Rules
Arbitration Rules
of the International Arbitration «IUS»
These Rules accepted on 12 February 2016
First Edition of the Rules approved on 3 November 1992
Main Terms and Definitions
For the purposes of these Rules, the following terms and definitions are used in the text:
«Arbitration» – the International Arbitration «IUS» which is a permanently acting arbitration.
The International Arbitration «IUS» was founded in 1992 and before 1st February the Arbitration had been named the International Arbitration Court «IUS».
The names the International Arbitration Court «IUS», the International Arbitration Court of the Juridical Center «IUS» and other names, derived from these, are the names for the same Arbitration.
The terms and phrases such as arbitration, the tribunal, the arbitral tribunal, etc. are synonymous if they are used in the text of any arbitration agreement, in an arbitration clause or for naming of the International Arbitration «IUS».
The main term in the title of the Arbitration is the term – «IUS». For the naming of the Arbitration by the parties in any arbitration agreement the use of terms «JUS», «ЮС» is permissible. In such cases, any of these terms refer to the International Arbitration «IUS».
The meaning of terms «IUS», «JUS», «ЮС» is the same, because they are cognates of such words as «justice» and other terms.
«Arbitration Agreement» – is any written arbitration agreement of the parties to submit a dispute to the International Arbitration «IUS».
An Arbitration Agreement could be incorporated in the contract (an arbitration clause) or any other document, legal act or an arbitration agreement could be concluded by way of signing a separate document, by way of exchanging letters or by any other means accepted by the law or by these Arbitration Rules.
All arbitration agreements on settling disputes by the International Arbitration Court «IUS» or by the International Arbitration Court of the Juridical Center «IUS», the arbitration agreements which use any other word combinations, which allow the establishment of jurisdiction of the International Arbitration «IUS», have equal legal effect.
«Arbitral Tribunal» – a sole arbitrator or a board of arbitrators selected or appointed by the Arbitration to settle a particular dispute.
«Arbitration Rules» – is the act which provides a set of procedural rules upon which parties agree on the conduct of arbitral proceedings by the International Arbitration «IUS».
The Rules cover main aspects of the arbitral process and is the act of the International Arbitration «IUS».
The English text of the Arbitration Rules will be official for all arbitral proceedings which are conducted in English.
«Court of Competent Jurisdiction» – a state court that has jurisdiction of enforcing arbitration awards of the Arbitration, as well as providing assistance in getting the evidence and in taking interim measures.
«Council» – the Board of Trustees of the Public Foundation for Support of Legal Reform «The Juridical Center «IUS» is the Supreme Body of the International Arbitration "IUS".
«Expert-advisory Council» – is a special advisory body of the Arbitration in whose task it is to make the expertly grounded recommendations on the main issues of arbitration practice.
The composition of the Expert-advisory Council of the International Arbitration "IUS" is approved by the Board of Trustees of the Public Fund of Support of Legal Reform «The Juridical Center «IUS» and including of: chairman, secretary, council members who are jurists, arbitrators, lawyers.
«Laws» – shall mean the procedural law applicable to the dispute which is settled by the Arbitration. The procedural law which will be applied to the particular dispute is settled by the Arbitral tribunal or the Arbitration.
«Main Panel of Arbitrators» – the main list of arbitrators. Any arbitrator is selected by the parties or is appointed from the panel of arbitrators by the Arbitration to settle a particular dispute. As a rule, arbitrators should have special knowledge and professional experience.
Arbitration Clause
Recommended arbitration clause:
Any dispute, controversy or claim arising out of or in connection with this contract, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the Arbitration Rules of the International Arbitration «IUS». The award of the International Arbitration «IUS» is final».
The arbitration clause, which is an integral part of the contract (agreement) and which makes provision for the arbitral proceedings to be completed in compliance with these Arbitration Rules, is acknowledged to be an agreement, independent of other terms and conditions of the contract. The invalidity of the contract (agreement) shall not automatically result in the invalidity of the arbitration clause.
If required, the parties may add provisions to the arbitration agreement concerning the number and the composition of arbitrators, the location where the arbitral proceedings will take place, the language of the arbitral proceedings, and the substantive law to be applied to the contract or agreement.
All arbitration agreements and arbitration clauses on settling disputes by the International Arbitration Court «IUS» or the International Arbitral Tribunal «IUS» and others remain valid for an indefinite term and there are arbitration agreements which allow the establishment of jurisdiction of the International Arbitration «IUS».
I. General Provisions
1.1. International arbitration "IUS" is established and located in Almaty (Republic of Kazakhstan).
According to the decision of the Council the offices of Arbitration may be opened in other cities, as inside as outside of the Republic of Kazakhstan. For overseas authorities, entities and individuals, the offices of the Arbitration which are located outside of Kazakhstan are divisions of the foreign arbitration – the International Arbitration "IUS".
1.2. The International Arbitration «IUS» is guided by the Rules and is managed by the Body - the Council of the International Arbitration «IUS», which consist on The Chairperson and Deputes Chairperson, Founders of the Arbitration and the Elected Arbitrators.
The Chairperson of the Arbitration shall be appointed by the Council of the International Arbitration «IUS»; Deputes Chairperson shall be appointed by the Chairperson with subsequent approval of the appointment by the Council of the International Arbitration «IUS».
