rta rules of arbitration 06

8/12/2019 RTA Rules of Arbitration 06

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ROADS AND TRANSPORT

AUTHORITY

RULES OF ARBITRATION AND CONCILIATION

1-st. EDITION

JANUARY , 2006


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RULES OF ARBITRATION AND CONCILIATION

List of Content

PAGE NO.

LIST OF CONTENT 2 - 3

DEFINITIONS 5

PART I: ARBITRATION RULES

SECTION 1: Reference to Arbitration and Appointment of ArbitralTribunalRule 1: Notice to Refer 6Rule 2: Appointment of Arbitral Tribunal 7Rule 3: Terms of Reference 8Rule 4: Notice of Further Disputes or Differences 8

SECTION 2: Powers of the Arbitral Tribunal

Rule 5: Powers to Control the Proceedings 9Rule 6: Power to Order Concurrent Hearings 9Rule 7: Power at the Hearing 9Rule 8: Power to Appoint Assessors or to

seek outside advice 10

SECTION 3: Procedure Before the Hearing

Rule 9: The Preliminary Meeting 10Rule 10: Pleadings and Discovery 10 - 11

Rule 11: Procedural Meetings 11Rule 12: Preparation for the Hearing 11 - 12Rule 13: Conduct of the Arbitration 12


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PAGE NO.

SECTION 4: Procedure at the Hearing

Rule 14: The Hearing 12Rule 15: Evidence 13

SECTION 5: After the Hearing

Rule 16: The Award 13Rule 17: Appeals 13

SECTION 6: The Place of Arbitration

Rule 18: Place of Arbitration 14

SECTION 7: Procedural Matters

Rule 19: Language 14


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PART II: CONCILIATION RULES

PAGE NO.Rule 1: Application and Aim of Conciliation Rules 15

Rule 2: Commencement of Conciliation Proceedings 15Rule 3: Appointment of Conciliator 16Rule 4: Role of Conciliator 17Rule 5: Conciliation Procedure 18Rule 6: Terms of Settlement 18Rule 7: Confidentiality 19Rule 8: Reference to Arbitral or Judicial Proceedings 19Rule 9: Termination of Conciliation Proceedings 19Rule 10: Costs 19Rule 11: Rights of Parties Failing Settlement 20Rule 12: Role of Conciliator in other Proceedings 20Rule 13: Language 20

Rule 14: Delivery of Documents etc. 20Rule 15: Admissibility of Evidence in Other Proceedings 20

Appendix (A) Suggested Procedure For Adoption in the Conduct of Arbitration

Article 1 Commencement of Arbitration 22 Article 2 Communication Between the Parties and the

Arbitration Committee 23 Article 3 Conduct of the Proceedings 23 Article 4 Submission of Written Statements and Documents 23 Article 5 Hearings and Witnesses 24 Article 6 Experts Appointed by the Arbitral Tribunal 24 Article 7 Additional Powers of the Arbitral Tribunal 25 Article 8 Jurisdiction of the Arbitral Tribunal 25 Article 9 Deposits and Arbitration Fees 25 Article 10 The Award 26 Article 11 Costs 26 Article 12 Language 26 Article 13 Exclusion of Liability 27 Article 14 Waiver 27


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PART I - ARBITRATION RULES

DEFINITIONS

A. "Arbitral Tribunal" means a Tribunal consisting of three members, appointed inaccordance with Rule 2 hereof.

B. "Conditions of Contract" means the edition of the Roads And Transport Authority Conditions of Contract or Articles of Agreement relevant to thesubject matter of the dispute.

C. "Other Party" includes the plural unless the context otherwise requires.

D. "Rules" means the Roads And Transport Authority Rules of Arbitration andConciliation.


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SECTION 1: REFERENCE TO ARBITRATION AND APPOINTMENT OF ARBITRAL TRIBUNAL

Rule 1: Notice to Refer

1.1. A dispute between the parties shall be deemed to arise when a claim orassertion made by one party is rejected by the other party and that rejection isnot accepted. Subject only to Clause 67 of the Conditions of Contract (ifapplicable) either party may then invoke arbitration by serving a Notice to Referon the other party together with a copy thereof to................ Dubai Chamber ofCommerce and Industry.

1.2. The Notice to Refer shall list the matters which the issuing party wishes to be

referred to arbitration. Where Clause 67 of the Conditions of Contract appliesthe Notice to Refer shall also state the date when the matters listed thereinwere referred to the Engineer for his decision under Clause 67 and the date onwhich the Engineer gave his decision thereon or that he has failed to do sowithin the time allowed under Clause 67.

The Notice to Refer shall inter alia contain the following information:

a ) names in full, description, and addresses of the parties,b) a statement of the Claimant's case,c) the relevant agreements, and in particular the agreement to arbitrate,

and such documentation or information as will serve clearly to establishthe circumstances of the case.

1.3. Where Notice to Refer has been given, arbitration of such dispute shall not becommenced until an attempt has first been made by the parties to settle suchdispute amicably. Provided that, unless the parties otherwise agree, arbitrationmay be commenced on or after the fifty-sixth day after the day on which theNotice to Refer had been served, whether or not any attempt at amicablesettlement thereof has been made.

