Rules of Procedure
of the Stály rozhodcovský súd
established by the company
Stály rozhodcovský súd a.s. , with registered seat at Dr. Vladimíra Clementisa 10, 821 02 Bratislava, Identification No. (IČO): 36 725 439, registered with the Commercial Registry of the District Court Bratislava I, Section: Sa, Insert No.
PART ONE
INTRODUCTORY PROVISIONS
Article I
Fundamental Provision
- 1. The Stály rozhodcovský súd (hereinafter the “Court of Arbitration“), established by the company Stály rozhodcovský súd a.s. with registered seat at Dr. Vladimíra Clementisa 10, 821 02 Bratislava (hereinafter the “Founder“), settles proprietary disputes set out in Article II of the Statute of the Court of Arbitration, provided that the parties agreed on such a dispute resolution in written arbitration agreement in form of a separate agreement or an arbitration clause included in the contract (hereinafter the “Arbitration Agreement“).
- 2. The Founder is an appointed entity within the meaning of Section 6 para. 3 of Act No. 244/2002 Coll. as amended (hereinafter the “Arbitration Act“).
- 3. Fulfilment of tasks of appointed entity according to the Arbitration Act is ensured by the bodies of the Court of Arbitration. The Court of Arbitration is composed of the following bodies:
- Presidium of the Court of Arbitration (hereinafter the “Presidium“),
- President of Presidium of the Court of Arbitration (hereinafter the ”President“).
Article II
Place of the Arbitration
- 1. The registered seat of the Court of Arbitration is set out in Article I para. 3 of the Statute of the Court of Arbitration.
- 2. The Court of arbitration conducts arbitration and performs actions related thereto in the place of registered seat of the Court of Arbitration or in place agreed between the parties to arbitration
- 3. The oral hearings before the Court of Arbitration take place on address of registered seat of the Court of Arbitration or in place agreed between the parties to arbitration.
- 4. The Court of Arbitration may perform particular actions in arbitration proceedings at any place it considers appropriate, in particular consultation amongst members of arbitral tribunal, hearing of witnesses, experts or parties to arbitration, examination of certain place, objects, documents or other facts.
Article III
Language of the Arbitration
- 1. Arbitration proceedings shall be conducted in the Slovak language.
- 2. All documents shall be submitted to the Court of Arbitration in the Slovak language (or Czech language) or officially translated into Slovak language. Costs of official translation shall be borne by the party submitting respective document to the Court of Arbitration.
- 1. Each party to arbitration is obliged at its own costs to arrange for a Slovak translator for the purpose of oral hearings summoned by the Court of Arbitration, if the party to arbitration, its representative or witness proposed by that party or witness that should confirm allegations of that party declares that he/she does not command Slovak language (or Czech language). If the party requests the Court of Arbitration in advance, the court itself may appoint the translator; the court, however, may make such an appointment conditional upon payment of justified advance from the party who made such a request to cover costs of appointment of translator.
Article IV
Written Notifications and Communication
- 5. All written communication is deemed to be delivered:
- 1. if handed over to the recipient personally, or
- 2. if delivered to the address:
- quoted by the recipient in its written pleadings as address of its registered seat, place of business, residence or place for delivery of written communication delivered to the Court of Arbitration at least three (3) business days prior to dispatch of document concerned by the Court of Arbitration,
- identified by the Court of Arbitration as address of the registered seat, place of business, or residence of the recipient from the Commercial Registry or other registry where the recipient is registered or from documents submitted to the court in arbitration, if the court has no reason to doubt accuracy of such data
- 2. Written notification is deemed to be delivered upon its take over by the recipient or by person authorised to act in the name of or on behalf of the recipient. In case of refusal of take-over of a written notification, the day when delivery of notification has been refused is deemed to be the day of delivery.
- 3. The Court of Arbitration delivers the following documents to the parties by way of personal delivery (in Slovak: do vlastných rúk) via provider of universal postal services under Act No. 507/2001 Coll. as amended – by registered mail with confirmation of delivery or via other entity providing postal services with confirmation of delivery or via person entrusted with delivery by the Court of Arbitration: (i) statements of claim, (ii) statements of defense, (iii) counterclaims, (iv) summons to the hearing, (v) arbitration awards, (vi) resolutions and (vii) other documents designated by the court.
- 4. All other documents are generally delivered by the Court of Arbitration via provider of universal postal services or via other entity providing postal services and in case of urgency via facsimile or via e-mail to the number or address quoted by the recipient for purposes of delivery of written communication in arbitration. Written document dispatched via facsimile or via e-mail to the number or address quoted by the recipient for purposes of delivery of written communication in arbitration is deemed to be delivered on the day following the dispatch via facsimile or via e-mail.
- 5. If it is not possible to deliver documents to a legal entity to the address of its seat registered with the Commercial Registry or in other registry where it is registered and the Court of Arbitration is not aware of any other address, such document is deemed to be delivered after expiry of three (3) calendar days from return of undelivered mail even if person authorised to represent or act on behalf of the legal entity does not become aware of such mail.
- 6. If it is not possible to deliver documents to an individual entrepreneur to his/her place of business registered with the Commercial Registry or in other registry where he/she is registered and the Court of Arbitration is not aware of any other address, such document is deemed to be delivered after expiry of three (3) calendar days from return of undelivered mail even if the recipient does not become aware of such mail.
