Arbitration of domestic and international claims

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Domestic and international arbitration is one of the important services of Vanda Law Firm.

Arbitration means entrusting the settlement of disputes to a third party selected by the parties. The purpose of the arbitrator is to resolve disputes between two or more natural or legal persons. This type of arbitration is without legal proceedings and someone other than the judge examines the matter and issues his decision.

Referral to the arbitrator can be mentioned in the condition of the contract. If the parties to the contract refer to arbitration in the text of the contract, this clause is called an arbitration clause.

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The difference between domestic and international arbitration

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Arbitration in domestic contracts, i.e. contracts in which both parties are Iranian nationals, is covered by the arbitration provisions of the Civil Procedure Law, but arbitration in international commercial contracts, i.e. contracts in which one of the parties is a foreign national, is governed by the “Commercial Arbitration Law”. International approved on 26/06/1376. In this regard, Article 36-1 of the recent law clearly states that “arbitration of international commercial disputes that is the subject of this law is excluded from the inclusion of arbitration rules contained in the Civil Procedure Law and other laws and regulations.”

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Agreement on arbitration

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The parties to a contract can refer their dispute to arbitration either before the dispute arises or after it, in the contract or even in a separate agreement, and even if the terms of arbitration are not included, they can choose the arbitrator by the court, arbitration centers. or identify a third party. Of course, it should be noted that if the arbitrator is appointed after a dispute arises, the subject of the dispute referred to arbitration must be clearly defined.

Article 454 of the Civil Procedure Law clearly states: “All persons who have the capacity to file a lawsuit can, with mutual consent, refer their disputes and disputes to the arbitration of one or more people.” has not placed an obstacle or prerequisite for agreeing to arbitration, As it considers this right to include all the proceedings. The same issue is also mentioned in another statement in paragraph C of Article 1 of the International Commercial Arbitration Law.

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Inability to refer to arbitration

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Some disputes, whether in domestic cases or in international contracts, cannot be referred to arbitration as explicitly stated by the legislator. These items include:

Bankruptcy claims

The principle of marriage and its termination

Divorce and lineage

Criminal lawsuits

If the parties agree to refer this category of disputes to arbitration, the agreement is ineffective and the parties are bound to go to court.

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Objection to domestic and international arbitration decision

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It should also be noted that the deadline for protesting the domestic arbitration award is 20 days after the notification of the arbitrator’s decision, but in international commercial arbitration, it is within 3 months from the date of notification of the arbitral award (corrective, supplementary, and interpretive), otherwise, a request for annulment is required. It will not be heard by the court.

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Objection to the arbitration award and its annulment

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One of the other important issues that should be mentioned is the issue of protesting the arbitration award and its annulment and the difference between the two in domestic and international arbitration. According to Article 489 of the Civil Procedure Law in domestic arbitration, in the following cases, the arbitration award is invalid and cannot be enforced, and the parties can ask the court to request its annulment;

The arbitration verdict contrary to the justified rules is right.

The arbitrator has issued a decision regarding a matter outside the subject of the arbitration.

The arbitrator issued a decision outside of his authority, and in this case, the part outside the authority of the arbitrator can be annulled.

The arbitration award has been issued and submitted after the expiration of the arbitration period.

The decision was issued by judges who were not authorized to issue decisions.

The arbitration agreement is invalid.

On the other hand, in the discussion of the International Commercial Arbitration Law, Article 33 of the International Commercial Arbitration Law enumerates the cases in which one of the parties can request the annulment of the award as follows:

One of the parties lacks legal capacity.

The arbitration agreement is not valid according to the law that the parties consider to be the governing

agreement, and if the governing law is silent, it is clearly against the law of Iran.

The annulment requester failed to present his reasons and documents for a reason that was beyond his authority.

The arbitrator has voted beyond his powers. If the issues referred to arbitration can be separated, only that part of the decision that was beyond the limits of the arbitrator’s powers can be annulled.

the arbitration panel or the procedure is not in accordance with the arbitration agreement, or in the case of silence or the absence of an arbitration agreement, it is against the rules contained in this law.

The arbitration award should contain the favorable and effective opinion of the arbitrator whose objection has been accepted by the subject authority of Article

The arbitration award was documented in a document whose falsity was proven by the final verdict.
After the issuance of

the arbitration award, find documents that prove the validity of the objector and prove that the other party has hidden those documents or caused them to be hidden.

Also, Article 34 lists three cases in which the arbitration award is declared null and void by the judicial authority without the need for any of the parties to submit a request for annulment. These cases are:

If the main issue of the dispute cannot be resolved through arbitration according to the laws of Iran.

If the content of the vote is against the public order or good morals of the country or the mandatory rules of this law.

The arbitration award issued regarding immovable property located in Iran is contrary to the laws of the Islamic Republic of Iran or to the provisions of valid official documents, unless the (arbitrator) has the right to compromise in the latter case.

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