1.4. Such Arbitration shall be conducted under and in conformity with the laws,custom and practices of Dubai.


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Rule 2: Appointment of Arbit ral Tribunal

2.1. The Arbitral Tribunal shall consist of three members, one member beingappointed by each party within 42 days of one party receiving the Notice toRefer from the other party. The third member shall be mutually chosen by thefirst two members and shall chair the Tribunal and issue its decision which shallbe by a majority vote and shall be binding on both Parties.

2.2. If either party fails to appoint its arbitrator within the appointed time, or if adecision as to the appointment of the third member cannot be reached within 42days from the last date of the appointment of the member by the Parties orwithin such time as may be otherwise agreed by the Parties and their appointedmembers, the matter of appointment of such member(s) shall be referred byeither party to the Dubai Chamber of Commerce and Industry who shallthereupon appoint competent person(s) to act as arbitrators.

2.3. All arbitrators whether appointed directly by the Parties or by the Dubai

Chamber of Commerce and Industry must be and remain at all times whollyimpartial and independent of the parties in question and shall not act asadvocate for any party.

2.4. On their nomination or confirmation the arbitrators are obliged to inform theParties and Dubai Chamber of Commerce and Industry of any facts which, intheir opinion, might be of such a nature as to bring their impartiality andindependence into question in the eyes of the parties.

2.5. If an arbitrator is challenged by one of the parties, Roads And Transport Authority shall ask Dubai Chamber of Commerce and Industry to request thechallenging party to state his point of view as to the grounds for the challenge

within a suitable period of time. Depending on the nature of the grounds, DubaiChamber of Commerce and Industry may also question the other party and, ifneed be, the other members of the Arbitral Tribunal.

The Dubai Chamber of Commerce and Industry is then requested by Roads And Transport Authority to form a committee of three of its members to submita report. The Dubai Chamber of Commerce and Industry shall consider anddecide on the challenge in a plenary session after hearing the report from thatcommittee. The reasons for the decision taken by Dubai Chamber ofCommerce and Industry are confidential and are not communicated.

2.6. If either party is of the opinion that an arbitrator is not properly fulfilling his

functions then that party may request the Dubai Chamber of Commerce andIndustry to ask the arbitrator, the parties and, if need be, the other members ofthe Arbitral Tribunal to state their point of view within a suitable period of time.

The Dubai Chamber of Commerce and Industry is then requested by the partyconcerned to form a committee of three of its members to consider the matterand submit a report. The Dubai Chamber of Commerce and Industry shall thentake a decision in a plenary session after hearing the report of its committee.The reasons for the decision taken by Dubai Chamber of Commerce andIndustry are confidential and are not communicated.


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Rule 3: Terms of Reference

3.1. Before proceeding with the preparation of the case, the Arbitral Tribunal shalldraw up, on the basis of the documents or in the presence of the parties and inthe light of their most recent submissions, a document defining their Terms ofReference. This document shall include the following particulars:

a) the full names and description of the parties;b) the addresses of the parties to which the notifications or communications

arising in the course of the arbitration may validly be made;c) a summary of the parties' respective claims;d) definition of the issues to be determined;e) the full names of the members of the Arbitral Tribunal, their descriptions

and respective addresses;f) the place of arbitration;g) particulars of the applicable procedural rules; and

h) such other particulars as may be required to make the arbitral awardenforceable in law, or as the Arbitral Tribunal think fit.

3.2. The document mentioned in Rule 3.1 shall be signed by the parties and by themembers and Chairman of the Arbitral Tribunal. Should one of the partiesrefuse to take part in the drawing up of the said document or to sign the same,the Tribunal shall set a time limit for the signature of the statement by thedefaulting party and on expiry of that time limit the arbitration shall proceed andthe award shall be made.

Rule 4: Notice of further Disputes or Differences

4.1. At any time before the appointment of the Arbitral Tribunal is completed eitherparty may put forward further disputes or differences to be referred to it. Thisshall be done by serving upon the other party an additional Notice to Refer inaccordance with Rule 1.

4.2. The parties may make new claims or counter-claims before the Arbitral Tribunalon condition that these remain within the limits fixed by the Terms of Referenceprovided for in Rule 3 or that they are specified in a rider to that document andsigned by the parties.

4.3. When a party presents a request for arbitration in connection with a legal

relationship already submitted to arbitration proceedings by the same partiesand pending before the Arbitral Tribunal, the Arbitral Tribunal may decide toinclude that claim in the existing proceedings, subject to the provisions of Rule4.2 above.

SECTION 2-. POWER OF THE ARBITRAL TRIBUNAL


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Rule 5: Powers to control the proceedings

5.1. The Arbitral Tribunal may exercise any or all of the powers set out ornecessarily to be implied in these Rules on such terms as it thinks fit. Theseterms may include orders as to costs of the Chairman of the Arbitral Tribunal,time for compliance and the consequences of non-compliance.

