Bishkek July 30, 2002, # 135
THE LAW OF THE KYRGYZ REPUBLIC
On Arbitration Tribunal in Kyrgyz Republic
(As amended May 15, 2003 by the Law
of the Kyrgyz Republic No. 93)
This Law shall regulate procedures for creation of non court agencies (hereinafter referred to as "Arbitration tribunal") and also regulates its activities for resolution of disputes (hereinafter referred to as "Arbitration proceeding").
Arbitration is based on the main principle of equality of the parties under the law and Arbitration tribunal, competition and obligation of execution of decision of the tribunal arbitration.
Chapter I General Provisions
Chapter I I Arbitration Agreement
Chapter III Composition Arbitration Tribunal Panel
Chapter IV Arbitral Proceedings
Chapter V Making Of Award
Chapter VI Arbitration Costs
Chapter VII Enforcement Of Award
Chapter VIII Consideration Of Specific Disputes By Arbitration Tribunal
Chapter IX Final Provisions
Article 1 Scope of Application of the Present Law
This Law is applied at the agreement of parties for consideration by the arbitration tribunal the disputes arising from civil relationships, including investment disputes within the jurisdiction of the competent court with exclusion of disputes established by the hereby Law.
Article 2 Definitions
"Arbitration Tribunal" means a sole arbitrator or the board of arbitrators.
"Arbitration Proceeding" means process of consideration of the dispute in the procedure provided by the agreement between the parties or applicable rules or by this Law.
"Arbitrator" means a person elected by the parties for consideration of their dispute;
"Arbitration Agreement" (arbitration proviso) means agreement between the parties on referral of dispute for consideration by Arbitration tribunal.
" Authorised Court" means an appropriate court of the Kyrgyz Republic .
Claimant and defendant shall be "parties of arbitration proceeding". Citizens and organizations, government and local self-governance bodies claiming their interests may act as claimants. Citizens and organizations, government and local selfgovernance bodies responding claims may act as defendants.
"Applicable rules" means rules, provisions, regulations and other documents of permanent arbitration tribunal.
Article 3. Types and Legal Status of Arbitration Tribunal
- Disputes pursuant to the arbitration agreement or the Law may be referred for consideration by permanent or adhoc arbitration tribunal.
- Permanent arbitration tribunal - organization providing an execution of arbitration proceeding.
- Adhoc arbitration tribunal - arbitration tribunal which is created by parties for consideration of one specific dispute and terminates its activity upon completion of arbitration proceeding on a specific dispute.
- Permanent arbitration tribunal shall be a legal entity that carries out its activities as a non-commercial organization.
- Activity of permanent arbitration tribunal which is connected with arbitration proceeding shall not an economic activity.
Article 4. Procedures for Creation and Performance of Arbitration Tribunal
- Procedures for creation and performance of adhoc arbitration tribunal shall be determined by the agreement of parties and in the aspect, non regulated by the agreement - by this Law.
- Procedures for creation of permanent arbitration tribunal shall be determined by the legislation of the Kyrgyz Republic . Their activity shall be regulated by applicable rules and in the aspect, not regulated by the appropriate rules - by the Kyrgyz Republic legislation.
- If an international agreement to which Kyrgyz Republic is a party establishes rules for creation and operation of arbitration tribunal, the rules of the international agreement shall prevail.
Article 5. Referal of a Dispute for Consideration by Arbitration Tribunal
- Dispute may be referred to a arbitration tribunal for consideration and accepted by the latter given such an agreement of the parties or in the hereunder Law.
- Dispute might be referred to a arbitration tribunal for consideration prior to decisionmaking by a authorised court or amicable agreement reached by parties.
- Authorised court where the claim, a subject of arbitration agreement, is referred to should disallow claim or leave it without consideration or no suit provided that facts confirming the arbitration agreement or evidences of any party's are available.
