Bill Of Arbitration

• Published date: 24 January 2024
• Subject Matter: Litigation, Mediation & Arbitration, Arbitration & Dispute Resolution
• Law Firm: Bureau 28a
• Author: Bureau 28a

The second reading as of 19 December of the draft Law, On Arbitration, has been promulgated by the Milli Maclis, the parliament. This proposed legislation seeks to replace the 1999 Law No. 757-IQ, On International Arbitration based, in turn, on the UNCITRAL Model Law on International Commercial Arbitration (1985). The Bill incorporates the amendments adopted in 2006 to the Model Law.

The paramount objective of the Bill is to institute an arbitration system domestically to mitigate the caseload of courts. As such and unlike the previous Law on International Arbitration, the Bill includes both international and domestic (an arbitral tribunal with the venue of arbitration in Azerbaijan) arbitration. This proposed legislation outlines regulatory framework for arbitration, its procedural aspects and institutionalization, arbitration agreements, and the recognition and enforcement of foreign arbitration awards.

Commercial disputes, and disputes wherein parties can independently address the subject matter without affecting third-party rights, can be resolved through arbitration. The Bill includes a list of matters not subject to arbitration: (i) criminal and administrative offenses; (ii) arising from administrative and other public legal relations; (iii) matrimonial; (iv) related to legal status of individuals; (v) employment and labor; (vi) disputes out of environmental protection; (vii) inheritance; (vii) existence and registration of intellectual property rights; (viii) competition and consumer protection as well as consumer credits; (ix) in rem rights in real estate located in the territory of Azerbaijan; (x) insolvencies and bankruptcies; (xi) liquidation of an entity or annulment of its decisions (if the entity has a legal address in Azerbaijan); (xii) disputes between individuals except where they are business subjects; (xiii) against carriers under agreements of carriage; and (xiv) leases of real estate within the territory of Azerbaijan. Claims against carriers arising from carriage contracts as well as disputes regarding lease of real estate in Azerbaijan can be considered in domestic arbitration.

A permanent arbitration institution (domestic) is an accredited non-profit entity that has undergone the respective state registration. The Bill does not define a form among those of non-commercials in the Civil Code or otherwise the institution can take form of.

The institution is responsible for conducting arbitration proceedings, organizational support for...