1.3. The Chairperson, Deputes of the Chairperson of the Arbitration shall represent the Arbitration in all state organizations, arrange its activity and perform other functions as stipulated by these Arbitration Rules.
1.4. The Arbitration has the Main Panel of Arbitrators. The Arbitrators can be included in or excluded from this Panel by the Chairperson after the preliminary consultations with the Council.
1.5. The parties have the right to appoint an arbitrator or arbitrators at their discretion from the Main Panel of Arbitrators according to the Arbitration Rules.
1.6. The Arbitration has been established to settle any disputes arising from economics, including civil-law or other relations irrespective of the parties’ legal status as individuals or legal entities or other factors.
1.7. The Arbitration acts in compliance with present Arbitration Rules.
In case of an investment dispute or dispute with involving a foreign party, the dispute may be settled by the Arbitral Tribunal, either by the initiative of the parties or by its own initiative in accordance with the UNCITRAL Arbitration Rules, in this connection the Arbitral Tribunal may issue a determination.
1.8. Under any arbitration agreement referring to the Arbitration Rules the parties shall be deemed to have agreed that the following rules, or such amended rules, in force on the date of the commencement of the arbitration.
The term “any arbitration agreement” shall mean the arbitration clause agreed by the parties involved in the dispute in writing by way of its incorporation into the contract or other document, or by way of exchanging letters, or by any other way accepted by the relevant applicable law.
1.9. Disputes submitted to the Arbitration shall be settled in accordance with the substantive law specified in the agreement between the parties. In case there is no such agreement, the applicable substantive law shall be determined by the Arbitral Tribunal.
1.10. The arbitration award shall be issued by the Arbitral Tribunal and shall come into legal force in accordance with the procedure stipulated in paragraph 5.2.1 of the Arbitration Rules. The arbitration award shall be registered by the Secretariat of the Arbitration.
1.11. By agreeing to the arbitral proceedings, the parties have the obligation to execute the arbitration award on voluntary and within the time period specified in the award. If the period of execution of the award is not specified, the award shall be executed immediately; in this case, the date when the award shall officially come into force is the date when the final award is made.
1.12. The whole or part of the arbitral proceeding can be held online, i.e. without the parties (or their representatives) being present in the head or other office of the Arbitration or any other place where the arbitral proceeding is taking place. The proceedings are held using video conference, Skype or other programs and technical devices enabling the Arbitral Tribunal and the parties to hear and/or see each other.
However, the place where the arbitration hearings are held and where the arbitration award is issued shall be the place where, according to the Tribunal’s decision, the arbitral proceedings should be held, irrespective of the real location of the Arbitral Tribunal and/or the parties.
Online arbitration hearings can be held at the request of the parties or by the Arbitral Tribunal’s initiative, that fact may be stated in the determination or in the arbitration award.
II.Arranging of the Arbitral Proceedings
(General Provisions)
2.1. Documents submitted by the parties
2.1.1. The party initiating the arbitration (hereinafter referred to as the «claimant») shall submit a claim to the Arbitration with the following information:
a) a statement of the names of the Arbitration, the parties and the date of the claim;
b) a statement of the names, addresses, telephone and facsimile numbers and e-mail addresses, bank details of the parties and their counsel;
c) a summary of the dispute;
d) a statement of value of the claim with the calculations if it is applicable;
e) a statement of the relief sought by the claimant;
f) a summary of the grounds of the claim and supporting evidence;
g) a reference to laws and other legal acts on which the claim is based;
h) a list of documents attached to the claim.
The claim form shall be signed by the claimant or by his/her representative. If the claim form is signed by the claimant’s representative, a letter of attorney or other documents confirming the representative’s authority shall be attached.
2.1.2. Furthermore, the claimant shall submit to the Arbitration the following:
a) documents attached to the claim or duly certified copies thereof;
b) a confirmation of shipment of the claim with attachments which have been sent to the respondent and other parties of arbitration;
c) a copy or description of the arbitration agreement or clause under which the dispute is to be settled by the Arbitration;d) a statement containing the names of the main and additional arbitrators appointed by the claimant.
2.1.3. Any document of the arbitration case should be submitted by the party in a written form and then by e-mail.
Written documents should contain all the requisites stipulated by law and/or by the established practice. Any document which is submitted by a party should be sent to the Arbitration, other parties and to all other participants of the lawsuit, if any.
2.1.4. The Arbitral Tribunal may order that the Arbitration Agreement and/or any other documents, used as proof for the arbitration hearings, should be translated in to the working language of the arbitration hearings (and, if required, duly certified copy of it).
2.1.5. Whenever necessary, prior to the beginning of the arbitral proceedings, the parties shall sign the statement about the composition of the Arbitral Tribunal, the place and the time of arbitration hearings and the applicable substantive law.
2.2. Working Language of the Arbitral Proceedings
Failing an agreement between the parties the Arbitral Tribunal shall, upon its appointment, determine the language or languages to be used in the arbitral proceedings.
Unless otherwise agreed, the arbitration hearings shall be conducted and documents shall be submitted in the Russian language.
