Beruflich Dokumente
Kultur Dokumente
Arbitration Rules
Reprint 2014
CONTENTS
Arbitration Rules
Reprint 2014
2 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 3
Part I Part II
KLRCA ARBITRATION RULES UNCITRAL ARBITRATION RULES
(Revised in 2013) (As revised in 2010)
Part I Part II
KLRCA ARBITRATION RULES UNCITRAL ARBITRATION RULES
(Revised in 2013) (As revised in 2010)
RULES
Rule 1
(Revised in 2013) General
b)
The arbitration shall be conducted and
administered by the Kuala Lumpur
Regional Centre for Arbitration
(hereinafter referred to as KLRCA) in
accordance with the Rules.
ii)
Where the seat of arbitration is Malaysia,
Section 41, Section 42, Section 43 and Section
46 of the Malaysian Arbitration Act 2005
(Amended 2011) shall not apply.
2.
The Rules applicable to the arbitration shall
be those in force at the time of commencement
of the arbitration unless the parties have
agreed otherwise.
RULES
Rule 1
(Revised in 2013) General
b)
The arbitration shall be conducted and
administered by the Kuala Lumpur
Regional Centre for Arbitration
(hereinafter referred to as KLRCA) in
accordance with the Rules.
ii)
Where the seat of arbitration is Malaysia,
Section 41, Section 42, Section 43 and Section
46 of the Malaysian Arbitration Act 2005
(Amended 2011) shall not apply.
2.
The Rules applicable to the arbitration shall
be those in force at the time of commencement
of the arbitration unless the parties have
agreed otherwise.
Rule 2 Rule 3
Commencement of Arbitration Notification and Pleadings
1. The party or parties initiating recourse to arbitration 1. All documents served pursuant to Articles 3, 4, 20,
under the Rules shall be required to submit a 21, 22, 23 and 24 shall be served on the Director of
written request to the Director of the KLRCA the KLRCA at the time of such service on the other
together with a copy of the Notice of Arbitration party or immediately thereafter.
served on the Respondent pursuant to Article 3
and shall be accompanied by the following:
Rule 4
a) A copy of the written arbitration clause; and Appointment
contractual documentation in which the
arbitration clause is contained or in respect of 1.
Where the parties have agreed to the Rules,
which the arbitration arises; the Director of the KLRCA shall be the
appointing authority.
b) Confirmation to the Director of the KLRCA that
the Notice of Arbitration has been or is being 2.
Arbitral tribunal means a sole arbitrator or a
served on all other parties to the arbitration panel of arbitrators and includes an emergency
by one or more means of service to be identified arbitrator appointed pursuant to Schedule 2.
in such confirmation; and
3.
Parties are free to determine the number of
c) A non-refundable registration fee amounting arbitrators.
to USD500.00 in international arbitration
(as defined in Rule 4(4)(c) of the Rules) and 4. Where the parties fail to determine the number
RM1000.00 in domestic arbitration. of arbitrators, the arbitral tribunal shall:
c)
international arbitration means an
arbitration where
8 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 9
Rule 2 Rule 3
Commencement of Arbitration Notification and Pleadings
1. The party or parties initiating recourse to arbitration 1. All documents served pursuant to Articles 3, 4, 20,
under the Rules shall be required to submit a 21, 22, 23 and 24 shall be served on the Director of
written request to the Director of the KLRCA the KLRCA at the time of such service on the other
together with a copy of the Notice of Arbitration party or immediately thereafter.
served on the Respondent pursuant to Article 3
and shall be accompanied by the following:
Rule 4
a) A copy of the written arbitration clause; and Appointment
contractual documentation in which the
arbitration clause is contained or in respect of 1.
Where the parties have agreed to the Rules,
which the arbitration arises; the Director of the KLRCA shall be the
appointing authority.
b) Confirmation to the Director of the KLRCA that
the Notice of Arbitration has been or is being 2.
Arbitral tribunal means a sole arbitrator or a
served on all other parties to the arbitration panel of arbitrators and includes an emergency
by one or more means of service to be identified arbitrator appointed pursuant to Schedule 2.
in such confirmation; and
3.
Parties are free to determine the number of
c) A non-refundable registration fee amounting arbitrators.
to USD500.00 in international arbitration
(as defined in Rule 4(4)(c) of the Rules) and 4. Where the parties fail to determine the number
RM1000.00 in domestic arbitration. of arbitrators, the arbitral tribunal shall:
c)
international arbitration means an
arbitration where
10 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 11
b) If within 30 days of the other partys receipt of 8. Where the parties have agreed that any arbitrator
the Notice of Arbitration, the parties have not is to be appointed by one or more parties, or by any
reached an agreement on the appointment of authority agreed by the parties, including where
the sole arbitrator, either party may request the arbitrators have already been appointed, that
for the sole arbitrator to be appointed by the agreement shall be treated as an agreement to
Director of the KLRCA. nominate an arbitrator under these Rules and shall
10 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 11
b) If within 30 days of the other partys receipt of 8. Where the parties have agreed that any arbitrator
the Notice of Arbitration, the parties have not is to be appointed by one or more parties, or by any
reached an agreement on the appointment of authority agreed by the parties, including where
the sole arbitrator, either party may request the arbitrators have already been appointed, that
for the sole arbitrator to be appointed by the agreement shall be treated as an agreement to
Director of the KLRCA. nominate an arbitrator under these Rules and shall
12 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 13
2.
A party may challenge the arbitrator nominated 8. The Director of the KLRCA may fix the costs of the
by him only for reasons of which he becomes challenge and may direct by whom and how such
aware of after the appointment has been made. costs should be borne.
2.