5.2. Powers under these Rules shall be in addition to any other powers available tothe Arbitral Tribunal.

Rule 6: Power to order Concurrent Hearings

6.1. Where disputes or differences have arisen under two or more contracts eachconcerned wholly or mainly with the same subject matter and the resulting

arbitrations have been referred to the same Arbitral Tribunal, the Tribunal maywith the agreement of all the parties concerned or upon the application of one ofthe parties being a party to all the contracts involved order that the whole or anypart of the matters at issue shall be heard together upon such terms orconditions as the Arbitral Tribunal thinks fit.

6.2. Where an order for concurrent Hearings has been made under Rule 6.1 the Arbitral Tribunal shall nevertheless make and publish separate Awards unlessthe parties otherwise agree but the Arbitral Tribunal may if it thinks fit prepareone combined set of Reasons to cover all the Awards.

Rule 7: Powers at the Hearing

7.1. The Arbitral Tribunal may hear the parties, their representatives and/orwitnesses at any time and may adjourn the arbitration for any period on theapplication of any party or as it thinks fit.

7.2. Any party may be represented by any person including in the case of acompany or other legal entity a director, officer, employee or beneficiary of suchcompany or entity. In particular, a person shall not be prevented fromrepresenting a party because he is or may be also a witness in the proceedings.Nothing shall prevent a party from being represented by different persons atdifferent times.

7.3. Nothing in these Rules or in any other rule custom or practice shall prevent the Arbitral Tribunal from starting to hear the arbitration once its appointment iscompleted or at any time thereafter.

7.4. Any meeting with or summons before the Arbitral Tribunal at which both partiesare represented shall if the Arbitral Tribunal so directs be treated as part of thehearing of the arbitration.

Rule 8: Power to appoint Assessors or to seek Outside Advice


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8.1. The Arbitral Tribunal may appoint a legal technical or other assessor to assist itin the conduct of the arbitration after ascertaining from the Parties that there isno reasoned objection to such appointment. The Arbitral Tribunal shall directwhen such assessor is to attend hearings of the arbitration.

8.2. The Arbitral Tribunal may seek legal technical or other advice on any matterarising out of or in connection with the proceedings, provided that such adviceis revealed to the Parties who will then be given the opportunity to comment onsuch advice.

SECTION 3: PROCEDURE BEFORE THE HEARING

Rule 9: The Preliminary Meeting

9.1. As soon as possible after accepting the appointment the Arbitral Tribunal maysummon the parties to a preliminary meeting for the purpose of giving suchdirections about the procedure to be adopted in the arbitration as it considersnecessary.

9.2. At the preliminary meeting the parties and the Arbitral Tribunal shall considerwhether and to what extent

a) the arbitration may proceed on documents onlyb) progress may be facilitated and costs saved by determining some of the

issues in advance of the main Hearing

and in general shall consider such other steps as may minimise delay andexpedite the determination of the real issues between the parties.

Rule 10: Pleadings and Discovery

10.1. The Arbitral Tribunal may order the parties to deliver pleadings or statements oftheir cases in any form it thinks appropriate. The Arbitral Tribunal may orderany party to answer the other party's case and to give reasons for anydisagreement.

10.2. The Arbitral Tribunal may order any party to deliver in advance of formal

discovery copies of any documents in his possession custody or power whichrelate either generally or specifically to matters raised in any pleadingstatement or answer.

10.3. Any pleading statement or answer shall contain sufficient detail for the other partyto know the case he has to answer. If sufficient detail is not provided the Arbitral Tribunal may of its own motion or at the request of the other party orderfurther and better particulars to be delivered.

10.4. If a party fails to comply with any order made under this Rule without giving asatisfactory and reasoned submission, the Arbitral Tribunal shall have power todebar that party from relying on the matters in respect of which it is in defaultand the Arbitral Tribunal may proceed with the arbitration and make its Award


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accordingly. Provided that the Arbitral Tribunal shall first give a minimum ofseven day notice to the party in default that it intends to proceed under thisRule.

Rule 11 : Procedural Meetings

11.1. The Arbitral Tribunal may at any time call such procedural meetings as it deemsnecessary to identify or clarify the issues to be decided and the procedures tobe adopted. For this purpose the Arbitral Tribunal may request particularpersons to attend on behalf of the parties.

11.2. Either party may at any time apply to the Arbitral Tribunal for leave to appearbefore it on any interlocutory matter. The Arbitral Tribunal may call a proceduralmeeting for this purpose or deal with the application in correspondence orotherwise as it thinks fit.

11.3. At any procedural meeting or otherwise the Arbitral Tribunal may give suchdirections as it thinks fit for the proper conduct of the arbitration. Whether or notformal pleadings have been ordered under Rule 10 such directions may includean order that either or both parties shall prepare in writing and shall serve uponthe other party and the Arbitral Tribunal any or all of the following:

a) a summary of that party's case,b) a summary of that party's evidence,c) a statement or summary of the issues between the parties,d) a list and/or a summary of the documents relied upon,e) a statement or summary of any other matters likely to assist the

resolution of the disputes or differences between the parties.

