域外仲裁法|没有想到阿塞拜疆新《仲裁法》已经迈向了国际现代化(2024)

文摘   2024-11-13 16:30   日本  

导语


截止2024年,除了英国、德国、日本等国的仲裁法作出修改外,笔者发现还有一个“小国”,阿塞拜疆民主共和国,也对其《仲裁法》作出了修改。2024年1月25日,修改后的新《阿塞拜疆仲裁法》(下称:《仲裁法》)生效, 标志着该国争议解决框架现代化努力的取得重要成果,迈向一个重要里程碑 。



该法规范国际和国内仲裁,主要基于《联合国国际贸易法委员会国际商事仲裁示范法》(下简称:《示范法》), 使阿塞拜疆的仲裁制度更接近国际标准。中国的仲裁法也在修改,尽管需要根据自己的“国情”而修改,但,必须提高对仲裁本源性认识,把仲裁的本质丢弃,再多的“中国特色”都不会使中国的仲裁法成为一部“与时俱进”的与国际接轨的法律,所谓“国际仲裁中心”建设,没有基本的符合现代化方向的法律保障,可能也会面临根基不牢和走不远的窘境。


01《仲裁法》 结构


阿塞拜疆的《仲裁法》包括 8 个章节, 具体结构如下:

第一章,一般规定;

第二章,仲裁协议;

第三章,仲裁庭的组成;

第四章,临时措施;

第五章,仲裁程序的进行;

第六章,仲裁裁决的作出和程序的终止, 针对仲裁裁决的追索权;

第七章,仲裁裁决的承认和执行;

第八章,最后条款。


02 适用范围及仲裁协议


仲裁地概念十分重要,但一定要注意仲裁地与司法主权的关系。不要动辄上升到意识形态领域。根据阿塞拜疆的《仲裁法》,当仲裁地为阿塞拜疆时,《仲裁法》适用于国际和国内仲裁。


《仲裁法》还规定了某些不能通过仲裁解决的争议, 例如刑事和行政犯罪, 家庭关系, 和劳动争议 。相比而言,《示范法》没有明确列出不可仲裁的争议, 由采用国来定义此类排除。


《仲裁法》规定,仲裁协议必须采用书面形式, 尽管这被广泛解释为包括电子表格,其中的信息可供以后使用 。也包含仲裁条款的单独文件的书面引用, 但前提是该条款已明确纳入。该协议可以是更广泛的合同中仲裁条款的形式,也可以是独立协议的形式 。协议中的任何歧义均被解释为支持仲裁的有效性 !


03 仲裁庭


根据《仲裁法》,没有就任命程序达成具体协议的情况下, 默认仲裁员是三人。每一方指定一名仲裁员, 然后这两个仲裁员共同任命第三名仲裁员。如果一方未能在30天期限内指定仲裁员 , 或者两名仲裁员无法在30天期限内就第三个仲裁员达成一致, 那么机构将根据要求进行任命。对于独任仲裁员, 如果双方不能达成一致,机构将指定。


根据《仲裁法》,除非双方另有协议,, 由一名以上仲裁员进行的仲裁程序的决定以简单多数作出, 仲裁员不能放弃投票 !相对较, 《示范法》允许多数决策,但没有明确禁止弃权。


04 仲裁员的责任豁免及仲裁成本保障


尽管《示范法》没有提及仲裁员的责任问题, 《仲裁法》增加了仲裁员在履行职责过程中遭受损害的免责条款。这种豁免权适用于仲裁员辞职或不采取行动的情况, 除非这种辞职被证明是 “不合理” 。法律没有明确规定 “诚信” 或当辞职或不采取行动时何谓 “不合理“, 将其解释留给法院。


《仲裁法》明确授权仲裁庭责令当事人提供仲裁费用担保, 不同于《示范法》, 在这个问题上保持沉默。


05 撤销裁决及公共政策问题


虽然《仲裁法》遵循《会示范法》规定的申请撤销裁决的三个月期限 ,它消除了涉及以下情况的时间限制。例如,诈骗, 腐败, 犯罪活动, 伪造文件或虚假证词等。但这种例外可能会导致裁决的最终结果长期不确定。


《仲裁法》明确规定了撤销仲裁裁决的公共政策。根据相关条款,如果出现以下情况,裁决可能会被撤销:


与阿塞拜疆共和国宪法或公共政策相冲突, 其中包括本质上势在必行的基本法律原则, 具有普遍性和重要的社会意义, 支撑政治, 阿塞拜疆共和国的经济和法律框架。” 


引起注意的是,相应的执行条款 (第 56.1.2.2条) 规定如果裁决存在下列情况,可拒绝承认或执行: “违反阿塞拜疆共和国宪法或公共政策“。但没有定义公共政策一词。


06 小结


阿塞拜疆的新《仲裁法》是该国仲裁框架现代化的重要一步. 它还为阿塞拜疆成为该地区竞争性仲裁管辖区铺平了道路。一项法律的实施效果,也并非立竿见影,需要实践的检验。因此,从这个意义上说,阿塞拜疆新的《仲裁法》的真正影响,只有在未来几年的仲裁实践中才会变得清晰可见,但毋庸置疑得是,其修改后的条文与国际接轨的脉络已经很清晰。


于此而言,我们中国需要什么样的《仲裁法》?不论技术上多么”巧妙“,也论程序上如何“拐弯”更不论如何体现自己的“特色”。笔者认为,根基不牢,地动山摇。《仲裁法》的根本性如果没有坚持,其他再多的“技术”都无法让中国仲裁走向世界。我们喊了多年的《仲裁法》修改,如果不能摆脱理念的束缚,不能提高对仲裁国际性的认知,很难让我们的《仲裁法》成为“法”。


田洪涛,律师,仲裁员,在“TAO仲裁圆桌”公众号开设”仲裁员专栏“,撰写文章超过百篇。多次被选定和指定为首席、独任和边裁审理涉建工、投资、贸易、知产、新能源等领域的案件。田律师也作为代理人或顾问协助客户处理境内外仲裁机构受理的商事案件。



附《阿塞拜疆仲裁法全文》:


