subject |
|
Introductory Provisions |
|
|
1 |
Definitions
|
|
2 |
Scope of
Application
|
|
3 |
Written
Notifications or Communications and Time Limits
|
|
Commencement of Arbitration |
|
|
4 |
Requests for
Arbitration
|
|
5 |
Answers and
Counterclaims
|
|
6 |
Separability
of Arbitration Agreements and Jurisdiction to Determine the Existence and
Validity of Arbitration Agreements
|
|
7 |
Representation
|
|
Tribunals |
|
|
8 |
Number of
Arbitrators
|
|
9 |
Appointment
of Tribunals
|
|
10 |
Nationality
of Arbitrators
|
|
11 |
Multiple
Parties
|
|
12 |
Expedited
Constitution
|
|
13 |
Revocation
of Arbitrators’ Appointment
|
|
14 |
Replacement
of Arbitrators
|
|
15 |
Power of
Majority to Continue Proceedings
|
|
16 |
Power to Appoint
Tribunals
|
|
Proceedings |
|
|
17 |
General
Provisions
|
|
18 |
Referral of
Case Files to Tribunals
|
|
19 |
Modification
of Time Limits
|
|
20 |
Seat of
Arbitration
|
|
21 |
Language of
Arbitration
|
|
22 |
Preliminary
Meeting
|
|
23 |
Statement of
Claim
|
|
24 |
Statement of
Defence
|
|
25 |
Further
Written Statements
|
|
26 |
New Claims
and Amendments to Statements of Claim and Statements of Defence
|
|
27 |
Burden of
Proof and Evidence
|
|
28 |
Hearings
|
|
29 |
Witnesses
|
|
30 |
Experts
Appointed by Tribunals
|
|
31 |
Interim and
Precautionary Measures
|
|
32 |
Default
|
|
33 |
Rules of Law
Applicable to Merits of Disputes
|
|
34 |
Closure of
Proceedings
|
|
35 |
Waiver
|
|
Arbitral Awards |
|
|
36 |
Time Limit
for Rendering Arbitral Awards
|
|
37 |
Arbitral
Awards
|
|
38 |
Interpretation,
Correction, and Additional Awards
|
|
Miscellaneous Provisions |
|
|
39 |
Settlement
or Other Grounds for Termination of Arbitration Proceedings
|
|
40 |
Liability
|
|
41 |
Confidentiality
|
|
42 |
Amending the
Costs of Arbitration Appendix
|
|
43 |
General Rule
|
Arbitration
Rules of the Dubai International Arbitration Centre
Introductory Provisions
Definitions
Article (1)
1.
The following words and
expressions will have the meaning indicated opposite each of them unless the
context implies otherwise:
|
DIAC: |
The Dubai International Arbitration Centre. |
|
Rules: |
The Arbitration Rules of the Dubai International
Arbitration Centre. |
|
Arbitration Agreement: |
An agreement in writing by parties to submit to
arbitration a dispute which has arisen or which may arise between them. An
Arbitration Agreement may be in the form of an arbitration clause or in the
form of a separate agreement. |
|
Claimant: |
The
party initiating arbitration. |
|
Respondent: |
The
party against whom arbitration is initiated, as named in the Request for
Arbitration. |
|
Tribunal: |
The
arbitral tribunal, which means a sole arbitrator, or all arbitrators where
more than one (1) arbitrator is appointed. |
|
Executive
Committee: |
The
Executive Committee of DIAC. |
|
Administrator: |
The
Director of DIAC. |
|
Costs of Arbitration Appendix: |
The
provisions attached to these Rules, which provide for the fees and costs of
arbitration. |
2.
Words used in singular include
the plural and vice versa, as the context may require. Words such as
'claimant', 'respondent', 'arbitrator', 'representative', and 'party' will be
construed as gender-neutral.
Scope of Application
1.
Where parties agree in writing to
submit their future or existing disputes to arbitration under the DIAC Rules,
they will be deemed to have submitted to arbitration in accordance with these
Rules, being those in effect on the date of commencement of the arbitration
proceedings or such amended rules as may be adopted hereafter, unless they
expressly agree to submit to the Rules in effect on the date of their Arbitration
Agreement.
2.
These Rules will govern arbitration
and will be deemed as supplementary to any agreement in writing referred to in
paragraph (1) of this Article (2), except that where any of these Rules are in
conflict with any provision of the law applicable to the arbitration, from
which the parties cannot derogate, that provision will prevail.
Article (3)
1.
All communications from any party
or arbitrator to DIAC will be addressed to the Administrator.
2.
Until such time as a Tribunal is
constituted, any notification, document, or other communication from any party
to DIAC must be sent in a number of copies equal to the number required to
provide one (1) copy for each arbitrator, for the other party(ies), and for
DIAC.
3.
After notification of the parties
by DIAC of the constitution of the Tribunal, all communications between the
Tribunal and the parties will take place directly between them, with
simultaneous copies to DIAC.
4.
For the purpose of these Rules,
all notifications, statements, and other communications, as well as all
documents attached thereto will be directed to the addresses of the parties
provided by them to DIAC and will be deemed duly served if physically delivered
to the addressee, or his representative, at his habitual residence; his place
of business; his mailing address; or, if none of these can be reached after
making the necessary inquiry, his last known residence or place of business.
5.
A notification or communication
must be in writing and must be delivered by registered mail or courier service
or transmitted by facsimile, telex, telegram, email, or any other means of
communication that provides a written record of transmission.
6.
A notification or other
communication will be deemed made on the day on which it is received or, in the
case of wired or wireless communications, transmitted in accordance with the
preceding paragraph, provided that it is received or transmitted before 6:00 pm
in the country to which the communication is dispatched, otherwise it will be deemed
received on the following day.
7.
For the purpose of calculating a
period under these Rules, that period will begin to run on the day following
the day on which the relevant notification or other communication is received
or deemed to be received. If the last day of the period is a public holiday or
a non-business day at the residence or place of business of the addressee, the
period is extended until the first business day which follows. Public holidays
or non-business days occurring during the running of a period will be included
in calculating that period.