Rule 12: Preparation for the Hearing

12.1. In addition to its powers under Rules 10 and 11 the Arbitral Tribunal shall alsohave power:

a) to order that the parties shall agree facts as facts and figures as figureswhere possible;

b) to order the parties to prepare an agreed bundle of all documents relevantto the arbitration. The agreed bundle shall thereby be deemed to have been

entered in evidence without further proof and without being read out at theHearing. Provided always that either party may at the Hearing challengethe admissibility, relevance, genuineness or otherwise of any document inthe agreed bundle; and

c) to order that any experts whose reports have been exchanged before theHearing shall be examined by the Arbitral Tribunal in the presence of the partiesor their legal representatives. Where such an order is made either party may putquestions whether by way of cross-examination or re-examination to any party'sexpert after all experts have been examined by the Arbitral Tribunal providedthat the party so doing shall first give notice of the nature of the questions hewishes to put.


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Rule 13 : Conduct of the Arbit ration

13.1. The arbitration proceedings shall be governed by these Rules of Arbitration andConciliation of Roads And Transport Authority and where these rules are silent,these proceedings shall be governed by any rules which the parties -may agreeor failing agreement, such rules as the Arbitral Tribunal, may from time to time,settle, subject to Rule 1.4 above. Reference may be made with the agreementof the parties to the suggested procedure for adoption in the conduct of thearbitration appended to these Rules under Appendix 'A,.

SECTION 4 : PROCEDURE AT THE HEARING

Rule 14 : The Hearing

14.1. At or before the Hearing and after hearing representations on behalf of eachparty the Arbitral Tribunal shall determine the order in which the parties shallpresent their cases and/or the order in which the issues shall be heard anddetermined, subject to Rule 1.4 above.

14.2. The Arbitral Tribunal may order any submission or speech by or on behalf ofany party to be put into writing and delivered to it and to the other party. Aparty so ordered shall be entitled if he so wishes to enlarge upon or vary anysuch submission rally.

14.3. The Arbitral Tribunal may on the application of either party or of its ownmotion hear and determine any issue or issues separately.

14.4. If a party fails to appear at the Hearing and provided that the absent party hashad notice of the Hearing or the Arbitral Tribunal is satisfied that allreasonable steps have been taken to notify them of the Hearing the ArbitralTribunal may proceed with the Hearing in his absence. The Arbitral Tribunalshall nevertheless take all reasonable steps to ensure that the real issuesbetween the parties are determined justly and fairly.

Rule 15 : Evidence


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15.1. The Arbitral Tribunal may order a party to submit in advance of the Hearing alist of the witnesses it intends to call. That party shall not thereby be boundto call any witness so listed and may add to the list so submitted at any time.

15.2. No oral expert evidence shall be admissible except by leave of the ArbitralTribunal. Leave may be given on such terms and conditions as the ArbitralTribunal thinks fit. Unless the Arbitral Tribunal otherwise orders such termsshall be deemed to include a requirement that a report from each expertcontaining the substance of the evidence to be given shall be served uponthe other party within a reasonable time before the Hearing.

15.3. The Arbitral Tribunal may order disclosure or exchange of proofs of evidencerelating to factual issues.

15.4. The Arbitral Tribunal may itself put questions to any witness and/or requirethe parties to conduct enquiries tests or investigations. Subject to its

agreement the parties may ask the Arbitral Tribunal to conduct or arrange forany enquiry test or investigation.

15.5. At the conclusion of the hearing, the Tribunal shall allow all the Parties tosubmit their final submissions within a specified period of time.

SECTION 5 : AFTER THE HEARING

Rule 16: The Award

16.1. Upon the closing of the Hearing (if any) and after having considered all theevidence and submissions the Arbitral Tribunal will expeditiously prepareand publish its Award, stating its reasons for the whole Award.

16.2. When the Arbitral Tribunal has made and published its Award it shall so informthe parties in writing and shall specify how and where it may be taken upupon due payment of its fee.

Rule 17: Appeals

17.1. Once any Award or decision has been made and published Arbitral Tribunalshall be under no obligation to make statement in connection therewith.

SECTION 6 : THE PLACE OF ARBITRATION

Rule 18: Place of Arbitration


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18.1. The Place of arbitration shall be Dubai, United Arab Emirates.

18.2. If agreed by the Parties, procedural meetings of the arbitrators may be heldoutside Dubai.

SECTION 7 : PROCEDURAL MATTERS

Rule 19: Language

19.1. The language of the arbitration proceedings shall be English but may be Arabic if the parties agree. However, any Award shall be issued in both

English and in Arabic.

19.2. If the arbitration is in English, documents in a language other than Englishshall be produced with an English translation. If the correctness of thetranslation is challenged, the Chairman may order that an official translationis made.

19.3. If the Arbitration is in Arabic, documents in a language other than Arabicshall be produced with an Arabic translation. If the correctness of thetranslation is challenged, the Chairman may order that an official translationis made.

PART II - CONCILIATION RULES

Rule 1: Appl ication and Aim of Concil iat ion Rules


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1.1. These Rules apply to conciliation of any dispute or difference arising out of,or relating to, a contractual or other legal relationship, where the parties tothe contractual or other legal relationship are seeking an amicable settlementof their dispute or difference and have agreed that the Roads And Transport Authority Rules of Arbitration and Conciliation should apply.