2.3. Duration of the Arbitral Proceedings
The Arbitral Tribunal shall take measures to ensure that the arbitration hearings are completed within 30 days from the date of appointment of the Arbitral Tribunal.
2.4. Arbitration Fees and Expenses
The amount of arbitration fees and expenses, the payment procedures and distribution between the parties are determined by the Regulation for the Arbitration Fees and Expenses, which are due to be paid as compensation.
The Regulation is an integral part of these Arbitration Rules.
The Arbitral Tribunal will settle any claim, counterclaim, the claim of set-off and any amendment and/or supplement of the claim or any other requirements of the parties after arbitration fees and expenses stipulated by the arbitration rules have been covered by the parties or the claimants.
2.5 Notification of the Parties
2.5.1. The parties and other participants of the arbitration hearings must notify the Arbitration about their legal and actual addresses, mobile phone number, email addresses, and promptly notify the Arbitration about any changes.
2.5.2. Any notice, determination, award or any other document issued by the Arbitration or by the Arbitral Tribunal shall be delivered to the last-known address of the claimant, respondent or other addressee and deemed delivered, even if any addressee at that address is not present or does not reside.
2.5.3. Any determination, arbitration award, notice or any other document shall be delivered by registered post, fax, e-mail or any other means of communication that provides a record of delivery or delivery attempt; if necessary, the delivery can be made by courier or express post (such as DHL).
Any notice, determination, award or any other document, sent in compliance with this subparagraph, shall be regarded as received by the claimant, respondent or other addressee not later than the usual delivery date set for the chosen means of delivery.
2.5.4. If necessary, the Arbitration notifies the participants of arbitration by means of SMS-messaging (cellular\mobile communication) about the time and the place of the arbitration hearings as well as on other issues of arbitration. The SMS - message sent in accordance with this subparagraph shall be deemed received by the claimant, the respondent or by other addressee on the date of sending, and any addressee is notified properly about the time and the place of the arbitration hearings, as well as on other issues contained in the SMS-message.
2.6. Consolidation and Division
2.6.1. If arbitration is commenced concerning a legal relationship in respect of which the arbitration between the same parties have already started under these Arbitration Rules, the Arbitration may, at the request of a party, decide to consolidate the new claim with the claim which is settled by the Arbitral Tribunal. Such a decision may only be made after consulting the parties and the Arbitral Tribunal.
2.6.2. In respect of the claim which is settled by the Arbitral Tribunal, at the request of a claimant or a respondent, the Arbitration may decide to divide the claim for settling of a part of it in the separate arbitral proceedings. Such a decision may only be made after consulting with the parties and the Arbitral Tribunal.
III. Initiation of the Arbitral Proceedings
Composition of the Arbitral Tribunal
3.1. Initiation of the Arbitral Proceedings
3.1.1. The party initiating the arbitral proceedings shall present evidence to the Arbitration of the other party’s or parties’ consent to have such proceedings conducted by the Arbitration (for instance, an arbitration agreement in writing or an arbitration clause contained in the contract).
3.1.2. On the date of submitting the claim, the claimant shall pay the registration fee. The arbitration fee shall be paid within 10 days from the date of submitting of the claim.
If the registration fee was not paid while submitting the claim, it shall be paid simultaneously with the arbitration fee. The Arbitration can set a different time period during which the claimant shall pay the above mentioned fees. In the case of the registration and/or the arbitration fee not been paid before the date of the first hearing, the Arbitration leaves the claim without consideration.
3.1.3. For the purposes of composition of the Arbitration Tribunal, the arbitral proceeding is deemed initiated after the Arbitration has accepted the claim. If required the determination about it may be made by the Chairperson or Deputy of the Chairperson of the Arbitration. Making the determination on initiating the arbitral proceeding is the right of the Arbitration itself.
3.2. Composition of the Arbitral Tribunal
3.2.1. The Arbitral Tribunal may consist of one or three arbitrators.
3.2.2. The composition of the Arbitral Tribunal and the number of its members shall be determined by the parties in the Arbitration Agreement (arbitration statement).
3.2.3. Where the parties have not agreed on the number of the arbitrators or on the personal composition of the Arbitral Tribunal within 30 days from the date of submitting of the claim, the composition of the Arbitral Tribunal shall be determined by the Chairperson or the Deputy Chairperson of the Arbitration. Appointment of the Arbitral Tribunal members shall be conducted in accordance with the paragraphs 3.3, 3.4 and 3.5 of the Arbitration Rules.
3.2.4. Where in the arbitral proceeding several claimants and/or respondents participate and some of them signed the Arbitration Agreement (arbitration statement) and some did not, in this particular case the composition of the Arbitral Tribunal shall be determined by the Arbitration. In this case, the Chairperson or the Deputy Chairperson of the Arbitration shall be appointed the arbitrators of the Arbitral Tribunal within the period of maximum 30 days from the date of submitting of the claim. Depending on the circumstances of the particular case, the determination about the appointment of the Arbitral Tribunal shall be made by either taking into account the signed Arbitration Agreement (arbitration statement) or not. Where the determination is made by taking into account the signed Arbitration Agreement (arbitration statement), the Agreement is legally binding for those parties who signed it.