8.
The Tribunal must send DIAC a
copy of each order, award, or any other decision it renders.
Commencement
of Arbitration
Article (4)
1.
Any party wishing to commence an arbitration
under the Rules must send DIAC a written request for arbitration ("the Request") which includes:
a.
A demand that the dispute be
referred to arbitration under the Rules;
b.
The full name; capacity; and
address, including telephone number, facsimile number, email address, and other
contact details, of each of the parties to the arbitration and of the
representative of the Claimant;
c.
A copy of the Arbitration
Agreement invoked by the Claimant, together with a copy of the contractual
documents of which the Arbitration Agreement is part, or in respect of which
the arbitration arises;
d.
A brief description of the nature
and circumstances of the dispute giving rise to the claim;
e.
A preliminary statement
indicating the relief sought by the Claimant and, to the extent possible, any
amount claimed; and
f.
All relevant particulars
concerning the number of arbitrators and their selection in accordance with
Articles (8), (9), (10), (11), and (12) of these Rules; and, if the Arbitration
Agreement provides for nomination of arbitrators by the parties, the name,
address, telephone number, facsimile number, and mailing address, if known, of
the Claimant's nominee.
2.
The Request may also include:
a.
the Statement of Claim referred
to in Article (23) of these Rules;
b.
a proposal as to the seat of
arbitration and the language of arbitration; and
c.
any comments as to the applicable
rules of law.
3.
The Request and the documents
attached thereto will be submitted to DIAC in the number of copies required by
paragraph (2) of Article (3) of these Rules.
4.
Together with the Request, the
Claimant must make payment of the registration fee prescribed in the Costs of
Arbitration Appendix in force on the date the Request is submitted. In the
event that the Claimant fails to comply with this requirement, the Request will
be deemed invalid.
5.
DIAC will send a copy of the
Request and the documents attached thereto to the Respondent.
6.
The date of receipt by DIAC of
the Request, in the number of copies required by paragraph (2) of Article (3)
of these Rules, and payment of the registration fee will be deemed the date of
commencement of the arbitration proceedings.
Answers and
Counterclaims
Article (5)
1.
The Respondent must, within
thirty (30) days of receipt of the Request, submit to DIAC an Answer to the
Request ("the Answer")
which includes the following:
a.
the Respondent's full name and
capacity; and the address, telephone number, fax number, email address, and
other contact details of the Respondent and his representative;
b.
the Respondent's brief account of
the nature and circumstances of the dispute giving rise to the claim;
c.
the Respondent’s preliminary
response to the relief sought by the Claimant;
d.
any objection concerning the
validity or applicability of the Arbitration Agreement;
e.
any comments concerning the
number of arbitrators and their selection based on the Claimant's proposals and
in accordance with Articles (8) and (9) of these Rules; and, if the Arbitration
Agreement provides for nomination of arbitrators by the parties, the name,
address, telephone number, facsimile number, and mailing address, if known, of
the Respondent's nominee; and
f.
any comments as to the seat of
arbitration, the applicable rules of law, and the language of the arbitration.
3.
The Answer, including all
documents attached thereto, will be submitted to DIAC in three (3) copies; or,
if the parties have agreed or the Respondent considers that three (3)
arbitrators must be appointed, in five (5) copies.
4.
The Respondent may submit a
counterclaim arising out of the same contract together with his Answer, and may
submit the Answer at a later stage of the arbitration proceedings subject to
the Tribunal's approval if it considers that delay is justified. In this case,
the Respondent must provide:
a.
a brief description of the nature
and circumstances of the dispute giving rise to the counterclaim; and
b.
a preliminary statement
indicating the relief sought, including, to the extent possible, any
counterclaim amount.
5.
Where the Respondent submits a
counterclaim together with his Answer, the Respondent must pay the registration
fee prescribed in the Costs of Arbitration Appendix in force on the date the
Answer is submitted. Where the Respondent fails to comply with this
requirement, the submission of the counterclaim will be deemed invalid, without
prejudice to the right of the Respondent to submit the same claim at a later
date in another request.
6.
Failure by the Respondent to
submit an Answer may not prevent proceeding with the arbitration pursuant to
the Rules. If the Arbitration Agreement provides for nomination of arbitrators
by the parties, failure by a party to send an Answer or to nominate an
arbitrator within the prescribed period, or at all, will constitute an
irrevocable waiver of that party's right to nominate an arbitrator.
7.
The Administrator may grant the
Respondent an extension period of up to fourteen (14) days for filing the
Answer and any counterclaim, provided that the application for this extension period
contains the Respondent's comments concerning the number and selection of
arbitrators as well as the nomination of an arbitrator if that nomination is
required under Articles (8) and (9) of these Rules. Where the Respondent fails
to file the Answer, DIAC will proceed with the appointment of the Tribunal in
accordance with these Rules.
8.
DIAC must serve the Answer and
any counterclaim on the Claimant. The Claimant will be given an opportunity to
comment on any objections or pleas submitted by the Respondent.
Separability of Arbitration Agreements and Jurisdiction
to
Determine
the Existence and Validity of Arbitration Agreements
Article (6)
1.
Unless otherwise agreed by the
parties, an Arbitration Agreement which forms or is intended to form part of
another agreement will not be deemed as invalid, non-existent, or ineffective
because that other agreement is invalid, or has not come into existence, or has
become ineffective. The Arbitration Agreement will, for this purpose, be deemed
as a separate agreement.
2.
If any party raises one or more
pleas concerning the existence, validity, scope, or applicability of the Arbitration
Agreement, the Executive Committee may decide, without prejudice to the
admissibility or merits of the plea or pleas, that arbitration will proceed if
it is satisfied that an Arbitration Agreement exists in accordance with the
Rules. In this case, any decision as to the jurisdiction of the Tribunal will
be rendered by the Tribunal itself. If the Executive Committee is not so
satisfied, the parties will be notified that the arbitration cannot proceed. In
this case, each party retains the right to resort to any court of competent
jurisdiction to determine whether or not there is a binding Arbitration
Agreement.
3.