- 7. If it is not possible to deliver documents to an individual to address of his/her residence or to the address quoted by the recipient for purposes of delivery of written communication in arbitration and the Court of Arbitration is not aware of any other address, such document is deemed to be delivered after expiry of three (3) calendar days from return of undelivered mail even if the recipient does not become aware of such mail.
- 8. If the delivery failed due to absence of the recipient in place of delivery and the recipient fails to collect documents subject of delivery deposited with the postal service provider within period set for collection of such documents, the last day of period for collection of documents is deemed to be the day of delivery even if the recipient did not become aware of the deposit.
- 9. Documents dispatched to the Court of Arbitration are deemed to be delivered upon physical take-over at registry office of the court, upon delivery to the address of the court by the postal services provider or upon take-over from the deposit of the postal services provider.
- 10. All documents relating to commencement and course of arbitration as well as all documents annexed thereto shall be supplied to the Court of Arbitration in a number of copies sufficient to provide one copy for each party plus one for each arbitrator and one for the President. If the party fails to submit the documents in sufficient number of copies, the President requests the party to supply a sufficient number thereof or ensures making of a sufficient number of photocopies at cost of the party that submitted the document concerned.
- 11. No pleadings of the party may be made in form of oral statement recorded with minutes of the Court of Arbitration except for pleadings pursuant to Article IX para. 3 of the Rules of Procedure.
Article V
Parties to the Arbitration
- 1. The parties to arbitration agreement shall become parties to arbitration upon commencement of arbitration proceedings.
- 2. The party that filed a statement of claim with the Court of Arbitration shall be the claimant. The party against whom the statement of claim is filed shall be the respondent.
- 3. The parties to arbitration shall have equal standing. Each party has an equal opportunity to exercise its rights and is provided with an equal protection thereof.
- 4. A legal entity being party to the proceedings shall act via its statutory body or via authorised representative.
- 5. The party may appoint its representative by issuing a written power of attorney to him/her; the power of attorney shall expressly state that it is issued to represent a particular party in arbitration proceedings concerning particular dispute as well as scope of issued power of attorney. The party to arbitration may appoint only one representative in the same matter.
- 6. If the party to arbitration appoints a representative with unlimited power of attorney, all documents addressed to that party shall be delivered to the appointed representative. The Rules of Procedure concerning participation at oral hearings before the Court of Arbitration applicable to the party shall apply accordingly to such representative.
- 7. If there are several claimants or several respondents in the same dispute, each of them shall act individually.
- 8. In case of several parties on part of claimant or respondent in the dispute concerning joint and several rights or obligations of all parties on part of claimant or on part of respondent, actions of either party on part of claimant or on part of respondent bind equally all parties of respective part. All parties on part of claimant or respondent respectively must consent with modification or withdrawal of the statement of claim or conclusion of settlement agreement.
- 9. Apart from parties to arbitration, an accessory party (in Slovak: vedľajší účastník) having valuable interest in the outcome of the arbitration may take part in arbitration proceedings. Accessory party may take part in arbitration only if the Court of Arbitration admits so on the basis of a motion of the party on part of which the accessory party shall take part in arbitration.
- 10. The accessory party to arbitration has identical rights and obligation as the party on part of which the accessory party takes part in arbitration. The accessory party, however, shall act individually. In event that actions of accessory party are contrary to actions of the party on part of which the accessory party takes part in arbitration, the Court of Arbitration considers them with regard to all applicable circumstances. The Court of Arbitration may take into account allegations of facts of the accessory party even if these are contrary to allegations of facts made by the party on part of which the accessory party takes part in arbitration.
PART TWO
COMMENCING THE ARBITRATION
Article VI
Filing of the Statement of Claim
- 1. The arbitration proceeding shall commence on the day of delivery of the statement of claim to the Court of Arbitration.
- 2. The Court of Arbitration shall imprint the day of delivery on each counterpart of the statement of claim.
- 3. Delivery of the statement of claim shall have equal legal effects as filing of a court action with ordinary court.
- 4. Commencement of arbitration proceedings bars the institution of the proceedings and settlement of the dispute in the same matter before ordinary courts or other arbitral forum.
Article VII
Arbitration Fee
- 1. Commencement of arbitration proceedings on basis of the statement of claim is conditional upon reimbursement of arbitration fee.
- 2. Arbitration fee shall be determined on the basis of the value of subject matter of the dispute on the basis of the Regulation on Costs of Arbitration and the Fee Chart (Article XXXIII para. 2 of the Rules of Arbitration of the Court of Arbitration).
- 3. Arbitration fee is due by a wireless transfer to the bank account of the Founder maintained separately for the needs of the Court of Arbitration (hereinafter the „Bank Account of the Court of Arbitration“).
- 4. If the claimant does not pay the arbitration fee to the Bank Account of the Court of Arbitration or pays the fee in an incorrect amount, the President shall request the claimant to pay the arbitration fee or an outstanding amount thereof within ten (10) calendar days from delivery of notice to this extent. If the fee or the outstanding amount thereof is not duly paid in such an additional period, the President shall resolve upon suspension of arbitration proceedings.