A party may challenge the arbitrator nominated 8. The Director of the KLRCA may fix the costs of the
by him only for reasons of which he becomes challenge and may direct by whom and how such
aware of after the appointment has been made. costs should be borne.
Rule 7 Rule 9
Interim Relief Facilities
1. The arbitral tribunal may, at the request of a party The Director of the KLRCA shall, at the request of
grant interim measures pursuant to Article 26. the arbitral tribunal or either party, make available,
or arrange for, such facilities and assistance for the
2. A party in need of emergency interim relief prior to conduct of the arbitral proceedings as may be required,
the constitution of the arbitral tribunal may apply including suitable accommodation for sittings of the
for such relief pursuant to the procedures set arbitral tribunal, secretarial assistance, transcription
forth in Schedule 2. services, video conferencing and interpretation facilities.
Rule 8 Rule 10
Consolidation of Proceedings and Concurrent Arbitration Procedure
Hearings
The arbitral tribunal may conduct the arbitration in
1. The parties may agree such manner as it considers appropriate and without
prejudice to the generality of the foregoing may, unless
a)
that the arbitration proceedings shall all parties to the arbitration otherwise agree, limit the
be consolidated with other arbitration time available for each party to present its case.
proceedings; or
2. Unless the parties agree to confer such power on 1. The arbitral tribunal shall render its final award
the arbitral tribunal, the tribunal has no power within a period which is limited to 3 months. Such
to order consolidation of arbitration proceedings time limit shall start to run from the date of the
or concurrent hearings. closing of final oral or written submissions. The
arbitral tribunal shall inform the Director of the
KLRCA of such date.
Rule 7 Rule 9
Interim Relief Facilities
1. The arbitral tribunal may, at the request of a party The Director of the KLRCA shall, at the request of
grant interim measures pursuant to Article 26. the arbitral tribunal or either party, make available,
or arrange for, such facilities and assistance for the
2. A party in need of emergency interim relief prior to conduct of the arbitral proceedings as may be required,
the constitution of the arbitral tribunal may apply including suitable accommodation for sittings of the
for such relief pursuant to the procedures set arbitral tribunal, secretarial assistance, transcription
forth in Schedule 2. services, video conferencing and interpretation facilities.
Rule 8 Rule 10
Consolidation of Proceedings and Concurrent Arbitration Procedure
Hearings
The arbitral tribunal may conduct the arbitration in
1. The parties may agree such manner as it considers appropriate and without
prejudice to the generality of the foregoing may, unless
a)
that the arbitration proceedings shall all parties to the arbitration otherwise agree, limit the
be consolidated with other arbitration time available for each party to present its case.
proceedings; or
2. Unless the parties agree to confer such power on 1. The arbitral tribunal shall render its final award
the arbitral tribunal, the tribunal has no power within a period which is limited to 3 months. Such
to order consolidation of arbitration proceedings time limit shall start to run from the date of the
or concurrent hearings. closing of final oral or written submissions. The
arbitral tribunal shall inform the Director of the
KLRCA of such date.
3.
The Director of the KLRCA may further extend 8.
Unless the parties have agreed otherwise, the
the time limit in the absence of consent between arbitral tribunal may:
the parties notwithstanding its expiry.
a) award interest on any sum of money ordered to
4. The arbitral tribunal shall deliver sufficient copies of be paid by the award on the whole or any part of
the completed award to the Director of the KLRCA. the period between the date on which the cause
The award shall only be released to the parties of action arose and to the date of realisation of
upon full settlement of the costs of arbitration. the award; and
5. The KLRCA shall notify the parties of its receipt of b) determine the rate of interest.
the award from the arbitral tribunal. The award
shall be deemed to have been received by the 9. An award as referred to herein shall include an
parties upon collection by hand by an authorised interim, partial or final award and an award of an
representative or upon delivery by registered mail. emergency arbitrator.
7.
By agreeing to arbitration under these Rules, 2. Unless otherwise agreed by the parties and the
the parties undertake to carry out the award arbitral tribunal pursuant to Rule 12(4), the fees of
immediately and without delay, and they also the arbitral tribunal shall be fixed by the Director
irrevocably waive their rights to any form of appeal, of the KLRCA in accordance with the Schedule of
review or recourse to any state court or other Fees.
judicial authority insofar as such waiver may be
validly made and the parties further agree that 3. As a general rule, Appendix A1 (USD scale) shall
an award shall be final and binding on the parties apply to international arbitrations (as defined in
from the date it is made. Rule 4(4)(c)) and Appendix A2 (RM scale) shall apply
to domestic arbitrations.
16 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 17
3.
The Director of the KLRCA may further extend 8.
Unless the parties have agreed otherwise, the
the time limit in the absence of consent between arbitral tribunal may:
the parties notwithstanding its expiry.
a) award interest on any sum of money ordered to
4. The arbitral tribunal shall deliver sufficient copies of be paid by the award on the whole or any part of
the completed award to the Director of the KLRCA. the period between the date on which the cause
The award shall only be released to the parties of action arose and to the date of realisation of
upon full settlement of the costs of arbitration. the award; and
5. The KLRCA shall notify the parties of its receipt of b) determine the rate of interest.
the award from the arbitral tribunal. The award
shall be deemed to have been received by the 9. An award as referred to herein shall include an
parties upon collection by hand by an authorised interim, partial or final award and an award of an
representative or upon delivery by registered mail. emergency arbitrator.
7.
