INTRODUCTION
The UNCITRAL Rule of arbitration is sets of procedural rules aimed at the resolution of international disputes. They apply only when both the parties have chosen or agreed to resolve their dispute. United Nations Commission on International Trade Law (UNCITRAL), created and adopted in 1976 can be used in both administered arbitration and ad hoc arbitration. These rules are frequently used in investment arbitration, commercial arbitration and arbitration between states.
UNCITRAL Rule: by the General Assembly on 31/98 on15 December 1976. The rules have covered all aspects of arbitral process, giving a model arbitration clause, setting out the procedural rules regarding the appointment of the arbitrators and conduct of the arbitral proceedings, and establishing rules in relation to its form, effect and the interpretation of the award. As of now in the present, there exist three different types of the Arbitration Rules:
- the 1976 version of UNCITRAL Rules
- the 2010, revised version of UNCITRAL Rule; and
- the 2013 version
Where it incorporates the UNCITRAL Rules Transparency for Treaty- based Investor- State Arbitration[1].
The UNCITRAL Arbitration Rules were first adopted in 1976 and since then they have been used for the settlement of a broad range of disputes, which includes between private commercial parties where no arbitral institution is involved, investor- State disputes, investor- State disputes and commercial disputes all are administered by arbitral institutions. In 2006, the commission also decided that the UNCITRAL Arbitration Rules shall be revised in order to meet the changes in the arbitral practice over the last up to thirty years. . The amendment made has also aimed at enhancing the efficiency of arbitration through these Rules without modifying the original text of it, and its sprit or drafting style. The UNCITRAL Arbitration Rules (revised-2010) and it have been effective from 15 august 2010. . It compromise of the provisions dealing with, amongst others, liability, multiple party arbitration, and a procedure to object to the experts who are appointed by the arbitral tribunal. Added with several number of innovative characteristic which are contained with Rules aim to enhance the procedure efficiency, also including revised procedures for the replacement of an arbitrator, the requirement for reasonableness of the costs, and also for a review mechanism regarding the costs of arbitration. They also include in more detail provisions on interim measures.
Unless both the parties agree otherwise, the UNCITRAL Rules[2]applied to arbitration agreements concluded on or after 15 August 2010.i.e. the revised date when UNCITRAL Rules entered into force[3]. The previous UNCITRAL Rules which were issued in 1976 will also be continued to apply to all arbitration agreements concluded before that date.
Both the 1976 and the 2010 UNCITRAL Rules are distinct from UNCITRAL’s Model Law in International Commercial Arbitration, adopted in 1985 and the revised version in 2006, which has been adopted (modified form) by more than 50 jurisdictions.
SCOPE OF THE APPLICATION[4]
1. Where the parties to a contract have agreed in writing that disputes in relation to that contract shall be referred to arbitration under the UNCITRAL Arbitration Rules, such disputes will be settled in with these Rules subject to any such changes as the parties may have agreed in writing.
2. UNCITRAL Rules shall govern the arbitration except that where any of these Rules is in conflict with a provision of the law applicable to the arbitration from which both the parties cannot derogate, that provision shall prevail.
Clause:
Any of the claim or dispute controversy that arises out of relating to the breach, invalidity, contract, or termination, shall be settled by the arbitration to the UNCITRAL Arbitration Rules.
Any dispute, or claim controversy arising out of or relating to the contract, or the breach, termination or invalidity, shall be settled by arbitration according to the UNCITRAL Arbitration Rules. And hence to function these rules most efficiently, parties should specify their appointing authority in their agreement, who will be appointed as arbitrators and decide on challenges when necessary.
In order for these rules to function efficiently, parties should specify an appointing authority in their arbitration agreement that who will appoint arbitrators and decide challenges when necessary.
Appointment of Arbitrators/Arbitrator:
The model of Arbitration Clause, advises the parties to consider doing so, in any event, nay instance or for any disagreement about the appointment of an arbitrator, and also to ask the Permanent Court of Arbitration in The Hague[5] to designate an appointing authority. This process sometimes takes time than expected and may result in substantial and serious delays to the whole. Parties can also avoid such issues by agreeing to appoint an authority beforehand. Appointment of the Arbitrators and its wide range of networks of its arbitrators in the region are beyond.
Administration of the Arbitration:
The UNCITRAL Arbitration Rules do not provide for the management of the financial other aspects which are practical aspects of the arbitration. It is left entirely to the Arbitral Tribunal and the parties. It also fixes its own fees, determines the amount to be deposited towards the fees. The parties and the Tribunal also try to manage other administrative chores in its proceedings.
Now with revised version of UNCITRAL Rule 2010, provides parties to review the Arbitrators fees and expenses. It also determines that the parties should be informed 15 days proposal for the Arbitrators in Article 41(3)[6].
CONCLUSION
The UNCITRAL Rules are intended for ad hoc international commercial arbitrators and that are not administered by any arbitral institution and, also it do not proceed under the rules of such an institution. The UNCITRAL Rules may also be used in arbitrations between any of the investors and states which may proceed pursuant to a treaty, such as a bilateral investment treaty; here the treaty allows investors to pursue arbitration to be conducted under those rules. The development in the revised Rules is definitely a great step in a right direction in providing quick and effective resolution in the disputes and has provided a valuable improvement maintaining the features, and positively contributing to the efficient conduct of modern arbitrations.
[1] https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/uncitral-arbitration-rules-2013-e.pdf
[2] Revised and issued in 2010 and re-issued in 2014.
[3]https://www.wilmerhale.com//media/files/wilmerhale_shared_content/files/editorial/publication/revised_uncitral_arbitration_rules.pdf
[4] UNCITRAL Rule by the General Assembly on 31/98 on15 December 1976 (ACT).
[5] It is a World organization for cross border co-operations in civil and commercial matters.
[6] https://siac.org.sg/component/content/article/62-our-rules/rules/311-uncitral-arbitration-rules
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