Article VIII
Contents of the Statement of Claim
- 1. The statement of claim shall contain:
- 1. identification of the parties to arbitration and their representatives, if any,
- 2. a true statement of the facts supporting the claim
- 3. identification of evidence requested by the claimant,
- 4. remedy sought,
- 5. signature of claimant
- 2. The claimant shall attach a copy of arbitration agreement as well as evidence sustaining the claim to the statement of claim. If the claimant requests exercise of documentary evidence in arbitration proceedings, it is obliged to attach an original or a copy of that document to the statement of claim or to point out a person or an entity that disposes of such document.
- 3. The claimant is obliged to state the value of the subject matter of the dispute in the statement of claim.
- 4. In event that the statement of claim seeks several remedies, the claimant is obliged to state the value of each remedy separately; the value of the subject matter of the dispute shall be an aggregate of all remedies sought.
- 5. If the claimant failed to state the value of the subject matter of the dispute or stated an incorrect value, the Court of Arbitration shall, from its own initiative or upon motion of the respondent, estimate the value of the subject matter of the dispute based upon information at courts‘ disposal.
- 6. The claimant shall nominate a member of the arbitral tribunal in the statement of claim, unless the parties to arbitration agreed in the arbitration agreement that the dispute shall be settled by sole arbitrator (provision of Article XVII para. 2 lett. b) of the Rules of Procedure); if the claimant fails to nominate a member of arbitral tribunal in the statement of claim, the President shall proceed in accordance with the provisions of Article XVII para. 2 lett. a) of the Rules of Procedure.
- 7. If the parties to arbitration agreed upon person of sole arbitrator or upon composition of arbitral tribunal in the arbitration agreement, the claimant indicates person of sole arbitrator or members of arbitral tribunal thus appointed in the statement of claim and if such persons are not registered with the Roll of Arbitrators the claimant also submits a written statement of sole arbitrator or of each member of arbitral tribunal accepting appointment to the function of arbitrator in particular dispute.
Article IX
Defects of the Statement of Claim
- 1. In event that the statement of claim does not contain requisites necessary or the claimant failed to submit required documents, the President requests the claimant to remove defects of the statement of claim within ten (10) calendar days from delivery of notice to this extent. Until removal of said defects the Court of Arbitration shall not institute proceedings on the basis of the statement of claim.
- 2. If the claimant fails to remove defects of the statement of claim, the President shall resolve upon suspension of arbitration proceedings.
- 3. Deficiency consisting in a failure to submit an arbitration agreement may be cured by mutual declaration of the parties to arbitration made before the President. If the parties fail to record a declaration pursuant to previous sentence within period set in para. 1 of this article, the Court of Arbitration resolves upon suspension of arbitration proceedings.
Article X
Statement of Defense
- 1. In event that contents and attachments of the statement of claim are in compliance with the provisions of Article VIII of the Rules of Procedure, the President shall deliver the statement of claim including annexes (and eventually also pleadings of the claimant delivered to the Court of Arbitration on the basis of request of the President in accordance with the Article IX para. 1 of the Rules of Procedure) to the respondent and requests the respondent to submit the statement of defense and attachments thereto to the Court of Arbitration within ten (10) calendar days; the statement of defense shall contain respondent’s plea to all facts and motions as well as remedies contained in the statement of claim. The respondent is obliged to present evidence sustaining his defense in the statement of defense.
- 2. The President shall send to the respondent a copy of the Roll of Arbitrators of the Court of Arbitration together with the statement of claim, except for event when the arbitrator shall be appointed by the President (provision of Article XVII para. 2 lett. b) of the Rules of Procedure); the President requests the respondent to appoint an arbitrator and notices the respondent that the President appoints arbitrator itself if the respondent fails to do so (provision of Article XVII para. 2 lett. a) of the Rules of Procedure).
- 3. The respondent shall nominate a member of arbitral tribunal in the statement of defense, except if the parties agreed in the arbitration agreement that a sole arbitrator shall settle their dispute (provision of Article XVII para. 2 lett. b) of the Rules of Procedure); if the respondent fails to nominate a member of the arbitral tribunal in the statement of defense, the President proceeds in accordance with the provision of Article XVII para. 2 lett. a) of the Rules of Procedure.
- 4. The respondent shall attach evidence sustaining the defense to the statement of defense. If the respondent requests exercise of documentary evidence in arbitration proceedings, it is obliged to attach an original or a copy of that document to the statement of defense or to point out a person or an entity that disposes of such document.
- 5. If the respondent fails to submit the statement of defense in period set out by the President, the Court of Arbitration proceeds in arbitration without considering lack of defense as acknowledgement of claimant’s allegations; the Court of Arbitration issues arbitration award in case of written form arbitration on the basis of statement of claim and evidence submitted or requested by the claimant. Provision of Art. XXII is thereby not affected.
PART THREE
THE ARBITRATION PROCEEDINGS
Section One
Common Provisions on Arbitration Proceedings
Article XI
General Principles of Arbitration Proceedings
- 1. Arbitration proceedings is not public. Individuals not being parties to the arbitration may be present at oral hearings held before the Court of Arbitration only with consent of the Court of Arbitration and all parties to the arbitration. Consent of the parties to arbitration is not required in case persons concerned shall participate in arbitration in the capacity of witnesses, experts or translators.
- 2. The Court of Arbitration proceeds in arbitration in accordance with the principle of efficiency and rapidity. The Court of Arbitration at the same time pursues due establishment of facts of the case while it respects rights of the parties to the arbitration.