By agreeing to arbitration under these Rules, 2. Unless otherwise agreed by the parties and the
the parties undertake to carry out the award arbitral tribunal pursuant to Rule 12(4), the fees of
immediately and without delay, and they also the arbitral tribunal shall be fixed by the Director
irrevocably waive their rights to any form of appeal, of the KLRCA in accordance with the Schedule of
review or recourse to any state court or other Fees.
judicial authority insofar as such waiver may be
validly made and the parties further agree that 3. As a general rule, Appendix A1 (USD scale) shall
an award shall be final and binding on the parties apply to international arbitrations (as defined in
from the date it is made. Rule 4(4)(c)) and Appendix A2 (RM scale) shall apply
to domestic arbitrations.
18 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 19
5. The administrative costs of the arbitration shall be 1. Subsequent to the commencement of arbitration in
fixed by the Director of the KLRCA in accordance accordance with Rule 2, the Director of the KLRCA
with the Schedule of Fees. As a general rule, shall fix a provisional advance deposit in an amount
Appendix B1 (USD scale) shall apply to international intended to cover the costs of the arbitration. Any
arbitrations [as defined in Rule 4(4)(c)] and Appendix such provisional advance deposit shall be paid by
B2 (RM scale) shall apply to domestic arbitrations. the parties in equal shares and will be considered
as a partial payment by the parties of any deposits
6. The fees of the arbitral tribunal and administrative of costs fixed by the Director of the KLRCA under
costs of the arbitration under Rule 12(3), (4) and (5) Rule 12.
above may, in exceptional, unusual or unforeseen
circumstances, be adjusted from time to time at the 2. Such provisional advance deposit shall be payable
discretion of the Director of the KLRCA. within 21 days upon request from the KLRCA. In
the event that any of the parties fail to pay such
7.
The fees of the arbitral tribunal and the deposit, the Director of the KLRCA shall so inform
administrative costs of arbitration under the the parties in order that one or another of them may
Schedule of Fees are determined based on the make the required payment. The arbitral tribunal
amount in dispute. For the purpose of calculating shall not proceed with the arbitral proceedings
the amount in dispute, the value of any counter- until such provisional advance deposit is paid in full.
claim and/or set-off will be added to the amount of
the claim. 3.
Upon fixing of the fees of the arbitral tribunal
and administrative costs of arbitration by the
8. Where a claim or counterclaim does not state a Director of KLRCA pursuant to Rule 12, including
monetary amount, an appropriate value for the claim the fees and expenses of the arbitral tribunal, if any,
or counterclaim shall be settled by the Director of pursuant to Rule 12(4), the Director of the KLRCA
the KLRCA in consultation with the arbitral tribunal shall prepare an estimate of the fees and expenses
and the parties for the purpose of computing the of the arbitral tribunal and the administrative costs
arbitrators fees and the administrative costs. of the arbitration which the parties shall bear
equally. Within 21 days of written notification by
9.
Notwithstanding Rule 13, the arbitral tribunal the Director of the KLRCA of such estimate, each
18 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 19
5. The administrative costs of the arbitration shall be 1. Subsequent to the commencement of arbitration in
fixed by the Director of the KLRCA in accordance accordance with Rule 2, the Director of the KLRCA
with the Schedule of Fees. As a general rule, shall fix a provisional advance deposit in an amount
Appendix B1 (USD scale) shall apply to international intended to cover the costs of the arbitration. Any
arbitrations [as defined in Rule 4(4)(c)] and Appendix such provisional advance deposit shall be paid by
B2 (RM scale) shall apply to domestic arbitrations. the parties in equal shares and will be considered
as a partial payment by the parties of any deposits
6. The fees of the arbitral tribunal and administrative of costs fixed by the Director of the KLRCA under
costs of the arbitration under Rule 12(3), (4) and (5) Rule 12.
above may, in exceptional, unusual or unforeseen
circumstances, be adjusted from time to time at the 2. Such provisional advance deposit shall be payable
discretion of the Director of the KLRCA. within 21 days upon request from the KLRCA. In
the event that any of the parties fail to pay such
7.
The fees of the arbitral tribunal and the deposit, the Director of the KLRCA shall so inform
administrative costs of arbitration under the the parties in order that one or another of them may
Schedule of Fees are determined based on the make the required payment. The arbitral tribunal
amount in dispute. For the purpose of calculating shall not proceed with the arbitral proceedings
the amount in dispute, the value of any counter- until such provisional advance deposit is paid in full.
claim and/or set-off will be added to the amount of
the claim. 3.
Upon fixing of the fees of the arbitral tribunal
and administrative costs of arbitration by the
8. Where a claim or counterclaim does not state a Director of KLRCA pursuant to Rule 12, including
monetary amount, an appropriate value for the claim the fees and expenses of the arbitral tribunal, if any,
or counterclaim shall be settled by the Director of pursuant to Rule 12(4), the Director of the KLRCA
the KLRCA in consultation with the arbitral tribunal shall prepare an estimate of the fees and expenses
and the parties for the purpose of computing the of the arbitral tribunal and the administrative costs
arbitrators fees and the administrative costs. of the arbitration which the parties shall bear
equally. Within 21 days of written notification by
9.
Notwithstanding Rule 13, the arbitral tribunal the Director of the KLRCA of such estimate, each
20 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 21
party shall deposit its share of the estimate with KLRCA shall render an accounting to the parties of
the KLRCA. the deposits received and return any unexpended
4. During the course of the arbitral proceedings the balance to the parties based on the parties
Director of the KLRCA may request further deposits respective contributions.
from the parties which shall be paid by the parties
in equal shares within 21 days of such request.