LAW OF THE REPUBLIC OF AZERBAIJAN
ON ARBITRATION
This Law, in accordance with the 6th, 10th, 12th and 26th clauses of Part I of Article 94 of the
Constitution of the Republic of Azerbaijan, regulates public relations arising in connection
with conduct of arbitration, sets forth the requirements for arbitration agreements, and lays
down the rules for the organization and operation of arbitral tribunals and permanent arbitral
institutions, conduct of arbitral proceedings, as well as the recognition and enforcement of
arbitral awards in the Republic of Azerbaijan.
Chapter 1
GENERAL PROVISIONS
Article 1. Definitions
1.1. The main terms used in this Law shall have the following meanings:
1.1.1. arbitration – means a procedure by virtue of which a dispute is submitted for a legally
binding determination by an arbitral tribunal, whether or not administered by a permanent
arbitral institution;
1.1.2. arbitral tribunal – means a sole arbitrator or a panel of arbitrators;
1.1.3. arbitration agreement – means an agreement of the parties to submit to arbitration all
or certain disputes which have arisen or which may arise between them, whether arising out
of contract or not;
1.1.4. international arbitration – means an arbitration as set forth under Article 4.3 of this
Law;
1.1.5. domestic arbitration – means any arbitration which is not international arbitration;
1.1.6. foreign arbitral tribunal – means arbitral tribunal with the place of arbitration in a foreign
country;
1.1.7. local arbitral tribunal – means arbitral tribunal with the place of arbitration in the
Republic of Azerbaijan;
1.1.8. electronic information – means information generated, sent, received or stored by
electronic, magnetic, optical or similar means, including but not limited to, electronic data
interchange, electronic mail, telegram, telex or telefax;
1.1.9. place where a person is – means, in respect of an individual, his/her place of habitual
residence, and, in respect of a legal entity, the place where that legal person is
headquartered.
Article 2. Legislation of the Republic of Azerbaijan on arbitration
The legislation of the Republic of Azerbaijan on arbitration consists of the Constitution of the
Republic of Azerbaijan, international agreements to which the Republic of Azerbaijan is a
party, this Law, the Civil Procedural Code of the Republic of Azerbaijan, the Law of the
Republic of Azerbaijan "On Private International Law" and other normative legal acts of the
Republic of Azerbaijan.
Article 3. Interpretation of this Law
3.1. Where this Law (except for Article 48 of this Law) gives right to the parties to determine
a certain issue, the parties may authorize a third party, including an institution, to make that
determination.
3.2. Where this Law refers to the fact that the parties have agreed or that they may agree,
such agreement includes the arbitration rules referred to in that agreement.
3.3. Where this Law (except for Articles 44.1.1 and 52.2.1 of this Law) refers to a claim, such
reference shall also apply to a counterclaim, and where it refers to a statement of defence,
such reference shall also apply to a statement of defence to such counterclaim.
Article 4. Scope of application of this Law
4.1. This Law applies to international and domestic arbitration where the place of arbitration
is in the Republic of Azerbaijan.
4.2. Articles 10, 13, 17, 18, 32, 33, 34, 46, 48.5, 55 and 56 of this Law shall also apply where
the place of arbitration is in a foreign country or not determined.
4.3. An arbitration is international in any of the following cases:
4.3.1. when, at the time of the conclusion of that agreement, the parties to the arbitration
arrangement (agreement) (hereinafter referred to as the arbitration agreement) have their
places of business in different states;
4.3.2. when one of the following places is situated outside of the state in which the parties
have their places of business:
4.3.2.1. the place of arbitration if determined in, or pursuant to, the arbitration agreement;
4.3.2.2. the place where the substantial part of the obligations arising from the commercial
relationship is to be performed or the place which the subject-matter of the dispute is most
closely connected;
4.3.3. when the parties have definitively agreed that the subject matter of the arbitration
agreement relates to more than one state.
4.4. For the purposes of Article 4.3 of this Law, the following rules shall apply:
4.4.1. when a party has place of business in more than one country, the place of business
shall be considered the place having the closest relationship to the arbitration agreement;
4.4.2. if a party does not have a place of business, the place where that person (party) is
shall be taken as a basis.
4.5. This Law does not affect any other laws of the Republic of Azerbaijan by virtue of which
certain disputes may not be submitted to arbitration or may be submitted to arbitration in a
manner different from that established in the provisions of this Law.
4.6. Questions concerning matters governed by this Law, which are not expressly settled
herein shall be settled in accordance with the general principles on which arbitration is
based.
4.7. Relations related to conduct of arbitral proceedings in the Alat Free Economic Zone are
regulated in accordance with the requirements of the Law of the Republic of Azerbaijan "On
the Alat Free Economic Zone".
Article 5. Receipt of written communications and calculation of time periods
5.1. The following rules apply to receipt of written communications:
5.1.1. written communication is deemed to have been received when it is delivered to the
addressee personally or if it is delivered at his/her place of business, at the place where that
person is, or mailing address. If none of these can be determined after making reasonable
efforts, written communication is deemed to have been received when it is sent to the
addressee's last known place of business, place where that person is or mailing address by
registered mail or other means which provide a record of the attempt to deliver it;
5.1.2. communication is deemed to have been received on the day such communication is
delivered in accordance with Article 5.1.1 of this Law.
5.2. For the purposes of this Law, the time period begins to run on the day following the date
of receipt of written communication. If the last day of this period falls on a non-working day,
the next working day shall be deemed the end of the period.
5.3. The provisions of Articles 5.1 and 5.2 of this Law do not apply to written communications
in court proceedings.
5.4. The parties may determine different rules or requirements in respect of receipt of written
communications and calculation of time periods.
Article 6. Notice of arbitration
6.1. The party (claimant) or parties (claimants) intending to initiate arbitral proceedings shall
communicate to the other party (respondent) or parties (respondents) a notice of arbitration.
6.2. Arbitral proceedings shall be deemed to commence on the date of receipt of the notice
of arbitration by the respondent.
6.3. The notice of arbitration includes the following:
6.3.1. the names (in respect of an individual, surname, first name, patronymic, or, in respect
of a legal entity, its name) and contact details of the parties;
6.3.2. the arbitration agreement being invoked;
6.3.3. the contract or other legal instrument out of or in relation to which the dispute arises,
or, in the absence of such contract or instrument, a brief description of the dispute;
6.3.4. a demand that the dispute be referred to arbitration;
6.3.5. subject of the claim;
6.3.6. the relief and the amount (if any) sought by the claimant;
6.3.7. a proposal as to the number of arbitrators, language and place of arbitration, if the
parties have not previously agreed thereon.
6.4. In addition to the requirements of Article 6.3 of this Law, the notice of arbitration may
also include a proposal for the appointment of a sole arbitrator or a panel of arbitrators, and
proposal as to the administration of the dispute by a permanent arbitral institution.
6.5. Failure to comply with the requirements set forth in Article 6.3 of this Law in respect of
the content of the notice of arbitration shall not prevent the dispute from being heard by the
arbitral tribunal.
6.6. The parties may agree on different rules or requirements applicable to the notice of
arbitration.
Article 7. Response to the notice of arbitration
7.1. The respondent may communicate to the claimant a response to the notice of arbitration
within 30 (thirty) days from the date of his receipt of the notice of arbitration.
7.2. The response to the notice of arbitration includes the following:
7.2.1. the names (in respect of an individual, surname, first name, patronymic, or, in respect
of a legal entity, its name) and contact details of the respondent;
7.2.2. a response to the information set forth in the notice of arbitration pursuant to Articles
6.3.3 and 6.3.5 - 6.3.7 of this Law.
7.3. The response to the notice of arbitration may also include:
7.3.1. a plea that the arbitral tribunal to be constituted in accordance with this Law lacks
jurisdiction;
7.3.2. a proposal for the appointment of a sole arbitrator or a panel of arbitrators, and
proposal as to the administration of the dispute by a permanent arbitral institution;
7.3.3. a brief description of counterclaims, the relief and the amount (if any) sought;