1.2. The parties may agree to exclude or vary any of these Rules at any time byagreement with the Conciliator, but not otherwise.

1.3. Where any of these Rules is in conflict with a provision of law from which theparties cannot derogate, the provision of the law shall prevail.

1.4. These rules shall be interpreted and applied in the manner most conduciveto the efficient conduct of the proceedings with the primary objective ofobtaining the Conciliator's recommendation as quickly as possible and ofachieving a speedy settlement of the dispute or difference.

Rule 2 : Commencement of Conciliation Proceedings

2.1. The party initiating conciliation shall send to the other party a writteninvitation to conciliate under these Rules. This invitation shall request thattheir dispute or difference shall be referred to a conciliator for hisrecommendation and shall be accompanied by a brief statement of thematter or matters upon which it is desired to receive the conciliator'srecommendation and the relief and remedy sought.

2.2. Conciliation proceedings commence when the other party accepts the

invitation to conciliate. If the acceptance is made orally, it is advisable that itbe confirmed in writing.

2.3. If the party initiating conciliation does not receive a reply within 14 days fromthe date on which he sends the invitation, or within such other period of timeas specified in the invitation he may elect to treat this as a rejection of theinvitation to conciliate. If he so elects, he informs the other party accordingly.

Rule 3 : Appointment of Conciliator

3.1. The parties shall agree a conciliator within 28 days of the written invitationbeing given under Rule 2. In default of agreement by the parties on theappointment of a conciliator either party may request the Dubai Chamber ofCommerce and Industry to appoint a conciliator within 14 days of receipt ofthe request by him which request shall be accompanied by a copy of thewritten invitation to conciliate.


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3.2. The party requesting conciliation shall deliver to the Conciliator upon hisappointment a copy of the written invitation prescribed by Rule 2 togetherwith the names and addresses of the parties and/or their representatives.

3.3. The Conciliator shall start the conciliation as soon as possible after hisappointment and shall use his best endeavours to conclude the conciliationas soon as possible, and in any event within 28 days of his appointmentunless the parties otherwise agree.

Rule 4: Role of Conciliator

4.1. The Conciliator shall assist the parties in an independent and impartialmanner in their attempt to reach an amicable settlement of their dispute ordifference.

4.2. The Conciliator will be guided by principles of objectivity fairness and justice,giving consideration to, among other things, the rights and obligations of theparties and the circumstances surrounding the dispute or difference,including any previous business practices between the parties.

4.3. The Conciliator may conduct the conciliation proceedings in such a manneras he considers appropriate, taking into account the circumstances of thecase and the wishes of the parties.

4.4. The Conciliator may, at any stage of the conciliation proceedings, makeproposals for a settlement of the dispute. Such proposals need not be inwriting and need not be accompanied by a statement of the reasons therefor.

4.5. The Conciliator may and shall if requested by all parties seek legal advice orother advice.

Rule 5: Conciliation Procedure

5.1. The parties shall in good faith co-operate with the Conciliator and inparticular shall endeavour to comply with requests by the Conciliatorincluding the submission of written materials, providing evidence andattending meetings.

5.2. The Conciliator may invite the parties to meet with him or may communicatewith them orally or in writing, as he sees fit.


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5. 3. Either party may upon the appointment of the Conciliator under Rule 3 andwithin such period as the Conciliator may allow send, to the Conciliator andto the other party written submissions stating their version of the dispute,difference or other matter together with their views as to the rights andliabilities of the parties arising from it and the financial consequences.Copies of all relevant documents relied on shall be attached to any writtensubmission which may be accompanied by written statement of evidence.

5.4. With the prior agreement or at the request of the Conciliator, a further periodnot exceeding 14 days shall be allowed after the period allowed by theConciliator for written submissions under Rule 4.1 during which any partymay send a further written submission to the Conciliator and to each otherreplying specifically to points made in the other party's original submission.

5.5. The Conciliator may, on his own initiative at any time after his appointmentand upon giving not less than 24 hours' notice to the parties, visit and inspect

the Site or the subject matter of the dispute. He may generally informhimself in any way he thinks fit of the nature and facts of the dispute,difference or other matter referred to him, including meeting the partiesseparately.

5.6. The Conciliator may convene a meeting at which the parties shall bepresent. He shall give the parties not less than 7 days notice of such ameeting unless they agree a shorter period. At the meeting the Conciliatormay take evidence and hear submissions on behalf of any party but shall notbe bound by the rules of evidence or by any rules of procedure other thanthese rules. If it is not possible to conclude the business of any meeting heldunder this rule on the day or days appointed by him the Conciliator may

adjourn such meeting to a day to be fixed by him.

5.7. The parties may appear in person before the Conciliator or be representedby duly accredited agents or representatives. They may also be assisted bycounsel or solicitors, by mutual agreement with each other and with theConciliator.

5.8. Any meetings convened pursuant to these Rules shall take place in Dubai, ata location to be agreed by the parties or, failing agreement, the location shallbe determined by the Conciliator, after consultation with the parties andhaving regard to the circumstances of the conciliation proceedings.