Rule 14
5. Notwithstanding Rule 13(4), where counterclaims Mediation to Arbitration
are submitted by the respondent, the Director of
the KLRCA may fix separate deposits on costs for Where the parties have referred their dispute to
the claims and counterclaims. When the Director of mediation under the KLRCAs Mediation Rules and they
the KLRCA has fixed separate advance preliminary have failed to reach a settlement and thereafter proceed
deposits on costs, each of the parties shall pay to arbitration under the Rules, then one-half of the
the advance preliminary deposit corresponding to administrative costs paid to the KLRCA for the mediation
its claims. shall be credited towards the administrative costs of
the arbitration.
6. If the required deposits are not paid in full, the
Director of the KLRCA shall so inform the parties
in order that one or another of them may make the Rule 15
required payment. If such payment is not made, Confidentiality
the arbitral tribunal, after consultation with the
Director of the KLRCA, may order the suspension 1. The arbitral tribunal, the parties, all experts, all
or termination of the arbitral proceedings or any witnesses and the KLRCA shall keep confidential
part thereof. all matters relating to the arbitral proceedings
including any award except where disclosure is
7.
Notwithstanding the above, the Director of the necessary for purposes of implementation and
KLRCA shall have the discretion to determine enforcement or to the extent that disclosure may
the proportion of deposits required to be paid by be required of a party by legal duty, to protect or
the parties. pursue a legal right or to challenge an award in
bona fide legal proceedings before a state court or
8. The Director of the KLRCA may apply the deposits other judicial authority.
towards the administrative costs of the KLRCA, fees
of the arbitrator and the arbitrators out-of-pocket 2. In this Rule, matters relating to the proceedings
and per diem expenses in such manner and at such means the existence of the proceedings, and the
times as the Director thinks fit. pleadings, evidence and other materials in the
arbitration proceedings and all other documents
9. After the award has been made, the Director of the produced by another party in the proceedings or the
20 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 21
party shall deposit its share of the estimate with KLRCA shall render an accounting to the parties of
the KLRCA. the deposits received and return any unexpended
4. During the course of the arbitral proceedings the balance to the parties based on the parties
Director of the KLRCA may request further deposits respective contributions.
from the parties which shall be paid by the parties
in equal shares within 21 days of such request.
Rule 14
5. Notwithstanding Rule 13(4), where counterclaims Mediation to Arbitration
are submitted by the respondent, the Director of
the KLRCA may fix separate deposits on costs for Where the parties have referred their dispute to
the claims and counterclaims. When the Director of mediation under the KLRCAs Mediation Rules and they
the KLRCA has fixed separate advance preliminary have failed to reach a settlement and thereafter proceed
deposits on costs, each of the parties shall pay to arbitration under the Rules, then one-half of the
the advance preliminary deposit corresponding to administrative costs paid to the KLRCA for the mediation
its claims. shall be credited towards the administrative costs of
the arbitration.
6. If the required deposits are not paid in full, the
Director of the KLRCA shall so inform the parties
in order that one or another of them may make the Rule 15
required payment. If such payment is not made, Confidentiality
the arbitral tribunal, after consultation with the
Director of the KLRCA, may order the suspension 1. The arbitral tribunal, the parties, all experts, all
or termination of the arbitral proceedings or any witnesses and the KLRCA shall keep confidential
part thereof. all matters relating to the arbitral proceedings
including any award except where disclosure is
7.
Notwithstanding the above, the Director of the necessary for purposes of implementation and
KLRCA shall have the discretion to determine enforcement or to the extent that disclosure may
the proportion of deposits required to be paid by be required of a party by legal duty, to protect or
the parties. pursue a legal right or to challenge an award in
bona fide legal proceedings before a state court or
8. The Director of the KLRCA may apply the deposits other judicial authority.
towards the administrative costs of the KLRCA, fees
of the arbitrator and the arbitrators out-of-pocket 2. In this Rule, matters relating to the proceedings
and per diem expenses in such manner and at such means the existence of the proceedings, and the
times as the Director thinks fit. pleadings, evidence and other materials in the
arbitration proceedings and all other documents
9. After the award has been made, the Director of the produced by another party in the proceedings or the
22 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION
Rule 17
Non-reliances
Rule 17
Non-reliances
Section I Article 2
INTRODUCTORY RULES Notice and Calculation of Periods of Time
Section I Article 2
INTRODUCTORY RULES Notice and Calculation of Periods of Time
5. A notice shall be deemed to have been received 3. The notice of arbitration shall include the following:
on the day it is delivered in accordance with
paragraphs 2, 3 or 4, or attempted to be delivered in a)
A demand that the dispute be referred
accordance with paragraph 4. A notice transmitted to arbitration;
by electronic means is deemed to have been
received on the day it is sent, except that a notice b) The names and contact details of the parties;
of arbitration so transmitted is only deemed to
have been received on the day when it reaches the c) Identification of the arbitration agreement that
addressees electronic address. is invoked;
6.
For the purpose of calculating a period of time d)
Identification of any contract or other legal
under these Rules, such period shall begin to run on instrument out of or in relation to which the
the day following the day when a notice is received. dispute arises or, in the absence of such
If the last day of such period is an official holiday contract or instrument, a brief description of
or a non-business day at the residence or place of the relevant relationship;
business of the addressee, the period is extended
until the first business day which follows. Official e)
A brief description of the claim and an
holidays or non business days occurring during indication of the amount involved, if any;
the running of the period of time are included in
calculating the period. f) The relief or remedy sought;
g)
A proposal as to the number of arbitrators,
Article 3 language and place of arbitration, if the parties
Notice of Arbitration have not previously agreed thereon.
1.
