MINISTERIAL ORDERS IMPLEMENTING ARBITRATION LAWS
MINISTERIAL RESOLUTION NO. (43) OF 1995 ON
JUDICIAL ARBITRATION - CIVIL & COMMERCIAL ARTICLES
The Minister of Justice & Administrative Affairs, having perused Article (72) of the Constitution; and Article No. (13) of Law No. (11) of 1995 on Judicial Arbitration, Civil & Commercial Articles; and The Resolution of the Minister of Justice No. (133) of 1993 on nomination of Assistant Undersecretaries with specification of their jurisdiction; and
Pursuant to the proposal made by the Undersecretary, hereby decide the following:
Article 1
One or more Arbitration Panels shall be formed at the court of Appeal, each of which consisting of three judiciary-men selected by the Supreme Judiciary Council and two from the Arbitrators Registered in the Rolls deposited with the Arbitration Department or of other individuals. Each Arbitration Party, even if numerous, shall select one of them. The panel shall be presided over by the most senior member of the Judiciary-men, provided he holds the office of Justice (counselor). The Panel Secretariat function shall be performed by one of the Arbitration Department employees.
The Panel shall hold its sittings at the Court of Appeal or at any other venue specified by the Chief of the Panel.
Article 2
Whoever is registered in the Arbitrators' Roll shall as a condition satisfy the following:
• To be a Kuwaiti national
• To have good conduct and reputation
• He should not have been dismissed from service under a disciplinary decision, unless at least three years have elapsed from the date such a disciplinary decision was issued.
• He should not have been sentenced to a detentive penalty in an offence involving moral turpitude or integrity unless he has been rehabilitated.
• To be a holder of appropriate academic qualifications and experience as duly approved by the Committee specified in the following Article.
Article 3
A Committee comprising the following members shall be set up for selecting the arbitrators accepted to be registered in the Roll:
• The Chief Justice of the Court of Appeal Court, as Chairman
• Assistant Undersecretary for Expertise and Arbitration Affairs, Member.
• Assistant Undersecretary for Financial and Minor Affairs, Palace of Justice, Member.
The Committee shall have Competence to select the Arbitrators accepted for registration in the Arbitrators' Roll who meet the requirements stipulated in the preceding article from among the registration applicants of those Rolls or from the lists submitted by the Competent Authorities. Moreover, it is empowered to amend the said Rolls. The Secretarial Affairs of the Committee shall be entrusted to the Arbitration Department Director.
Article 4
The arbitration application, comprising one original and a number of copies equivalent to the number of litigants, shall be submitted to the Arbitration Department with the following documents attached thereto:
A copy of the Arbitration-stipulation, i. e. fixed conditions of the contract including the arbitration clause, duly stating in the application the date it was drawn up, the names and surnames of litigants, their capacities, representatives and their original or elected domicile in addition to the issue of the dispute submitted to the Arbitration Panel with a summary of each litigant's pleas defense, and pleading properly invoked with the name of the selected arbitrator, if any, and an indication on whether his fees have been settled or not.
The application shall be entered in the appropriate Register the day submitted.
Article 5
Each of the arbitration parties shall select his arbitrator from among the arbitrators registered in the Rolls appropriately prepared and available at the Arbitration Department or from elsewhere within ten days following the date where the Arbitration Department has requested him to do so. In case of a party's failure to appoint an arbitrator, then the said Department shall appoint an arbitrator, whose turn has come in conformity with the Roll of the Professional Arbitrators duly specialized in the issue of disputes, for the Panel's membership.
Article 6
The Arbitration application shall be presented to the Chief of the Arbitration Panel within three days following the selection of arbitrators, in order to assess the amount each Arbitration party shall deposit on the account of his arbitrator's fees, in case there is no prior notification from the arbitrator to the effect confirming that fees have already been settled. The Arbitration Department shall then request the two arbitration parties to deposit the amount they are required to pay with the Arbitration Department Treasury within the following ten days. In case a party fails to deposit such amount, the Arbitration Department shall notify the other party thereof within the following five days who shall have the right, if desirous to proceed on the Arbitration Proceedings, to deposit the required amount within the following ten days.