3.2.5. In the case the arbitration award was completely or partially reversed by the Court of Competent Jurisdiction or by the Council, at new arbitral proceedings the composition of the Arbitral Tribunal is appointed by the Chairperson or the Deputy Chairperson of the Arbitration. At the new arbitral proceedings the Chairperson or Deputy Chairperson have the right to settle the case as a sole arbitrator or to appoint the Arbitral Tribunal in the composition of three arbitrators under the own Chairpersonship.
3.3. Appointment of the Sole Arbitrator
3.3.1. If the parties have agreed to appoint a sole arbitrator, they are to sign an Arbitration Agreement of the appointment of the arbitrator (on the composition of the Arbitral Tribunal) within 30 days from the date of submitting of the claim to the Arbitration.
3.3.2. Where the parties fail to reach an agreement about the number of arbitrators, they have the right to sign an agreement on the appointment of a sole arbitrator within 30 days following the date of submitting of the claim to the Arbitration.
3.3.3. In the case the parties, for whatever reason, fail to appoint the composition of the Arbitral Tribunal (including a sole arbitrator) within 30 days following the date of submission of the claim to the Arbitration, in this situation the composition of the Arbitral Tribunal shall be appointed by the Chairperson or the Deputy Chairperson of the Arbitration. The Chairperson or the Deputy of the Chairperson of the Arbitration shall have the right to take over the powers of the arbitrator. Taking into account the complexity of the dispute, its cost and other relevant circumstances, the Arbitration may appoint three arbitrators.
3.4. The Tribunal Composition of Three Arbitrators
3.4.1. In case the parties have decided in favor of the Tribunal composition of three arbitrators in accordance with the Arbitration Agreement or these Arbitration Rules, the claimant shall:
a) appoint one arbitrator from the Main Panel of Arbitrators (the list of arbitrators is displayed on the official website of the Arbitration);
b) together with the claims sent to the other party a statement of appointing arbitrator and the other party appoints another arbitrator within 10 days following the receipt of the statement.
3.4.2. Where the Arbitral Tribunal is to consist of three arbitrators the Chairperson of the Arbitral Tribunal shall be appointed by the Chairperson or the Deputy Chairperson of the Arbitration.
3.4.3. If the parties, for whatever reason fail to compose the Arbitral Tribunal within 30 days following submission of the claim, the Tribunal shall be appointed by the Chairperson or the Deputy Chairperson of the Arbitration.
The Chairperson or the Deputy Chairperson of the Arbitration shall have the right to take over the powers of the arbitrator or take the duties of the Chairperson of the Tribunal.Taking into account the complexity of the dispute, its cost and other relevant circumstances, the Arbitration may appoint a sole arbitrator.
3.5. Appointment of the Arbitral Tribunal in Disputes with Involving Multiple Claimants and/or Respondents
3.5.1. In the case involving multiple participants (co-claimants and/or co-respondents), the Arbitral Tribunal shall be appointed by the parties agreement.
3.5.2. In the case the parties fail to come to an agreement on the procedure of appointment of the Arbitral Tribunal the procedure is stipulated by Paragraphs 3.4.1 and 3.4.2 of the Arbitration Rules. In order to appoint arbitrator(s), all co-claimants or all co-respondents shall be regarded as one claimant or respondent.
3.5.3. Where the parties, for whatever reason fail to compose the Arbitral Tribunal within 30 days following submission of the claim, the Tribunal shall be appointed by the Chairperson or the Deputy Chairperson of the Arbitration.
Taking into account the complexity of the dispute, its cost and other relevant circumstances, the Arbitration may appoint one or three arbitrators.
The Chairperson or the Deputy Chairperson of the Arbitration shall have the right to take over the powers of the arbitrator or take the duties of the Chairperson of the Arbitral Tribunal.
3.6. Impartiality and Independence of Arbitrators
3.6.1. Every arbitrator must be impartial and independent. If the person is appointed as an arbitrator, he/she shall submit to the Arbitration a signed statement of impartiality and independence disclosing any circumstances, which may give rise to justifiable doubts as to that person’s impartiality or independence. When necessary the Arbitration may send a copy of the statement of impartiality and independence to the parties and the other arbitrators.
3.6.2. Before being appointed as arbitrator, a person shall disclose any circumstances which may give raise to justifiable doubts as to his/her impartiality and independence.
3.6.3. If the arbitrator becomes aware of any facts or circumstances, mentioned in subparagraph 3.6.2., during the proceedings, he/she shall immediately inform other arbitrators and the parties in writing.
3.7. Challenge, Release from appointment and Replacement of Arbitrators
3.7.1. If there are sufficient grounds for this the arbitrator may make a written statement about the self recusation.
3.7.2. A party may challenge any arbitrator if circumstances exist which give rise to justifiable doubts as to the arbitrator’s impartiality and independence or if he/she does not possess qualifications agreed by the parties. A party may challenge an arbitrator whom it has appointed or in whose appointment it has participated, only for reasons for which it becomes aware after the appointment was made.
A challenge to an arbitrator shall be made by submitting a written statement to the Arbitration setting forth the reasons for the challenge within 10 days from when the circumstances giving rise to the challenge became known to the party. Failure by a party to challenge an arbitrator within the stipulated time period constitutes a waiver of the right to make the challenge.