Article 6. Legal Basis for Activity of Arbitration Tribunal
- Arbitration tribunal shall consider disputes in procedure set forth in arbitration agreement and in case of absence of such instruction - on the bases of rules selected or established by arbitration tribunal itself.
- Arbitration tribunal shall consider a disputes pursuant to the norms of law of substance identified by parties in the contract or in the arbitration agreement applicable to the dispute.
- Should there be no agreement on applicable law, Arbitration tribunal shall independently apply legal acts regulating disputes.
- Arbitration tribunal shall make decisions with regard to business practice applicable to relations of the parties thereto and pursuant to terms of an agreement as long as they are consistent with the applicable law.
Article 7. Contents and Form of Arbitration Agreement
- Arbitration agreement may be concluded between the parties to transmit for consideration to court of arbitration all or certain disputes that arose or may arise between them with regard to civil relations, regardless of contractual nature. Arbitration agreement may be incorporated in the agreement in a form of a proviso that is an integral part of the agreement or as a separate agreement.
- The arbitration agreement shall be in writing. An agreement is in writing if it is contained in a document signed by the parties or in an exchange of letters, teletype, telegraph, telefax or other means of telecommunication, including electronic, which provide a record of the agreement. The reference in a contract to a document containing an agreement for transmission of the dispute to an arbitration tribunal shall be admitted by an agreement if the contract is in writing and the reference is such as to make that clause part of the contract.
- Arbitration tribunal shall have an regulation that any dispute, controversy or requirement, arising between parties out of a dispute, shall be a subject for consideration in arbitration tribunal, including name of this arbitration tribunal, considering the dispute.
- The arbitration agreement shall contain information on a number of arbitrators, location of arbitration proceeding, language of hearing, applicable law and rules, period of a dispute consideration.
- In the event of inconsistency with the rules provided for in clause 2 and paragraph 1 of clause 3 of the hereby Article arbitration agreement shall be considered to be null and void.
Article 8. Requirements to be Met by an Arbitrator
- Any capable individual properly qualified, able to provide impartial consideration of the dispute and independent from the parties may serve as an arbitrator.
- Sole arbiter shall have legal qualification. In the event of collective consideration of the dispute at least chairman shall have legal qualification.
- Additional requirements shall be set to candidacy of arbitrator by applicable rules.
- Persons listed below may not serve as arbitrator:
- A judge of an authorized court;
- State officer;
- Persons with previous convictions;
- Persons recognized incapable or partially incapable.
- A judge of an authorized court;
- No one individual can be debarred from acting as an arbiter by reason of his citizenship, unless otherwise agreed by parties.
Article 9. Appointment of Arbitrators
- Number of arbitrators shall be odd.
- Nomination of arbitrators of adhoc arbitration tribunal shall be defined is carried out on a procedure specified by the agreement of parties.
- The parties are free to determine the number of arbiters. If parties fail to determine a number of arbitrators, any party is in right to apply to a permanent Arbitration tribunal that will appoint three arbiters on a procedure provided by the hereby article.
- If parties fail to appoint arbiters:
- Should the parties fail to agree the procedures with three arbiters, each party shall appoint one arbiter, and the two arbiters thus appointed should appoint the third arbiter, who will chair the panel. If a party fails to appoint the arbiter within 30 days of receipt of a request to do so from the other party, or if the two arbiters fail to agree on the third arbiter within 30 days of their appointment, then either party may apply to the chairman of the permanent arbitration tribunal to nominate the remaining arbiter.
- Should the parties fail to agree the procedures with a single arbiter, at the request of either party the arbiter will be appointed by the chairman of the permanent arbitration tribunal within 30 days of receipt of a request to do so.
- If at procedure of nomination agreed by parties one party does no follow such a procedure or parties or two arbiters cannot reach an agreement in line with the procedure, each party can ask the chairman of the permanent Arbitration tribunal to solve the given matter at his own discretion, including appointment of an arbiter. Decision of a Chairman of permanent Arbitration tribunal is without appeal.
