The International Chamber of Commerce (ICC) is a global business organization that offers dispute resolution services, including arbitration, to resolve commercial disputes between parties. The ICC's rules of arbitration are widely used in international commercial disputes and are considered to be the most widely used rules of arbitration worldwide.
TYPES OF ARBITRATION RULES
There are two types of arbitration in India: ad hoc arbitration and institutional arbitration. The procedures for arbitration must be agreed upon by the parties and the arbitrator in an ad hoc arbitration. In most circumstances, this could be an issue because there is a dispute between the parties and collaboration on arbitration may not occur. Furthermore, because the arbitration procedures are not standardised, ad hoc arbitration may contain legal or technical errors and defects in the award. As a result, the chance of judicial intervention is increased in ad hoc arbitration.
The arbitration institution has previously set the procedural norms in institutional arbitration. As a result, the development of procedures and regulations is unnecessary because the arbitration framework already exists.
Ad hoc arbitration occurs when the parties do not choose an organisation to handle their dispute. It allows parties to conduct the arbitration in their own way, giving them more flexibility and independence but less support. Ad hoc arbitration can provide parties more freedom to make their own decisions, moving away from the rules of highly recognised organisations that regulate many successful arbitrations can be immensely helpful to some parties, but it is not without danger. This article examines the characteristics of ad hoc arbitration and why it is sometimes utilised instead of the institutional process.Parties will specify an institution (such as the LCIA or LCC) to administer the arbitration under constitutional arbitration. In contrast, no institution is engaged in ad hoc arbitration; the parties run the arbitration themselves.
An institution will usually support the parties in their arbitration, from hiring an arbitrator to establishing procedural procedures and managing the final judgement, as provided in the arbitration agreement (or a clause in an applicable contract).
The following institutions are frequently utilised in arbitrations held in England and Wales:
- London Court of International Arbitration (LCIA)
- International Chamber of Commerce (ICC)
- London Maritime Arbitrators Association (LMAA)
The Grain and Feed Trade Association is a trade association for grain and feed (GAFTA), There are over 1200 arbitration institutions worldwide, and some will deal with a specific trade or industry, such as GAFTA or LMAA, which are listed above. Each institution has its own set of rules that serve as a foundation for arbitration as well as administrative and practical support. Parties should exercise caution in selecting an institution with well-written norms and a strong international reputation.
ICC ARBITARATION RULES
The ICC arbitration rules are designed to provide a fair and efficient process for resolving disputes between parties. The rules are divided into several sections that cover different aspects of the arbitration process. Some of the relevant sections of the ICC arbitration rules for 2021 include:
Article 2: This article sets out the scope of the ICC arbitration rules, including the types of disputes that are covered by the rules.
Article 6: This article deals with the appointment of arbitrators, including the process for selecting arbitrators and the criteria for determining their independence and impartiality.
Article 7: This article deals with the procedure for the exchange of information and documents between the parties.
Article 8: This article covers the conduct of hearings, including the location and language of the hearings, the right to be heard, and the use of expert witnesses.
Article 9: This article sets out the rules for the rendering of the award, including the form and content of the award and the time frame for its issuance.
Article 35: This article deals with the enforcement of awards, including the recognition and enforcement of awards in other countries through the use of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
The ICC arbitration rules are designed to provide a fair and efficient process for resolving disputes between parties. They provide a framework for the conduct of the arbitration, including the appointment of arbitrators, the exchange of information and documents, and the conduct of hearings. The rules also provide for the confidentiality of the arbitration proceedings, except in certain limited circumstances.
One of the key features of the ICC arbitration rules is the flexibility they provide to the parties to tailor the arbitration process to the specific needs of their dispute. The parties can agree on the number of arbitrators, the language of the arbitration, and the location of the arbitration proceedings. The parties can also agree on the procedural rules to be used in the arbitration, including the applicable law and the standards of proof.
The ICC arbitration rules also provide for the appointment of arbitrators who are independent and impartial. The ICC has a list of arbitrators from which parties can choose, or the parties can agree on their own arbitrators. The ICC also has a system for the appointment of emergency arbitrators, who can issue interim measures to preserve the status quo pending the appointment of a full arbitration panel. The ICC arbitration rules provide for the resolution of disputes through both written submissions and hearings. The parties can agree on the extent to which hearings will be held, or the arbitral tribunal can decide on the need for a hearing based on the circumstances of the case. The ICC also has a system for the use of expert witnesses, who can provide expert testimony on specific issues in the case.
Once the arbitration proceedings have been completed, the arbitral tribunal will issue an award, which is a binding decision on the dispute. The ICC arbitration rules provide for the enforcement of awards in countries around the world through the use of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. In summary, the ICC arbitration rules provide a flexible and efficient framework for the resolution of international commercial disputes through arbitration. They are widely used and highly regarded as a fair and impartial means of resolving disputes between parties.
Here are a few examples of cases that have been resolved through the ICC arbitration rules:
In the case of "ABB Lummus Global Inc. v. Republic of Kazakhstan," the ICC was asked to resolve a dispute over a contract for the construction of an oil refinery in Kazakhstan. The arbitral tribunal found in favour of the claimant and awarded damages of over $500 million.
In the case of "Vattenfall AB v. Federal Republic of Germany," the ICC was asked to resolve a dispute over the termination of a contract for the construction of a coal-fired power plant in Germany. The arbitral tribunal found in favour of the claimant and awarded damages of over $4.7 billion.
In the case of "Philip Morris Asia Limited v. The Commonwealth of Australia," the ICC was asked to resolve a dispute over the validity of Australia's plain packaging laws for tobacco products. The arbitral tribunal found in favour of the respondent and upheld the validity of the laws.
These are just a few examples of the many cases that have been resolved through the ICC arbitration rules. The ICC's dispute resolution services have helped parties to resolve their disputes in a fair and efficient manner, and the ICC's rules of arbitration are widely recognized as a reliable and effective means of resolving international commercial disputes.
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