Arbitration and Reconciliation Laws of Kuwait
The development of international and domestic business operations in the current century closely relates to the increasing requirement of Arbitration as a way of dispute settlement. The Commercial Reconciliation and Arbitration System is considered as a favored procedure than raising a case at the Court due to the relatively quick decision taking and solution reached, less cost, and the simplicity of procedure, besides keeping the friendly relations between the parties concerned.
The Arbitration and Reconciliation laws of Kuwait are explained here under three divisions:-
Civil and Commercial procedure Code, 1980
The Law Decree No.38 of 1980 promulgated the Civil and Commercial procedure Code, 1980. It stipulates that the Ministry of Justice may form one or more Arbitration Panels to be held in the seat of the Court of First Instance or in any other location to be specified by the Chief of the Panel.
The presidency over the Panel shall be taken over by a counsel or a Justice judge to be selected by the General Assembly of the competent court , and its membership duly comprise of two merchants or experts of other specialized areas all of whom shall act as members and to be selected from the rolls prepared for this said purpose in accordance with the procedures and rules to be issued under a resolution made by the Minister of Justice.
The number of arbitrators in the Panel shall be specified in the agreement of Arbitration or in any separate agreement. The parties have the freedom to choose their arbitrators. In case any dispute arise regarding arbitrators or if any arbitrator abstain or withdraw from Arbitration, the Court of jurisdiction originally competent to hear the dispute shall appoint the necessary number of arbitrators upon the request of one litigant party, under the ordinary procedure of case filing. The number of arbitrators appointed by the court shall be equal to the number agreed upon between the litigant parties or complementary thereto.
Judicial Arbitration-Civil and Commercial Articles, 1995
In view of the considerable importance of the arbitration mechanism and to avoid defects in the scope of judicial arbitration panels, the Judicial Arbitration-Civil and Commercial Articles, 1995 (Law No.11 of 1995), was promulgated.
The 1995 Acts promulgates the formation of one or more Arbitration Panels to be set up at the seat of Court of Appeal duly comprising 3 judicial men and 2 arbitrators, each of whom shall be nominated by each of the disputing parties, from among those arbitrators duly listed in the Roll which is kept at the Arbitration Department of the Court of any of Appeal or among such others. The appointment of Judiciary-men arbitrators shall be made under a Resolution issued by the Supreme Judiciary Council for a two year term of office, with effect from the date such a resolution is issued.
The Arbitration Panel shall have the jurisdiction:-
to determine and render arbitraments on the disputes the litigant parties concerned have agreed to bring before it.
- It has the exclusive jurisdiction to determine on the disputes arising between the Government Ministries, Authorities, Public Corporations and the Companies whose capital is fully owned by the State-Government or between all such institutions.
It has the jurisdiction to determine on arbitration applications and petitions submitted by individuals or private firms against Government Ministries, Authorities, Departments or Public Corporations regarding disputes arising between them, unless the relevant dispute was already brought before the judiciary.
The Arbitration Panel shall determine on all primary issues brought before it which are within the competence of civil and commercial judiciary as well as determining on the relevant rebuttals and pleas to its jurisdiction.
The Arbitration Panel's award or verdict shall be passed at the majority opinion, duly pronounced in an open sitting after relevant Notice served to both the parties. The awards, arbitrament and verdicts rendered by the Arbitration Panel shall have the force of adjudicated order, which shall be enforceable in conformity with the proceedings prescribed in the Civil & Commercial Procedure Code.
Chamber of Commerce & Industry, Kuwait ( KCCI) Regulations
The Commercial Reconciliation and Arbitration System is considered as a favored procedure than raising a case at the Court due to the relatively quick decision taking and solution reached, less cost, and the simplicity of procedure, besides keeping the friendly relations between the parties concerned. Based on that and to keep pace with the developments of the Kuwaiti Economy and the evolution and growth of its global relations, the Kuwait Chamber of Commerce and Industry decided to develop its commercial reconciliation and arbitration system. The KCCI advises its members and companies as well as all others indulged in the economic life, who like to solve their commercial disputes by the reconciliation and arbitration system to include in their contracts one of the following conditions:
Any dispute resulting from this contract should be referred to reconciliation in accordance with the conditions stipulated in the Reconciliation and Arbitration System of KCCI.
Any dispute whatsoever which may arise from this contract, its execution, or its cancellation is to be referred to arbitration in accordance with the conditions stipulated in the Reconciliation and Arbitration System of KCCI.
Reconciliation and Arbitration Condition:
Every dispute which may arise from this contract, its execution, or its cancellation may be referred to Reconciliation, and in case it is not finalized, then the dispute should be referred to arbitration in accordance with the conditions stipulated in the Reconciliation and Arbitration System of KCCI.