- 3. Arbitration proceedings is conducted by:
- 1. a sole arbitrator,
- 2. three-member arbitral tribunal (hereinafter the “tribunal“).
Unless the parties to arbitration have agreed otherwise in the arbitration agreement, the tribunal is competent to settle disputes in arbitration.
- Measures taken by the Court of Arbitration in accordance with the Rules of Procedure in particular dispute, in which arbitration before the Court of Arbitration was commenced (Art. VI para. 1 of the Rules of Procedure of the Court of Arbitration) are taken by:
- 1. the President:
- if, according to the Rules of Procedure, these are vested to the President,
- if sole arbitrator or members of the tribunal have not yet been appointed in particular dispute, or if the function of sole arbitrator or the chairman of the tribunal was terminated (provision of Article VII para. 3 of the Statute of the Court of Arbitration) and action to be taken may not be delayed until appointment of new sole arbitrator or new chairman of the tribunal (provision of Article XVII para. 4 of the Rules of Procedure of the Court of Arbitration). The President does not have a jurisdiction to issue an award on the merits of the dispute or to approve an agreement on settlement; the President is entitled to suspend the arbitration proceedings only in cases set out in the Rules of Procedure of the Court of Arbitration,
- 2. sole arbitrator after he/she is appointed to the function,
- 3. after appointment of members of the tribunal, the tribunal or its chairman under terms set out in the Rules of Procedure of the Court of Arbitration.
Article XII
Form of the Arbitration Proceedings
- 1. The arbitration proceedings shall bear written form, unless the parties to arbitration expressly agreed on oral form of arbitration in the arbitration agreement. The Court of Arbitration issues award resolving the dispute on the basis of written statements of the parties, documents presented and evidence exercised.
- 2. If the parties agreed on oral form of arbitration in the arbitration agreement, the Court of Arbitration resolves upon settlement of disputes after it holds oral hearings.
- 3. The Court of Arbitration holds oral hearings even if the parties have not agreed so in the arbitration agreement but any of the parties requested institution of oral hearings in its first written pleadings addressed to the Court of Arbitration, other parties expressed consent therewith upon request of the Court of Arbitration within period set in the court’s request and the parties pay jointly and severally an excess amount between the fee for arbitration in oral form and arbitration in written form set out in the Fee Chart valid in time of delivery of party’s last pleadings accepting oral hearings to the Bank Account of the Court of Arbitration.
Article XIII
VCounterclaim
- 1. The respondent may enforce its rights against the claimant by a counterclaim not later than:
- 1. until closing of written proceedings
- 2. until commencement of the first oral hearing on merits of the case, if oral hearings shall be summoned.
- 2. Counterclaim may be raised only in the dispute to which the arbitration agreement refers.
- 3. Provisions of these Rules of Procedure of the Court of Arbitration on statement of claim and its annexes (provisions of Article VIII and IX of the Rules of Procedure) as well as obligation to pay arbitration fee for the statement of claim (provision of Article VII of the Rules of Procedure) apply accordingly to requisites of the counterclaim, its annexes and obligation to pay arbitration fee for the counterclaim.
- 4. The Court of arbitration may exclude the counterclaim to separate proceedings in case conditions for joint proceedings on statement of claim and counterclaim are not met by adequate application of provisions of Section 112 of Act No. 99/1963 Coll. on Civil Procedure.
Article XIV
Interim Measures
- 1. Unless the parties have agreed otherwise, after commencement of arbitration the Court of Arbitration may, at the request of the party, order interim measure it deems appropriate with regard to subject matter of the dispute.
- 2. The Court of Arbitration may make granting any interim measure subject to appropriate security being furnished by the requesting party. If the requesting party fails to furnish appropriate security within ten (10) calendar days from request of the Court of Arbitration, interim measure shall not be granted.
- 3. The party to arbitration is entitled to request a review of resolution on interim measure within 15 days from delivery to that party, even if the parties have not agreed so in the arbitration agreement. Provisions of Article XXIX. paragraphs 3, 5, the first sentence of paragraph 7, paragraph 8 and 9 of the Rules of Procedure of the Court of Arbitration shall apply accordingly.
Article XV
Modification of the Statement of Claim and the Statement of Defense
- 1. Each party to the arbitration may modify or supplement its statement of claim or statement of defense during arbitration, if the Court of Arbitration does not consider such amendment or modification as inadmissible with regard to the late and unjustified filing thereof.
- 2. If the Court of Arbitration considers a motion for modification or supplement of the statement of claim or the statement of defense as inadmissible or if the claimant fails to pay a fee for modification or supplement of the statement of claim in amount set in the Fee Chart within period of ten (10) calendar days from delivery of the court’s request, the Court of Arbitration resolves on inadmissibility of such modification or supplement; it is not possible to claim a remedy against such resolution.
Article XVI
Interruption of Arbitration Proceedings
- 1. Due to serious reasons upon request of the party or from its own initiative or after interrogation of the parties, the Court of Arbitration may resolve upon interruption of arbitral proceedings for a period stated in the resolution on interruption of arbitration proceedings.
- 2. The Court of Arbitration is not bound with party’s request on interruption of arbitration proceedings.
