1. 3/12/2015 n e e r a j a a r o r a 1

2. By Neeraj Aarora
FCMA, CISA, CEH, CCNA, CFCE, LLB, MBA (IT)

3.  UNCITRAL setup in 1966.
 UNCITRAL Arbitration Rules were formed in 1976.
 Used in Cross Border Contracts, International Arbitration
Institutions.
 67 Countries imported the UNCITRAL Rules in their own
Act.
3/12/2015 3N e e r a j A a r o r a

4.  Generated a number of gaps;
 Need to remove the problems;
 New Arbitration Rules were framed.
3/12/2015 4N e e r a j A a r o r a

5.  Technological Advancement
 Arbitral Tribunal
 Arbitral Procedure
 Miscellaneous
3/12/2015 5N e e r a j A a r o r a

6.  Article 2 provides that the communication can be made by
any means which allow for a record of its transmission.
 Delivery by electronic means can be made at designated or
authorized address.
 Rules also provide for option to examine witnesses through
video-conference. (Article 28(4))
3/12/2015 6N e e r a j A a r o r a

7.  Validity of contract formed through electronic means (Sec.
10A)
 Recognition of email communication –
 Originator (Sec. 2(1)(za))
 Addressee (Sec. 2(1)(b))
 Intermediary (Sec. 2(w))
 Attribution of Electronic Record (Sec. 11A)
 Acknowledgment of Receipt (Sec. 12)
 Time and Place of Dispatch and Receipt of Electronic Record
(Sec. 13)
3/12/2015 7N e e r a j A a r o r a

8.  Secured Electronic Record
 Secured Electronic Signature
 PKI Infrastructure
 Controller of Certifying Authority
 Certifying Authority
 Electronic Evidence/Signature
 Admissibility (Sec. 65B)
 Electronic Agreements (Sec. 85A)
 Electronic Record/Signature (Sec. 85B)
3/12/2015 8N e e r a j A a r o r a

9.  Parties to agree on appointing authority as soon as possible.
(Art. 6)
 More power to the institutions acting as the appointing
authority for failure of the parties in appointing arbitrators.
 Appointing Authority, in exceptional circumstances deprive
a party of the right to appoint a substitute arbitrator and
appoint the substitute arbitrator itself. (Article 14(2))
 In Multi-Party dispute, the appointing authority has the
power to reconstitute the tribunal in full and revoke earlier
appointments where one party fails to appoint an arbitrator.
(Article 10(3))
3/12/2015 9N e e r a j A a r o r a

10. Contd…
 Appointing authority can appoint sole arbitrator as well as
other arbitrators/presiding arbitrator in case of the parties
failing to appoint arbitrator or two arbitrators fails to agree
on third arbitrator. (Article 9)
 A deficiency in the notice of arbitration would not prevent
the Arbitral Tribunal from being constituted and such
constituted Arbitral Tribunal would decide the deficiency.
(Article 3 & 4)
3/12/2015 10N e e r a j A a r o r a

11. Contd…
 The immunity has been conferred on the Arbitrators, any
person/expert appointed by the Tribunal and appointing
authority from claim based on any act or omission in
connection with the Arbitration except for intentional
wrongdoing. (Article 16)
 The Tribunal will have power to grant a broader range of
interim measures of protection including measures
necessary to prevent:-
 current or imminent harm to the interest of parties,
 prejudice to the Arbitral Process itself,
 preservation of assets to satisfy a subsequent award and
 orders directed at preserving evidence. (Article 26)
3/12/2015 11N e e r a j A a r o r a

12.  Establishment of procedural time table as soon as
practicable. (Article 17(2))
 Inclusion of the Claimant's legal grounds and documents
and other evidence in the Statement of Claim. (Article
20(1))
 New rules allow the parties to elect that the notice of
arbitration or response will constitute their statement of
claim or defence respectively.
 Tribunal shall conduct the proceedings in a manner that
avoids unnecessary delay or expense and provides for a fair
and efficient resolution of disputes.
3/12/2015 12N e e r a j A a r o r a

13. Contd.
 Regarding the choice of law it provides the arbitrators to
apply the law that they determine to be appropriate, rather
than strict conflict of laws rules, in the absence of an express
choice by the parties. (Article 35(1))
 Rules for awards that require identification of the seat of the
tribunal in the award and set out the circumstances in which
the award may be made public. (Article 34)
3/12/2015 13N e e r a j A a r o r a

14.  Article 1 does not require that the ‘parties to arbitration’ be
the ‘parties to a contract’ which allows the dispute from any
kind of legal relationship to be referred to the arbitration
under UNCITRAL Rules.
 The new rules require the respondent to file a response to
the notice of arbitration within 30 days unlike earlier rules
which did not provide for a respondent to file a response to
the claimant to the notice of arbitration.
 The new rules provide for joinder of other parties to the
arbitration agreement (Article 17(5)) and inclusion of
claim against the third parties in the response to the notice
of arbitration. (Article 4(2)(f))
3/12/2015 14N e e r a j A a r o r a

15. Contd.
 A relaxation of the rules of waiver, under which a failure to
object to non-compliance with the arbitration rules will not
be a waiver of the right to object where the party in question
can show that its failure to object was justified in the
circumstances. (Article 32)
 The determination of costs regime for the proceedings and a
mechanism for the review and adjustment of the tribunal's
costs under an award by the appointing authority or the
Secretary General of the PCA where the tribunal's
determination of costs is either inconsistent with the agreed
costs regime or is 'otherwise manifestly excessive'. (Article
41)
3/12/2015 15N e e r a j A a r o r a

16.  Appointment of Appointing Authority and
Arbitrators.
 Ad-hoc Arbitration Vs. Institutional Arbitration.
 Appointing authority Vs. Arbitrator
3/12/2015 16N e e r a j A a r o r a

17. E-mails: neeraj@hazenlegal.com
Websites: www.forensicveda.com, www.neerajaarora.com
© HAZEN LEGAL ASSOCIATES, 2013 All Rights Reserved