Arbitration can be a complex process, but it doesn’t have to be intimidating.If your business is involved in arbitration in the UAE, understanding what happens when an arbitral award is issued is crucial. This guide breaks down the key points you need to know about how UAE arbitral award enforcement is determined, applied, and enforced.
How Is the Law Applied to the Dispute?
When a dispute goes to arbitration, the Arbitral Tribunal—essentially the decision-makers—must apply the law that the parties have agreed upon. According to law, the Tribunal will stick to the rules and conditions that the parties chose when they set up the arbitration. If the parties agreed to apply the law of a specific country, that’s the law the Tribunal will use. However, it’s important to note that this chosen law must not conflict with the public order and morality of the UAE.
So, what if the parties didn’t pick a specific law? In that case, the Tribunal will select the law it believes is most relevant to the dispute, taking into account the contract terms, business customs, and previous dealings between the parties. This flexibility ensures that the arbitration is fair and grounded in the most applicable legal framework.
Can Interim or Partial Decisions Be Made?
Yes, they can! Article (39) allows the Arbitral Tribunal to issue interim or partial awards. This means that the Tribunal can make decisions on certain parts of the dispute before resolving the entire case. These interim decisions can be particularly useful in complex cases where one issue needs to be settled before moving on to others. These orders are enforceable in court, giving them real power during the ongoing arbitration process.
What Happens If Both Parties Agree on a Settlement?
If the parties manage to reach an agreement before the final award is issued. The law allows them to submit the terms of their settlement to the Arbitral Tribunal. The Tribunal will then issue an award that reflects this agreement, officially ending the dispute. This UAE arbitral award enforcement, based on the settlement, is just as enforceable as one reached through a full arbitration process, making it a powerful tool for resolving disputes amicably.
What Does the Final Arbitral Award Look Like?
According to Article (41) of Federal Law No. (6) of 2018, the final arbitral award must be in writing and include several key elements:
- Names and Addresses: The award will list the names and addresses of the parties involved, as well as the arbitrators.
- Arbitration Agreement: A copy of the original arbitration agreement will be included.
- Summary of the Case: The award will summarize the claims, defenses, and main arguments of both sides.
- Decision: Finally, the award will provide the Tribunal’s decision on the dispute, including any reasoning if required by the law or agreed upon by the parties.
If there’s more than one arbitrator, the decision will be made by a majority. Even if one arbitrator disagrees, their dissenting opinion will be recorded. The award is legally valid as long as the majority of the arbitrators sign it. Ensuring that the decision is well-documented and clear.
How Long Does It Take to Issue a Final Award?
Timing is critical in arbitration. Law states that the Tribunal must issue its final award within the time agreed upon by the parties. If no time is set, the award should be made within six months from the first arbitration session. This period can be extended by another six months. If more time is required, the Tribunal or one of the parties can ask the court for an extension.
What If There’s an Issue Outside the Tribunal’s Jurisdiction?
Sometimes, during arbitration, an issue may arise that falls outside the Tribunal’s jurisdiction—like a document being challenged as a forgery or a criminal case being filed. Article (43) allows the Tribunal to either continue with the arbitration or pause the proceedings until the issue is resolved in court. This flexibility ensures that the arbitration can proceed smoothly without being derailed by unrelated legal matters.
What Happens After the Award Is Issued?
Once the award is issued, it must be communicated to all parties, as stated in Article (44). The Tribunal has 15 days to deliver a copy of the award to each party. Ensuring that everyone is informed and can proceed accordingly.
The arbitration process officially ends when the final award is delivered. However, as Article (45) notes, there are other situations where the proceedings might end earlier. Such as if the parties agree to terminate the arbitration or if it becomes impossible to continue.
What About Arbitration Expenses?
Arbitration isn’t free, and the expenses can add up. Article (46) gives the Tribunal the authority to determine the costs. Which may include arbitrator fees, expert fees, and other expenses related to the arbitration. These costs can be assigned to one or both parties depending on the circumstances. If the parties disagree with the costs, they can ask the court to review them. But only if there wasn’t a prior agreement on the expenses.
If the parties don’t pay the arbitration expenses, Article (47) allows the Tribunal to withhold the award until payment is made. This provision ensures that the costs of arbitration are covered before the final decision is enforced.
Conclusion
UAE arbitral award enforcement are legally binding decisions that resolve disputes in a manner agreed upon by the parties involved. Whether you’re preparing for arbitration or need to enforce an arbitral award. Consulting with Dubai Lawyer or Dubai legal consultants who specialize in UAE arbitration law can provide invaluable guidance. They can help you understand your rights, manage the costs, and ensure that the arbitration process is conducted smoothly and fairly.
For further assistance and to ensure your business stays on the right track. Consider reaching out to a reputable law firm in Dubai.