The Arbitration shall notify the parties and the arbitrators of the challenge and give them an opportunity to submit comments on the challenge.
If the other party agrees to the challenge, the arbitrator shall resign. In all other cases, the Chairperson or the Deputy Chairperson of the Arbitration. shall make the final decision on the challenge.
3.7.3. Where the arbitrator is prevented from fulfilling his/her duties or fails to perform his/her functions in an adequate manner or he/she has violated the declaration of the arbitrator, the Chairperson or the Deputy Chairperson of the Arbitration shall issue a ruling terminating the power of the arbitrator.
3.7.4. The Arbitration shall appoint a new arbitrator, if the arbitrator has been released from his/her duties pursuant to subparagraph 3.7.3 or the arbitrator has died. If the arbitrator being replaced was appointed by a party, that party shall appoint the new arbitrator, unless otherwise deemed appropriate by the Arbitration.
Where an arbitrator has been replaced, the newly composed Arbitral Tribunal shall decide whether and to what extent the proceedings are to be repeated.
IV. The Proceedings before the Arbitral Tribunal
4.1 The Jurisdiction of the Arbitral Tribunal
4.1.1. The Arbitral Tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement and to the cases when one of the parties objects to the arbitral proceeding, irrespective of the essence and grounds of the objections.
4.1.2. The party has the right to objection to the jurisdiction of the Arbitral Tribunal.
A statement of objection that the Arbitration does not have jurisdiction shall be raised no later than the statement on the merits of the dispute, the statement of defense or, with respect to a counterclaim or a claim for the purpose of a set-off, in the reply to the counterclaim or to the claim for the purpose of a set-off. A party is not precluded from raising such a statement by the fact that it has appointed or participated in the appointment of an arbitrator.
Where the statement of the party consists of both mentioned parts including the statement of objection or the statements were submitted at the same time, the Arbitral Tribunal may draw such inferences as it considers appropriate, in this case the party may be deemed to have waived the right to object to the jurisdiction.
4.1.3. A party has the right to make a statement of objection, if the Arbitral Tribunal exceeds the scope of its authority or a dispute cannot be a subject of the arbitral proceeding according to the Laws.
A statement that the Arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings. The Arbitral tribunal may, in either case, admit a later plea if it considers the delay justified.
4.1.4. The Arbitral Tribunal considers a statement of objection which is submitted in accordance with subparagraphs 4.1.2 and 4.1.3 of these Arbitration Rules, within 10 days. As a result, the Arbitral Tribunal may rule on a statement of objection as a preliminary question or in an award on the merits.
4.1.5. If the Arbitral Tribunal rules that it is not in the jurisdiction to settle the dispute, the Arbitral Tribunal has not the right to continue the arbitral proceedings and to make an award.
4.1.6. If the Arbitral Tribunal rules that it has jurisdiction, any party may request, within thirty days after having received notice of that ruling, the Court of Competent Jurisdiction to decide the matter; while such a request is pending, the arbitral tribunal may continue the arbitral proceedings and make an award.
4.2. Rules of the Arbitral Proceedings
4.2.1. The Arbitral Tribunal shall conduct the arbitral proceedings in compliance with the Arbitral Rules which are valid on the date of the proceedings.
4.2.2. Any part of the rules of the arbitral proceedings, which is not covered by these Arbitral Rules, shall be determined by the Arbitral Tribunal.
4.3. Place and Time of the Arbitration
4.3.1. If the parties have not previously agreed on the place of arbitration, the time of arbitral hearings and the place of making the award, they shall be determined by the Arbitral Tribunal. The place where the award is made may differ from the place of arbitral hearings.
4.3.2. If the place of the hearings differs from the place of making the award, the arbitral award is considered to be made in a place (country, city) where the final award is made.
The parties shall be given sufficient notice of the place and time of the arbitral hearings, and the place where the award is made if it does not coincide with the place of the hearing.
4.3.3. The Arbitral Tribunal has the right:
a) to determine the place of arbitral proceedings within a country or a city agreed by the parties;
b) to conduct hearings elsewhere to inspect the evidence relevant to the case, to hear witnesses and settle the dispute;
c) to decide to conduct the hearings in one of its permanent offices or in another place.
The criteria for choosing the place to conduct the hearings are the enforceability of the arbitration award and convenience of the parties.
4.4. Statement of Defense. Counterclaim. Set-off claims.
4.4.1. The respondent shall communicate its statement of defense in writing to the claimant and the Arbitral Tribunal at least 5 days prior to the first hearing if another period of time had not been determined by the Arbitral Tribunal.
4.4.2. The statement of defense shall reply on each particular demand of the claim and it shall be accompanied by all documents and other evidence relied upon by the respondent, or contain references to them.
4.4.3. The respondent has the right to make a counterclaim or rely on a claim for the purpose of a set-off in accordance with the provisions of the substantive law determined by the parties or by the Arbitral Tribunal. The Arbitral Tribunal has the right to accept (admit) a set-off in cases of a counterclaim, a claim for a set-off or on its own initiative.