7.3.4. a notice of arbitration in accordance with Article 6 of this Law in case the respondent
formulates a claim against a person other than the claimant.
7.4. Failure to comply with the requirements set forth in Article 7.2 of this Law in respect of
the content of the response to the notice of arbitration, as well as respondent’s failure to
communicate a response to the notice of arbitration, or an incomplete or late response to
the notice of arbitration, shall not prevent the dispute from being heard by the arbitral
tribunal.
7.5. The parties may agree on different rules or requirements applicable to the response to
the notice of arbitration.
Article 8. Waiver of right to object
If a party who knows that any provision of this Law or any requirement under the arbitration
agreement has not been complied with proceeds with the arbitration without stating his/her
objection to such non-compliance within the time-limit provided for such objection, or when
such time-limit is not provided, within reasonable period of time, he/she shall be deemed to
have waived his/her right to object.
Article 9. Limits of court intervention
Except where provided by this Law, no court shall intervene in matters governed by this Law.
Article 10. The court performing arbitration assistance and supervision functions
10.1. The functions referred to in Articles 18, 20.3.1, 20.3.2, 20.4, 20.6, 22.3, 23.1, 25.3, 34,
46, 54.2, 54.4, 54.6 and 57.2 of this Law shall be performed, in the territory of the Republic
of Azerbaijan, by the commercial courts. In cases where the place of arbitration is in a foreign
country or not determined, the functions of the court referred to in Articles 18, 34 and 46 of
this Law shall be performed, in the territory of the Republic of Azerbaijan, by the commercial
court the jurisdiction of which covers the city of Baku.
10.2. In international arbitration, subject to the agreement by the parties, if the place of
arbitration is not determined and one of the parties has his/her place of business in the
territory of the Republic of Azerbaijan, the functions of the court referred to Articles 20.3.1,
20.3.2, 20.4, 20.6, 22.3 and 23.1 of this Law shall be performed, in the territory of the
Republic of Azerbaijan, by the commercial court the jurisdiction of which covers the city of
Baku.
10.3. The functions of the court referred to in Articles 32, 33.1.1, 33.1.2 and 33.3 of this Law
shall be performed, in the territory of the Republic of Azerbaijan, by the appellate court the
jurisdiction of which covers the city of Baku.
10.4. The functions of the court referred to in Articles 55.1, 56.1.1, 56.1.2, 56.2 and 56.3 of
this Law shall be performed, in the territory of the Republic of Azerbaijan, by the Supreme
Court of the Republic of Azerbaijan.
Article 11. Permanent arbitral institutions
11.1. A permanent arbitral institution is responsible for administering arbitral proceedings,
providing organizational support for arbitration, including appointing arbitrators, resolving
requests concerning objections to them and termination of their authority (mandate),
managing clerical work, organizing payments for arbitration costs and other expenses,
except where these functions fall under the authorities of the arbitral tribunal.
11.2. A permanent arbitral institution is a non-commercial legal entity registered in
accordance with the Law of the Republic of Azerbaijan "On State Registration and State
Register of Legal Entities" and accredited by the body (institution) designated by the relevant
executive authority. State bodies, municipalities, legal entities belonging to the state and
municipalities, public legal entities (subject to Article 11.3 of this Law), political parties,
religious organizations, the Bar Association, the Chamber of Notaries and the Mediation
Council of the Republic of Azerbaijan are not permitted to establish permanent arbitral
institutions.
11.3. Where mandated by laws, permanent arbitral institutions may be established by public
legal entities entrusted with safeguarding the rights and legal interests of entrepreneurs.
11.4. The use of the term “arbitration court” in the name of a permanent arbitral institution is
prohibited. The name of the permanent arbitral institution should not resemble that of the
courts within the judicial system of the Republic of Azerbaijan and should not cause
confusion or be able to mislead the public regarding their authorities.
11.5. During the accreditation process of a permanent arbitral institution, the following shall
be evaluated: presence of arbitration rules compliant with the requirements set forth in this
Law, an initial roster of arbitrators comprised of a minimum of 3 (three) arbitrators,
independence of the permanent arbitral institution, existence of appropriate structural
divisions as well as internal rules governing their activities, the institution’s possession of
essential human and financial resources, along with the required infrastructure for managing
arbitral proceedings, adoption of guidelines and policies for ethical conduct among
employees, transparency in its operations and effective internal control.
11.6. The procedure for accrediting and revoking the accreditation of a permanent arbitral
institution shall be determined by the body (institution) designated by the relevant executive
authority.
11.7. The rules of the permanent arbitral institution shall outline the types of disputes
administered by that institution, its functions, the procedure for conducting arbitral
proceedings, the authorities of the arbitral tribunal and the permanent arbitral institution
throughout the course of arbitral proceedings, establish criteria concerning the
independence and impartiality of arbitrators, provide rules for calculating the costs
associated with arbitration (including the amount of arbitral fees or the procedure for their
determination) and their allocation, as well as address record-keeping and other matters
pertinent to the functions of the permanent arbitral institution.
11.8. The provisions of Article 11 of this Law shall not apply to international or foreign
permanent arbitral institutions.
Article 12. Ad hoc arbitration
12.1. Ad hoc arbitration is arbitration that is not administered by a permanent arbitral
institution.
12.2. Ad hoc arbitration can only be organized in relation to international arbitration.
12.3. The rules governing the operation of ad hoc arbitration, as well as the rules regulating
the conduct of arbitral proceedings, shall be determined by the agreement of the parties,
subject to the provisions of this Law.
12.4. The parties to the dispute heard in the ad hoc arbitration court may agree to apply
expedited arbitration rules to the arbitral proceedings. In the absence of a different
agreement between the parties in respect of the applicable rules, the expedited arbitration
rules of the United Nations Commission on International Trade Law (UNCITRAL) shall apply.
Article 13. Arbitrable disputes
13.1. Except for disputes specified in Article 13.2 of this Law, commercial disputes, as well
as all disputes in which the parties have the right to dispose of the subject matter and
disputes that do not impact the rights and legal interests of third parties, may be resolved
through arbitration.
13.2. Subject to the provisions of Article 13.3 of this Law, the following disputes cannot be
resolved through arbitration:
13.2.1. matters related to criminal and administrative offenses;
13.2.2. matters arising out of administrative and other public legal relations;
13.2.3. disputes arising out of family relationships;
13.2.4. matters related to the legal status of a person;
13.2.5. labor disputes;
13.2.6. disputes in the field of environmental protection;
13.2.7. inheritance matters;
13.2.8. disputes related to determination and registration of intellectual property rights;
13.2.9. disputes arising in connection with competition law and protection of consumer
rights, as well as consumer loans;
13.2.10. disputes related to ownership and other property rights over real estate located in
the territory of the Republic of Azerbaijan;
13.2.11. matters related to insolvency and bankruptcy proceedings;
13.2.12. matters related to liquidation of a legal entity or challenging its decisions (where the
legal entity has a legal address in the Republic of Azerbaijan);
13.2.13. disputes to which individual is a party (to the extent the dispute is not related to the
entrepreneurial activity of that individual);
13.2.14. disputes involving claims against carriers arising out of contracts of carriage;
13.2.15. disputes concerning the lease of real estate located in the territory of the Republic
of Azerbaijan.
13.3. Disputes specified in Articles 13.2.14 and 13.2.15 of this Law may be resolved by local
arbitration tribunal.
Article 14. Requirements for an arbitrator in domestic arbitration proceedings
14.1. Individuals who are at least 25 years old, impartial to the dispute’s outcome,
independent of the parties involved, agree to act as arbitrators, hold a higher education
degree and possess a minimum of 3 (three) years of professional work experience in their
field, may serve as arbitrators.
14.2. In addition to the requirements mentioned in Article 14.1 of this Law, the sole arbitrator
shall hold a law degree. In the case of a panel of arbitrators, unless otherwise agreed
between the parties, the chairman of the tribunal shall hold a law degree.