Rule 6: Terms of Settlement

6.1. The Conciliator nay at any time at his discretion if he considers itappropriate, or if so requested by the parties, express his preliminary viewson the matter referred to him. Each party may, on his own initiative or at theinvitation of the Conciliator, submit to the Conciliator suggestions for thesettlement of the dispute.


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6.2. Should the Conciliator deem it appropriate during the course of theconciliation proceedings to formulate terms or proposals of a possiblesettlement on any or all of the matters referred to him, he may do so at hisdiscretion. He shall be entitled to submit such terms or proposals to theparties for their observations and shall be entitled to reformulate the originalterms or proposals in the light of any such observations received.

6.3. Should the parties reach agreement on a settlement of their dispute ordifference during the conciliation proceedings, they shall draw up and sign awritten settlement agreement. if requested by the parties, the Conciliatorshall draw up or assist the parties in drawing up any such settlementagreement so reached.

6.4. Should the, parties fail to reach agreement during the course of theconciliation proceedings, the Conciliator shall, upon the conclusion of theconciliation proceedings or at any earlier date, prepare his recommendationas to the manner in which the matter in dispute or difference between the

parties should be settled. .

If the Conciliator considers it appropriate so to do he may at the same timeor within 7 days of the giving of his recommendation also submit in aseparate document his written opinion on the matter or on any part of thematter referred to him. The Conciliator's opinion, if given, shall contain suchreasons for and comments thereon as in all the circumstances he may deemappropriate.

6.5. The parties shall, by signing any settlement agreement reached betweenthem, put an end to the dispute or difference and shall be bound by theterms of any such agreement.

Rule 7: Confidentiality

7.1. The Conciliator and the parties shall keep confidential all matters relating tothe conciliation proceedings. Confidentiality extends also to the settlementagreement, except where its disclosure is necessary for purposes ofimplementation and enforcement.

Rule 8: Reference to Arbitral or Judicial Proceedings

8.1. The parties undertake not to initiate, during the conciliation proceedings, anyarbitral or judicial proceedings in respect of a dispute that is the subject ofthe conciliation proceedings, except that a party may initiate arbitral and judicial proceedings where, in his opinion, such proceedings are necessaryfor preserving his rights.

Rule 9: Termination of Conciliation Proceedings


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9.1. The conciliation proceedings shall be terminated upon any of the followingevents:

(i) by the signing of the settlement agreement by the parties, on the dateof the agreement, or

(ii) by a written declaration of the Conciliator, after consultation with theparties, to the effect that further efforts at conciliation are no longer justified, on the date of such declaration; or

(iii) by a written declaration of the parties addressed to the Conciliator tothe effect that the conciliation proceedings are terminated, on thedate of such declaration; or

(iv) by a written declaration of a party to the other party and to theConciliator to the effect that the conciliation proceedings are

terminated, on the date of such declaration.

(v) upon the issue of his recommendation to the parties by theConciliator following conclusion of the conciliation proceedings.

Rule 10: Costs

10.1. Upon the conclusion of the conciliation proceedings the Conciliator shall fixthe amount of his fees and disbursements and shall give written noticethereof to the parties. Unless otherwise agreed between themselves eachparty shall be responsible for paying and shall within 7 days of receipt of

notice from the conciliator pay an equal share of the account.

10.2. Upon his appointment, the Conciliator, may request each party to deposit anequal amount as an advance for the costs referred to in Rule 10.1 which heexpects will be incurred.

During the course of the conciliation proceedings the Conciliator may requestsupplementary deposits in an equal amount from each party.

Upon termination of the conciliation proceedings, the Conciliator shall renderan account to the parties of the deposits received and return anyunexpended balance to the parties or of the balance due.

Rule 11 : Rights of Parties failing Settlement

11.1. Should a settlement not result, the parties shall be at liberty to refer theirdispute to arbitration.

11.2. Nothing that has transpired in connection with the proceedings before theConciliator shall in any way affect the legal rights of any of the parties to thedispute whether in an arbitration or in a Court of law.

Rule 12: Role of Concil iator in Other Proceedings


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12.1. The Conciliator shall not be appointed arbitrator nor act as representative oradvocate of a party in any subsequent arbitral or judicial proceedingsbetween the parties whether arising out of the dispute, difference or othermatter or otherwise arising out of the subject of the conciliation proceedings,unless the parties otherwise agree in writing and provided it is not contrary tothe laws in force in the United Arab Emirates and in Dubai.

Rule 13: Language

13.1. The language of the conciliation proceedings shall be English but may be Arabic if the parties agreed. However, the terms of any settlement,agreement or recommendation of the Conciliator shall be drafted in bothEnglish and in Arabic.

Rule 14: Delivery of Documents , etc.

14.1. Any document required by these rules shall be sent to the parties byrecorded delivery to the principal place of business or if a company to itsregistered office. Any document required by these rules to be sent to theConciliator shall be sent by recorded delivery to him at the address which heshall notify to the parties on his appointment.

