UNCITRAL ARBITRATION RULES, 2010

By Neeraj Aarora FCMA, CISA, CEH, CCNA, CFCE, LLB, MBA (IT)

UNCITRAL setup in 1966.

UNCITRAL Arbitration Rules were formed in 1976.

Used in Cross Border Contracts, International Arbitration Institutions.

67 Countries imported the UNCITRAL Rules in their own Act.

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Introduction of UNCITRAL

Generated a number of gaps;

Need to remove the problems;

New Arbitration Rules were framed.

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UNCITRAL Rules, 2010

Technological Advancement

Arbitral Tribunal

Arbitral Procedure

Miscellaneous

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New Rules

Article 2 provides that the communication can be

made by any means which allow for a record of its

transmission.

Delivery by electronic means can be made at

designated or authorized address.

Rules also provide for option to examine witnesses

through video-conference. (Article 28(4))

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Technological Advancement

Validity of contract formed through electronic

means (Sec. 10A)

Recognition of email communication – Originator (Sec. 2(1)(za)) Addressee (Sec. 2(1)(b)) Intermediary (Sec. 2(w))

Attribution of Electronic Record (Sec. 11A)

Acknowledgment of Receipt (Sec. 12)

Time and Place of Dispatch and Receipt of

Electronic Record (Sec. 13)

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E-governance – IT Act, 2000

Secured Electronic Record

Secured Electronic Signature

PKI Infrastructure Controller of Certifying Authority Certifying Authority

Electronic Evidence/Signature Admissibility (Sec. 65B) Electronic Agreements (Sec. 85A) Electronic Record/Signature (Sec. 85B)

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E-communication – IT Act, 2000

Parties to agree on appointing authority as soon as possible. (Art. 6)

More power to the institutions acting as the appointing authority for failure of the parties in appointing arbitrators.

Appointing Authority, in exceptional circumstances deprive a party of the right to appoint a substitute arbitrator and appoint the substitute arbitrator itself. (Article 14(2))

In Multi-Party dispute, the appointing authority has the power to reconstitute the tribunal in full and revoke earlier appointments where one party fails to appoint an arbitrator. (Article 10(3))

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Arbitral Tribunal

Contd…

Appointing authority can appoint sole arbitrator as

well as other arbitrators/presiding arbitrator in case

of the parties failing to appoint arbitrator or two

arbitrators fails to agree on third arbitrator. (Article

9)

A deficiency in the notice of arbitration would not

prevent the Arbitral Tribunal from being constituted

and such constituted Arbitral Tribunal would decide

the deficiency. (Article 3 & 4)

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Arbitral Tribunal

Contd… The immunity has been conferred on the Arbitrators,

any person/expert appointed by the Tribunal and appointing authority from claim based on any act or omission in connection with the Arbitration except for intentional wrongdoing. (Article 16)

The Tribunal will have power to grant a broader range of interim measures of protection including measures necessary to prevent:- current or imminent harm to the interest of parties, prejudice to the Arbitral Process itself, preservation of assets to satisfy a subsequent award

and orders directed at preserving evidence. (Article 26)

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Arbitral Tribunal

Establishment of procedural time table as soon as practicable. (Article 17(2))

Inclusion of the Claimant's legal grounds and documents and other evidence in the Statement of Claim. (Article 20(1))

New rules allow the parties to elect that the notice of arbitration or response will constitute their statement of claim or defence respectively.

Tribunal shall conduct the proceedings in a manner that avoids unnecessary delay or expense and provides for a fair and efficient resolution of disputes.

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Arbitral Procedure

Contd.

Regarding the choice of law it provides the

arbitrators to apply the law that they determine to

be appropriate, rather than strict conflict of laws

rules, in the absence of an express choice by the

parties. (Article 35(1))

Rules for awards that require identification of the

seat of the tribunal in the award and set out the

circumstances in which the award may be made

public. (Article 34)04/15/2023 12N e e r a j A a r o r a

Arbitral Procedure

Article 1 does not require that the ‘parties to arbitration’ be the ‘parties to a contract’ which allows the dispute from any kind of legal relationship to be referred to the arbitration under UNCITRAL Rules.

The new rules require the respondent to file a response to the notice of arbitration within 30 days unlike earlier rules which did not provide for a respondent to file a response to the claimant to the notice of arbitration.

The new rules provide for joinder of other parties to the arbitration agreement (Article 17(5)) and inclusion of claim against the third parties in the response to the notice of arbitration. (Article 4(2)(f))04/15/2023 13N e e r a j A a r o r a

Miscellaneous

Contd.

A relaxation of the rules of waiver, under which a failure to object to non-compliance with the arbitration rules will not be a waiver of the right to object where the party in question can show that its failure to object was justified in the circumstances. (Article 32)

The determination of costs regime for the proceedings and a mechanism for the review and adjustment of the tribunal's costs under an award by the appointing authority or the Secretary General of the PCA where the tribunal's determination of costs is either inconsistent with the agreed costs regime or is 'otherwise manifestly excessive'. (Article 41)

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Miscellaneous

Appointment of Appointing Authority and Arbitrators.

Ad-hoc Arbitration Vs. Institutional Arbitration.

Appointing authority Vs. Arbitrator

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Challenges

THANKYOU !

Neeraj AaroraCyber Lawyer & Arbitrator

E-mails: neeraj@hazenlegal.comWebsites: www.forensicveda.com, www.neerajaarora.com

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