14.3. The arbitration agreement or the rules of the permanent arbitral institution may specify
additional requirements applicable to the arbitrator.
14.4. Members of the Parliament of the Republic of Azerbaijan and the Supreme Majlis of
the Nakhchivan Autonomous Republic, civil servants, members of military personnel,
members of municipalities and civil servants, employees of public legal entities, judges of
the Republic of Azerbaijan, individuals who have been declared legally incompetent or with
limited competency by the court, individuals with unpaid convictions or with convictions that
have not been withdrawn, individuals which, in the last 3 (three) years until the date of
commencement of the arbitral proceedings, as a result of previously committed serious
violations or actions incompatible with service, have been discharged from military service
due to incompatibility with service, or due to being deprived of a military rank by court order
or on the basis of disciplinary procedure, or have been expelled from law enforcement
agencies, as well as individuals dismissed for cause from judicial service, civil service
(including special types of civil service), labor relations in other non-civil service state bodies,
notary service, state bar, or the mediators who have been removed from membership of the
Mediation Council, cannot serve as arbitrators.
Article 15. Register of arbitrators
Permanent arbitral institutions may maintain a register of arbitrators, which shall include
information about arbitrators.
Chapter 2
ARBITRATION AGREEMENT
Article 16. Form and interpretation of arbitration agreement
16.1. An arbitration agreement may be in the form of an arbitration clause in a contract or in
the form of a separate agreement.
16.2. The arbitration agreement shall be in writing.
16.3. Arbitration agreement is deemed to be in writing if its content is recorded in any form,
regardless of the form of the conclusion of the contract or the arbitration agreement.
16.4. The requirement that an arbitration agreement be in writing is met by an electronic
information if the information contained therein is accessible for subsequent use.
16.5. The arbitration agreement is considered to be in writing if, during the exchange of the
statement of claim and statement of defence, a party alleges the existence of an arbitration
agreement and the other party does not object to it.
16.6. A reference in a contract to a document containing an arbitration clause is considered
an arbitration agreement in writing, provided that such reference makes the said clause a
part of the contract.
16.7. The arbitration rules referred to in the arbitration agreement are deemed to be part of
the arbitration agreement.
16.8. Any ambiguity in interpreting the arbitration agreement shall be construed in favor of
upholding the validity and existence of the arbitration agreement.
Article 17. Arbitration agreement and substantive claim before court
17.1. A court before which an action is brought in a matter which is the subject of an
arbitration agreement shall, if an objection is received from any of the parties before the
matter is considered on merits, stay the proceedings and refer the parties to arbitration,
unless the arbitration agreement is manifestly void, manifestly inoperable or incapable of
being performed. If such an objection is not received before the matter is considered on its
merits, the court shall proceed with the case on its merits.
17.2. The party that failed to object may do so during the trial only if he/she is able to prove
that he/she was unable to object before the matter was considered on its merits due to
reasons beyond his/her control. In this case, the court should consider the objection in the
manner specified in Article 17.1 of this Law.
17.3. Arbitral proceedings may be commenced or continued, and an arbitral award may be
made, while the matter which is the subject of an arbitration agreement is pending before
the court as provided under Article 17.1 of this Law.
Article 18. Interim measures by court
The parties may request the court, before or during arbitral proceedings, to grant interim
measures, and the court may decide on granting such measures.
Chapter 3
COMPOSITION OF THE ARBITRAL TRIBUNAL
Article 19. Number of arbitrators
19.1. The parties are free to determine the number of arbitrators, provided that this number
is odd.
19.2. In the absence of an agreement by the parties, the number of arbitrators shall be 3
(three).
Article 20. Appointment of arbitrators
20.1. Unless otherwise agreed by the parties, a person's nationality shall not preclude
him/her from acting as an arbitrator.
20.2. Subject to provisions of Articles 20.4 - 20.6 of this Law, the parties are free to agree
on a procedure of appointing the arbitrators.
20.3. In the absence of an agreement between the parties, the following rules shall apply:
20.3.1. In arbitral proceedings with a sole arbitrator, if the parties fail to agree on the
arbitrator, upon request of any party, the arbitrator shall be appointed by the courts specified
in Articles 10.1 and 10.2 of this Law.
20.3.2. In arbitral proceedings with three arbitrators, each party shall appoint one arbitrator,
and the two appointed arbitrators shall, in turn, appoint a third arbitrator. If a party fails to
appoint an arbitrator within 30 (thirty) days following the receipt of the other party's request
for an appointment or if the two arbitrators fail to agree on the third arbitrator within 30 (thirty)
days of their appointment, the arbitrator shall be appointed, upon request from any party, by
the courts specified in Articles 10.1 and 10.2.
20.4. Where the parties have agreed on a procedure of appointing arbitrators and, provided
that the agreement on the appointment procedure provides for no other rules, the parties
may request the courts specified in Articles 10.1 and 10.2 of this Law to take necessary
measures in the following cases:
20.4.1. when one party fails to adhere to the agreed procedure;
20.4.2. when the parties or two arbitrators are unable to reach an agreement in accordance
with the agreed procedure;
20.4.3. when a third party fails to perform any function entrusted to it under the procedure.
20.5. The parties may delegate the appointment of arbitrators to a third party, in which case
recourse to the courts for the appointment of arbitrators, as provided in Articles 20.3 and
20.4 of this Law, shall not be permissible.
20.6. Decisions on the matters provided in Articles 20.3 and 20.4 of this Law by the courts
specified in Articles 10.1 and 10.2 of this Law are final and subject to no appeal. When
appointing an arbitrator, the court shall have due regard to all necessary qualifications
required of the arbitrator by the agreement of the parties, including requirements related to
the arbitrator's independence and impartiality, and in the case of a sole arbitrator or a third
arbitrator in international arbitration, take into account the advisability of appointing an
arbitrator of a nationality other than those of the parties.
Article 21. Grounds for challenging the arbitrator
21.1. When a person is approached in connection with his/her possible appointment as an
arbitrator, he/she must disclose any circumstances that could give rise to reasonable doubts
as to his/her impartiality and independence. After the appointment and throughout the
arbitral proceedings, the arbitrator must without delay inform the parties of such
circumstances, unless they have already been informed of them.
21.2. An arbitrator may be challenged only in cases where there are circumstances that
could give rise to reasonable doubts as to his/her impartiality and independence or when
he/she does not meet the requirements agreed to by the parties. A party may challenge an
arbitrator appointed by him/her or in whose appointment he/she has participated, only for
reasons of which he/she became aware after the arbitrator's appointment.
Article 22. Procedure for challenging the arbitrator
22.1. The parties are free to agree on a procedure for challenging an arbitrator, subject to
the provisions of Articles 22.3 and 22.4 of this Law.
22.2. In the absence of an agreement between the parties on the procedure for challenging,
the party who intends to challenge an arbitrator shall, within 15 (fifteen) days from the date
of the constitution of the arbitral tribunal or becoming aware of any of the grounds referred
to in Article 21.2 of this Law, submit written statement to the arbitral tribunal, setting forth the
reasons for the challenge. Unless the challenged arbitrator resigns from his/her role or the
other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.
22.3. If a challenge to the arbitrator in accordance with the procedure agreed upon by the
parties or, in the absence of such an agreement, the procedure specified in Article 22.2 of
this Law, is not successful, the challenging party may, within 30 (thirty) days of receiving the
decision rejecting the challenge, request the courts specified in Articles 10.1 and 10.2 of this
Law to decide on the challenge. Such a decision is final and is subject to no appeal. While
such a request is pending, the arbitral proceedings may continue, and the arbitral award
may be rendered.
22.4. If the parties have agreed to the administration of arbitral proceedings by a permanent
arbitral institution, and unless the rules of that institution establish a different procedure,