A plea that the Tribunal lacks
jurisdiction must be raised no later than the deadline for the submission of
the Statement of Defence or, in case of a counterclaim, the submission of reply
to the counterclaim.
4.
In general, the Tribunal will
rule on any plea concerning its jurisdiction as a preliminary question. The
Tribunal may proceed with the arbitration and rule on the plea in the final
arbitral award.
Representation
1.
The parties may be represented by
persons of their choice, irrespective of nationality or professional
qualification. The names, addresses, telephone numbers, facsimile number, email
addresses, and other contact details of these representatives must be included
in the Request and/or the Answer, as required by Articles (4) and (5) of these
Rules.
2.
Each party must ensure that his
representatives have sufficient time to perform their duties in order to enable
the arbitration to proceed expeditiously.
3.
At any time, the Tribunal may
require from any party proof of the authority granted to his representative(s)
in any form the Tribunal may determine.
Tribunals
Number of
Arbitrators
1.
A Tribunal will consist of any
number of arbitrators agreed upon by the parties. Where the number agreed upon
is more than one (1), it must be an odd number.
2. Where
the parties have not agreed on the number of arbitrators, the Tribunal will
consist of a sole arbitrator; except where DIAC determines, at its discretion,
that, in view of all the circumstances of the dispute, a Tribunal comprised of
three (3) members is appropriate.
Appointment of
Tribunals
Article (9)
1.
All arbitrators conducting an
arbitration under these Rules must be, and remain, impartial and independent of
the parties; and must not act as advocates for any party to the arbitration.
2.
Where the Arbitration Agreement
provides that each party is to appoint an arbitrator, this will be construed as
an agreement to nominate an arbitrator for appointment by DIAC under these
Rules.
3.
Where the parties agree that the
Claimant will nominate an arbitrator, and the Claimant fails to do so in the
Request or within any prescribed time limit, DIAC may proceed to appoint the
arbitrator in accordance with these Rules.
4.
Where the parties agree that the
Respondent is to nominate an arbitrator and the Respondent fails to do so in
the Answer or within any prescribed time limit, DIAC may proceed to appoint the
arbitrator in accordance with these Rules.
5.
In the event of a three-member
Tribunal, each party will nominate one (1) arbitrator for appointment by DIAC
in the manner prescribed in this Article. The following applies to the
appointment of the Tribunal chairman:
a.
If the parties agree upon certain
procedures for appointment of the Tribunal chairman, that procedure will be
followed subject to confirmation of that appointment by DIAC as prescribed in
this Article.
b.
In the absence of any agreed
procedures, the two (2) arbitrators nominated by the parties will agree upon
the third arbitrator, who will act as chairman of the Tribunal, subject to
confirmation and appointment by DIAC as prescribed in this Article.
c.
Where the arbitrators nominated
by the parties fail to agree upon a third arbitrator within fifteen (15) days from
the appointment of the last arbitrator, DIAC will appoint the Tribunal
chairman.
6.
All arbitrators will be appointed
by DIAC, taking into account any method of appointment agreed upon in writing
by the parties.
7.
DIAC may decline to appoint any
arbitrator nominated by a party if he considers that the nominated arbitrator
lacks independence or impartiality, or is otherwise unsuitable. In this case,
DIAC may request that party to make a new nomination within twenty-one (21)
days from the date of receiving a notification of DIAC's decision. If that
party fails to nominate another arbitrator or if DIAC declines to appoint the
replacement arbitrator, DIAC will appoint an arbitrator.
8.
Before appointment by DIAC, each
arbitrator must provide to DIAC a full curriculum vitae and an independence
declaration in the form prescribed by DIAC. By signing that declaration, the
arbitrator will be under a continuing duty to disclose to DIAC, to other
members of the Tribunal, and to the parties any circumstances that may arise
during the course of the arbitration that are likely, in the parties’ opinion,
to give rise to justifiable doubts as to his independence or impartiality.
9.
Before appointment by DIAC, each
arbitrator will provide written confirmation of his willingness to serve as
arbitrator based on the fees included in the DIAC Table of Fees and Costs
attached to these Rules.
10. In
appointing the Tribunal, DIAC will take into account the nature of contract;
the nature and circumstances of the dispute; the nationality, domicile, and
languages of parties; and the number of parties.
Nationality of
Arbitrators
1.
Where the parties are of
different nationalities, no sole arbitrator or Tribunal chairman holding the
same nationality as any party may be appointed unless all other parties who do
not hold that nationality agree to that in writing.
2.
For the purpose of this Article,
a person who holds the nationality of two (2) or more states will be deemed as
a national of each of these states.
Multiple
Parties
1.
Where there are multiple parties,
whether as Claimants or Respondents, and the dispute must be referred to a
three-member Tribunal, the Claimants will jointly nominate an arbitrator, and
the Respondents will jointly nominate an arbitrator, for appointment by DIAC
pursuant to Article (9) of these Rules.
2.
In the absence of agreement to a joint
nomination and where all the parties are unable to agree to a method for the
constitution of the Tribunal, DIAC will appoint the Tribunal and designate one
of the arbitrators to act as its chairman. In this case, DIAC must take into account
any provisions of the Arbitration Agreement concerning the number of
arbitrators to be appointed.
Expedited
Constitution
1.
On or after commencement of the
arbitration, any party may apply to DIAC for the expedited constitution of the
Tribunal, including the appointment of any replacement arbitrator where
appropriate.
2.
This application must be
submitted to DIAC in writing and a copy thereof must be provided to all other
parties to the arbitration. The application must state the grounds for
exceptional urgency in constituting the Tribunal.
3.
DIAC may, at its sole discretion,
modify any time limit prescribed by these Rules in relation to the constitution
of the Tribunal, including the time limit for submission of the Answer and any
other matters or documents missing from the Request.
Revocation of
Arbitrators’ Appointment
Article (13)
1.
Where an arbitrator gives written
notice of his desire to resign as an arbitrator to DIAC or where an arbitrator
dies or becomes unable or unfit to serve, DIAC may revoke that arbitrator's
appointment. DIAC will decide, at its discretion, the amount of fees and
expenses, if any, to be paid in return for the services of that arbitrator.