- 3. If after expiry of the period for which the proceedings have been interrupted the Court of Arbitration does not resolve upon extension of that period upon party’s request due to serious reasons within one month following expiry thereof, the Court of Arbitration shall continue in arbitration.
Section Two
Preparation of Arbitration Proceedings
Article XVII
Appointment of the Sole Arbitrator or the Tribunal
- 1. The parties to arbitration agreement:
- a) may appoint a sole arbitrator or members of the tribunal in the arbitration agreement, or
- b) may agree upon manner of appointment of a sole arbitrator of members of the tribunal; if a sole arbitrator or members of the tribunal are not appointed in the manner agreed between the parties, the procedure set out in the Article XVII para. 2 of the Rules of Procedure of the Court of Arbitration shall apply accordingly.
The President shall appoint a person agreed in accordance with procedure set out in letter a) or b) under conditions set out in the Rules of Procedure of the Court of Arbitration to the function of the sole arbitrator (members of the tribunal).
- 2. If the parties to arbitration failed to agree upon appointment of a sole arbitrator or members of the tribunal or on manner of appointment of a sole arbitrator or members of the tribunal,
- a) in case the tribunal has the jurisdiction to settle the dispute in arbitration, each party appoints one arbitrator and arbitrators thus appointed to the function by the President shall agree upon person of the presiding member of the tribunal from candidates registered with the Roll of Arbitrators of the Court of Arbitraton (the Chairman of the tribunal). If:
- the claimant fails to appoint an arbitrator in the statement of claim,
- the respondent fails to appoint an arbitrator in the statement of defense,
- two arbitrators appointed on the basis of proposals for appointment of the parties fail to appoint third presiding member of the tribunal (the Chairman of the tribunal) from candidates registered with the Roll of Arbitrators of the Court of Arbitration within ten (10) calendar days from their appointment,
arbitrator (arbitrators) concerned shall be appointed by the President from candidates registered with the Roll of Arbitrators of the Court of Arbitration; the President shall also appoint the Chairman of the tribunal as the case may be,
- b) in case a sole arbitrator has the jurisdiction to settle the dispute in arbitration, the President shall appoint the sole arbitrator from candidates registered with the Roll of Arbitrators of the Court of Arbitration.
- 3. If a candidate not registered with the Roll of Arbitrators of the Court of Arbitration shall be appointed to the function of arbitrator, such candidate must approve its appointment in writing. The party that requested appointment of a candidate not registered with the Roll of Arbitrators of the Court of Arbitration to the function of arbitrator is obliged to pay an extra fee for reimbursement of costs of arbitration that shall be resolved by an arbitrator not registered with the Roll of Arbitrators of the Court of Arbitration; if several parties requested appointment of a candidate not registered with the Roll of Arbitrators of the Court of Arbitration to the function of arbitrator or such an appointment shall be made on the basis of agreement of the parties to arbitration within the meaning of para. 1 hereof, the parties are obliged to pay arbitration fee jointly and severally; obligation of the claimant to pay arbitration fee (provision of Article VII of the Rules of Procedure) is not thereby affected. If the party/parties fail to pay an extra fee for reimbursement of costs of arbitration that shall be resolved by an arbitrator not registered with the Roll of Arbitrators of the Court of Arbitration within five (5) calendar days from delivery of request of the Court of Arbitration, the President shall proceed in accordance with para. 2 of this Article.
- 4. If the function of a sole arbitrator or a member of the tribunal is terminated during arbitration (provision of Article VII para. 3 of the Statute of the Court of Arbitration), the President appoints new sole arbitrator or new member of the tribunal in the same manner as the previous arbitrator has been appointed. In event that new sole arbitrator or new member of the tribunal is not appointed within fifteen (15) calendar days from termination of function of previous arbitrator, the President appoints new sole arbitrator or new member of the tribunal from candidates registered with the Roll of Arbitrators of the Court of Arbitration; provisions of para. 2 and 3 of this Article shall apply accordingly.
Article XVIII
Challenge of Arbitrator or Member of the Tribunal
- 11. Arbitrator or member of the tribunal is obliged to inform parties to arbitration and the President on all circumstances that could give rise to his/her expulsion from proceeding and settling the arbitration dispute if, with regard to his/her relationship to the subject matter of the dispute or to the parties to arbitration, there is a doubt on arbitrator’s impartiality.
- 2. Each party to arbitration may in writing challenge with the President bias of arbitrator or member of the tribunal appointed upon motion of that party only on grounds that the party learned after appointment of arbitrator or member of the tribunal within seven (7) calendar days after the party learned of grounds of bias.
- 3. Each party to arbitration may in writing challenge with the President bias of arbitrator or member of the tribunal appointed in other manner than upon motion of that party only on grounds that the party learned after appointment of arbitrator or member of the tribunal within seven (7) calendar days after the party learned of grounds of bias.
- 4. The challenge of arbitrator shall contain name of arbitrator against whom it is filed, grounds for challenge and time when the party learned of such grounds.
- 5. The President shall disregard the challenge in event that:
- 1. it does not contain prescribed essentials,
- 2. it is delayed,
- 3. the challenge is filed repeatedly on the same grounds, despite the Presidium has already issued resolution in such case.