recourse to the courts to decide on the challenge, as provided in Article 22.3 of this law, shall
not be permissible.
Article 23. Failure or impossibility to act
23.1. If an arbitrator is unable to perform his/her functions or fails to act without undue delay
for any other reasons, his/her authority (mandate) shall terminate in cases where the
arbitrator resigns from his/her role or when the parties agree on the termination. In case of
a controversy concerning any of these grounds, each party may request the courts specified
in Articles 10.1 and 10.2 of this Law to decide on the termination of the authority (mandate)
of the arbitrator. The court's decision on the termination of the authority (mandate) of the
arbitrator is final and subject to no appeal.
23.2. If the parties have agreed to the administration of arbitral proceedings by a permanent
arbitral institution, and unless the rules of that institution establish a different procedure,
recourse to the court to resolve the issue on the termination of the authority (mandate) of
the arbitrator, as provided in Article 23.1 of this Law, shall not permissible.
23.3. The arbitrator's resignation from his/her role or the party's agreement to terminate the
arbitrator's authority (mandate), in accordance with Articles 22.2 or 23 of this Law,
respectively, shall not be construed as an acceptance of the grounds referred to in Articles
21.2 or 23 of this Law.
Article 24. Appointment of substitute arbitrator
If the authority (mandate) of an arbitrator terminates under Articles 22 or 23 of this Law, in
the absence of a contrary agreement between the parties, a substitute arbitrator shall be
appointed in accordance with the rules applicable to the appointment of the arbitrator being
replaced.
Article 25. Competence of the arbitral tribunal to rule on its own jurisdiction
25.1. The arbitral tribunal may rule on its own jurisdiction, including with respect to the
challenges to the existence or validity of the arbitration agreement. For that purpose, the
arbitration clause which forms the part of the contract should be construed as an agreement
independent of the other terms of the contract. A ruling by the arbitral tribunal that the
contract is void does not entail ipso jure the invalidity of the arbitration clause.
25.2. Motions challenging the jurisdiction of the arbitral tribunal must be submitted
concurrently with or before the statement of defence. A party that appoints an arbitrator or
participates in the appointment of an arbitrator is not precluded from making such a motion.
Challenges to the arbitral tribunal's exceeding its authority must be made without delay after
the issue alleged to be beyond the tribunal's authority is raised during the arbitral
proceedings. The arbitral tribunal may, in any case, admit the application if it considers the
delay justified.
25.3. The arbitral tribunal may rule on the motion referred to in Article 25.2 of this Law as a
preliminary question or in the award on merits. When the arbitral tribunal rules on its own
jurisdiction as a preliminary question, each party may, within 30 (thirty) days of receiving
notice of that ruling, request the courts specified in Articles 10.1 and 10.2 of this Law to
decide on the matter. Decisions of the courts specified in Articles 10.1 and 10.2 of this Law
that the arbitral tribunal lacks jurisdiction can be appealed to the appellate court. The
appellate court's decision is final and is subject to no appeal. While such appeal is pending,
the arbitral tribunal may continue the arbitral proceedings and make an arbitral award.
25.4. If the parties have agreed to the administration of arbitral proceedings by a permanent
arbitral institution, and unless the rules of that institution establish a different procedure,
recourse to the courts to resolve the issue of the arbitral tribunal's jurisdiction, as provided
in Article 25.3 of this Law, shall not permissible.
25.5. In the absence of the agreement by the parties on the law applicable to the arbitration
agreement (including its validity, formation, termination, interpretation, assignment of rights
and obligations contained in the arbitration agreement to another party, and similar matters),
the law applicable to the arbitration agreement shall be determined by the arbitral tribunal.
Article 26. Liability of arbitrators
26.1. Arbitrators are exempt from paying for damages incurred in the performance of their
functions, provided that they have carried out their functions in good faith.
26.2. An arbitrator shall incur no liability for resignation from his/her role or failure to act,
unless such resignation or failure is proven to be unreasonable.
Chapter 4
INTERIM MEASURES
Article 27. Power of the arbitral tribunal to order interim measures
27.1. Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a
party, grant interim measures.
27.2. The arbitral tribunal may order the parties to the dispute to:
27.2.1. maintain or restore the status quo pending resolution of the dispute;
27.2.2. take measures to prevent, or refrain from taking action that is likely to cause, harm
to the arbitral proceedings;
27.2.3. to ensure the preservation of assets out of which a final award may be satisfied;
27.2.4. to preserve evidence that may be relevant or material to the resolution of the dispute.
27.3. Absent other agreement between the parties, the arbitral tribunal shall notify the party
against whom such measures are directed before the interim measures are granted, except
where prior disclosure of such request would frustrate the purpose of the interim measure
requested.
27.4. Immediately after granting an interim measure, the arbitral tribunal shall inform the
parties of such measure, of the request for application of such measure, of the decision
granting interim measures and, if available, of all other communications between the parties
and the arbitral tribunal, including by indicating the content of any oral communication.
Article 28. Conditions for granting interim measures
28.1. The party requesting interim measures referred to in Articles 27.2.1 - 27.2.3 of this Law
shall prove to the arbitral tribunal the existence of the following circumstances:
28.1.1. harm that would result if such measure is not granted will not be reparable by a final
arbitral award, and such harm substantially outweighs the damage that could be caused if
the measure is granted;
28.1.2. there is reasonable probability that the requesting party shall prevail on merits. The
determination of such probability shall not affect the discretion of the arbitral tribunal in
making any subsequent determination.
28.2. With regard to a request for an interim measure under in Article 27.2.4, the
requirements of Articles 28.1.1 and 28.1.2 of this Law shall be applied to the extent the
arbitral tribunal deems appropriate.
28.3. The arbitral tribunal may require the party requesting an interim measure to provide
security in connection with the measure.
Article 29. Modification, suspension and termination of interim measures
The arbitral tribunal may modify, suspend or terminate an interim measure upon application
of any party or, in exceptional circumstances and upon prior notice to the parties, on the
arbitral tribunal’s own initiative.
Article 30. Disclosure of information relevant to the application of interim measures
The arbitral tribunal may require any party to disclose as soon as possible any material
change in the circumstances on the basis of which the interim measure was granted.
Article 31. Costs and damages in connection with the application of interim measures
The party requesting an interim measure shall be liable for any costs and damages caused
by the measure if the arbitral tribunal later determines that there were no grounds for such
measure to be granted. The arbitral tribunal may award such costs and damages at any
stage of the arbitral proceedings.
Article 32. Recognition and enforcement of decisions of arbitral tribunals on granting
of interim measures
32.1. Irrespective of the country in which it was issued, subject to the provisions of Article
33 of this Law, the decision of the arbitral tribunal granting interim measure shall be
recognized as binding and, unless otherwise provided by the arbitral tribunal, shall be
enforced upon application to the court to specified in Article 10.3 of this Law.
32.2. The party who is seeking or has obtained recognition or enforcement of the decision
granting interim measures, shall immediately inform the court of any termination, suspension
or modification of such interim measures.
32.3. If the arbitral tribunal has not already made a determination with respect to security, or
where such a decision is necessary to protect the rights of third parties, the court where
recognition or enforcement is sought may, if it deems it appropriate, order the requesting
party to provide appropriate security.
32.4. Requests to recognize and enforce the decisions of an arbitral tribunal granting interim
measures shall be submitted to the court in the manner specified in Article 55.2 of this Law.
Article 33. Grounds for refusing recognition or enforcement of decisions of arbitral
tribunals granting interim measures
33.1. Recognition or enforcement of decisions of arbitral tribunals granting interim measures
may be refused in the following cases:
33.1.1. when, at the request of the party against whom such decision is directed, the court