The party or parties initiating recourse to 4. The notice of arbitration may also include:
arbitration (hereinafter called the claimant)
shall communicate to the other party or a) A proposal for the designation of an appointing
parties (hereinafter called the respondent) a authority referred to in article 6, paragraph 1;
notice of arbitration.
b)
A proposal for the appointment of a sole
2. Arbitral proceedings shall be deemed to commence arbitrator referred to in article 8, paragraph 1;
on the date on which the notice of arbitration is
received by the respondent. c) Notification of the appointment of an arbitrator
referred to in articles 9 or 10.
26 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 27
5. A notice shall be deemed to have been received 3. The notice of arbitration shall include the following:
on the day it is delivered in accordance with
paragraphs 2, 3 or 4, or attempted to be delivered in a)
A demand that the dispute be referred
accordance with paragraph 4. A notice transmitted to arbitration;
by electronic means is deemed to have been
received on the day it is sent, except that a notice b) The names and contact details of the parties;
of arbitration so transmitted is only deemed to
have been received on the day when it reaches the c) Identification of the arbitration agreement that
addressees electronic address. is invoked;
6.
For the purpose of calculating a period of time d)
Identification of any contract or other legal
under these Rules, such period shall begin to run on instrument out of or in relation to which the
the day following the day when a notice is received. dispute arises or, in the absence of such
If the last day of such period is an official holiday contract or instrument, a brief description of
or a non-business day at the residence or place of the relevant relationship;
business of the addressee, the period is extended
until the first business day which follows. Official e)
A brief description of the claim and an
holidays or non business days occurring during indication of the amount involved, if any;
the running of the period of time are included in
calculating the period. f) The relief or remedy sought;
g)
A proposal as to the number of arbitrators,
Article 3 language and place of arbitration, if the parties
Notice of Arbitration have not previously agreed thereon.
1.
The party or parties initiating recourse to 4. The notice of arbitration may also include:
arbitration (hereinafter called the claimant)
shall communicate to the other party or a) A proposal for the designation of an appointing
parties (hereinafter called the respondent) a authority referred to in article 6, paragraph 1;
notice of arbitration.
b)
A proposal for the appointment of a sole
2. Arbitral proceedings shall be deemed to commence arbitrator referred to in article 8, paragraph 1;
on the date on which the notice of arbitration is
received by the respondent. c) Notification of the appointment of an arbitrator
referred to in articles 9 or 10.
28 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 29
5. The constitution of the arbitral tribunal shall not e) A brief description of counterclaims or claims
be hindered by any controversy with respect to for the purpose of a set-off, if any, including
the sufficiency of the notice of arbitration, which where relevant, an indication of the amounts
shall be finally resolved by the arbitral tribunal. involved, and the relief or remedy sought;
2.
The response to the notice of arbitration may Each party may be represented or assisted by persons
also include: chosen by it. The names and addresses of such
persons must be communicated to all parties and to
a)
Any plea that an arbitral tribunal to be the arbitral tribunal. Such communication must specify
constituted under these Rules lacks whether the appointment is being made for purposes
jurisdiction; of representation or assistance. Where a person is to
act as a representative of a party, the arbitral tribunal,
b) A proposal for the designation of an appointing on its own initiative or at the request of any party, may
authority referred to in article 6, paragraph 1; at any time require proof of authority granted to the
representative in such a form as the arbitral tribunal
c)
A proposal for the appointment of a sole may determine.
arbitrator referred to in article 8, paragraph 1;
5. The constitution of the arbitral tribunal shall not e) A brief description of counterclaims or claims
be hindered by any controversy with respect to for the purpose of a set-off, if any, including
the sufficiency of the notice of arbitration, which where relevant, an indication of the amounts
shall be finally resolved by the arbitral tribunal. involved, and the relief or remedy sought;
2.
The response to the notice of arbitration may Each party may be represented or assisted by persons
also include: chosen by it. The names and addresses of such
persons must be communicated to all parties and to
a)
Any plea that an arbitral tribunal to be the arbitral tribunal. Such communication must specify
constituted under these Rules lacks whether the appointment is being made for purposes
jurisdiction; of representation or assistance. Where a person is to
act as a representative of a party, the arbitral tribunal,
b) A proposal for the designation of an appointing on its own initiative or at the request of any party, may
authority referred to in article 6, paragraph 1; at any time require proof of authority granted to the
representative in such a form as the arbitral tribunal
c)
A proposal for the appointment of a sole may determine.
arbitrator referred to in article 8, paragraph 1;
Article 6 5.
In exercising their functions under these Rules,
Designating and Appointing Authorities the appointing authority and the Secretary-
General of the PCA may require from any party
1.
Unless the parties have already agreed on the and the arbitrators the information they deem
choice of an appointing authority, a party may at any necessary and they shall give the parties and,
time propose the name or names of one or more where appropriate, the arbitrators, an opportunity
institutions or persons, including the Secretary- to present their views in any manner they
General of the Permanent Court of Arbitration at consider appropriate. All such communications
The Hague (hereinafter called the PCA), one of to and from the appointing authority and the
whom would serve as appointing authority. Secretary-General of the PCA shall also be
provided by the sender to all other parties.
2.
If all parties have not agreed on the choice of
an appointing authority within 30 days after a 6.
When the appointing authority is requested to
proposal made in accordance with paragraph 1 appoint an arbitrator pursuant to articles 8, 9, 10
has been received by all other parties, any party or 14, the party making the request shall send to
may request the Secretary-General of the PCA to the appointing authority copies of the notice of
designate the appointing authority. arbitration and, if it exists, any response to the
notice of arbitration.
3. Where these Rules provide for a period of time
within which a party must refer a matter to an 7.