2.
Where an arbitrator acts in
deliberate violation of the Arbitration Agreement, or of these Rules; does not
act fairly and impartially towards the parties; or does not conduct or
participate in the arbitration with reasonable diligence, avoiding unnecessary
delay or expenses, DIAC may deem the arbitrator to be unfit to serve.
3.
An arbitrator may be challenged
by any party if circumstances exist that give rise to justifiable doubts as to
his impartiality or independence. A party may challenge an arbitrator he has
nominated, or in whose appointment procedures he has participated, only for
reasons of which that party becomes aware after the appointment has been made.
4.
A party who intends to challenge
an arbitrator must, within fifteen (15) days of the constitution of the
Tribunal, or otherwise within fifteen (15) days of becoming aware of any of the
circumstances referred to in paragraphs (2) and (3) of this Article, send a
written statement of the reasons for his challenge to DIAC, the Tribunal, and
all other parties. Unless the challenged arbitrator withdraws or all other
parties agree to the challenge within fifteen (15) days of receipt of the
written statement, DIAC will decide on the challenge.
Article (14)
1.
Where an appointed arbitrator is
to be replaced for any reason, DIAC will have full discretion to decide whether
or not to follow the appointment process prescribed in Article (9) of these
Rules.
2.
Where DIAC decides to follow the
aforementioned appointment process, any opportunity given to a party to make a
re-nomination will be waived if not exercised within twenty-one (21) days from
the date of notification of that decision, in which case DIAC will appoint a
replacement arbitrator.
3.
Once reconstituted, and after
inviting the parties to provide their comments, the Tribunal will determine
whether, and to what extent, the previous process will be repeated.
Power of
Majority to Continue Proceedings
Article (15)
1.
Where any member of a Tribunal
refuses, or persistently fails, to participate in the deliberations, the other
arbitrators may, subject to giving a written notification of that refusal or
failure to DIAC, continue the deliberations and render any decision, ruling, or
award in spite of the absence of that member.
2.
In deciding whether to continue
the arbitration, the other arbitrators must take into account the stage of
arbitration, any justifications provided by the defaulting arbitrator for his non-participation,
and any other matters they consider appropriate under the relevant
circumstances. The reasons for deciding to continue the arbitration must be
stated in any decision, ruling, or award rendered by the arbitrators without
the participation of the defaulting arbitrator.
3.
In the event that the other
arbitrators decide at any time not to continue the arbitration without the
participation of the defaulting arbitrator, they will notify the parties and
DIAC in writing of that decision. In this case, these arbitrators, or any party
to the arbitration, may refer the matter to DIAC for revoking the appointment
of that arbitrator and appointing a replacement arbitrator under Article (14) of
these Rules.
Power to
Appoint Tribunals
Article (16)
The Executive
Committee will exercise DIAC's power to appoint Tribunals under Articles (8),
(9), (11), (12), (13), (14) and (15) of these Rules.
Proceedings
Article (17)
1.
Proceedings before a Tribunal
will be governed by these Rules. Where these Rules are silent, the proceedings
will be governed by any rules determined by the parties, or determined by the
Tribunal where the parties fail to agree upon the same.
2.
In all events, the Tribunal must
act fairly and impartially and ensure that each party is given a full
opportunity to state his case.
Referral of Case Files to Tribunals
Article (18)
DIAC will send a copy of the case file to the Tribunal once
it is constituted, provided always that any advance on costs requested by DIAC
at this stage is paid.
Modification
of Time Limits
Article (19)
1.
The parties may agree to shorten
the time limits set forth in the Arbitration Agreement or these Rules. Where that
agreement is entered into after the constitution of the Tribunal, it will
become effective only upon approval of the Tribunal.
2.
The Tribunal will have the authority
to extend, at the request of a party or on its own initiative, any time limit
prescribed by the Arbitration Agreement or by these Rules for conducting the
arbitration or rendering the Tribunal's decisions, provided that it gives all
parties a reasonable opportunity to state their views.
3.
The Executive Committee may, on
its own initiative, extend any time limit if it considers that it is necessary
to do so in order for the Tribunal or the Executive Committee to perform its
duties in accordance with these Rules.
Seat of
Arbitration
1.
The parties may agree in writing
on the seat of arbitration. In the absence of this agreement, the seat of
arbitration will be Dubai, unless the Executive Committee decides, in view of
all the circumstances and after having given the parties an opportunity to give
their opinion in writing, that another seat of arbitration is more appropriate.
2.
The Tribunal may, after
consultation with the parties, conduct hearings or meetings at any place that
it considers appropriate. The Tribunal may deliberate at any place of its
choice.
3.
An arbitral award will be deemed
rendered at the seat of arbitration.
Article (21)
1.
Unless otherwise agreed by the
parties, the initial language of arbitration will be the language of the
Arbitration Agreement.
2.
In the event that the Arbitration
Agreement is written in more than one (1) language, the Executive Committee
may, unless the Arbitration Agreement provides that the arbitration proceedings
will be conducted in more than one language, decide which of these languages
will be the initial language of arbitration.
3.
Upon its constitution, the
Tribunal will have the authority to determine the language or languages of
arbitration, taking into account any comments of the parties and all relevant
circumstances of the case.
4.
The Tribunal may order that any
documents submitted in languages other than the language of arbitration be
accompanied by a translation, in whole or in part, into the language of
arbitration.
Within thirty (30) days from the date of referral of a file
to the Tribunal, as provided in Article (18) of these Rules, the Tribunal will
notify the parties of the date of a preliminary meeting with them and the place
thereof. The Tribunal will prescribe a timetable for the submission of
documents, statements, and pleadings as hereinafter provided.
1.
Unless the Statement of Claim is
submitted with the Request, the Claimant must, within thirty (30) days of
receipt of a notification from DIAC of the constitution of the Tribunal or any
later time limit as the Tribunal may allow, submit his Statement of Claim to
the Tribunal and present it to the Respondent, with a copy to DIAC.
2.