- Should the parties fail to agree the procedures with three arbiters, each party shall appoint one arbiter, and the two arbiters thus appointed should appoint the third arbiter, who will chair the panel. If a party fails to appoint the arbiter within 30 days of receipt of a request to do so from the other party, or if the two arbiters fail to agree on the third arbiter within 30 days of their appointment, then either party may apply to the chairman of the permanent arbitration tribunal to nominate the remaining arbiter.
- Appointment of arbiters at the permanent arbitration tribunal shall be carried out in accordance with the procedures set forth in bylaws of such Arbitration tribunal unless otherwise established by the agreement of parties.
Article 10. Grounds for Challenge
No arbiter may resolve disputes and shall be challenged if following circumstances exist:
- When he or she is an immediate relative to a party in question or its representative;
- When he or she personally, directly or indirectly has an interest in the results of the case or otherwise gives rise to justifiable doubts as to his impartiality or independence;
- Inconsistency with section 3, Article 8 of the hereby Law;
- When he or she does not qualification conditioned by arbitration agreement or by the hereby Law.
Article 11. Challenge Procedure
- When a person is approached in connection with his possible appointment as an arbiter, he shall disclose any circumstances being a ground for his challenge.
- An arbiter, from the time of his appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties and announce his rejection of the nomination.
- Either party may reject an arbiter in case circumstances revealed that might serve as grounds for challenge.
- Rejection and self - rejection must be grounded and announced before consideration of the case in essence starts. Rejection or self-rejection matter is brought in the course of case consideration, only given grounds for this appeared after case started to be considered.
- The parties may upon their discretion agree upon the challenge procedure.
- Failing such agreement, a party who intends to challenge an arbiter shall, within fifteen days after becoming aware of the constitution of the arbitration tribunal or after becoming aware of any circumstance referred to in article 10 of this law, send a written statement of the reasons for the challenge to the arbitration panel. Unless the challenged arbiter withdraws from his office or the other party agrees to the challenge, the arbitration tribunal shall decide on the challenge.
- When the challenge process is carried out in accordance with the procedures agreed with the parties but no decision taken or failure to reach an agreement on challenge among the other arbiters, either party may ask the Chairman of the permanent Arbitration tribunal to take a decision on the challenge. Such a decision is without appeal. When the request waits for the decision taking Arbitration tribunal l cannot continue the arbitral proceeding and make award.
- When the case is considered by the permanent arbitration tribunal, the challenge process shall be carried out in accordance with the established applicable rules.
Article 12. Termination of Office Authority
- Subject to following provisions of this Law, the terms of office of any arbiter participating in arbitration hearing shall be terminated upon expiration of 60 days from the day of taking award. Such terms may be terminated due to a challenge, self - withdrawal, or any other grounds provided with an agreement taken by the parties.
- Terms of office of any arbiter are not terminated if the competent court refuses issuing the prescript for forced execution of Arbitration panel award on the basis provided with the article 42 of the hereby Law. Permanent Tribunal panel is obliged to ensure at its own expense the new arbitral proceeding of a dispute with attraction of the same arbiters taken award on the dispute.
Article 13. Replacement of Arbitrators
- Unless otherwise is provided by the agreement of parties the replacement of arbiters is subject only to the grounds provided by the hereby Law.
- Where the mandate of an arbiter terminates under article 10 of the hereby Law or other grounds, a substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbiter being replaced.
- Replacement of arbiter of Arbitration tribunal is carried out in line with the applicable rules.
Article 14. Competence of Arbitration Tribunal
- Arbitration tribunal may rule on its own jurisdiction the existence or validity of the arbitration agreement and its own competence on consideration of a specific dispute.
- Before dispute settlement procedure starts either party should announce any circumstances that may be the basis for declaring the arbitration agreement to be non existent or invalid. Appointment by each party or its participation in appointment of an arbiter does not deprive a party from making such a statement.