4.4.4. At a later stage in the arbitral proceedings if the Arbitral Tribunal decides that the delay was justified under the circumstances, the respondent may make a counterclaim or rely on a claim for the purpose of a set-off provided that the Arbitration has jurisdiction over it.
4.4.5. A counterclaim, a claim of set-off or any other claim amending or supplementing the initial claims shall be submitted in accordance with the requirements stipulated by these Arbitration Rules and taking into account paragraph 2.4. hereof.
4.5. Amendments to the Claim or Defense
4.5.1. During the course of the arbitral proceedings, a party may amend or supplement its claim or defense, including a counterclaim or a claim for the purpose of a set-off, unless the Arbitral Tribunal considers it inappropriate to allow such amendment or supplement having regard to the delay in making it or prejudice to other parties or any other circumstances.
4.5.2. A claim or defense, including a counterclaim or a claim for the purpose of a set-off, may not be amended or supplemented in such a manner that the amended or supplemented claim or defense falls outside the jurisdiction of the Arbitration.
4.6. Procedural Rights and Duties of the Parties
4.6.1. The parties, involved in the arbitral proceedings, and/or their authorised representatives shall have all procedural authority stipulated by the Laws and by the Arbitration Rules.
4.6.2. The specific authorities of the parties’ representatives (such as to submit the dispute to the Arbitration; to withdraw the claim; to admit the claim; to change the subject and grounds of the claim; to sign a settlement agreement; to transfer the power and duties of an attorney etc.) shall be explicitly stated to the attorney.
4.6.3. The parties, their representatives, attorneys and other participants of the arbitration shall follow to the arbitration procedures which are established by the Arbitration Rules and by the Arbitral Tribunal, shall follow the rulings and instructions of the Arbitral Tribunal in good faith, in precise and timely manner.
If a party without good cause fails to comply with any provision of, or requirement under, these Arbitration Rules or any procedural order given by the Arbitral Tribunal, the Arbitral Tribunal may draw such inferences as it considers appropriate.
4.6.4. When a party (its representatives or other participants of the arbitral proceedings) is presenting its oral arguments, other party (parties) and their representatives shall not interrupt the presentation with remarks, questions and other actions unless permitted by the Arbitral Tribunal. The parties, their representatives, other participants of the arbitral proceedings shall not obstruct the arbitration in any other way.
4.6.5. In case the Arbitration Rules are violated by the party, the Arbitral Tribunal, the Chairperson or the Deputy Chairperson of the Arbitration: may make a remark or reprimand the party, to ask the representative of the party to clear the court room, to ask the party to replace its representative, to consider a request of a party to compensate its material losses incurred by violation of the Arbitration Rules by other party; may request to recover the damage of the amount which depends on the nature of the violation of the Rules (like pressure, threats, insults of the Arbitral Tribunal, the Arbitration or a party and the obstruction of the proceedings etc.) as well as impose other sanctions which are allowed by the Council.
4.7. Interim Measures
4.7.1. Unless otherwise agreed by the parties, at the request of either party, the Arbitral Tribunal may grant interim measures, it considers necessary.
The Arbitral Tribunal may require the party requesting an interim measure to provide appropriate security in connection with the measure.
4.7.2. The decision of the Arbitral Tribunal regarding interim measures shall be issued in form of determination or order.
When deciding on interim measures the Arbitral Tribunal may be guided by the relevant provisions of the UNCITRAL Arbitration Rules.
4.7.3. A request from a party for interim measures addressed to a Court of Competent Jurisdiction and granting interim measures by this court shall not be deemed incompatible with the agreement to submit the dispute to the Arbitration or as a waiver of that agreement.
4.7.4. A request for interim measures, considered by the Arbitral Tribunal, shall be filed by the party to a Court of Competent Jurisdiction at the place of the arbitral proceedings or at the location of the property in relation to which the interim measures may be taken.
4.7.5. Consideration by a Court of Competent Jurisdiction of the request for interim measures, granting or refusal to grant interim measures is made in accordance with the procedural legislation.
The arbitration award to dismiss the claim constitutes a sufficient ground for cancellation of the interim measures by a Court of Competent Jurisdiction.
4.8. Evidence
4.8.1. Each party shall have the burden of proving the facts relied on to support its claim or defense.
4.8.2. At any time during the arbitral proceedings the Arbitral Tribunal may require the parties to produce documents, exhibits or other evidence within such a period of time as the Arbitral Tribunal shall determine.
4.8.3. Arbitral proceedings shall be conducted on the basis of all submitted documents, evidence and clarifications provided by the parties with the exception when the parties submit a petition in writing asking the Arbitral Tribunal to settle the dispute in the parties’ absence, only on the basis of the submitted documents.
4.8.4. The unverified or false documents shall not be submitted by the parties or any other participants of the arbitration. Where such documents have been submitted, the Arbitral Tribunal has the right to (accept) admit as the proven facts, which are denied or refuted by the unverified or false documents, or to reject the facts which are confirmed by the unverified or false documents.
All the costs required to prove the authenticity of unverified documents shall be covered by the party which submitted such documents.
4.8.5. The Arbitral Tribunal shall determine the admissibility, relevance, materiality and weight of the evidence offered.
4.9. Expert Examination
4.9.1. The expert examination shall be used when the circumstances, which have significance for the ruling, can be analysed only using special knowledge.