The Statement of Claim must
contain a comprehensive statement of the facts and legal arguments supporting
the claim, including a statement of the relief sought by the Claimant.
3.
The Statement of Claim must be
accompanied by the documentary evidence upon which the Claimant intends to
rely, together with a schedule stating these documents.
1.
The Respondent must, within
thirty (30) days of receipt of the Statement of Claim or within thirty (30)
days of receipt of a notification from DIAC of the constitution of the
Tribunal, whichever occurs later, submit his Statement of Defence to the
Tribunal and present it to the Claimant, with a copy to DIAC.
2.
The Statement of Defence will be
accompanied by the documentary evidence upon which the Respondent intends to
rely, together with a schedule stating these documents.
3.
Any counterclaim by the
Respondent must be made or asserted in the Statement of Defence or, in
exceptional circumstances, at a later stage in the arbitration proceedings
subject to the Tribunal’s approval. A counterclaim must contain the particulars
and documentary evidence prescribed in paragraphs (2) and (3) of Article (23)
of these Rules.
1.
The Tribunal may, at its
discretion, allow or require further written statements in addition to the
Statement of Claim and Statement of Defence and prescribe the time limits for
submission of these statements.
2.
Where a counterclaim is made or
asserted, the Claimant must submit a reply to the particulars thereof, and the
time limits set forth in paragraph (1) of Article (24) of these Rules will
apply to that reply.
3.
The time limits prescribed by the
Tribunal for the communication of written statements, including the Statement
of Claim and Statement of Defence, may not exceed forty-five (45) days.
However, the Tribunal may extend these time limits if it concludes that the
extension is justified.
1.
Subject to any contrary agreement
by the parties, either party may amend or supplement his claim, counterclaim,
or defence during the course of arbitration, unless the Tribunal considers it
inappropriate to allow that amendment in view of its nature, the delay that it
may result in, the prejudice that may be caused to any other party, or any
other relevant circumstances.
2.
After submission of the Statement
of Claim, Statement of Defence, and counterclaim, no party may make new claims
or counterclaims unless that party is authorised to do so by the Tribunal,
which will take into account the nature of the new claims or counterclaims, the
stage of the arbitration, and any other relevant circumstances.
1.
Each party will have the burden
of proving the facts he relies upon to support his claim or defence.
2.
The Tribunal will have the authority
to determine the rules of evidence to be applied, including the admissibility,
relevance, or weight of any evidence submitted by a party in relation to any
matter of fact or expert opinion; and to determine the time at which, and the manner
and form in which, the evidence must be exchanged by the parties and submitted
to the Tribunal.
3.
At any time during the
arbitration, the Tribunal may, at the request of a party or on its own
initiative, order a party to provide any documents or other evidence within the
period the Tribunal considers necessary or appropriate. The Tribunal may order
a party to make any property in his possession, or under his control, available
for inspection or examination by the Tribunal, by an expert appointed by it, or
by the other party.
4.
The Tribunal may, at the request
of a party or on its own initiative, inspect or require the inspection of any
site or property, as it deems appropriate.
1.
At the request of either party,
the Tribunal will hold a hearing for the presentation of testimonies of
witnesses, including expert witnesses; for oral arguments; or for both. In the
absence of such a request, the Tribunal will decide whether to hold a hearing
or hearings and will determine the time limits thereof. If no hearings are
held, the proceedings will be conducted based on the documents and other
material submitted only.
2.
In case of holding a hearing, the
Tribunal will give the parties an advance notice of the date, time, and place
of the hearing.
3.
Unless the parties otherwise agree
in writing or the Tribunal otherwise directs, all meetings and hearings will be
held in camera.
4.
The Tribunal will determine
whether minutes are to be made for any hearing, and the form of these minutes,
if any.
5.
Where any of the parties,
although duly summoned, fails to appear before the Tribunal without an
acceptable reason, the Tribunal will have the authority to proceed with the
hearing.
1.
In case of calling witnesses, a
party must, at least fifteen (15) days before the hearing, disclose to the
Tribunal and to the other party the identities and addresses of the witnesses
he intends to call, the subject matter of their testimonies and their relevance
to the issues in arbitration, and the languages in which these witnesses will
give their testimonies.
2.
The Tribunal will have the authority
to limit, on the grounds of avoiding duplication or lack of relevance, the
appearance of any witness, whether a witness of fact or expert witness.
3.
A witness who gives oral testimony
may be questioned by each of the parties under the supervision of the Tribunal.
The Tribunal may pose questions at any stage of the examination of witnesses.
4.
The testimony of a witness may,
either based on the choice of a party or as directed by the Tribunal, be
submitted in written form, whether as a signed statement, sworn affidavit, or
otherwise. In this case, the Tribunal may make the admissibility of the
testimony conditional upon the witness being available for oral testimony.
5.
A party will be responsible for
making practical arrangements to ensure the availability of any witness he
calls and for covering any relevant costs.
6.
The Tribunal will determine
whether any witness will retire during any stage of the proceedings,
particularly during the testimony of other witnesses.
7.
The Tribunal will, in accordance
with any mandatory rules of the applicable procedural law, require witnesses to
swear an oath before the Tribunal prior to giving any testimony.
1.
The Tribunal may, after
consultation with the parties, appoint one or more independent experts to
report to it on specific matters determined by the Tribunal. A copy of the
expert's terms of reference, as established by the Tribunal after taking into
account any comments of the parties, will be provided to the parties. An expert
must sign an appropriate confidentiality undertaking.
2.
The Tribunal may require a party
to give the expert any relevant information or documents; or grant him access
to inspect any goods, property, or sites. Any dispute between a party and the
expert as to the relevance of the information or goods will be referred to the
Tribunal for decision.
3.
Upon receipt of the expert's
report, the Tribunal will provide a copy of that report to the parties, who
will be given the opportunity to express, in writing, their opinion on the
report. A party may examine any document upon which the expert has relied in
preparing the report.
4.
At the request of a party, the
parties will be given the opportunity to question the expert at a hearing. At
this hearing, the parties may request summoning any expert witnesses to testify
on the points at issue.
5.