- Parties shall put in statement on ultra vires by Arbitration tribunal once the issue, according to the parties' opinion, overlaps this competence and it is revealed within the course of the arbitration proceeding.
- If Arbitration tribunal finds the absence or invalidity of arbitration agreement it arbitrates determination and sends it to the parties together with the materials from the relevant party.
Article 15. Demur Right
- If a party was aware or should have been aware that any provisions of the hereby Law or arbitration agreement agreed by parties are not observed and in the established period of time, and if it is not specified) - within the reasonable period did not raise objections against non observation and participated in arbitration proceeding, it will be deprived in future from interposing an objection.
Article 16. Determination of Rules of Procedure
- Parties are free to agree on the procedure to be followed by the arbitration tribunal in conducting the proceedings.
- Failing such agreement, the arbitration tribunal may rule it in line with the hereby Law.
- Procedures of arbitral proceeding are implemented in line with the rules of the permanent Arbitration tribunal if otherwise determined by agreement of parties.
Article 17. Place of Arbitration
- The parties are free to agree on the place of arbitration.
- Failing such agreement, the place of arbitration shall be determined by the arbitration panel having regard to the circumstances of the case, including the convenience of the parties, hearing of witnesses, experts or the parties, or for inspection of goods, other property or documents.
Article 18. Language
- Arbitration tribunal shall determine the language or languages to be used in the proceedings unless otherwise agreed by the parties.
- Party submitting evidence in a language other than agreed one, shall provide translation thereof.
- The arbitration tribunal may order that any documentary evidence shall be accompanied by a translation into the language determined by the arbitration panel.
Article 19. Confidential Nature of Arbitration
- Arbitration tribunal may not disclose information it became aware of in the course of hearing without prior consent of the parties or their legal successors.
- An arbiter may not be examined as a witness of information it became aware of in the course of proceeding.
Article 20. Statements of Claim and Defence
- Within the period of time agreed by the parties or determined by the arbitration tribunal, the claimant shall state the facts supporting his claim in writing and file it with the arbitration tribunal l with a copy sent to the respondent and the latter shall state his defence in respect of these particulars to claimant and arbitration tribunal.
- Statement of claim shall contain:
- Date filed and number of the file;
- Full names of the parties, mailing address and settlement requisites;
- Value of the claim if to be assessed;
- Claim;
- Circumstances supporting the claim and proof; grounded calculation of a claim; legislation or other legal proof of the claim;
- Other information essential for the dispute settlement;
- List of the documents and evidence annexed to the statement of claim.
- Date filed and number of the file;
- The following are annexes to the statement of claim, certifying:
- That arbitration clause is in place;
- Delivery of the copy of the claim with all the documents annexed to defendant.
- That arbitration clause is in place;
- Parties in their claim or statement of defence may add a reference to the documents or other evidence they will submit later.
- Unless otherwise agreed by the parties, either party may amend or supplement his claim or defence during the period provided with an agreement or applicable rules.
Article 21. Counterclaim
- Unless otherwise agreed by the parties respondent may submit a counterclaim as long as it is consistent with the agreement on transmitting dispute to arbitration.
- Counterclaim may be furnished with the statement of defence or at a later stage of the proceedings given approval of such delay by an arbitration tribunal.
- Counterclaim shall meet the requirements set for the claim pursuant to article 20 of the hereby Law.
- Counterclaim shall be submitted both to arbitration tribunal and to the other party except for when it is transferred to the other party by an arbitration panel.
- Claimant shall furnish to an arbitration tribunal a response to counterclaim in a form of written response as to the claim subject to provisions of Article 20 of the hereby Law.
Article 22. Measures to Satisfy a Claim
- Unless otherwise agreed by parties an arbitration tribunal upon request from either party may order the other party to take steps to satisfy a claim as to the substance of the dispute to the extent needed.