- 6. Without undue delay following receipt of the challenge of arbitrator or member of the tribunal, the President requests other parties as well arbitrator or member of the tribunal concerned to submit their written pleadings in this respect; the President requests the parties to deliver their written pleadings to the Court of Arbitration within ten (10) calendar days. If the party fails to submit its written pleadings containing its statement on challenge of arbitrator or member of the tribunal upon request of the President within stated period, it is presumed that such party disagrees with the challenge. In event that challenged arbitrator or member of the tribunal does not resign from his/her function or other parties to arbitration disagree with the challenge, the President submits the challenge of arbitrator or member of the tribunal to the Presidium to decide. Consent of the parties with the challenge of arbitrator or member of the tribunal is considered to constitute an agreement of parties on recall of arbitrator or member of the tribunal pursuant to Article VII para. 3 point 2 of the Statute of the Court of Arbitration; day of delivery of last pleadings of the party is considered to be the day of delivery of such agreement on recall to the President.
- 7. No remedy is admissible against resolution of the Presidium on the challenge of arbitrator or member of the tribunal.
- 8. The Court of Arbitration may proceed in arbitration during period when the Presidium decides on the challenge but may not deliver arbitration award until the resolution of the Presidium on the challenge is issued.
Article XIX
Determination of Jurisdiction
- 1. The Court of Arbitration is authorised to determine its jurisdiction including objections concerning existence or validity of arbitration agreement.
- 2. If the Court of Arbitration comes to a conclusion that it does not have jurisdiction to settle the dispute in arbitration, it resolves upon suspension of proceedings.
- 3. The party may object jurisdiction of the Court of Arbitration on grounds of non-existence or invalidity of the arbitration agreement in its first pleadings on the merits at the latest. This time limit does not apply to objection on grounds that arbitration is not admissible on the merits of a given dispute; such an objection may be raised until termination of oral hearings in case of oral form arbitration and until delivery of arbitration award in case of written form arbitration. Objection on grounds that resolution on certain issue disputed in arbitration goes beyond jurisdiction of the Court of Arbitration shall be filed by the party not later than in time when the party learns of such an issue.
- 4. The Court of Arbitration may admit delayed objection of lack of jurisdiction if delayed filing of that objection is caused by an event that the court considers appropriate.
- 5. If the Court of Arbitration comes to a conclusion that it has a jurisdiction to settle the dispute, it decides upon objection pursuant to Article XIX para. 3 of the Rules of Procedure of the Court of Arbitration by way of a special resolution or in arbitration award. If the Court of Arbitration issues a special resolution that it has a jurisdiction in the dispute, the party that has filed an objection of jurisdiction may request review of such resolution with ordinary courts within 30 calendar days following receipt of the resolution.
- 6. No remedy is admissible against resolution of the ordinary court on objection of the party pursuant to Article XIX para. 5 of the Rules of Procedure of the Court of Arbitration.
- 7. The Court of Arbitration may proceed in arbitration and issue arbitration award during period when the ordinary court decides on the objection of the party pursuant to provision of Article XIX para. 5 of the Rules of Procedure of the Court of Arbitration.
TSection Three
Course of Arbitration Proceedings
Article XX
- 1. The Court of Arbitration prepares and proceeds in the arbitration in the manner that the facts of the case may be established as soon as practicable and the dispute settled without undue delays.
- 2. In the course of preparation of arbitration the Court of Arbitration examines in particular fulfilment of conditions for arbitration and provides for all necessary steps aimed at removal of eventual discrepancies.
- 3. The Court of Arbitration examines the statement of claim, its annexes and statement of defense and its annexes as well as other pleadings of the parties to arbitration.
Article XXI
- Without undue delay following receipt of any pleadings, written communication or other information from the party by the Court of Arbitration, the court delivers or notifies the same to all other parties. The Court of Arbitration at the same time notifies the parties of contents of experts‘ appraisal or documents that could serve as a basis for issuance of an award on the merits.
Article XXII
Delayed Actions
- In case the party could not duly or timely perform action required due to justifiable cause, the Court of Arbitration may, taking into account the nature of obstacle baring the party from due or timely performance of such action and principle of efficiency and rapidity of arbitration proceedings, allow the party to perform such action additionally.
Article XXIII
Oral Hearings
- 1. The Court of Arbitration summons the hearings by issuing resolution to this extent, if:
- 1. the parties to arbitration have agreed upon oral form of arbitration proceedings, or
- 2. conditions for opening of oral hearings are fulfilled in accordance with Art. XII para. 3 of the Rules of Procedure of the Court of Arbitration.
Resolution on summon of the hearings shall contain specification of the case as well as time and place of the hearings. The Court of Arbitration delivers the resolution on summon of the hearings to all parties to arbitration so that the parties receive said resolution at least five (5) calendar days before opening of the hearings and in case of the party with address for delivery of correspondence abroad at least thirty (30) calendar days before opening of oral hearings.
- 2. If the party duly and timely acquainted of time and place of the hearing fails to participate at the hearing without requesting the Court of Arbitration to postpone the hearing on serious grounds notified and proven to the Court of Arbitration, or if the Court of Arbitration does not consider grounds of party’s request for postponement of the hearing as serious or evidence thereof as reliable, the Court of Arbitration may proceed in arbitration, hear the case even without presence of the defaulting party and may issue arbitration award on the basis of written pleadings of the parties and evidence submitted or proposed by the parties to arbitration.
