AIAC Fast Track Arbitration Rules
The AIAC (Asian International Arbitration Centre) Fast Track Arbitration Rules are designed to provide a streamlined arbitration process for parties seeking to resolve disputes quickly and efficiently. These rules are tailored to deliver a binding arbitration award in the shortest possible time frame with minimal costs, ensuring that the resolution process is both swift and economical.
Procedure of the Fast Track Arbitration Rules Pursuant to Schedule 4 of AIAC Arbitration Rules 2023
As outlined in clause 1(2) of Schedule 4 of the Rules, a party may initiate a Commencement Request under Clause 4 of Schedule 4 if any of the following conditions are fulfilled. Firstly, the Parties must have mutually consented in writing, either through an arbitration agreement or another form of written agreement, to resolve their dispute through arbitration under the AIAC Fast Track Procedure. Alternatively, the disputed amount must be valued at less than USD300,000.00 for international arbitration or below RM1,000,000.00 for domestic arbitration.
The timeline for the conduct of the arbitration are as follows:
- Clause 4 dictates the commencement procedure, where a Notice of Arbitration (“Notice”) must be filed with the This Notice should be accompanied by supporting documents, including the written arbitration clause or agreement, confirmation that all preconditions to arbitration have been satisfied and proof of payment for the registration fee.[1] The statement of claim must be communicated together with the Notice and sent to the Arbitral Tribunal (“Tribunal”) soon after the constitution of the Tribunal.[2]
- Clause 5 requires Respondent to respond to the Notice within 15 days of receipt and serve it to the Claimant and the The same shall be communicated by the AIAC to the Tribunal soon after its constitution. Further, the statement of defence shall be served to the claimant, AIAC and the Tribunal within 15 days of the constitution of the Tribunal. Unless allowed by the Tribunal, and if the Tribunal has the jurisdiction over it, a counterclaim or a set-off claim shall not be made at later stage than in the statement of defence.[[3]
- Clause 6 provides that the arbitration shall be decided by a sole arbitrator appointed by the parties within 15 days from the other party’s receipt of the Notice of Arbitraton. The Director of the AIAC may at the request of a party, appoint the sole arbitrator if the parties unable to appoint the sole arbitrator within such period.
- Clause 15 stipulates that unless agreed otherwise by the parties, the arbitration award shall be made within 6 months from the constitution of the Tribunal, with an extension of time not exceeding a total of 9 months from the constitution of the Tribunal.[4] If the risk arises of not being able to render the award within the 9 months, the Tribunal shall propose a final extension of time. In the event the proposed extension of time is not agreed upon by the parties, at the request of any party that the Fast Track Procedure no longer applies to the arbitration, and after inviting the parties to express their views, the Tribunal may determine whether to continue to conduct the arbitration in accordance with the AIAC Arbitration Rules. As contemplated in Clause 2, the parties may at any stage of the arbitration, agree that the Fast Track Procedures to no longer apply to the arbitration, with the Tribunal to still [5]
Why AIAC Fast Track Procedure?
As named, the primary advantage of the AIAC Fast Track Procedure is the speed with which disputes are resolved. The entire process, from commencement to award, is completed within a maximum of 9 months, if being extended from the initial timeline of 6 months, making it ideal for parties seeking a quick resolution. Further, Pursuant to Clause 3, the parties and Tribunal shall act expeditiously throughout the arbitration proceedings.
Apart from its cost effectiveness, the Fast Track Procedure offers the efficiency on the conduct of the arbitration with the Tribunal having the power to decide on whether to hold a hearing[6] and to request the parties to submit further written statements[7] after inviting the parties to express views. The Tribunal also decides which evidence should be produced by the parties[8] and which witnesses should be presented at the hearing if a hearing is held by the Tribunal.[9] This contributes to a streamlined process that minimizes unnecessary delays and focuses on the core issues of the dispute.
Despite the controlled conduct of arbitration, it still offers flexibility to the parties. The rules allow parties to opt out of the Fast Track Procedure at any stage if they agree to do so, maintaining the possibility of adapting the process to better suit the needs of their specific dispute. This flexibility ensures that the AIAC Fast Track Arbitration Procedure is not only efficient and cost-effective but also adaptable, accommodating the unique circumstances and requirements of each case.
Conclusion
In summary, the AIAC Fast Track Arbitration Rules offer a highly efficient and cost-effective method for resolving disputes. By adhering to a well-defined timeline and allowing the Tribunal the flexibility to manage the arbitration process dynamically, the Fast Track Procedure ensures swift and economical resolutions. The ability to appoint a sole arbitrator, coupled with the streamlined process of evidence submission and hearings, minimizes delays and focuses on the core issues at hand. Additionally, the option for parties to opt out at any stage provides the necessary adaptability to accommodate unique circumstances. Overall, the AIAC Fast Track Arbitration Procedure stands as a robust mechanism for parties seeking expedited and fair dispute resolution.
If you have any questions or queries, please contact our Deputy Managing Partner, Mr. Kevin Richard Nathan (kevin@nzchambers.com) or Associate Ms. Aireen Natasha Ab Wahab (aireen@nzchambers.com).
Authors
- Kevin Richard Nathan
- Aireen Natasha
References
[1] Rule 2 of the AIAC Arbitration Rules.
[2] Clause 4(2) of the Schedule 4, AIAC Fast Track Procedure of the Arbitration Rules 2023.
[3] Clause 11 of the Schedule 4, AIAC Fast Track Procedure of the Arbitration Rules 2023.
[4] Clause 15 of the Schedule 4, AIAC Fast Track Procedure of the Arbitration Rules 2023.
[5] Clause 2 of the Schedule 4, AIAC Fast Track Procedure of the Arbitration Rules 2023.
[6] Clause 10 of the Schedule 4, AIAC Fast Track Procedure of the Arbitration Rules 2023.
[7] Clause 13 of the Schedule 4, AIAC Fast Track Procedure of the Arbitration Rules 2023.
[8] Clause 14 of the Schedule 4, AIAC Fast Track Procedure of the Arbitration Rules 2023.
[9] Ibid.