- Arbitration tribunal may require a party that so requested, to cover costs related to so satisfying claim.
Article 23. Evidence
- Evidence shall be supplied by either party. Each party must prove those circumstances it refers to as to the grounds for claims and objections.
- Arbitration tribunal may, should evidence submitted be insufficient, suggest that the parties should submit additional proof.
- Arbitration tribunal itself shall review all the evidence submitted as to the dispute.
Article 24. Procedure of Dispute Proceedings
- The Arbitration tribunal shall decide whether to hold oral hearings with involvement of the parties or representatives thereof or with no such involvement. Failing such agreement between the parties the arbitration tribunal may take a decision on the procedures of hearings, however, given appropriate application by one of the parties, dispute shall be considered with involvement of the parties or representatives thereof.
- The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitration tribunal. Notice shall be regarded valid if hand delivered, sent via registered mail or otherwise to make sure record of such delivery.
- All statements, documents or other information supplied to the arbitration tribunal by one party shall be communicated to the other party.
- Any expert report or evidentiary document on which the arbitration tribunal l may rely in making its decision shall be communicated to the parties as required.
- Dispute proceedings shall be conducted under closed doors unless parties agreed otherwise.
- Each party shall be given equal opportunities to state opinion and protect rights and interests.
Article 25. Failure to Submit Documents and Failure to Appear
- Failure to communicate required documents, statement of defence and to show up at the arbitration proceedings of the parties or representatives thereof duly notified of the date of hearing, shall not preclude dispute proceedings unless parties agreed otherwise, if arbitration tribunal considers such failure to be ungrounded.
- If the respondent fails to communicate his statement of defence the arbitration tribunal shall continue the proceedings without treating such failure in itself as an admission of the claimant's allegations.
Article 26. Appointment of the Expert, Specialist and Examination
- Unless otherwise agreed by the parties, the arbitration tribunal may require expertise for explanation of issues arising in the course of proceedings in the area of specific knowledge as well as require either party to submit any documents and other evidence necessary for the expertise.
- Unless otherwise agreed by the parties the arbitration panel may appoint one or more specialists and (or) experts.
- In the absence of another agreement the person of a specialist and an expert (experts) as well as specified areas requiring expertise shall be determined by the arbitration tribunal with regard to opinion of the parties.
- Expert shall submit his report in writing, and specialist shall give appropriate explanations and answer the questions of the parties and arbitration tribunal.
- Unless otherwise agreed by the parties, an expert if a party so requests or if the arbitration tribunal considers it necessary, the expert shall, after delivery of his written report, participate in a hearing where the parties have the opportunity to put questions to him and to present expert witnesses in order to testify on the points at issue.
Article 27. Minutes of Arbitral Proceedings
- Unless otherwise agreed by the parties arbitration tribunal shall keep the minutes of arbitration tribunal hearing.
Article 28. Finality of the Arbitrage Tribunal Award
- An arbitral award shall be recognised as final and binding for the parties. Parties oblige themselves to carry out the decision taken by the arbitration tribunal on a procedure and terms established by the award.
Article 29. Decision Making by Arbiters Tribunal
- Arbitration award shall be taken with regard to all of the circumstances of the case by a majority of the arbitration tribunal members unless otherwise agreed by parties and applicable laws. Award is taken upon consideration of all circumstances. Award is taken on behalf of Arbitration tribunal and shall be announced at the arbitration tribunal meeting. Arbitration tribunal may announce only the resolutive part of the award unless otherwise is agreed by parties. In such case grounded award shall be sent to the parties within 5 days after the resolutive part of the award was announced.
- Arbiter who disagrees with the majority of the arbitration tribunal members shall state his specific opinion as an annex to the award. Parties may acquaint with dissenting opinion of the arbiter.
- Arbitration tribunal may postpone decision-making and call parties to an arbitral proceeding if so needed for dispute settlement.