If such a period expires without the required amount being deposited by either party of the litigants, then the Arbitration Department shall present the Arbitration application to the Chief of the Panel to give his order for the case to be left on the file with refunding of the amount deposited on the account of Arbitration Fees by either party to the same litigant party concerned.
The Arbitration Department shall present the Arbitration application to the Chief of Arbitration Panel within three days following the depositing of the fees of the selected arbitrators to specify a date and venue for a sitting to be convened. The Arbitration Department shall then notify the two litigant parties of the Panel's full formation (a setting in banc within the following five days and shall specify a date for them to submit their documents defense and/or pleadings. The relevant notice shall be served in conformity with Article 179 of the Civil and Commercial Procedure Code or by any other means of summons service duly agreed upon by the litigant parties such as fax, post or telephone.
Article 7
Each member of the selected Arbitration Panel shall take an oath before the Chief of the Panel prior to commencement of the task entrusted with, stating that he shall carry out his duties with trust and confidence.
Article 8
In the event of any arbitrator adjudged to be recused, withdrawn or removed for any reason whatsoever, his replacement shall be appointed in conformity with the same procedure duly applied at the time of his appointment.
Article 9
The Arbitration Panel shall determine on the dispute brought before it and render the relevant arbitrament without abiding by a certain period of time, in exception to the provision of Article 181 of the Civil and Commercial Procedure Code.
The Panel shall apply the provisions and proceedings provided for in the Arbitration Law No. (11) of 1995 and those articles prescribed in the Civil and Commercial Procedure Code provided that they are not contradictory to the provisions of this Resolution.
Article 10
The Undersecretary shall implement this Resolution and that any Resolution contradictory to its provisions shall be repealed. This resolution shall be operative the date published in the Official Gazette.
The Civil and Commercial Procedure Code No. 38 of 1980, effective November 1980
Chapter 12: Arbitration
Article 173
Agreement to arbitrate may be made in respect of a specified dispute. Likewise, agreement to arbitrate may be made in respect of all disputes which arise from the implementation of a specific contract. Written proof of arbitration shall be required. Arbitration is not permitted in matters which permit compromise. Likewise, only he who has capacity to dispose of a right which is the subject matter of a dispute may agree on arbitration.
The subject matter of the dispute must be specified in the agreement for arbitration or during the proceedings, otherwise arbitration shall be null and void, even though the arbitrator is authorized to compromise.
The courts shall not be competent to consider disputes which are governed by an arbitration agreement, however, objection to the competence of the court may be waived expressly or implicitly.
Arbitration shall not cover urgent matters otherwise explicitly agreed.
Article 174
An arbitrator may not be a minor, or be under a court interdiction order, or without civil rights by reason of criminal punishment, or be an undischarged bankrupt.
If there are several arbitrators they must be in all cases an uneven number; also, the appointment of the arbitrator must be stated in the agreement for arbitration or in a separate agreement.
Article 175
If a dispute arises and the adversaries have not agreed on the arbitrators or one or more of the agreed arbitrators refuses to carry out this task or resigns or is dismissed or declared ineligible, or there is an impediment preventing any of them from carrying on the work and there is no agreement in this respect among the adversaries, the court originally competent to consider the dispute shall appoint the arbitrators required upon application by any of the adversaries by following the procedures normally taken in the filing of a lawsuit.
The number of arbitrators whom the court may appoint must be equal to or complete the number agreed by the adversaries. No appeal by any means whatever shall be allowed against a court order issued in this respect.
Article 176
Arbitrators may not be authorized to compromise, nor may they make an award in their capacity as compromise arbitrators unless their names were stated when they were appointed in the arbitration agreement.