- 3. Each party to arbitration may declare its consent with occurrence of the hearing in absence of that party.
- 4. If required, oral hearings may be postponed upon request of the party or upon motion of the Court of Arbitration.
Section Four
Exercise of Evidence
Article XXIV
- 1. The Court of Arbitration establishes facts of the case:
- 1. on the basis of allegations of the parties to arbitration contained in their written pleadings and in case of oral form arbitration also on the basis of oral statements of the parties made at the hearings,
- 2. on the basis of evidence exercised.
- 2. The parties to arbitration are obliged to present evidence to sustain their allegations.
- 3. The Court of Arbitration exercises only evidence requested by the parties. The Court of Arbitration considers selection and manner of exercise of evidence on basis of their potential contribution to establishment of facts of the case.
- 4. The Court of Arbitration assesses findings from evidence exercised impartially and upon its discretion, taking into account all facts that emerged in arbitration.
- 5. In event that witnesses or experts are under oath in respect of confidential information, business or banking secret or silence imposed or recognised by the law, such persons may testify on subject matter of such confidential information, secret or silence only if they have been exempted from such an obligation in accordance with the law.
Article XXV
Appointed Expert
- 1. The Court of Arbitration may appoint an expert (experts), if court’s decision depends upon assessment of facts that require specialized skills. Expert submits experts‘ opinion addressing questions raised to him/her by the Court of Arbitration.
- 2. The Court of Arbitration may impose to the party to arbitration an obligation to provide expert with all necessary information, documents, items or explanations as well as to perform or to bear certain activities if required for execution of experts‘ appraisal.
- 3. If the Court of Arbitration considers it necessary, it may request expert’s presence at the hearing and the parties may interpellate and demand explanations from the expert.
PART FOUR
ARBITRATION AWARD
Article XXVI
Form of Award and Notification of Awards
- 1. The Court of Arbitration issues arbitration award if:
- 1. specification of the Court of Arbitration,
- 2. names and surnames of arbitrators or sole arbitrator,
- 3. specification of the parties to arbitration and their representatives with names and surnames or business names,
- 4. enunciation of award,
- 5. reasoning on which the award is based except for case when the parties to arbitration agreed that the reasoning is not required or when the award concerns approval of settlement agreement concluded between the parties to arbitration,
- 6. instruction on possibility to file a petition for annulment of arbitration award with ordinary court,
- 7. instruction on possibility of review of arbitration award by other arbitrator (or three-member arbitral tribunal), if the parties agreed on such a possibility in the arbitration agreement,
- 8. place of arbitration,
- 9. date of issuance of arbitration award.
- 2. Written counterpart of arbitration award is signed by a majority of arbitrators who delivered award on the merits; reason of missing signature shall be indicated in the arbitration award. Written counterparts of arbitration resolution shall be signed by the Chairman of the tribunal or by sole arbitrator in event that arbitration is held by the sole arbitrator.
- 3. If the Court of Arbitration adopts resolution at the hearing, it shall be announced to present parties. The Court of Arbitration shall deliver written counterparts of arbitration resolution if a remedy is available against such resolution or it is necessary for conducting of arbitration proceedings or if the resolution imposes obligation upon the parties.
- 4. If the Court of Arbitration does not open oral hearings, arbitration resolution shall be notified to the parties by delivery of written counterpart thereof.
- 5. If the Court of Arbitration opens oral hearings, it announces arbitration award at the hearing in presence of all parties to arbitration immediately after close of oral hearings or at a special oral hearing to which the parties shall be summoned for this purpose. The Court of Arbitration may waive announcement of arbitration award and notify the parties of the award by delivery of written counterparts of arbitration award to the parties even in case that oral hearing took place in arbitration.
Article XXVII
Period for Performance of Obligation and Enforceability
- 1. If the Court of Arbitration imposes obligation in the arbitration award, enunciation of the award shall contain period of three (3) calendar days for performance of the obligation, unless the Court of Arbitration considers it appropriate, taking into account nature of the obligation, to determine longer period for performance. Period for performance of an obligation imposed by the arbitration award commences on the day of validity of the award.
- 2. Arbitration award becomes enforceable upon useless lapse of period for performance of obligation imposed by the arbitration award.
- 3. Provisions of para. 1 and 2 of this article shall apply accordingly to arbitration resolution imposing obligation to the parties.
Article XXVIII
Decision Making
- 1. A majority vote of arbitrators in proceedings before the tribunal is required for each decision in arbitration.
- 2. The Court of Arbitration adopts decisions in its private sessions by voting of arbitrators; only arbitrators that took part in arbitration may be present at the private session. The Chairman of the tribunal executes minutes on voting; all present arbitrators shall sign the minutes. Arbitrator who has been overruled in voting may attach his/her dissenting opinion to the minutes containing his/her reasoning. If the arbitrator refuses to sign the minutes or fails to sign it due to other reason, such fact and the reason thereof shall be stated in the minutes.
- 3. Arbitrators may authorise in writing the Chairman of the tribunal to adopt procedural measures in arbitration proceedings.
Article XXIX
Review of the Award
- 1. The parties to arbitration may agree in the arbitration agreement that the arbitration award may be reviewed by other arbitrator (or three-member arbitral tribunal) registered with the Roll of Arbitrators on the basis of request of either party. Review of arbitration award by other person than arbitrator registered with the Roll of Arbitrators of the Court of Arbitration is not possible.