The appointing authority shall have regard to
appointing authority and no appointing authority such considerations as are likely to secure the
has been agreed on or designated, the period is appointment of an independent and impartial
suspended from the date on which a party initiates arbitrator and shall take into account the advisability
the procedure for agreeing on or designating of appointing an arbitrator of a nationality other
an appointing authority until the date of such than the nationalities of the parties.
agreement or designation.
4.
Except as referred to in article 41, paragraph 4, if
the appointing authority refuses to act, or if it fails to
appoint an arbitrator within 30 days after it receives
a partys request to do so, fails to act within any other
period provided by these Rules, or fails to decide
on a challenge to an arbitrator within a reasonable
time after receiving a partys request to do so, any
party may request the Secretary-General of the PCA
to designate a substitute appointing authority.
30 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 31
Article 6 5.
In exercising their functions under these Rules,
Designating and Appointing Authorities the appointing authority and the Secretary-
General of the PCA may require from any party
1.
Unless the parties have already agreed on the and the arbitrators the information they deem
choice of an appointing authority, a party may at any necessary and they shall give the parties and,
time propose the name or names of one or more where appropriate, the arbitrators, an opportunity
institutions or persons, including the Secretary- to present their views in any manner they
General of the Permanent Court of Arbitration at consider appropriate. All such communications
The Hague (hereinafter called the PCA), one of to and from the appointing authority and the
whom would serve as appointing authority. Secretary-General of the PCA shall also be
provided by the sender to all other parties.
2.
If all parties have not agreed on the choice of
an appointing authority within 30 days after a 6.
When the appointing authority is requested to
proposal made in accordance with paragraph 1 appoint an arbitrator pursuant to articles 8, 9, 10
has been received by all other parties, any party or 14, the party making the request shall send to
may request the Secretary-General of the PCA to the appointing authority copies of the notice of
designate the appointing authority. arbitration and, if it exists, any response to the
notice of arbitration.
3. Where these Rules provide for a period of time
within which a party must refer a matter to an 7.
The appointing authority shall have regard to
appointing authority and no appointing authority such considerations as are likely to secure the
has been agreed on or designated, the period is appointment of an independent and impartial
suspended from the date on which a party initiates arbitrator and shall take into account the advisability
the procedure for agreeing on or designating of appointing an arbitrator of a nationality other
an appointing authority until the date of such than the nationalities of the parties.
agreement or designation.
4.
Except as referred to in article 41, paragraph 4, if
the appointing authority refuses to act, or if it fails to
appoint an arbitrator within 30 days after it receives
a partys request to do so, fails to act within any other
period provided by these Rules, or fails to decide
on a challenge to an arbitrator within a reasonable
time after receiving a partys request to do so, any
party may request the Secretary-General of the PCA
to designate a substitute appointing authority.
32 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 33
Article 8
Article 7
Number of Arbitrators 1. If the parties have agreed that a sole arbitrator is
to be appointed and if within 30 days after receipt
1. If the parties have not previously agreed on the by all other parties of a proposal for the
number of arbitrators, and if within 30 days after appointment of a sole arbitrator the parties have
the receipt by the respondent of the notice of not reached agreement thereon, a sole arbitrator
arbitration the parties have not agreed that there shall, at the request of a party, be appointed by the
shall be only one arbitrator, three arbitrators appointing authority.
shall be appointed.
2.
The appointing authority shall appoint the sole
2. Notwithstanding paragraph 1, if no other parties arbitrator as promptly as possible. In making the
have responded to a partys proposal to appoint a appointment, the appointing authority shall use
sole arbitrator within the time limit provided for in the following list-procedure, unless the parties
paragraph 1 and the party or parties concerned have agree that the list-procedure should not be used
failed to appoint a second arbitrator in accordance or unless the appointing authority determines in its
with articles 9 or 10, the appointing authority may, discretion that the use of the list-procedure is not
at the request of a party, appoint a sole arbitrator appropriate for the case:
pursuant to the procedure provided for in article
8, paragraph 2 if it determines that, in view of the a) The appointing authority shall communicate to
circumstances of the case, this is more appropriate. each of the parties an identical list containing
at least three names;
b)
Within 15 days after the receipt of this list,
each party may return the list to the appointing
authority after having deleted the name or names
to which it objects and numbered the remaining
names on the list in the order of its preference;
Article 8
Article 7
Number of Arbitrators 1. If the parties have agreed that a sole arbitrator is
to be appointed and if within 30 days after receipt
1. If the parties have not previously agreed on the by all other parties of a proposal for the
number of arbitrators, and if within 30 days after appointment of a sole arbitrator the parties have
the receipt by the respondent of the notice of not reached agreement thereon, a sole arbitrator
arbitration the parties have not agreed that there shall, at the request of a party, be appointed by the
shall be only one arbitrator, three arbitrators appointing authority.
shall be appointed.
2.
The appointing authority shall appoint the sole
2. Notwithstanding paragraph 1, if no other parties arbitrator as promptly as possible. In making the
have responded to a partys proposal to appoint a appointment, the appointing authority shall use
sole arbitrator within the time limit provided for in the following list-procedure, unless the parties
paragraph 1 and the party or parties concerned have agree that the list-procedure should not be used
failed to appoint a second arbitrator in accordance or unless the appointing authority determines in its
with articles 9 or 10, the appointing authority may, discretion that the use of the list-procedure is not
at the request of a party, appoint a sole arbitrator appropriate for the case:
pursuant to the procedure provided for in article
8, paragraph 2 if it determines that, in view of the a) The appointing authority shall communicate to
circumstances of the case, this is more appropriate. each of the parties an identical list containing
at least three names;
b)
Within 15 days after the receipt of this list,
each party may return the list to the appointing
authority after having deleted the name or names
to which it objects and numbered the remaining
names on the list in the order of its preference;
d)
If for any reason the appointment cannot appoint an arbitrator.
be made according to this procedure, the 2. If the parties have agreed that the arbitral tribunal
appointing authority may exercise its discretion is to be composed of a number of arbitrators other
in appointing the sole arbitrator. than one or three, the arbitrators shall be appointed
according to the method agreed upon by the parties.