determines:
33.1.1.1. the existence of any of the grounds mentioned in Articles 56.1.1.1 - 56.1.1.4 of this
Law (except, in relation to Article 56.1.1.2 of this Law, the circumstances referred to in Article
27.3 of this Law);
33.1.1.2. that the arbitral tribunal’s decision with respect to the provision of security in
connection with the interim measure has not been complied with;
33.1.1.3. that the interim measures have been suspended or terminated by the arbitral
tribunal or, where competent, by the court of the country where the arbitration is held or by
the court of the state pursuant to the laws of which the interim measures were granted;
33.1.2. when the court determines that:
33.1.2.1. the interim measure is not compatible with the powers of the court, except where
the court can reformulate the interim measure without modifying its substance in order to
adapt it to its powers for the purposes of enforcing that measure;
33.1.2.2. any of the grounds set forth in Articles 56.1.2.1 and 56.1.2.2 of this Law apply to
the recognition and enforcement of the interim measure.
33.2. Any determination made by the court on any ground in Article 33.1 of this Law shall be
effective only for the purposes of the application to recognize and enforce the decision
granting interim measure.
33.3. The court where recognition or enforcement is sought shall not, in making that
determination, undertake a review of the substance of the interim measure.
Article 34. Court-ordered interim measures
Upon application of any of the parties, the court referred to in Article 10.1 of this Law may
grant an interim measure. Regardless of whether the place of arbitration is in the territory of
the Republic of Azerbaijan, the courts shall have the powers specified in the Civil Procedural
Code of the Republic of Azerbaijan in issuing interim measures in relation to arbitral
proceedings.
Chapter 5
CONDUCT OF ARBITRAL PROCEEDINGS
Article 35. Equal treatment of parties
During arbitral proceedings, the parties are equal and each party shall be given a full
opportunity to present his/her case.
Article 36. Determination of rules of procedure
36.1. The parties are free to agree on the procedure to be followed by the arbitral tribunal in
conducting the arbitral proceedings, subject to compliance with the requirements of this Law.
36.2. In the absence of an agreement provided for in Article 36.1 of this Law, subject to the
provisions of this Law, the arbitral tribunal may conduct arbitral proceedings in a manner it
sees fit. The powers conferred upon the arbitral tribunal include the powers to determine the
admissibility, materiality, relevance and weight of evidence.
Article 37. Place of arbitration
37.1. The parties are free to agree on the place of arbitration. In the absence of such an
agreement, the place of arbitration shall be determined by the arbitral tribunal, having regard
to the circumstances of the case, including convenience of the parties.
37.2. Notwithstanding the provisions of Article 37.1 of this Law, unless otherwise agreed
between the parties, the arbitral tribunal may meet at any place that is convenient for
consultations among its members, for examining witnesses, experts or the parties, or for
inspection of goods, other property or documents.
Article 38. Representation in arbitral proceedings
The parties have a right to be represented by a lawyer or other representative at any stage
of the arbitral proceedings.
Article 39. Succession in arbitral proceedings
39.1. Unless otherwise agreed between the parties, the legal successor becomes a party to
the arbitration agreement.
39.2. Unless otherwise agreed between the parties, death of an individual, reorganization of
a legal entity or other changes in the parties involved in substantive legal relations shall not
result in the termination of the arbitration agreement or the replacement of already appointed
arbitrator(s).
Article 40. Language in arbitral proceedings
40.1. The parties are free to agree on the language or languages to be used in arbitral
proceedings. In the absence of such agreement, the arbitral tribunal shall determine the
language or languages to be used in the arbitral proceedings. Unless otherwise stipulated
by the parties or the arbitral tribunal, the language or languages to be used in arbitral
proceedings shall apply to any written statement by any party, any hearing, award and other
communication by the arbitral tribunal.
40.2. The arbitral tribunal shall have the right to order that any documentary evidence be
accompanied by a translation into the language or languages agreed upon by the parties or
determined by the arbitral tribunal.
Article 41. Statement of claim and statement of defence
41.1. Within the period of time agreed by the parties or determined by the arbitral tribunal,
the claimant shall state the facts supporting his/her claim, the points at issue and the relief
sought, and the respondent shall state his/her objections in respect of these issues in his/her
statement of defence, unless the parties have otherwise agreed as to the required elements
of such statements. The parties may submit with their statements all documents they
consider to be relevant or may add a reference to the documents or other evidence they will
submit.
41.2. Unless otherwise agreed by the parties, either party may amend or supplement his/her
claim or objection during the course of the arbitral proceedings, provided that the arbitral
tribunal deems it appropriate to allow such amendment or supplement having regard to the
delay in making it.
Article 42. Oral hearings and written proceedings
42.1. Without prejudice to the agreement of the parties, the arbitral tribunal shall decide to
hold oral hearings for the presentation of evidence or for oral arguments, or to conduct
proceedings only on the basis of documents and other materials. Unless the parties have
agreed not to hold oral hearings, the arbitral tribunal shall hold such hearings at an
appropriate stage of the proceedings if so requested by of any of the parties.
42.2. The parties shall be given advance notice by the arbitral tribunal of any hearing or
meeting, as well as of on-site inspection of goods, other property or documents.
42.3. All statements, documents or other information supplied to the arbitral tribunal by one
of the parties shall also be communicated to the other party. All expert reports or other
evidentiary documents on which the arbitral tribunal may rely in its decision shall be
communicated to the parties.
Article 43. Minutes of hearings
43.1. Subject to any contrary agreement between the parties, minutes of arbitral hearings
shall be prepared.
43.2. The minutes shall record core aspects of the hearing or any distinct procedural action.
43.3. The minutes of the hearing shall contain the following:
43.3.1. the date and place of the hearing;
43.3.2. the starting and ending times of the hearing;
43.3.3. a note on whether the dispute is administered by a permanent arbitral institution or
heard by an ad hoc tribunal, the names of the arbitrators and the details of the secretary of
the hearing;
43.3.4. the case title;
43.3.5. information about the persons present at the hearing;
43.3.6. decisions made by the arbitral tribunal during the hearing;
43.3.7. statements, objections, motions and explanations provided by the persons present
at the hearing;
43.3.8. information about inspection of documents, examination of material evidence, audio
recordings review and video recordings viewing;
43.3.9. information about the decisions announced, explanation of their substance, and,
when allowed, procedure and time period within which such decisions may be appealed;
43.3.10. statement that the parties have been informed of their right to review the minutes
and express their opinion on them;
43.3.11. the date on which the minutes were prepared.
43.4. Subject to any contrary agreement by the parties, the minutes shall be prepared by
the secretary of the hearing.
43.5. The minutes shall be signed by the presiding arbitrator and the secretary. All changes
made to the minutes shall be made via a written addendum to the minutes which shall be
signed by the presiding arbitrator and the secretary.
Article 44. Non-submission of documents or non-appearance of parties
44.1. Unless otherwise agreed by the parties, the following rules shall apply in cases where
documents are failed to be submitted or the parties fail to appear without showing sufficient
cause:
44.1.1. if the claimant fails to communicate his/her statement of claim in accordance with
Article 41.1 of this Law, the arbitral tribunal shall terminate the proceedings;
44.1.2. if the respondent fails to communicate his/her statement of defence in accordance
with Article 41.1 of this Law, the arbitral tribunal shall continue the arbitral proceedings
without treating such failure as an admission of the claimant's allegations;
44.1.3. if any party fails to appear at a hearing or produce documentary evidence, the arbitral
tribunal may continue the proceedings and make the award on the evidence before it.
Article 45. Appointment of an expert by the arbitral tribunal
45.1. Unless otherwise agreed between the parties, the arbitral tribunal may perform the
followings in relation to the appointment of an expert:
45.1.1. appoint 1 (one) or more experts for the purpose of providing an opinion on specific
issues determined by the arbitral tribunal;