The opinion of an expert witness
on any matter or matters submitted to the expert appointed by the Tribunal will
be subject to assessment by the Tribunal in view of all the circumstances of
the case, unless the parties agree that the appointed expert's determination
will be conclusive in respect of any specific matter.
6.
The fees and expenses of an
expert appointed by the Tribunal under this Article will be paid by the parties
in accordance with the Costs of Arbitration Appendix.
1.
Subject to any mandatory rules of
the applicable laws, the Tribunal may, at the request of a party, issue any
provisional orders or take other interim or precautionary measures it deems
necessary, including any injunctions or measures for the conservation of goods
which form part of the subject matter of dispute, such as an order for the
deposit of goods with a third party or for the sale of perishable goods. The
Tribunal may make the issuance of these measures conditional upon the provision
of appropriate security by the requesting party.
2.
The measures and orders
prescribed under this Article may take the form of interim or provisional
awards.
3.
A request submitted by a party to
a competent judicial authority for interim or precautionary measures, for the
provision of security for a claim or counterclaim, or for the implementation of
any measures or orders issued by the Tribunal will not be deemed as conflicting
with, or as a waiver of, the Arbitration Agreement.
4.
Any such request submitted or measures
taken by the competent judicial authority must be notified without delay to
DIAC by the party who has submitted the request or sought the measures. DIAC
must inform the Tribunal of such request or measures.
1.
Where the Claimant fails, without
providing a valid reason, to submit his Statement of Claim in accordance with Article
(23) of these Rules, the Tribunal may refuse to proceed with the claim.
However, this will not prevent the Tribunal from proceeding to determine any
counterclaim raised by the Respondent under the Answer.
2.
Where the Respondent fails,
without providing a valid reason, to submit his Statement of Defence in
accordance with Article (24) of these Rules, the Tribunal may nevertheless
proceed with the arbitration and render the arbitral award.
3.
The Tribunal may also proceed
with the arbitration and render the arbitral award if a party fails, without
providing a valid reason, to state his case within the period prescribed by the
Tribunal.
4.
Where a party fails, without
providing a valid reason, to comply with any provision of, or requirement
under, these Rules or any order rendered by the Tribunal, the Tribunal may draw
from that any conclusions it deems appropriate.
1.
The Tribunal will decide a
dispute in accordance with the law(s) or rules of law chosen by the parties as
applicable to the merits of the dispute. Where the Tribunal determines that the
parties have made no such choice, the Tribunal will apply the law(s) or rules
of law which it deems most appropriate.
2.
Any designation of the law of a
specific state will be construed as directly referring to the substantive law
of that state and not to its conflict of law rules.
3.
In all events, the Tribunal will
determine the dispute taking into account the terms of any relevant contract
and the applicable trade practices.
4.
The Tribunal will assume the
powers of an amiable compositeur or
decide ex aequo et bono only if the
parties have expressly agreed in writing to give it such powers.
1.
The Tribunal will declare the
proceedings closed when it is satisfied that the parties have had adequate
opportunity to present their submissions and evidence.
2.
The Tribunal may, if it deems it
necessary owing to exceptional circumstances, decide, on its own initiative or
at the request of a party, to re-open the proceedings it has declared closed,
at any time before the arbitral award is rendered.
3.
Following closure of the
proceedings, the Tribunal will proceed to render the arbitral award.
A party who becomes aware that any provision of, or
requirement under, these Rules or any other rules applicable to the
proceedings, or any order rendered by the Tribunal, has not been complied with,
and yet proceeds with the arbitration without promptly raising an objection to that
non-compliance, will be deemed to have irrevocably waived his right to object
to the same.
1.
By submitting to arbitration
under these Rules, the parties will be deemed to have agreed that the
provisions of this Article apply to extending the time limit for rendering the
final arbitral award.
2.
A Tribunal must render its final
arbitral award within six (6) months from the date on which the sole
arbitrator, or the Tribunal chairman in case of a Tribunal comprised of three
(3) or more members, receives the arbitration case file.
3.
The Tribunal may, on its own initiative,
extend the time limit by up to six (6) months.
4.
The Executive Committee may
further extend the time limit pursuant to a reasoned request from the Tribunal,
or on its own initiative, if it decides that it is necessary to do so.
5.
The time limit specified above
will cease to run if the arbitration proceedings before the Tribunal are
discontinued or suspended, and will resume running from the date on which the
Tribunal is notified that the reason for discontinuance or suspension of the
proceedings has ceased to exist. Where the remaining period of the time limit
is less than a month, it will be extended to one (1) full month.
1.
The Tribunal may make
preliminary, interim, interlocutory, or partial awards; or final arbitral awards.
2.
All arbitral awards will be
rendered in writing and will be final and binding on the parties. By agreeing
to arbitration under these Rules, the parties undertake to implement any arbitral
award immediately and without delay; and they irrevocably waive their right to
any form of appeal, review, or recourse to any court or other judicial
authority, to the extent that such a waiver may be validly made.
3.
Unless the parties agree
otherwise, where there is more than one (1) arbitrator, any arbitral award,
order, or other decision of the Tribunal must be rendered by majority vote. In
the absence of a majority, the arbitral award, order, or other decision will be
rendered solely by the chairman of the Tribunal.
4.
The arbitral award must state the
date on which it is made and the seat of arbitration.
5.
The arbitral award must state the
grounds upon which it is based, unless the parties agree that the grounds may
not be stated and the law applicable to the arbitration does not require the
statement of these grounds.
6.
The arbitral award must be signed
by the Tribunal. Signing the arbitral award by the majority of arbitrators; or,
in case the second sentence of paragraph (3) of this Article applies, by the
Tribunal chairman, will be sufficient. Where the Tribunal comprises more than
one (1) arbitrator and any of them fails to sign the arbitral award without an
acceptable reason, the award must state the reason for the absence of his
signature.
7.
Where any arbitrator fails to
comply with the mandatory provisions of any applicable law relating to
rendering the arbitral award, having been given a reasonable opportunity to do
so, the remaining arbitrators may proceed with the arbitration in his absence
and state in their award the circumstances resulting in the other arbitrator's
failure to participate in rendering the award.