Article 177
The Ministry of Justice may set up one or more arbitration panels to hold sittings at the seat of the general court or in any other place designated by the board president. The panel shall have as president a senior judge chosen by the general assembly of the competent court. The members of the panel shall be two businessmen or other professionals. They shall be selected from a roll prepared for this purpose in accordance with the rules and procedures issued in this regard by order of the Minister of justice. A member of staff of the court shall carry out the duties of secretary for the panel. The panel shall consider without fee the dispute referred to it in writing by the parties concerned. The panel shall apply the rules laid down in this chapter. However, it may issue the award and orders referred to in Para. A, B and C of Art. 180.
Article178
Without prejudice to any provision in the preceding article or in any other law the arbitrator must signify his acceptance of appointment as arbitrator and written proof of such acceptance shall be required.
If the arbitrator resigns his duties without a reason after accepting arbitration he may be liable for payment of compensation.
An arbitrator may not be dismissed, except by agreement of all the adversaries.
The arbitrator may not be relieved of his duties, except for reasons which occur or appear after his appointment. The request to relieve him must be for the same reasons for which a judge may be relieved or may be considered unfit to give judgment. The application to relieve an arbitrator will be submitted to a court which is originally competent to hear the dispute within five days of the date the adversary has been notified of the appointment of the arbitrator, or from the date of the occurrence of the reason for his relief, or of his knowledge of it if it was subsequent to the date of his notification of the appointment of the arbitrator.
In all cases application to relieve an arbitrator shall not be accepted if the arbitrator's award has been issued, or if the hearing of the case has been closed.
The party applying for removal of the arbitrator may appeal against the judgement in this respect regardless of the value of the dispute which is submitted to the arbitrator.
Article179
The arbitrator, within at the latest thirty days from the date of his acceptance of the arbitration, shall notify the adversaries of the date of the first sitting for the hearing of the dispute and its place, without the need to observe the rules laid down in this law for service of notification. He shall fix a date for them to submit their documents, memoranda and arguments. An award may be made in accordance with a submission by one party if the other party has failed to appear on the date fixed.
If there are several arbitrators they must collectively take part in the investigative proceedings and each one will sign the minutes of it, unless they have unanimously agreed to delegate one of them to carry out certain proceedings and have established his delegation in the minutes of that sitting, or if the agreement for arbitration permits such delegation to any one of them.
Article 180
The dispute before the arbitrator shall be interrupted for any reason laid down in this law for interruption of disputes, and the results of interruption laid down by law shall come into effect.
If during the arbitration a preliminary matter outside the jurisdiction of the arbitration arises, or if there is an allegation of forgery in any document, or if there are any criminal proceedings as a result of forgery or any other criminal event, the arbitrator shall suspend his work until final judgment has been issued in its respect. Also, the arbitrator shall suspend his work in order to refer to the president of the court which is originally competent to hear the dispute to carry out the following:
A. To order the punishment laid down in the law against a witness who fails to attend or fails to give answer.
B. To order third parties to produce a document in their possession which is necessary for the award.
C. To order a judicial act of delegation.
Article 181
If there is no stipulation by adversaries in their arbitration agreement on a date for the award, the arbitrator shall make the award within six months of the date of notification of the parties to the dispute of the arbitration sitting, otherwise any of the parties to the dispute may refer the dispute to the court or continue with the litigation before that court if the case was already filed with it.
If the dates of the notification of the parties differ, effect shall be given to the later date of notification.
The adversaries may agree expressly or implicitly to extend the date whether it was fixed by agreement or law, and may also authorize the arbitrators to extend it to a certain date.
The date shall also be suspended whenever a dispute before an arbitrator has been suspended or interrupted. The date shall resume from the date the arbitrator learns of removal of the cause of suspension or interruption and if the remainder of the date is less than two months it shall be extended to two months.
Article 182
The arbitrator shall issue his award without being bound by the procedure laid down by law, except those laid down in this chapter. Nevertheless, the adversaries may agree on certain procedures which the arbitrator shall follow.
The award of the arbitrator shall be issued in accordance with the basic rules of law, unless he has been authorized to compromise, in which case he shall not be bound by these rules except those relating to public policy.