2.
If within 30 days after the receipt of a partys
notification of the appointment of an arbitrator Disclosures by and Challenge of Arbitrators**
the other party has not notified the first party of (Articles 11 to 13)
the arbitrator it has appointed, the first party may
request the appointing authority to appoint the
second arbitrator. Article 11
3. If within 30 days after the appointment of the second When a person is approached in connection with his
arbitrator the two arbitrators have not agreed on or her possible appointment as an arbitrator, he or
the choice of the presiding arbitrator, the presiding she shall disclose any circumstances likely to give
arbitrator shall be appointed by the appointing rise to justifiable doubts as to his or her impartiality
authority in the same way as a sole arbitrator would or independence. An arbitrator, from the time of his or
be appointed under article 8. her appointment and throughout the arbitral
proceedings, shall without delay disclose any such
circumstances to the parties and the other arbitrators
Article 10 unless they have already been informed by him or her
of these circumstances.
1. For the purposes of article 9, paragraph 1, where
three arbitrators are to be appointed and there ** Model statements of independence pursuant to article 11
are multiple parties as claimant or as respondent, can be found in the annex to the Rules.
unless the parties have agreed to another method
of appointment of arbitrators, the multiple parties
jointly, whether as claimant or as respondent, shall
34 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 35
d)
If for any reason the appointment cannot appoint an arbitrator.
be made according to this procedure, the 2. If the parties have agreed that the arbitral tribunal
appointing authority may exercise its discretion is to be composed of a number of arbitrators other
in appointing the sole arbitrator. than one or three, the arbitrators shall be appointed
according to the method agreed upon by the parties.
2.
If within 30 days after the receipt of a partys
notification of the appointment of an arbitrator Disclosures by and Challenge of Arbitrators**
the other party has not notified the first party of (Articles 11 to 13)
the arbitrator it has appointed, the first party may
request the appointing authority to appoint the
second arbitrator. Article 11
3. If within 30 days after the appointment of the second When a person is approached in connection with his
arbitrator the two arbitrators have not agreed on or her possible appointment as an arbitrator, he or
the choice of the presiding arbitrator, the presiding she shall disclose any circumstances likely to give
arbitrator shall be appointed by the appointing rise to justifiable doubts as to his or her impartiality
authority in the same way as a sole arbitrator would or independence. An arbitrator, from the time of his or
be appointed under article 8. her appointment and throughout the arbitral
proceedings, shall without delay disclose any such
circumstances to the parties and the other arbitrators
Article 10 unless they have already been informed by him or her
of these circumstances.
1. For the purposes of article 9, paragraph 1, where
three arbitrators are to be appointed and there ** Model statements of independence pursuant to article 11
are multiple parties as claimant or as respondent, can be found in the annex to the Rules.
unless the parties have agreed to another method
of appointment of arbitrators, the multiple parties
jointly, whether as claimant or as respondent, shall
36 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 37
the challenge.
Article 12 4. If, within 15 days from the date of the notice of
challenge, all parties do not agree to the challenge
1. Any arbitrator may be challenged if circumstances or the challenged arbitrator does not withdraw, the
exist that give rise to justifiable doubts as to the party making the challenge may elect to pursue
arbitrators impartiality or independence. it. In that case, within 30 days from the date of the
notice of challenge, it shall seek a decision on the
2. A party may challenge the arbitrator appointed by challenge by the appointing authority.
it only for reasons of which it becomes aware
after the appointment has been made.
Article 14
3. In the event that an arbitrator fails to act or in the Replacement of An Arbitrator
event of the de jure or de facto impossibility of his or
her performing his or her functions, the procedure 1. Subject to paragraph (2), in any event where an
in respect of the challenge of an arbitrator as arbitrator has to be replaced during the course of the
provided in article 13 shall apply. arbitral proceedings, a substitute arbitrator shall
be appointed or chosen pursuant to the procedure
provided for in articles 8 to 11 that was applicable
Article 13 to the appointment or choice of the arbitrator
being replaced. This procedure shall apply even if
1.
A party that intends to challenge an arbitrator during the process of appointing the arbitrator to
shall send notice of its challenge within 15 days be replaced, a party had failed to exercise its right
after it has been notified of the appointment of the to appoint or to participate in the appointment.
challenged arbitrator, or within 15 days after the
circumstances mentioned in articles 11 and 12 2. If, at the request of a party, the appointing authority
became known to that party. determines that, in view of the exceptional
circumstances of the case, it would be justified
2. The notice of challenge shall be communicated to for a party to be deprived of its right to appoint a
all other parties, to the arbitrator who is challenged substitute arbitrator, the appointing authority
and to the other arbitrators. The notice of challenge may, after giving an opportunity to the parties and
shall state the reasons for the challenge. the remaining arbitrators to express their views:
(a) appoint the substitute arbitrator; or (b) after
3.
When an arbitrator has been challenged by a the closure of the hearings, authorise the other
party, all parties may agree to the challenge. The arbitrators to proceed with the arbitration and
arbitrator may also, after the challenge, withdraw make any decision or award.
from his or her office. In neither case does this
imply acceptance of the validity of the grounds for
36 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 37
the challenge.
