The following points articulated below are the most important effects on an arbitration agreement, which are derived from Arbitration Rules of the Arbitration Center of Iran Chamber and are binding for those who refer to Arbitration Center of Iran Chamber for solving their commercial disputes.
Effects of the Arbitration Agreement:
1. In all cases where arbitration of a dispute is referred to the Arbitration Centre, the arbitration shall be conducted in accordance with the Arbitration Rules in force at the time of submission of the request for arbitration, unless the parties have agreed to submit to the Rules in force on the date of their Arbitration Agreement.
2. In the event that the defendant refuses to answer the request for arbitration as provided by Article 7 of these Arbitration Rules, if the Arbitration Court of the Arbitration Centre decides on aprima facie basis that an Arbitration Agreement is concluded between the parties, the arbitration shall proceed. This decision on the prima facie existence of an Arbitration Agreement shall not preclude raising objections as to the existence or validity of the Arbitration Agreement before the Arbitrator.
3. In the event that the Arbitration Court of the Arbitration Centre is not satisfied with prima facie existence of the Arbitration Agreement, the Secretariat shall notify the parties that the arbitration proceedings cannot proceed. In such case, any party may request from the competent court to decide on existence or non-existence of an Arbitration Agreement.
4. If before the appointment of the Arbitrator, either party raises any objection as to the existence, validity or scope of the Arbitration Agreement, the Arbitration Court of the Centre shall decide on the matter, without prejudice to the possibility of raising the same objection before the Arbitrator when he is appointed. In the event the Arbitration Court sustains the objection, the Secretariat shall notify the parties that the arbitration proceedings cannot proceed and the file will be closed. In such event either party may refer to the competent court.
5. If any of the parties do not participate in the arbitration hearings or any stages of the proceedings this will not be an obstacle for continuation of the arbitration proceedings, and the Arbitrator may continue the proceedings and issue award in accordance with the existing documents and evidences.
6. An objection as to the existence or validity of the underlying contract shall not cease the Arbitrator to have jurisdiction to decide on such objection, provided that the Arbitrator upholds the validity of Arbitration Agreement. Even though the main contract does not exist or is null and void, the Arbitrator shall have jurisdiction to determine on the issue and make a decision concerning the parties’ claims and objections, and the arbitration agreement is independent under from the contract.
Written By: Sahba Samadi