- Arbitration award shall be deemed to have been taken at that place of the Arbitrage tribunal and day announced by the Arbitrage tribunal.
Article 30. Amicable Agreement
- If prior to the announcement by Arbitration tribunal award on the dispute in substance the parties achieved amicable arrangement and the arbitration tribunal agrees with it the arbitration award shall be taken with regard to such amicable arrangement, if consistent with the agreement by parties.
- Simultaneously with the decision taking on approving of amicable agreement Arbitration tribunal arbitrates determination on closure of arbitral proceeding.
Article 31. Form and Contents of Award
- The award shall be made in writing and shall be signed by all the members of the arbitration tribunal.
- The award shall state the following:
- date taken, arbiters, place and time of arbitration;
- names of the parties in dispute, names and positions of representatives thereof with the authority specified;
- substance of the dispute, statements, applications, explanations provided by the persons involved in Arbitration proceedings;
- circumstances of the case revealed by arbitration, evidence upon which conclusion of arbitration of such circumstances is based, legislation applied for taking arbitration award;
- grounds for award;
- resolutive part which specifies:
- contents of the award;
- sharing payment of fees and other costs related to case consideration;
- terms and procedures for award enforcement.
- contents of the award;
- date taken, arbiters, place and time of arbitration;
Article 32. Additional Award
- Within 30 days upon the receipt of the award either party with notice to the other party may request the arbitration panel to make an additional award as to claims presented in the arbitral proceedings but omitted from the award.
- Arbitration tribunal shall notify either party on consideration of a request with stating the dates and the place of arbitral proceeding. Default in appearance by a party or either party is not an impediment for a case consideration and an additional award taking.
- The arbitration tribunal shall make the additional award within thirty days upon the receipt of the request.
Article 33. The Interpretation of the Award
- Either party with notice of another party may request the arbitration tribunal to interpret claimed ambiguities in the award within 30 (thirty) days of it is been announced.
- Interpretation of award is admissible unless it is effective and the date is expired within which it might be enforced.
- Interpretation of award is admitted at the arbitral proceeding with involvement of parties but the default in appearance by either party is not an impediment for an issue consideration on award interpretation.
- The arbitration tribunal shall interpret award within thirty days upon receipt of the request without changing its content. Such interpretation shall form part of the award.
Article 34. Correction of Mistakes and Computational Errors
- Arbitration tribunal may upon request from a party with notice of another party or upon its own initiative correct mistakes, misprints and errors made in the award taken.
- Correction of award is considered at the arbitral proceeding with participation of parties however default in appearance thereof is not an impediment for an issue consideration on correction award.
Article 35. Arbitration Order
- Arbitration tribunal may issue determination upon the resolution of a dispute in substance. Arbitration tribunal award must be legal and well grounded.
- Arbitration tribunal may issue determination on the issues other than substance of the case, given grounds for such determinations.
- Acts of one-off arbitration tribunal must be notarially certified including the identity of an arbiter's (arbiters') signature.
Article 36. Termination of Proceedings
The Arbitration tribunal shall issue an order for the termination of the arbitral proceedings upon the award taken on the dispute in substance or in the cases as follow:
- nolle prosequi if other party fails to contradict such a refusal;
- the parties agree on the termination of the proceedings;
- dispute is not the subject for arbitration;
- conclusion by parties of amicable agreement
Article 37. Archive of Cases
Cases considered by a single permanent arbitration tribunal are transferred for relegation to the state agency on a procedure established by the Kyrgyz Republic Law "On National Archive Fund of the Kyrgyz Republic ".
Cases considered in permanent arbitration tribunal shall be stored in this arbitration unless otherwise is established by the applicable rules.
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Article 38. Arbitration Costs
- Arbitration costs shall include:
- Arbitration fee;
- Operational costs of permanent Arbitration tribunal;
- Transportation costs, other costs incurred to arbiters;
- Other expenses with regard to a dispute consideration.