4.9.2. The expert examination may be appointed by the Arbitral Tribunal by its own initiative or in accordance with a reasoned petition submitted by either party.
4.9.3. An expert appointed by the Arbitral Tribunal shall be a qualified and impartial person.
4.9.4. Each party, involved in the arbitral proceedings, has the right to issue a list of questions for the expert. The final list of questions for the expert shall be determined by the Arbitral Tribunal.
4.9.5. If a party avoids cooperation or impedes the work of the expert (does not attend the expert examination; does not provide the expert with the required materials for research; deprives the expert of an opportunity to examine the items or documents which are in possession the party), the Arbitral Tribunal may deem the examined facts are proved or refuted. The Arbitral Tribunal may draw any others inferences as it considers appropriate.
4.10. Settlement of the case in the absence of a party. Default.
4.10.1. At the request of the party or both parties, the Arbitral Tribunal may make the award in the absence of the requesting party or parties, based on documents, as well as other evidence available in the case.
4.10.2. If a party, duly notified under these Arbitration Rules, fails to appear at a hearing, without showing sufficient cause for such failure, the Arbitral Tribunal may proceed with the arbitration. If a party, duly invited by the arbitral tribunal to produce documents, exhibits or other evidence, fails to do so within the established period of time, without showing sufficient cause for such failure, the Arbitral Tribunal may make the award on the evidence before it. If a party submits a petition to change the time of the hearing, the Arbitral Tribunal shall review it.
4.10.3. If, within the period of time fixed by these Arbitration Rules or the arbitral tribunal, without showing sufficient cause the respondent has failed to communicate its response to the notice of arbitration or its statement of defence, the Arbitral Tribunal shall order that the proceedings continue, without treating such failure in itself as an admission of the claimant’s allegations; the provisions of this subparagraph also apply to a claimant’s failure to submit a defence to a counterclaim or to a claim for the purpose of a set-off.
4.11. Closure of Hearings
4.11.1. The Arbitral Tribunal may inquire if the parties have any further proof to offer or witnesses to be heard or submissions to make and, if there are none, it may declare the hearings closed.4.11.2. The Arbitral Tribunal may, if it considers it necessary owing to exceptional circumstances, decide, on its own initiative or upon application of a party, to reopen the hearings at any time before the award is made.
4.12. Minutes of the Arbitral Proceedings
The minutes of the arbitral proceedings shall not be taken unless otherwise agreed by the parties.
V. Arbitral Award
5.1. The Arbitral Awards are final and binding to the Parties
5.1.1. All arbitration awards shall be made in writing and shall be final and binding to the parties. The parties shall carry out all awards without delay.
5.1.2. The arbitral awards shall be final, meaning that they may not be contested or appealed against.
5.1.3. The parties, the Arbitral Tribunal and the Arbitration shall make every effort to ensure that the arbitral award is legally enforceable.
5.2. Making Award and its Form
5.2.1. The award shall be made by the Arbitral Tribunal, if full payment of arbitration fees and costs has been made by the parties. The award shall be final and become effective upon signing by the arbitrators.
5.2.2. Where the award fails to be unanimously approved by three arbitrators, the award shall be made by the majority of votes.
5.2.3. If the award cannot be made by the majority of the arbitrators vote, the award is made by the chairperson of the Arbitral Tribunal (the presiding arbitrator in the arbitral proceedings).
5.2.4. If in the course of the arbitration, the parties settle the dispute through a settlement agreement, the Arbitral Tribunal, if it has no objections, makes an award, based on the terms agreed by the parties.
The Arbitral award, based on the terms, agreed by the parties, is considered as the Arbitral award and is to be made in accordance with the provisions of the Arbitration Rules. The Arbitral award has the same effect and shall be enforceable in the same manner as any other Arbitral award on the merits of the dispute.
5.2.5. The Arbitral Tribunal shall decide as amiable compositeur or ex aequo et bono only if the parties have expressly authorised the Arbitral Tribunal to do so.
In all cases, the Arbitral Tribunal shall decide in accordance with the terms of the contract, if any, and shall take into account any usage of trade applicable to the transaction.
5.2.6. The Arbitral award shall be made in writing.
The Arbitral award of the Arbitral Tribunal shall state the following:
a) the place and date of the making of the award;
b) the composition, names of arbitrators and powers of the Arbitral Tribunal;
c) the full official names of the parties, names, surnames, and the official titles of the parties’ representatives;
d) a substantiation of the jurisdiction of the Arbitration;
e) the subject of the dispute; statements and clarifications made by the parties to the dispute;
f) the circumstances of the dispute as established by the Arbitral Tribunal;
g) the evidence and the reasons upon which the award is based, unless the parties have agreed that no reasons are to be given;
h) the laws relied on by the Arbitral Tribunal in the making of the award;
i) the resolution (operative) part of the award concerning the relief sought by the claimant;
j) the distribution of the arbitration fees and other expenses;
k) the time and procedures for enforcement of the award.
5.2.7. The final award shall be dispatched to the parties within five days.
5.3. Correction of the Award
On its own initiative or upon the request of a party the Arbitral Tribunal may correct any errors in computation, any clerical or typing error, or any other errors of a similar nature in the award.