The rules relating to expedited execution of judgment shall apply to the awards of arbitrators. The award of the arbitrator must be issued in Kuwait, otherwise it shall be subject to the basic rules governing awards issued by arbitrators in a foreign country.
Article 183
The arbitrators’ award shall be issued by majority, shall be in writing, shall include in particular a copy of the adversaries, the reasons for the award and its pronouncement, date and place of issue of the award and signatures of the arbitrators.
If one or more of the arbitrators refuse to sign the award the award shall mention the fact. It shall be valid if it is signed by the majority of arbitrators.
The award shall be written in Arabic, unless the adversaries otherwise agree, in which case there must be attached to it an official translation when the award is filed.
The award shall be deemed to be issued on the date it is signed by the arbitrators after writing it.
Article 184
The original of the award—even though it may have been issued for the purpose of carrying out measures of investigation—together with the original of the arbitration agreement shall be filed with the clerical section of the court originally competent to consider the dispute, within the ten days following the issue of the award which ends the dispute.
The clerk shall draw up a proces verbal of such filing.
Article 185
The arbitrator's award shall not be capable of execution except by order issued by the president of the court after it is filed with its clerical section upon request of any of the interested parties. The order for execution shall be issued after review of the award and the arbitration agreement after ascertaining the absence of impediments for execution and the lapse of the time for appeal, if the award was appealable and was not under expedited execution. The order for execution shall be placed at the end of the original of the award document.
Article186
The award of the arbitrator may not be appealed except where the adversaries have agreed otherwise, before its issue, in which case the appeal shall be before the general court sitting in an appeal capacity. Appeal shall be subject to the rules laid down for appeal against court judgments and the date for the appeal shall begin from the day the original of the award was filed with the clerical section of the court in accordance with Art.
184.
In any case, the award shall not be subject to appeal if the arbitrator was authorized to compromise, or was an arbitrator in appeal, or if the value of the case did not exceed KD. 500, or if the award was issued by the panel constituted under Art. 177.
Any interested party may ask for annulment of a final award issued by the arbitrator in any of the following cases, even though there was agreement to the contrary before its issue.
A. If it has been issued without an arbitration agreement or under an invalid one or if the agreement has lapsed by exceeding the period fixed for it or if the arbitrator has gone beyond the terms of the arbitration agreement.
B. If there should exist any of the reasons which give rise to a request for review of the award.
C. If there is a basic invalidity in the award or a basic invalidity in the proceedings which affected the award.
Article 187
A lawsuit for annulment shall be instituted with the court which is originally competent to hear the dispute in the usual manner for the institution of lawsuits, but it must take place within thirty days from notification of the award. This period shall begin in accordance with the provision of Art. 149 in cases where there are reasons which will give rise to a review of judgment.
The complaint sheet shall include the reasons for the request of annulment, without which it will be invalid. The complainant must deposit upon filing of the complaint sheet KD. 20 as guarantee for expenses, and the clerical section of the court shall not accept said filing if there is no proof of deposit of guarantee. It shall be sufficient to deposit one guarantee in the case of a multiplicity of complainants where they have instituted one complaint sheet even though for different reasons for annulment. The government shall be exempted from depositing a guarantee and likewise, those who are exempted from judicial fees.
The guarantee shall be forfeited by law if the lawsuit is pronounced not accepted by the court, or that it may not be instituted, or that it has lapsed, or that it is annulled, or that it is dismissed.
If the court ordered the annulment of the arbitration's award it will consider the substance of the dispute and at the same time give judgment on it.
Article 188
The institution of a lawsuit for annulment shall not imply suspension of the execution of the arbitrator's award.
In any case, the court which is considering the lawsuit may order, in accordance with the request of the plaintiff, suspension of the execution of the award, if it is feared great damage will result from execution and where the reasons for annulment appear to be likely to prevail.
The court may, when ordering suspension of the execution, order the provision of a guarantee or order whatever is deemed sufficient to protect the right of the defendant. The order suspending execution of the award shall also be extended to cover the execution measures which have been taken by the award creditor from the date of the suspension of execution.