- Arbitration fee;
- Fees to arbiters of permanent arbitration tribunal may be stated in accordance with the rules thereof
- Size of fee to the arbiters of a single arbitration panel shall be determined by agreement of parties.
- Arbitration tribunal may not charge any fees for correcting an award, interpretation of award, additional award or the repeated consideration of a dispute.
Article 39. Costs Advancing. Arbitration Costs Sharing
- Arbitration tribunal after its formation is in right to require from either party to pay equal advance to cover the costs provided with Article 38 of the hereby Law.
- When the advance required is not paid fully within 30 days upon receipt of the request, the Arbitration tribunal notifies either parties in order to pay for it by one of the parties.
- When advance is not paid by parties in size and conditions specified, Arbitration tribunal is in right to refuse in consideration of a case or to suspend it.
- Arbitration tribunal shall on its own discretion decide the issue of sharing arbitration costs pro rata their claims, unless otherwise agreed between the parties.
- Sharing arbitration costs shall be specified in an arbitration award or decision. Provisions on arbitration costs sharing between the parties are the integral part of arbitration award and are liable to indispensable execution.
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Article 40. Procedures for Award Enforcement
- Arbitration award shall be the subject for voluntary execution pursuant to procedures and terms set forth in the award.
- Should there be no deadline stated in the award, it shall be the subject for immediate execution.
- When the arbitration award is not executed voluntary it is subject for forced execution.
Article 41. Forced Execution of Arbitration Award
- Forced execution of arbitration tribunal award is carried out by issuance by the authorised court of the order for the forced execution of the Arbitration tribunal award.
- The party concerned in the award shall file request on issuance of the order with the authorised court at his or the debtor's residency.
- The request on issuance of the order for the forced execution may be given within three years upon the arbitration award made.
- The Request is annexed with the following documents:
- Original award of arbitration tribunal or its copy certified by a decision made agency or notarised;
- Original agreement on transferring of a dispute for consideration by Arbitration tribunal (arbitration agreement) or notarized copy of agreement;
- Receipt of payment of state fee.
- Original award of arbitration tribunal or its copy certified by a decision made agency or notarised;
- Award taken by international and foreign arbitration tribunal shall be legalized pursuant to procedure established by the Kyrgyz Republic legislation.
- Text of award, agreement on transferring of a dispute for consideration by arbitration tribunal is provided with in state or official language of the Kyrgyz Republic . Translation of a text from foreign language shall be notarized with a translator's signature.
Article 42. Grounds for Denial in Order
- Authorised court shall refuse to issue an order for forced execution in the following cases:
- Any party submits the authorised court the proof on non ability of the other party when signing an agreement on transferring a dispute to the arbitration tribunal;
- Any party is not duly notified on appointment of arbiter or the arbitration proceeding;
- Arbitration tribunal staff or the arbitral proceeding procedure not pursuant to the agreement between parties or the applicable rules;
- The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognised and enforced;
- A party grounds invalidity of the arbitration agreement and the Arbitration tribunal accepts a dispute for consideration and arbitrates an award in the substance of a dispute;
- Authorized court establishes that the object of a dispute is not the subject for arbitration pursuant to this law and the Kyrgyz Republic legislation.
- Any party submits the authorised court the proof on non ability of the other party when signing an agreement on transferring a dispute to the arbitration tribunal;
- When refusal to issue an order on forced execution is accepted on the grounds set forth in Articles 2, 3 and 4 of section 1 of the hereby Article the arbitration tribunal having made an award on pursuant to which it refused to issue an order, is obliged to conduct a new arbitral proceeding.
Article 43. Renewal of Terms
- Authorized court is in right to renew the terms for application on issue of order for the forced execution of arbitration award if finds the reasons for expiration of dates set forth in clause 3 of Article 40 of the hereby Law valid.
- Procedure of renewal of dates is established by the Kyrgyz Republic legislation unless otherwise established by the international treaties and agreements.