5.4. Additional Arbitral Award
5.4.1. Within 90 days after the receipt of the termination order or the award, a party, with notice to the other parties, may request the arbitral tribunal to make an award or an additional award as to claims presented in the arbitral proceedings but not decided by the arbitral tribunal.
5.4.2. If the Arbitral tribunal considers the request for an award or additional award to be justified, it shall render or complete its award within 60 days after the receipt of the request. The Arbitral tribunal may extend, if necessary, the period of time within which it shall make the award.
If additional hearings are required, the Arbitral Tribunal schedules such hearings and makes an award, based on these hearings not later than 60 days after the end of the additional hearings.
5.4.3. When additional arbitration award is made, the provisions of paragraph 5.2 of the Arbitration Rules shall be applied.
5.5. Termination or Temporary Suspension of Proceedings
5.5.1. The arbitral proceedings may be terminated by a determination of the Arbitral Tribunal when:
a) the Claimant withdraws its claim, unless the Respondent objects thereto and the Arbitral Tribunal recognises a legitimate interest on the Respondent’s part in obtaining a final settlement of the dispute;
b) the parties agree to the termination of the arbitration proceedings;
c) the Arbitral Tribunal has ruled that it lacks jurisdiction to settle the referred dispute;
d) a legal entity that is a party to the arbitral proceedings no longer exists; an individual entrepreneur or an individual, who was a party of the arbitral proceedings, has died or he has been declared as decedent, or has been declared missing by a court;
e) the Arbitral Tribunal finds that the continuation of the proceedings has for some reason become unnecessary or impossible;
f) the registration and/or the arbitration fees or any other costs have not been covered in the proceedings.
5.5.2. Should the parties stop communicating with the Arbitral Tribunal or should other particular circumstances arise, the Arbitral Tribunal shall have a right to suspend or terminate proceedings.
5.5.3. If Arbitral Tribunal was not formed, a determination concerning temporary suspension or termination of the arbitral proceedings shall be issued by the Chairperson or the Deputy Chairperson of the Arbitration.
5.6. Resumption of proceedings
5.6.1. Following the award of the Arbitral Tribunal in connection with the conclusion of a settlement agreement by the parties, as well as due to other circumstances, the parties have the right to apply for making the new arbitration award on agreed terms by the parties with the cancellation of the first arbitration award.
After receipt of the statement and payment of the arbitration fee for its consideration, the Chairperson or Deputy Chairperson of the Arbitration makes a decision on the resumption of the arbitral proceedings.
5.6.2. The Arbitral Tribunal during the new arbitration proceedings examines the grounds of the statement of the parties, listen to the parties, and as a result the Arbitral Tribunal has the right to revoke its award to make a new award on the terms agreed by the parties or decide to reject the statement of the parties.
5.6.3. In the case of inability to call the original composition of the Arbitral Tribunal, the composition of the Arbitral Tribunal is formed according to the rules set forth in paragraphs 3.3., 3.4 and 3.5 of this Arbitration Rules within 30 days of receipt by the Arbitration of the statement of the parties.
VI. Enforcement
6.1. Enforcement of the Arbitral Award
The award of the Arbitral Tribunal shall be enforced voluntarily in accordance with the procedures and within the period of time specified in the award. If the term for enforcement of the award has not been specified in the award, it shall be subject to immediate enforcement.
6.2. Enforcement of the Award of the Arbitral Tribunal
6.2.1. If the award of the Arbitral Tribunal is not enforced voluntarily within the period of time established by the award, it shall be subject to enforcement.
The claimant may apply to the Court of Competent Jurisdiction for receiving the writ of execution of the award of the Arbitral Tribunal.
6.2.2. The arbitral award shall be enforced in accordance with the rules of enforcement proceedings in effect at the time of such enforcement, based on a writ of execution issued by the Court of Competent Jurisdiction.
6.3. Custody of the cases to the Arbitration
The arbitration case it is kept in the archive of the Arbitration for at least three years from the date of the award on the case.
The separate documents, materials of the cases that are kept in the archive of the Arbitration could be transferred to the state or other court only upon of their written requests, the decision on the transferring matter shall be made by the Chairperson, the Deputy Chairperson of the Arbitration.
The provision of documents or materials of the cases are the right of the Arbitration. The refusal to transfer is made by the Chairperson, the Deputy Chairperson of the Arbitration in a determination form.
VII. Final Provisions
7.1. Failure by any party to object promptly to any non-compliance with these Rules or with any requirement of the arbitration agreement shall be deemed to be a waiver of the right of such party to make such an objection, unless such party can show that, under the circumstances, its failure to object was justified.
7.2. In extraordinary circumstances the Council can declare that the award is non-binding and unenforceable. Should such a determination be issued, the Council shall have a right to terminate the arbitration proceedings or to appoint a new composition of Arbitral Tribunal for the purposes of further resolution of the dispute or instruct the parties on appointing a new composition of Arbitral Tribunal.
7.3. The Arbitral Tribunal shall be strictly followed by the principles and spirit of the Law. The Arbitral Tribunal shall make any possible efforts to make every arbitration award fair and enforceable.