45.1.2. require the parties to supply to the expert any relevant information or to produce
documents, goods and other property relevant to the case for the expert's examination.
45.2. Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal
deems it necessary, the expert shall, after delivering his/her written or oral report, participate
at a hearing. In such case, the parties shall have the opportunity to pose questions to the
expert and to present their own witnesses to testify on matters in dispute.
Article 46. Court assistance in taking evidence
The arbitral tribunal or a party with the approval of the arbitral tribunal may request from the
courts specified in Article 10.1 of this Law assistance in taking evidence. The court reviews
and decides on this request within its competence in accordance with the established rules
on taking evidence.
Article 47. Costs of arbitration and security
47.1. Unless otherwise agreed in the arbitration agreement or between the parties, the
allocation of arbitration costs shall be carried out in the following manner:
47.1.1. the arbitral tribunal may determine the procedure for allocation of arbitral fees and
other costs of arbitration and distribute such costs between the parties;
47.1.2. the arbitral tribunal may require one party to pay all or part of the costs incurred by
the other party;
47.1.3. the arbitral tribunal may require the parties to provide security for arbitral fees and
other arbitration costs, and may terminate the arbitral proceedings if such security is not
provided.
47.2. If one party fails to provide the required security, the other party may provide this
security in full.
47.3. The arbitral tribunal's ruling that it lacks jurisdiction shall not affect its authority to make
an award on the allocation of already incurred arbitration costs.
Chapter 6
MAKING OF ARBITRAL AWARD AND TERMINATION OF PROCEEDINGS, RECOURSE
AGAINST ARBITRAL AWARD
Article 48. Rules applicable to the substance of the dispute
48.1. The arbitral tribunal shall decide the dispute in accordance with the legal norms chosen
by the parties and applicable to the substance of the dispute. Unless otherwise expressed
in the agreement of the parties, any designation of the law or legal system of any state shall
be construed as directly referring to the substantive law and not to the conflict of laws rules
of that state.
48.2. If the parties do not designate the law applicable to the substance of the dispute, the
arbitral tribunal shall apply the substantive law determined by the conflict of laws rules that
it deems appropriate.
48.3. The arbitral tribunal shall decide "ex aequo et bono" (according to equality and justice)
or "amiable compositeur" (amicable arbitrator) only if the parties have authorized it to do so.
In such case, the arbitral tribunal shall resolve the dispute on the basis of principles it
believes to be just, without having to refer to any particular law.
48.4. In all cases, the arbitral tribunal shall decide in accordance with the terms of the
contract and shall take into account the usages of the trade applicable to that legal
relationship.
48.5. The restrictions contained in the normative legal acts of the Republic of Azerbaijan on
application of foreign laws to the substance of the dispute shall apply to Articles 48.1 and
48.2 of this Law.
Note. In this article, the term "conflict of laws rules" refers to the rules that determine which
law should apply to a given legal relationship, and the term "substantive law" refers to the
norms that directly determine the rules of conduct for the participants of a given legal
relationship.
Article 49. Decision-making by panel of arbitrators
49.1. Unless otherwise agreed by the parties, in arbitral proceedings with more than one
arbitrator, any decision of the arbitral tribunal shall be made by a simple majority of the
members of the arbitral tribunal. An arbitrator cannot abstain from voting.
49.2. Questions of procedure may be decided by a presiding arbitrator, if so authorized by
the parties or all members of the arbitral tribunal.
Article 50. Settlement agreement
50.1. If, during the arbitral proceedings, the parties settle the dispute, the arbitral tribunal
shall terminate the proceedings and, if requested by the parties and not objected to by the
arbitral tribunal, render an arbitral award on agreed terms.
50.2. An arbitral award on agreed terms shall be made in accordance with the provisions of
Article 51 of this Law and shall state that it is an award. Such an award has the same legal
force as any other award on the merits of the case.
Article 51. Form and content of arbitral award
51.1. The arbitral award shall be made in writing and shall be signed by the arbitrator or
arbitrators. In arbitral proceedings with more than one arbitrator, the signatures of the
majority of all members of the arbitral tribunal shall suffice, provided that the reason for any
omitted signature is stated. When an arbitrator refuses to sign the arbitral award or dissents,
such refusal or dissent shall be documented within the arbitral award, and the dissenting
opinion shall be included in the case materials.
51.2. Unless the parties have agreed that no reasons are to be given in the award or the
award is an award on agreed terms under Article 50 of this Law, the award shall include the
reasons upon which it is based.
51.3. The arbitral award shall state its date and the place of arbitration as determined in
accordance with Article 37.1 of this Law. The arbitral award shall be deemed to have been
made at that place.
51.4. After the award is made, copies signed in accordance with Article 51.1 of this Law shall
be delivered to each party.
51.5. Unless otherwise stipulated in the arbitration agreement or this Law, the arbitral award
shall enter into force on the day it is rendered.
51.6. The arbitral tribunal may render one or more arbitral awards in relation to the dispute.
Article 52. Termination of proceedings
52.1. Arbitral proceedings are terminated by the final award of the arbitral tribunal or by an
order of the arbitral tribunal in accordance with Article 52.2 of this Law.
52.2. The arbitral tribunal shall issue an order for the termination of arbitral proceedings
when:
52.2.1. the claimant withdraws his/her claim, provided that the respondent does not object
to the termination of the arbitral proceedings and the arbitral tribunal does not recognize a
legitimate interest of the part of the respondent in obtaining a final settlement of the dispute;
52.2.2. the parties agree on the termination of the arbitral proceedings;
52.2.3. the arbitral tribunal finds that the continuation of arbitral proceedings has for any
other reason become impossible or unnecessary;
52.2.4. in the circumstances provided for in Articles 44.1.1 or 47.1.3 of this Law.
52.3. The authority (mandate) of the arbitral tribunal terminates with the termination of the
arbitral proceedings, without prejudice to the powers referred to under Articles 53 and 54.4
of this Law.
Article 53. Correction and interpretation of the award, issuing additional award
53.1. Unless another period of time has been agreed upon by the parties, any party may,
within 30 (thirty) days from the date of receipt of the award, request the arbitral tribunal that
issued the award to:
53.1.1. with notice to the other party, correct in the award any errors in computation, any
clerical or typographical errors or any other such errors;
53.1.2. unless otherwise agreed by the parties, with notice to the other party, interpret the
arbitral award or any part thereof.
53.2. If the arbitral tribunal considers the request to be justified, it shall make the correction
or give the interpretation within 30 (thirty) days from the day of the receipt of such request.
Such interpretation shall be deemed to form part of the arbitral award.
53.3. The arbitral tribunal may correct any error of the type referred to in in Article 53.1.1 of
this Law on its own initiative within 30 (thirty) days of the date the award was made.
53.4. Unless otherwise agreed by the parties, a party, with notice to the other party, may
request, within thirty days of receipt of the award, the arbitral tribunal to make an additional
award as to claims presented in the arbitral proceedings but not resolved in the arbitral
award. If the arbitral tribunal considers the request to be justified, it shall make the additional
award within 60 (sixty) days.
53.5. The arbitral tribunal may extend, if it considers necessary, the period of time within
which it shall make a correction, interpretation or an additional award under Articles 53.2
and 53.4 of this Law.
53.6. The provisions of Article 51 of this Law shall apply to a correction or interpretation of
the award or to an additional award.
Article 54. Application for setting aside the arbitral award
54.1. The award made by the local arbitration court may be challenged only by an application
to the court for setting aside that award in accordance with Articles 54.2 and 54.3 of this
Law.
54.2. An arbitral award may be set aside in whole or in part by the court specified in Article
10.1 of this Law when:
54.2.1. the party making the application furnishes proof that:
54.2.1.1. a party to the arbitration agreement was, pursuant the laws applicable to him,
under incapacity at the time of the conclusion of the agreement, or the arbitration agreement
is not valid under the law to which the parties have subjected it, or failing any indication
