Kuwait
Rules
OTHER
RELATED ARBITRATION LAWS
CIVIL
AND COMMERCIAL PROCEDURE CODE
NO. 38 OF 1980
CHAPTER
TWELVE
ARBITRATION
ARTICLE (173)
Agreement may be made on arbitration
in a specific dispute and on arbitration in
all disputes arising from the implementation
of a certain contract.
Arbitration may not be established,
save in writing.
Arbitration may not be held
in the matters where a compromising conciliation
may not be reached. Arbitration is deemed to
be valid only when made by a competent person
who shall have the capacity to dispose of the
right under dispute.
The subject matter of the dispute
shall be specified in the agreement on arbitration
or during the pleading, even when the arbitrator
is authorized to compromise and hold conciliation,
otherwise the arbitration shall be deemed null
and void.
Courts shall have no jurisdiction
over hearing the disputes agreed to be arbitrated.
Waiver to plea for non-jurisdiction may be made
explicitly or implicitly.
Arbitration shall not include
the summary matters, unless otherwise is explicitly
agreed upon.
ARTICLE
(174)
The arbitrator may not be a
minor, under attachment or deprived of his civil
rights by the reason of any criminal punishment
or he is declared bankrupt, unless he has been
rehabilitated.
In the event of several arbitrators,
their number must be odd in all cases. The arbitrator
shall be specified in the agreement on arbitration
or in a separate agreement.
ARTICLE
(175)
If the dispute occurs
without the litigant parties having agreed on
the arbitrators or in case one or more arbitrators
abstain/s from working, withdraws or is/are
dismissed or an obstacle against his/their work
is established, without having an agreement
reached between /among the litigant parties
in this respect, the court of jurisdiction originally
competent to hear the dispute shall appoint
the necessary number of arbitrators upon the
request of one litigant party, under the ordinary
procedure of case filing. The number of arbitrators
appointed by the court shall be equal to the
number agreed upon between the litigant parties
or complementary thereto. The award rendered
may not be objected by any means of objection.
ARTICLE
(176)
Arbitrators may not be
authorized to compromise, conciliate or render
award as compromising arbitrators unless they
are mentioned namely in the agreement on arbitration.
ARTICLE
(177)
The Ministry of Justice
may form one or more Arbitration Panels to be
held in the seat of the Court of First Instance
or in any other location to be specified by
the Chief of the Panel. Presidency over the
panel shall be taken over by the counsel or
a Justice judge to be selected by the General
Assembly of the competent court, and its membership,
duly comprising two merchants or experts of
other specialized areas all of whom shall act
as members and be selected from the rolls prepared
for this, the said purpose in accordance with
the procedures and rules to be issued under
a resolution made by the Minister of Justice.
One of the staff of the Court of First Instance
shall act as secretary of the panel.
The disputes agreed by the concerned
parties in writing to be brought before it shall
be brought free of fees. Consequently the rules
prescribed in this chapter shall be applicable
to the same. Nevertheless, it may render the
awards, arbitraments, verdicts and orders referred
to under paragraphs A, B and C of Article (180)
thereof.
ARTICLE
(178)
Without prejudice to
the provisions of the preceding article or any
other law, it is conditional that the arbitrator
accepts handing his task, and such acceptance
shall be confirmed in writing.
If the arbitrator withdraws-without
a serious reason-from performing his work after
accepting the arbitration, he may be adjudged
to pay compensation. Dismissal of the arbitrator
may not be made, save upon agreement by all
litigant parties. Recusation of the arbitrator
for award purposes may not take place, save
for reasons occur or appear after being appointed
in person. Recusation may be requested for the
same reasons of recusation of the judge or by
which he shall submit to the court originally
competent to hear the action, within five days
from notifying the litigant party of appointing
the arbitrator, or from the date of occurrence
of the reason for recusation or that he was
aware of, if it is consequent to his notification
of appointing the arbitrator. In all cases,
the application for recusation shall not be
accepted if the arbitrators' award is rendered
or the pleading in the action is closed. Applicant
for recusation may appeal the judgment rendered
in his application, no matter what the value
of dispute under determination is.
ARTICLE
(179)
The arbitrator shall
within thirty days at most from accepting the
arbitration - notify the litigant parties of
the date and venue of the first session set
for hearing the dispute, without compliance
with the rules prescribed in this law for notice
serving. An appointment shall be fixed for them
to submit their documents, their pleadings and
defenses. Award may be rendered pursuant to
the submissions of one party if the other party
fails to appear on the fixed date.
In the event of several arbitrators,
they shall jointly handle the investigations
proceedings and each one of them shall sign
the minutes and verbal process, unless they
unanimously agree on delegating one of them
for a certain procedure, and confirm his delegation
in the minutes of the session, or in case the
agreement on arbitration authorizes one of them
to do so.
ARTICLE
(180)
Litigation before the
arbitrator shall be discontinued if any of the
reasons for discontinuing the litigation as
prescribed under this law arises. The discontinuation
shall result in its legally prescribed effects.
If within the arbitration process
a primary matter out of the jurisdiction of
the arbitrator is presented or an objection
is made for forgery of a paper or criminal proceedings
were already taken for such forgery, or in case
of any other criminal occurrence, the arbitrator
shall suspend his work until a final judgment
is rendered in that respect.
Consequently, the arbitrator
shall suspend his work and refer the case to
the Chief Judge of the court originally competent
to hear the dispute so as to effect the following:
- Adjudicating
the legally prescribed penalty upon the witnesses
who fails to appear or abstain from answering.
- Having
third parties adjudged to submit any document
in their possession, which is deemed necessary
for rendition of the relevant award.
- Writ
of Legal Assistance.
