Fatwa Department finalizes judicial arbitration draft law

Proposed legislation slated to annul Law No. 102 of 2013

KUWAIT CITY, March 27: The Fatwa and Legislation Department, under the auspices of the Council of Ministers, has finalized the preparation of the ultimate draft concerning a proposed law on judicial arbitration.

Informed sources told AlQabas daily that the objective of this new draft law is to enhance the arbitration sector in Kuwait, recognized as a crucial support mechanism for judicial operations. They elucidated that following the conclusion of the electoral process, the government will present the draft law to the upcoming National Assembly for consideration and approval.

These sources highlighted that the completed draft law on judicial arbitration, encompassing 35 articles, has been crafted to align with significant advancements in regional judicial arbitration, particularly in the adjudication of commercial and financial contracts between parties, be they individuals or diverse corporations, prior to resorting to judicial courts.

The draft law delves into the establishment of definitions and outlines the jurisdiction of arbitration bodies in civil and commercial matters stemming from contractual agreements, thereby forming distinct legal relationships, whether contractual or non-contractual, subject to arbitration.

Legislation

Furthermore, the proposed legislation is slated to annul Law No. 102 of 2013, which previously constrained the jurisdiction of arbitration bodies to disputes involving amounts exceeding 500,000 dinars.

The following are the most important provisions of the text of the draft law on judicial arbitration:

■ Arbitration is permissible in matters in which reconciliation is permissible, but it is not permissible in matters that violate public order.

■ An arbitration agreement may only be concluded by a person who has the right to dispose of the right subject to arbitration.

■ Arbitration is not valid unless it is in writing, ratified and signed by its parties, and includes an arbitration clause.

■ The court, before which a case is presented, in which the subject of the dispute is contracts that include an arbitration clause, must rule that it lacks jurisdiction before discussing the matter.

■ The resort of one of the parties to the arbitration, before the start of its proceedings, to the courts to take temporary or urgent measures regarding it, does not constitute a waiver of the arbitration procedures. The Arbitration Department may not receive the arbitration request until it has been decided by the courts.

■ One or more arbitration panels shall be formed at the headquarters of the Court of Appeal, consisting of a judge with the rank of advisor, and two arbitrators chosen by the parties to the dispute. They shall be chosen from among the arbitrators registered in the arbitrators’ registration register at the Judicial Arbitration Department at the Court of Appeal,

or from others chosen by the opponents.

■ In the event that neither party to the arbitration does so within the ten days following the Arbitration Administration assigning him to choose an arbitrator, the aforementioned Administration shall appoint the arbitrator who has the

role in the registers of arbitrators specialized in the subject matter of the dispute for membership in the Authority.

■ The arbitration panel decides on the preliminary issues that are presented to it in the dispute, which fall within the jurisdiction of the civil or commercial judiciary,

and on the defenses related to its lack of jurisdiction, including deciding on any objection related to the existence of the arbitration agreement, its validity, its lapse, or its failure to cover the subject of the dispute. Or requests made by opponents during the hearing of the dispute.