8.
The Tribunal must send the arbitral
award to DIAC in a number of original copies sufficient to provide one (1) copy
for each party, each member of the Tribunal, and DIAC. DIAC will formally send
an original copy of the arbitral award to each party and to the arbitrator or
arbitrators, provided that the arbitration costs and fees are paid to DIAC in
accordance with Costs of Arbitration Appendix.
9.
The arbitral award may be made
public only with the consent of the parties.
10. The
arbitration costs and fees, as stated in the Costs of Arbitration Appendix, and
their apportionment among the parties, will be determined in the arbitral award
or in any other order terminating the arbitration proceedings. A special arbitral
award may be rendered to determine the costs.
1.
Within thirty (30) days of
receipt of a final arbitral award, the parties may submit to the Tribunal a
joint written request, with a copy to DIAC, seeking the interpretation of that
award. Where the Tribunal deems that the request is justified, it must provide
the interpretation within thirty (30) days of receipt of the request. Any
interpretation will take the form of an additional arbitral award signed by the
Tribunal, and will be deemed part of the final arbitral award.
2.
Within thirty (30) days of
receipt of an arbitral award, a party may submit to the Tribunal a written
request, with a copy to DIAC and to the other party, seeking to correct any
clerical, typographical, or computational errors in the award. Where the
Tribunal deems that the request is justified, it must make the correction
within thirty (30) days of receipt of the request. Any correction will take the
form of an additional arbitral award signed by the Tribunal, and will be deemed
part of the original arbitral award.
3.
The Tribunal may correct any
error of the types referred to in paragraph (2) of this Article on its own
initiative within thirty (30) days after the date of the relevant arbitral award.
4.
Within thirty (30) days of
receipt of an arbitral award, a party may submit to the Tribunal a written
request, with a copy to DIAC and the other party, seeking an additional award
in respect of any claims or counterclaims presented in the arbitration but not
dealt with in the arbitral award. Before deciding on the request, the Tribunal
will give the parties an opportunity to be heard. Where the Tribunal deems that
the request is justified, it will, where practicable, render an additional arbitral
award within sixty (60) days of receipt of the request.
Miscellaneous
Provisions
1.
Where the parties agree upon a
settlement of the dispute before the arbitral award is rendered, the Tribunal
will terminate the arbitration and will, if jointly requested by the parties,
record the settlement in the form of a written consent arbitral award.
2.
The consent arbitral award, or
the order terminating the arbitration, will be signed by the Tribunal and will
be sent by the Tribunal to DIAC in a number of original copies sufficient to
provide one (1) copy to each party, to the Tribunal, and to DIAC. DIAC will
formally send an original copy of the consent arbitral award or the termination
order to each party and to the Tribunal.
Neither the Tribunal, nor any arbitrator, nor the Executive
Committee or any of its members, nor DIAC and its employees, nor any expert
appointed by the Tribunal will be liable towards any person for any act or
omission in connection with the arbitration.
1.
The deliberations of the Tribunal
are confidential to its members, except where disclosure of the reason of an
arbitrator's refusal to participate in the arbitration is required by the other
members of the Tribunal under Articles (13), (14), and (15) of these Rules.
2.
Unless all parties expressly
agree in writing to the contrary, the parties undertake, as a general
principle, to keep confidential all awards and decisions rendered in the course
of arbitration; all material related to the proceedings or presented for the
purpose of the arbitration; and all other documents that are produced by any
other party in the proceedings but are not otherwise in the public domain, save
and to the extent that where disclosure is required from a party pursuant to a
legal duty to protect or pursue a legal right or to enforce or challenge an arbitral
award in bona fide legal proceedings
before a court of law or other judicial authority.
The DIAC Board
of Trustees may from time to time, upon a proposal by the Executive Committee,
amend the provisions of the Costs of Arbitration Appendix.
With respect to all matters not expressly provided for in
these Rules, DIAC, the Tribunal, and the parties will act in the spirit of
these Rules and will exert all reasonable efforts to make arbitral awards
enforceable at law.
Costs of
Arbitration Appendix
1.
Upon submitting a request to
commence arbitration, or a counterclaim, a non-refundable registration fee
of five hundred Dirhams (AED 500.00) must be paid.
2.
DIAC will process only the claims
or counterclaims in respect of which the registration fee has been paid.
1.
The costs of arbitration will
include DIAC's administrative fees for the claim, and any counterclaim, and the
fees and expenses of the Tribunal as determined by DIAC in accordance with the
Table of Fees and Costs in force at the time of commencement of the
arbitration, and will include any expenses incurred by the Tribunal, as well as
the fees and expenses of any experts appointed by the Tribunal during the
arbitration.
2.
DIAC will determine the costs of
arbitration, based on the disputed amount, in an estimated amount sufficient to
cover the fees and expenses of the Tribunal and DIAC's administrative costs for
the claims and counterclaims in accordance with Table of fees and Costs. This
amount may be subject to adjustment at any time during the arbitration.
3.
Where the disputed amount is not
specified in the claim or counterclaim, DIAC may determine the costs of
arbitration at its discretion.
4.
The costs of arbitration
estimated by DIAC will be paid in equal shares by the Claimant and the
Respondent. If either party fails to pay his share, the other party may pay
that share in cash or by providing an unconditional bank guarantee for the
additional amount in accordance with the conditions prescribed by the Executive
Committee.
5.
Where a counterclaim is submitted
apart from the original claim, DIAC may require separate payments on account of
the costs of each of the claims.
6.
Where DIAC requires separate
payments on account of the costs of arbitration claims, each of the parties
will pay the costs related to his claims.
7.
The file of the case will not be
delivered to the Tribunal unless the costs estimated by DIAC have been paid.
8.
The Tribunal must inform DIAC of
any increase in the amount of the claims or counterclaims during the
arbitration proceedings.
9.