thereon in the agreement, under the laws of the Republic of Azerbaijan;
54.2.1.2. the party making the application was not given proper notice of the appointment of
an arbitrator or of the arbitral proceedings or was unable to present his/her case for other
reasons;
54.2.1.3. the award deals with a dispute not contemplated by or not falling within the terms
of the arbitration agreement, or contains decisions on matters beyond the scope of the
arbitration agreement or submission to arbitration (if the decisions on matters covered by
the terms of the arbitration agreement or submission to arbitration can be separated from
those not so covered, only that part of the award which contains decisions on matters not
covered by the terms of the arbitration agreement or submission to arbitration may be set
aside);
54.2.1.4. the composition of the arbitral tribunal or the arbitral procedure was not in
accordance with the agreement of the parties, or, failing such agreement, was not in
accordance with this Law;
54.2.2. the court finds that:
54.2.2.1. the subject-matter of the dispute is not capable of settlement by arbitration under
the laws of the Republic of Azerbaijan;
54.2.2.2. the award is in conflict with the Constitution of the Republic of Azerbaijan or the
public policy, which comprises fundamental legal principles that are inherently imperative,
universal and of significant societal importance, underpinning the political, economic and
legal framework of the Republic of Azerbaijan.
54.3. An application for setting aside may not be made after three months from the date on
which the party making that application had received the award or, if a request had been
made under Article 53 of this Law, from the date on which the arbitral tribunal decided on
that request. These time-limits shall not apply where the making of the award was affected
by fraud or corruption, knowingly false statements of a witness, knowingly false statements
of an expert witness, falsified documents, physical evidence or other documents having
evidentiary value, as well as where the award was affected by the criminal acts of the parties,
the persons participating in the case or the arbitrators.
54.4. The court, when asked to set aside an award, may, where deemed appropriate and so
requested by a party, suspend the setting aside proceedings for a reasonable period of time
determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral
proceedings or to take such other action as in the arbitral tribunal’s opinion will eliminate the
grounds for setting aside.
54.5. Unless otherwise agreed between the parties or the arbitration agreement is declared
null and void in the decision setting aside the award, the arbitration agreement shall remain
valid after the award has been set aside. In such instances, the parties shall have the right
to re-submit the dispute to arbitration.
54.6. The court where the setting aside of an arbitral award is sought shall not review the
award on its merits.
Chapter 7
RECOGNITION AND ENFORCEMENT OF ARBITRATION AWARDS
Article 55. Recognition and enforcement of awards of foreign arbitral tribunals
55.1. An arbitral award made by a foreign arbitral tribunal, irrespective of the country in which
it was made, shall be recognized as binding and, upon application in writing to the competent
court, shall be enforced subject to the provisions of Articles 55 and 56 of this Law.
55.2. The party relying on an arbitral award or applying for its enforcement shall supply the
arbitral award or a copy thereof certified by a notary public, or when the arbitral proceedings
are administered by a permanent arbitral institution, a counterpart of the arbitral award
authenticated by that permanent arbitral institution, as well as the original arbitration
agreement or a copy thereof certified by a notary public, or when not possible, submit any
document confirming that the arbitration agreement has been entered into. If the arbitral
award or the arbitration agreement is in a foreign language, a party shall supply to the court
a translation thereof into Azerbaijani certified by a notary public.
Article 56. Grounds for refusing recognition or enforcement of awards of foreign
arbitral tribunals
56.1. Full or partial recognition or enforcement of an arbitral award, irrespective of the
country in which it was made, may be refused only:
56.1.1. the party against whom it is invoked furnishes to the court where recognition or
enforcement is sought proof that:
56.1.1.1. a party to the arbitration agreement was, pursuant the laws applicable to him,
under incapacity at the time of the conclusion of the agreement, or the arbitration agreement
is not valid under the law to which the parties have subjected it, or failing any indication
thereon in the agreement, under the law of the country where the award was made;
56.1.1.2. the party against whom the award is invoked was not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings or was not given the opportunity
to present his/her case for other reasons;
56.1.1.3. the award deals with a dispute not contemplated by or not falling within the terms
of the submission to arbitration, or it contains decisions on matters beyond the scope of the
arbitration agreement or submission to arbitration (if the decisions on matters covered by
the terms of arbitration agreement or submission to arbitration can be separated from those
not so covered, that part of the award which contains decisions on matters covered by the
terms of the arbitration agreement or submission to arbitration may be recognized and
enforced);
56.1.1.4. the composition of the arbitral tribunal or the arbitral procedure was not in
accordance with the agreement of the parties or, failing such agreement, was not in
accordance with the law of the country where the arbitration took place;
56.1.1.5. the award has not yet become binding or has been set aside or suspended by a
court of the country in which, or under the law of which, that award was made;
56.1.2. if the court finds that:
56.1.2.1. the subject-matter of the dispute is not capable of settlement by arbitration under
the laws of the Republic of Azerbaijan;
56.1.2.2. the recognition or enforcement of the arbitral award would be contrary to the
Constitution of the Republic of Azerbaijan or to the public policy.
56.2. If an application for setting aside of an award has been made to a court referred to in
Article 56.1.1.5 of this Law, the court where recognition or enforcement is sought may, if it
considers it proper, adjourn its decision and may also, on the application of the party claiming
recognition or enforcement of the award, order the other party to provide appropriate
security.
56.3. The court where the recognition and enforcement of an arbitral award is sought shall
not review the award on its merits.
Article 57. Procedure for enforcement of awards of local arbitral tribunals
57.1. Awards rendered by local arbitral tribunals shall be executed in the manner and within
the period stated in that award. If no term is specified in the award, it shall be executed
immediately.
57.2. If the award made by a local arbitral tribunal is not executed voluntarily within the
period specified in the award or, if no such period is specified, within 3 (three) months from
the date it is rendered, the party in whose favor the award was made has the right to apply
to the court, in the manner established by the Civil Procedural Code of the Republic of
Azerbaijan, for the compulsory enforcement of the award, provided that the award has
become binding on the parties and has not been set aside by a court in accordance with
Articles 51.5 and 54 of this Law.
57.3. The court may refuse to enforce the arbitral award only on the grounds specified in
Article 54.2 of this Law. If an application has been made to the court to set aside the award
of a local arbitral tribunal in accordance with the provisions of Article 54 of this Law, the same
grounds raised for setting aside that award shall not be raised again before the court where
the enforcement of arbitral award is sought.
Chapter 8
FINAL PROVISIONS
Article 58. Liability for violation of this Law
Persons who fail to comply with the requirements of this Law shall be subject to liability as
prescribed by the laws.
Article 59. Transitional provisions
59.1. The Law of the Republic of Azerbaijan "On International Arbitration" (Legislative
Collection of the Republic of Azerbaijan, 2000, No. 1, Article 6; 2005, No. 6, Article 475;
2007, No. 7, Article 712) is repealed from the date this Law enters into force.
59.2. This Law shall enter into force on the same day with the law providing for changes to
the Civil Procedural Code of the Republic of Azerbaijan on the implementation of assistance
and supervision functions in relation to arbitration by the courts, the recognition and
enforcement of the awards of the foreign arbitral tribunals, as well as the regulation of
matters associated with the arbitral proceedings within the framework of court proceedings.
59.3. This Law shall not apply to cases on the recognition and enforcement of the awards
of the foreign arbitral tribunals pending before the Supreme Court of the Republic of
Azerbaijan on the date of its entry into force.
Ilham Aliyev,
President of the Republic of Azerbaijan
Baku, 26 December 2023

No.1077-VIQ


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