Rule 15: Admissibil ity Of Evidence in Other Proceedings

15.1. The parties shall not rely on or introduce as evidence in arbitral or judicial

proceedings, whether or not such proceedings relate to the dispute that isthe subject of the conciliation proceedings:

(a) Views expressed or suggestions made by the other party in respect ofa possible settlement of the dispute;

(b) Admissions made by the other party in the course of the conciliationproceedings;

(c) Proposals made by the conciliator(d) The fact that the other party had indicated his willingness to accept a

proposal for settlement made by the conciliator.

APPENDIX ‘ A’


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SUGGESTED PROCEDURE FOR

ADOPTION IN THE

CONDUCT OF THE ARBITRATION

APPENDIX ‘ A ‘

SUGGESTED PROCEDURE FOR ADOPTION IN THECONDUCT OF THE ARBITRATION

Whereas a dispute has arisen between................................................................................. of the one part,

(hereinafter called the Claimant)


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and................................................. of the other part,

(hereinafter called the Respondent)

are jointly referred to hereinafter as the "Parties".

In connection with............................................................................................... in

Contract No. “ ...........................………………………………………..........................“

signed by the two parties on .........................................

The two parties agree to refer the subject dispute to arbitration in accordance with theRules hereinafter setforth.

Ar ticle 1 Commencement of Arbi tration

1.1 ......................................................................... is duly nominated Arbitrator bythe Claimant.

1.2 ..................................................................... is duly nominated Arbitrator bythe Respondent

1.3 ...................................................... is duly appointed Chairman by thenominated Arbitrators.

1.4. The persons named in this Article shall form the ‘Arbitral Tribunal'.

1.5. The procedures adopted in forming the Arbitral Tribunal are deemed to be inaccordance with the requirements of Clause 67 of the Conditions ofContract.

Ar ticle 2 Communication Between the Parties and the Arb it rat ion Commit tee

2.1. Where the Arbitral Tribunal sends any communication to one party, it shallsend a copy to the other party.

2.2. Where a party sends any communication to the Arbitral Tribunal, it shall senda copy to the other party.

2.3. The Addresses of the parties and the members of the Arbitral Tribunal, forthe purpose of all communications during the proceedings, are set out inSchedule No. 1 attached.


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2.4. Any party may be represented by persons of their choice, subject to suchproof of authority as the Arbitral Tribunal may require. The identities of suchrepresentatives must be notified to the other party.

Ar ticle 3 Conduct of the Proceedings

3.1. In the absence of procedural rules agreed by the parties or contained herein,the Arbitral Tribunal shall have the widest discretion allowed by law to ensurethe just, expeditious, economical, and final determination of the dispute.

3.2. The Arbitrators shall be and remain at all times wholly independent andimpartial, and shall not act as advocate for any party.

3.3. If any Arbitrator dies, is unable to act, or refuses to act, another Arbitratorshall be appointed by the relevant party, or in the case of the Chairman bythe two appointed Arbitrators.

Ar ticle 4 Submission of Wr it ten Statements and Documents

4.1. The Claimant shall, within the period set by the Arbitral Tribunal send to the Arbitral Tribunal his Statement of Case (claim) setting out in sufficient detailthe facts and any contentions of law on which it relies and the relief claimed.

4.2. Within 90 days of receipt of the Statement of Case, by the Respondent, theRespondent shall send to the Arbitral Tribunal a Statement of Defencestating in sufficient detail which of the facts and contentions of law in theStatement of Case it admits or denies, on what grounds, and on what other

facts or contentions of law it relies. Any counterclaims, shall be submittedwith the Statement of Defence in the same manner as claims are set out inthe Statement of Case.

4.3. Within 60 days of receipt of the Statement of Defence by the Claimant, theClaimant shall send to the Arbitral Tribunal a Statement of Reply which,where there are counterclaims, shall include a Defence to the counterclaims.

4.4. If the Statement of Reply contains a Defence to the counterclaims, theRespondent shall within a further period of 60 days send to the ArbitralTribunal a Statement of Reply to the counterclaims.

4.5. Whether the Statement of Reply contains a Defence to the counterclaim ornot, within 20 days of receipt of the statement of Reply, the Respondent shallby written notice inform the Arbitral Tribunal if he wishes to submit a secondStatement of Defence within a further period of 30 days of his notice. TheClaimant shall, within 30 days of receipt of the Statement of Reply to theCounterclaim send to the Arbitral Tribunal his Second Statement of Defenceto Counterclaim.

4.6. All Statements referred to in this Article shall be sent in 4 copies, one to eachof the members of the Arbitral Tribunal and one to the other Party. TheStatements shall be accompanied by copies of all documents on which the


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party relies and which have not previously been submitted by any party, and(where appropriate) by any relevant exhibits.

4.7. As soon as practicable following completion of the submission of theStatements specified in this Article, the Arbitral Tribunal shall proceed insuch manner as has been agreed or pursuant to the authority under theseRules.

Ar ticle 5 Hearings and Witnesses

5.1. Each party has the right to be heard before the Arbitral Tribunal.

5.2. The Arbitral Tribunal shall fix the date, time and place of any meetings andhearings in the arbitration, and shall give the parties reasonable noticethereof.

5.3. All meetings and hearings shall be in private unless the parties agreeotherwise.

5.4. The Arbitral Tribunal may in advance of hearings provide the parties with alist of matters or questions to which it wishes them to give specialconsideration.