Where the estimated costs of
arbitration are not fully paid, the Administrator will request the Executive
Committee to render a decision suspending the arbitration proceedings or the
Tribunal's work and prescribing a time limit, of not more than fifteen (15)
days, upon the expiry of which the relevant claims or counterclaims will be
deemed withdrawn. Where a party wishes to challenge this measure, he must
submit a relevant request, within the aforementioned time limit, to be
determined by the Executive Committee. The withdrawal of a claim or
counterclaim will not prevent the concerned party from resubmitting the
same claims or counterclaims at a later date under other proceedings.
10. Before
any experts appointed by the Tribunal commence their duties, the parties, or
any of them, must pay in advance any costs determined by the Tribunal to cover
the expected fees and expenses of the experts as estimated by the Tribunal.
11.
Where the arbitration proceedings
terminate before rendering a final arbitral award, the Executive Committee will
determine the costs of arbitration at its discretion, taking into account the
stage of the arbitration proceedings and any other relevant circumstances.
12. The
amounts paid to the Tribunal do not include any possible taxes or charges
applicable to the Tribunal's fees. The parties will pay any such taxes or
charges. The recovery of such taxes or charges is a matter to be agreed upon by
the Tribunal and the parties.
1.
Where an arbitration case is
heard by more than one (1) arbitrator, DIAC may, at its discretion, increase
the total fees up to a maximum not exceeding three (3) times the fees of a sole
arbitrator.
2.
In determining the Tribunal fees,
DIAC will take into account the efforts of the Tribunal; the pace of the
proceedings; and the complexity of the dispute, in order to arrive at a figure
within the limits specified in the Table of Fees and Costs or, in exceptional
circumstances, a figure higher or lower than those limits.
3.
Based on the circumstances of the
case, the Executive Committee may, at any time during the arbitration, amend
the fees of arbitrators to a figure higher or lower than that which would
result from applying the Table of Fees and Costs. For this purpose, DIAC will
take into account the fluctuation in the disputed amount, changes in the amount
of the estimated expenses of the Tribunal, and any evolving difficulty or
complexity of the arbitration proceedings. Based on the relevant circumstances,
the Executive Committee will determine how the fee increase will be apportioned
among the parties. Any party may provide an unconditional bank guarantee to
cover the fee increase in accordance with the conditions prescribed by the
Executive Committee.
4.
No additional fees may be charged
by the Tribunal for any interpretation or correction of its awards or
additional awards under Article (38) of these Rules.
1.
The Tribunal may make decisions
on the costs of arbitration at any time during the proceedings.
2.
The final arbitral award will
determine the costs of arbitration, and the party who will bear them or in what
proportion they will be borne by the parties.
3.
Any dispute regarding the costs
of arbitration will be determined by the Executive Committee.
The attached
Table of Fees and Costs determines the registration, administrative, and arbitrators’
fees as a percentage of the total disputed amounts. The table states the maximum
and minimum limits of these fees.
1.
An application submitted to DIAC
to appoint an arbitrator or to determine a challenge to the appointment of an
arbitrator in arbitration proceedings which are not governed by these Rules
will be subject to the payment of a non-refundable registration fee. The
procedures for appointing the arbitrator or considering the challenge will be
governed by the Rules.
2.
The appointment of an arbitrator
in arbitration proceedings that are not governed by these Rules will be charged
a fee of five hundred Dirhams (AED 500.00).
3.
The determination of a challenge to
the appointment of an arbitrator in arbitration proceedings that are not governed
by these Rules will be charged a fee of three thousand Dirhams (AED 3,000.00).
DIAC
Table of Fees and Costs
|
Disputed Amount |
DIAC Administrative Fees |
Tribunal Fees (Amount and
Percentage) |
|
|
Minimum |
Maximum |
||
|
Up to AED 200,000.00 |
AED 2,000.00 |
AED 5,000.00 |
8% of the disputed amount (up
to AED 16,000.00) |
|
AED 200,001.00 to 500,000.00 |
AED 4,000.00 |
AED 5,000 + 1.5% of any amount in excess
of AED 200,000.00 |
AED 16.000.00 + 7.5% of any amount in excess
of AED 200,000.00 |
|
AED 500,001.00 to 1,000,000.00 |
AED 7,000.00 |
AED 9,500.00 + 1% of any amount in excess of
AED 500,000.00 |
AED 38,500.00 + 5% of any amount in excess of
AED 500,000.00 |
|
AED 1,000,001.00 to 2,500,000.00 |
AED 10,000.00 |
AED 14,500.00 + 0.5% of any amount in excess
of AED 1,000,000.00 |
AED 63,500.00 + 4% of any amount in excess of
AED 1,000,000.00 |
|
AED 2,500,001.00 to 5,000,000.00 |
AED 14,000.00 |
AED 22,000.00 + 0.5% of any amount in excess
of AED 2,500,000.00 |
AED 123,500.00 + 3% of any amount in excess of
AED 2,500,000.00 |
|
AED 5,000,001.00 to 10,000,000.00 |
AED 18,000.00 |
AED 34,500.00 + 0.3% of any amount in excess
of AED 5,000,000.00 |
AED 198,500.00 + 2% of any amount in excess of
AED 5,000,000.00 |
|
AED 10,000,001.00 to 20,000,000.00 |
AED 22,000.00 |
AED 49,500.00 + 0.2% of any amount in excess
of AED 10,000,000.00 |
AED 298,500.00 + 1% of any amount in excess of
AED 10,000,000.00 |
|
AED 20,000,001.00 to 50,000,000.00 |
AED 26,000.00 |
AED 69,500.00 + 0.15% of any amount in excess
of AED 20,000,000.00 |
AED 398,500.00 + 0.4% of any amount in excess
of AED 20,000,000.00 |
|
More than AED 50.000.000.00 |
AED 30,000.00 |
AED 114,500.00 + 0.1% of any amount in excess
of AED 50,000,000.00 |
AED 518,500.00 + 0.3% of any amount in excess
of AED 50,000,000.00 |
©2020 The Supreme Legislation Committee in the Emirate
of Dubai
[1]Every effort has been made to
produce an accurate and complete English version of this legislation. However,
for the purpose of its interpretation and application, reference must be made
to the original Arabic text. In case of conflict, the Arabic text will prevail.