ARTICLE
(181)
If in the agreement on
arbitration the litigant parties do not stipulate
a time for award the arbitrator shall arbitrate
within six months from the date where the litigant
parties where notified of the arbitration session.
Otherwise, any litigant party who is desirous
to do so may bring the dispute before the competent
court or proceed on if it was already filed.
In case the dates of notifying
the litigant parties vary, such date shall commence
to run as from the date of last notification.
Litigant parties may agree explicitly or implicitly-upon
extending the date specified in the agreement
or under legal procedure. They may authorize
the arbitrator to extend it to a certain time.
The date shall be suspended when the litigation
is suspended or discontinued before the arbitrator
and shall be resumed as from the date the arbitrator
has been aware of the fact that the reason for
suspension or discontinuity is no longer valid.
If less than two months remain from the said
date, it shall be extended to two months accordingly.
ARTICLE
(182)
The arbitrator shall
render his award without compliance with the
pleading procedures save the proceedings provided
for in this Chapter. Nevertheless, the litigant
parties may agree upon certain proceedings,
to be followed by the arbitrator in that respect.
The award rendered by the arbitrator
shall be based on the law provisions, unless
he is authorized to compromise and conciliate,
where he shall not comply with such provisions,
save those relating to the public order.
The rules governing urgent self-executing
judgments shall be applicable to the arbitrators'
awards.
Arbitrator's award shall be
rendered in Kuwait, otherwise the prescribed
rules applicable to the arbitrators' awards
in a foreign country shall be applied in that
respect.
ARTICLE
(183)
The arbitrators' award
shall be rendered by a majority opinion in writing,
and shall in particular comprise a copy of the
agreement on arbitration with a summary of the
litigant parties statements, documents, grounds
of award its text, the date rendered, the venue
and signatures of arbitrators. If one or more
arbitrators refuse to sign the award this fact
shall be stated therein. The award is deemed
appropriately valid if signed by the majority
of arbitrators.
Award shall be drawn up in Arabic
unless otherwise is agreed upon by the litigant
parties. Consequently an official translation
thereof shall be attached thereto at the time
of its depositing. The award shall be deemed
to have been rendered as from the date it was
signed by the arbitrators after it had been
typed.
ARTICLE
(184)
The original award shall
be deposited, even if rendered under any of
the investigation procedures together with the
original agreement on arbitration, with the
Clerical department of the competent court originally
hearing the dispute within ten days following
the award terminating the litigation.
The clerk of the competent court
shall draw up a record in respect of the said
depositing.
ARTICLE
(185)
The award rendered by
the arbitrator shall not be enforceable, save
under an order issued by the Chief Judge of
the court where the award was deposited with
its Clerical Department upon the request of
one of the concerned parties, after having perused
the award rendered, the agreement on arbitration
and meanwhile verifying the nonexistence of
the impediments of its implementation and the
basis of appeal limitation, if the award is
appealable and not urgently self-executing.
The writ of execution shall be impressed at
the foot of the original award document.
ARTICLE
(186)
The arbitrator's award
may not be appealed, save when otherwise is
agreed upon by litigant parties prior to its
rendering. The appeal shall then be filed before
the Court of First Instance with an appeal panel.
It shall be subject to the rules prescribed
for appeal of the judgments rendered by the
effect from the date of depositing of the original
award with the Clerical Department pursuant
to article (184).
Nevertheless, the award shall
not be appealable, unless the arbitrator is
authorized to compromise and conciliate, or
if he is an arbitrator of Appeal, or the value
of the relevant action does not exceed KD 500
or the award is rendered by the panel provided
for under Article (177).
Any concerned party may request
nullification of the final arbitrator's award
in the event of the following cases, even when
otherwise is agreed upon prior to its rendering.
- If it
is rendered without an arbitration agreement
or under a null and void arbitration agreement,
the lapse of limitation date was Lapsed or
the award is out of the agreement on arbitration.
- If any
of the reasons under which a plea for re-hearing
is established.
- If a
nullification of award or the proceedings
which may prejudice the award occurs.
ARTICLE
(187)
Action for nullification
shall be brought before the competent court
of jurisdiction originally hearing the dispute
through the normal process and formalities of
filing cases, within thirty days from the award
notice. Such a limitation period shall commence
to run in conformity with the provisions of
Article 149 in the cases where a cause for re-hearing
application is established.
The relevant declaration shall
contain the ground of nullification, otherwise
it shall be null and void.
The person filing the action
shall deposit KD 20 at the time of depositing
the relevant declaration, as bail. Depositing
of one single bail shall be sufficient in the
event of several plaintiffs, if they have filed
their action by means of one declaration, even
if the grounds of nullity are variant. The government
shall be exempted from depositing such bail
(surety) and those who are exempted from paying
legal fees shall also be exempted therefrom.
The bail shall be confiscated
by force of law once it is adjudged to reject
the action, or its filing is deemed impermissible,
elapsed, invalid, rulified or reject.
If the court has rendered a
judgement nullifying the arbitrators' award,
it shall then re-hear the dispute issue and
determine on its merits accordingly.
ARTICLE
(188)
Filing of the nullification
shall not cause the stay of execution of the
arbitrator's award.
Nevertheless, the court hearing
the action may order - upon the request of a
plaintiff - the stay of execution of the award
rendered if it is feared that a gross damage
may occur due to its execution and once the
ground of nullification gives preference to
the nullity of the award rendered.
Upon
ordering the stay of execution, the court may
necessitate presentation of a bail surety or
order what it deems to protect the right of
the necessary respondent. The writ of award
execution shall be applicable to the proceedings
taken by the judgement beneficiary, with effect
from the date of application for stay of execution. |