5.5. Each party shall give notice of the identity of witnesses it intends to callbefore a hearing.

5.6. The Arbitral Tribunal has discretion to allow the appearance of witnesses,whether witnesses of fact or expert witnesses.

5.7. Any witness who gives oral evidence may be questioned by each party,under the control of the Arbitral Tribunal. The Arbitral Tribunal may putquestions at any stage of the examination of the witnesses.

Ar ticle 6 Experts Appointed by the Arb it ral Tribunal

6.1. The Arbitral Tribunal may appoint one or more experts to report on specificissues and, may require additional tests to be carried out.

6.2. If a party so requests, or if the Arbitral Tribunal considers it necessary, theexpert shall, after delivery of his written or oral report, participate in a hearing, at which the parties shall have the opportunity to question him and topresent expert witnesses in order to testify on the points at issue.

Ar ticle 7 Additional Powers of the Arb it ral Tribunal

The Arbitral Tribunal shall have power to:

(a) allow any party, upon such terms as it shall determine, to amendclaims or counterclaims;


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(b) extend or abbreviate at any time the time limits set by these ArbitrationRules;

(c) conduct such enquiries as may appear necessary or expedient;

(d) order the parties to make any property, item or person available forinspection, by the Arbitral Tribunal; and

(e) order any party to produce to the Arbitral Tribunal, and to the otherparty for inspection, any documents in their possession, custody orpower which the Arbitral Tribunal determines to be relevant.

Ar ticle 8 Jurisdic tion of the Arbi tral Tr ibunal

In addition to the jurisdiction to exercise the powers defined in these Arbitration Rules,

the Arbitral Tribunal shall have jurisdiction to:

(a) determine any question of law arising in the arbitration;

(b) receive and take into account such written or oral evidence as it shalldetermine to be relevant; and

(c) proceed in the arbitration and make an award notwithstanding the failure orrefusal of either party to comply with these Rules or with the ArbitralTribunal’s written orders or written directions or to exercise its right topresent its case, but only after giving that party written notice that it intendsto do so.

Ar ticle 9 Deposi ts and Arbi tration Fees

9.1. The parties may be required to deposit equal sums of money, determined bythe Arbitral Tribunal, in a bank account held in the joint names of the twoNominated Arbitrators, to cover the Chairman’s fees and any other expense.

9.2. Each party shall pay the fees of his nominated arbitrator under a separate

arrangement.

Ar ticle 10 The Award

10.1. The Arbitral Tribunal shall make its Award in writing and, shall state thereasons upon which the Award is based. The Award shall state its date andshall, notwithstanding the provisions of Article 10.2, be signed by the ArbitralTribunal.

10.2. Where the Arbitral Tribunal fails, to agree on any issue, it shall be decided bya majority. If an arbitrator fails or refuses to sign the Award, the signatures


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of the majority shall be sufficient, provided that the reasons for the omittedsignature is stated.

10.3. The Arbitral Tribunal may make interim awards or separate awards ondifferent issues at different times.

10.4. If, before the award is made, the parties agree on a settlement of thedispute, the Arbitral Tribunal shall either issue an order for termination ofarbitration or, if requested by both parties and accepted by the ArbitralTribunal, record the settlement in the form of a consent award. The ArbitralTribunal shall then be discharged and the arbitration concluded.

10.5. Within 14 days of receiving an award, either party may by notice to the Arbitral Tribunal request the Arbitral Tribunal to correct in the award anyerrors in computation, any clerical or typographical errors or any errors orsimilar nature. If the Arbitral Tribunal considers the request justified, it shallmake the corrections within 14 days of receiving the request. Any correction

shall be notified to the parties and shall become part of the award.

10.6. The Arbitral Tribunal may correct any errors of the type referred to in Article10.5 within 14 days of the date of the award.

Ar ticle 11 Costs

The Arbitral Tribunal shall specify in the award the total amount of the Chairman’s feesand other expenses, and shall have the power to order that all or part of this amount tobe paid by any one of the parties.

Ar ticle 12 Language

The language of the arbitration proceedings shall be in English but any Award shall beissued in both English and in Arabic.

Ar ticle 13 Exclusion of Liability

13.1. The Arbitral Tribunal shall not be liable to any party for any act or omission inconnection with any arbitration conducted under these Rules, save for theconsequences of conscious and deliberate wrongdoing.

13.2. After the award has been made, the Arbitral Tribunal shall not be under anyobligation to make any statement to any person about any matter concerningthe arbitration, and neither party shall seek to make the Arbitral Tribunal awitness in any legal proceedings arising out of the arbitration.


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Ar ticle 14 Waiver

A party which is aware of non-compliance with these Rules and yet proceeds with thearbitration without promptly stating its objection to such non-compliance, shall bedeemed to have waived its right to object.

Signed ______________________________________ (Claimant)

Name ______________________________________

Designation ______________________________________

Signed ______________________________________ (Respondent)

Name ______________________________________

Designation ______________________________________

Witnessed by:Name _____________________________________

Signature _____________________________________

Name _____________________________________

Signature _____________________________________