What Is Arbitration?

Arbitration is a form of private dispute resolution by an independent third party, who issues a binding decision. As Roy Goode describes, arbitration is an autonomous, a national institution, the procedures of which are not subject to the constraints of national laws.

This form of dispute resolution has become increasingly important due to the expansion and globalisation of cross-border investment and trade.

This has led to the creation of complex commercial relationships between businesses, investors and states. Today, arbitration is one of the primary means of resolving complex, transnational commercial disputes.

The International Chamber of Commerce is one of the largest business organisations in the world, and it administers arbitrations in accordance with its Rules.

Many businesses choose ICC arbitration to resolve disputes because the rules are straightforward, accessible and widely used.

A standard ICC arbitration clause, which may be inserted into contracts, will be drafted in the following way: 'All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said rules.'

Structure of Arbitration

Proceedings under ICC Rules

Pre-Arbitration procedure

Commencing the Arbitration

Firstly, a party submits its Request for Arbitration to the Secretariat at an office specified in the Internal Rules. The date on which the Request is received by the Secretary is deemed to be the date of commencement of the arbitration.

The Request contains detailed information of the party's claim, such as a statement of the facts, the relief sought, the agreements in question including the arbitration agreement, proposals as to the place of the arbitration, the applicable laws and the language of the arbitration, as well as payment of the filing fee.

The Respondent must then submit an Answer to the Secretariat within 30 days from the receipt of the Request, with its own observations on the substantive dispute and the procedure of the arbitration. The Secretariat will then communicate the Answer and annexed documents to all other parties.

The Claimant must submit a reply to any counterclaim within 30 days from the date of receipt of the counterclaims communicated by the Secretariat.

The arbitral tribunal has the jurisdiction to decide any matters concerning the existence, validity or scope of the...