- 2. If the parties to arbitration did not agree on review of the arbitration award in the arbitration agreement, review of such award by arbitrator (arbitrators) is not possible.
- 3. Arbitration award shall be reviewed by three-member arbitral tribunal expect if the award was issued by the sole arbitrator and at the same time the parties did not agree upon review of such award by three-member arbitral tribunal. If the sole arbitrator issued the arbitration award and the parties did not agree upon review of such award by three-member arbitral tribunal, the arbitration award shall be reviewed by sole arbitrator.
- 4. The party to arbitration may request review of arbitration award within fifteen (15) calendar days from receipt thereof.
- 5. Provisions of Article VIII para. 6 and 7, Article X para. 2 and 3 and Article XVII of the Rules of Procedure of the Court of Arbitration shall apply accordingly to appointment of arbitrator (arbitrators – members of the tribunal) competent to review arbitration award.
- 6. In reviewing arbitration award, the Court of Arbitration shall apply accordingly provisions of the Rules of Procedure of the Court of Arbitration governing arbitration proceedings on the merits, unless this article provides otherwise; new facts of the case as well as evidence supporting the same may be taken into account in review proceedings only if conditions set out in general regulation on court proceedings are met.
- 7. The Court of Arbitration does not open oral hearings in proceedings on review of arbitration award. Provision of Art. XII para. 3 of the Rules of Procedure shall apply accordingly.
- 8. The Court of Arbitration issues an arbitration award sustaining or reversing challenged arbitration award in review proceedings.
- 9. Review of arbitration award issued by the Court of Arbitration in accordance with this article in review proceedings is final; scrutiny of such award by other arbitrator (arbitrators) is inadmissible.
Article XXX
Effects of the Award
- 1. Delivered arbitration award that is final (review is not possible) bears the same effects upon the parties to arbitration as valid judgement of an ordinary court.
- 2. Upon request of the party the Court of Arbitration shall imprint clause confirming validity and enforceability of the award to final and delivered arbitration award.
Article XXXI
Correction and Interpretation of the Award
- 1. At any time the Court of Arbitration from its own initiative or upon request of the party makes corrections of typographical errors, errors in computation or any other errors of similar nature that occurred in written counterparts of arbitration award. Award thus corrected shall be delivered to all parties to arbitration.
- 2. Within thirty (30) calendar days after the receipt of the award, either party may request that the Court of Arbitration give an interpretation of the award.
PART FIVE
CONCILIATION PROCEEDINGS BEFORE THE COURT OF ARBITRATION
Article XXXII
- 1. In the course of arbitration, the parties may peacefully settle their dispute by concluding an agreement on settlement, which agreement shall be subject to approval by the Court of Arbitration in form of arbitration award on agreed conditions of settlement.
- 2. The Court of Arbitration may, upon request of either party or from its own initiative propose to the parties a peaceful settlement of their dispute in conciliation. Conciliation proceedings is conditional upon consent of all parties and upon reimbursement of the fee for conciliation; conciliation fee is due only in case of written form arbitration and shall be paid jointly and severally by the parties. If any party does not agree with conciliation, does not plea to the courts‘ proposal for conciliation or conciliation fee is not reimbursed within ten (10) calendar days from receipt of court’s notice in this respect, the Court of Arbitration continues in arbitration proceedings.
- 3. If all the parties consent to the conciliation and pay the conciliation fee, the Court of Arbitration shall institute special oral hearings where it appropriately mediates the parties to reach settlement agreement. Provisions of Article XXIII of the Rules of Procedure of the Court of Arbitration shall apply accordingly to summon and conduct of conciliation hearings. If the parties fail to reach settlement agreement or either party requests so, the Court of Arbitration closes the conciliation hearings and continues in arbitration proceedings.
PART SIX
COSTS OF ARBITRATION
Article XXXIII
- 4. Costs of arbitration shall be determined by the Court of Arbitration.
- 2. Regulation on Costs of Arbitration and the Fee Chart form annex to the Rules of Procedure of the Court of Arbitration.
- 3. Costs of arbitration include in particular cash-expenses of the parties to arbitration and their representatives, fees for individual measures or proceedings of the Court of Arbitration, costs of exercise of evidence, cash-expenses incurred by the Court of Arbitration, experts’ fee, translators’ fee, as well as attorneys’ fee for representation of the party to arbitration in arbitration in the amount of tariff rate set by the applicable legal regulation on attorneys fees.
PART SEVEN
COMMON AND FINAL PROVISIONS
Article XXXIV
- 1. The parties that entered into arbitration agreement establishing jurisdiction of the Court of Arbitration are bound by regulations of the Court of Arbitration, in particular by the Statute of the Court of Arbitration, the Rules of Procedure of the Court of Arbitration, the Regulation on Costs of Arbitration and the Fee Chart valid in time of filing of the statement of claim with the Court of Arbitration; provision of Article XXXIV para. 2 of the Rules of Procedure of the Court of Arbitration is not thereby affected.
- 2. In matters not regulated by the present Rules of Procedure the Court of Arbitration shall apply provisions of the Statute of the Court of Arbitration, Arbitration Act and in matters not regulated by the Act it shall apply provisions of general regulation on court proceedings.