Article 44. Consideration of Application on Issuance of Order
- Application on issue of order for the forced execution of arbitration award shall be considered on a procedure established by the Kyrgyz Republic legislation.
- Parties shall be rightly notified on a date and place of consideration of application but default in appearance by one of the parties is not an impediment for the application consideration.
- Party failing to execute the arbitration award voluntary is in right to submit the authorised court his explanations with reasons that impede the execution of the arbitration award.
- On the results of application consideration the authorised court shall arbitrate determination either on issuance of order or refusal on its issuance. The authorised court's determination may be appealed on a procedure established by the Kyrgyz Republic legislation.
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Article 45. Application of the Hereby Law to Disputes with Civil Involvement
- Unless otherwise stated in the agreement of parties or the law the provisions of the hereby Law shall be applied when the disputes in which one or more parties are citizens, are transmitted to arbitration.
- The following disputes with civil involvement may not be transmitted for Arbitration:
- Dispute on claims on resolutions or other actions (inaction, refusal in commitment of action) by the officer of the court;
- Dispute on establishing facts having the legal sense (legal facts);
- Dispute on vindication of rights for the securities lost;
- Dispute on bankruptcy (insolvency);
- Disputes on recovering damage inflicted to life or health of a citizen;
- Dispute on protection of dignity and business reputation;
- Dispute on hereditary jural relationships;
- Dispute on procedure and terms for wed ant termination of wed;
- Dispute with regard to personal and non property relationships arising in a family between spouses, parents and children and other family members;
- Disputes arising with regard to adoption, trusteeship and guardianship, farming;
- Disputes arising when registering civil acts (relationships);
- Other disputes impossible to be transmitted to Arbitration for settlement in accordance with the law.
Article 46. Consideration of Disputes on Investments
- Should there be no arbitration agreement between a foreign investor and the Kyrgyz Republic a foreign investor shall initiate the arbitral proceeding for the dispute consideration and herein the consent of the Kyrgyz Republic is assumed. In this case a foreign investor is in right to select for the dispute consideration any agency set forth in Article 23 of the Kyrgyz Republic Law "On Foreign Investments".
- Party representing the Kyrgyz Republic in the investment dispute shall be identified by the juridical bodies upon the receipt of the summons served from the foreign investor.
- The Kyrgyz Republic's consent for transferring the dispute to the arbitration tribunal shall be send by the juridical bodies after consultations with the corresponding state or other agencies within 90 days upon the receipt of the summons served. Within the same period of time the juridical bodies may recommend foreign investor or give conclusions or ways for resolution of a dispute in a written form.
- In case the foreign investor fails to carry a motion of the juridical bodies or within the established time period there were no any other proposals he/she may transfer the dispute without delay for consideration by arbitration tribunal without notifying in writing the respondent representing the Kyrgyz Republic and it is believed that the Kyrgyz Republic consents for transferring the dispute to the arbitration tribunal.
- In case when by the applicable laws of agencies set forth in section 1 of this Article it is provided to obtain a consent of the Kyrgyz Republic for participation in arbitral proceeding such a consent on behalf of the Kyrgyz republic is presented by the juridical bodies within 7 (seven) days upon receipt of enquiry from the foreign investor.
Article 47. Initiating Notification
Initiating notification shall contain as follows:
- Full names of a person initiating a case (name, mailing address and settlement requisites: telephone, fax, e-mail)
- Description and location of arbitration tribunal where he/she wishes to transfer a dispute;
- Name of an individual or organization whom the dispute arose with, their official addresses;
- General content of a dispute for clearing up the essence of legal and actual requirements brought by the party;
- Assessment of requirements to be reached by a party;
- Any information whether arbitral proceeding with regard to the dispute is initiated in the authorized court.
Article 48. Carrying this Law into Effect
This law comes into effect once published officially.
The President of the Kyrgyz Republic A.Akaev