Article 12 4. If, within 15 days from the date of the notice of
challenge, all parties do not agree to the challenge
1. Any arbitrator may be challenged if circumstances or the challenged arbitrator does not withdraw, the
exist that give rise to justifiable doubts as to the party making the challenge may elect to pursue
arbitrators impartiality or independence. it. In that case, within 30 days from the date of the
notice of challenge, it shall seek a decision on the
2. A party may challenge the arbitrator appointed by challenge by the appointing authority.
it only for reasons of which it becomes aware
after the appointment has been made.
Article 14
3. In the event that an arbitrator fails to act or in the Replacement of An Arbitrator
event of the de jure or de facto impossibility of his or
her performing his or her functions, the procedure 1. Subject to paragraph (2), in any event where an
in respect of the challenge of an arbitrator as arbitrator has to be replaced during the course of the
provided in article 13 shall apply. arbitral proceedings, a substitute arbitrator shall
be appointed or chosen pursuant to the procedure
provided for in articles 8 to 11 that was applicable
Article 13 to the appointment or choice of the arbitrator
being replaced. This procedure shall apply even if
1.
A party that intends to challenge an arbitrator during the process of appointing the arbitrator to
shall send notice of its challenge within 15 days be replaced, a party had failed to exercise its right
after it has been notified of the appointment of the to appoint or to participate in the appointment.
challenged arbitrator, or within 15 days after the
circumstances mentioned in articles 11 and 12 2. If, at the request of a party, the appointing authority
became known to that party. determines that, in view of the exceptional
circumstances of the case, it would be justified
2. The notice of challenge shall be communicated to for a party to be deprived of its right to appoint a
all other parties, to the arbitrator who is challenged substitute arbitrator, the appointing authority
and to the other arbitrators. The notice of challenge may, after giving an opportunity to the parties and
shall state the reasons for the challenge. the remaining arbitrators to express their views:
(a) appoint the substitute arbitrator; or (b) after
3.
When an arbitrator has been challenged by a the closure of the hearings, authorise the other
party, all parties may agree to the challenge. The arbitrators to proceed with the arbitration and
arbitrator may also, after the challenge, withdraw make any decision or award.
from his or her office. In neither case does this
imply acceptance of the validity of the grounds for
38 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 39
3.
If at an appropriate stage of the proceedings
Article 16 any party so requests, the arbitral tribunal shall
Exclusion of Liability hold hearings for the presentation of evidence
by witnesses, including expert witnesses, or for
Save for intentional wrongdoing, the parties waive, to the oral argument. In the absence of such a request,
fullest extent permitted under the applicable law, any the arbitral tribunal shall decide whether to hold
claim against the arbitrators, the appointing authority such hearings or whether the proceedings shall
and any person appointed by the arbitral tribunal based be conducted on the basis of documents and
on any act or omission in connection with the arbitration. other materials.
3.
If at an appropriate stage of the proceedings
Article 16 any party so requests, the arbitral tribunal shall
Exclusion of Liability hold hearings for the presentation of evidence
by witnesses, including expert witnesses, or for
Save for intentional wrongdoing, the parties waive, to the oral argument. In the absence of such a request,
fullest extent permitted under the applicable law, any the arbitral tribunal shall decide whether to hold
claim against the arbitrators, the appointing authority such hearings or whether the proceedings shall
and any person appointed by the arbitral tribunal based be conducted on the basis of documents and
on any act or omission in connection with the arbitration. other materials.
Article 21 Article 22
Statement of Defence Amendments to the Claim or Defence
1. The respondent shall communicate its statement of During the course of the arbitral proceedings, a party
defence in writing to the claimant and to each of the may amend or supplement its claim or defence, including
arbitrators within a period of time to be determined a counterclaim or a claim for the purpose of a set-off,
by the arbitral tribunal. The respondent may elect unless the arbitral tribunal considers it inappropriate to
to treat its response to the notice of arbitration allow such amendment or supplement having regard to
referred to in article 4 as a statement of defence, the delay in making it or prejudice to other parties or
provided that the response to the notice of any other circumstances. However, a claim or defence,
arbitration also complies with the requirements of including a counterclaim or a claim for the purpose of
paragraph 2 of this article. a set-off, may not be amended or supplemented in
such a manner that the amended or supplemented
2.
The statement of defence shall reply to the claim or defence falls outside the jurisdiction of the
particulars (b) to (e) of the statement of claim arbitral tribunal.
(article 20, paragraph 2). The statement of defence
should, as far as possible, be accompanied by all
documents and other evidence relied upon by the Article 23
respondent, or contain references to them. Pleas as to the Jurisdiction of the Arbitral Tribunal
3. In its statement of defence, or at a later stage in the 1. The arbitral tribunal shall have the power to rule
arbitral proceedings if the arbitral tribunal decides on its own jurisdiction, including any objections with
that the delay was justified under the circumstances, respect to the existence or validity of the arbitration
the respondent may make a counterclaim or rely on agreement. For that purpose, an arbitration clause
a claim for the purpose of a set-off provided that that forms part of a contract shall be treated as an
the arbitral tribunal has jurisdiction over it. agreement independent of the other terms of the
contract. A decision by the arbitral tribunal that the
4.
The provisions of article 20, paragraphs 2 to 4 contract is null shall not entail automatically the
shall apply to a counterclaim, a claim under article invalidity of the arbitration clause.
4, paragraph (2) (f) and a claim relied on for the
purpose of a set-off. 2.
A plea that the arbitral tribunal does not have
jurisdiction shall be raised no later than in
the statement of defence or, with respect to a
counterclaim or a claim for the purpose of a set-off,
in the reply to the counterclaim or to the claim for
42 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 43
Article 21 Article 22
Statement of Defence Amendments to the Claim or Defence
1. The respondent shall communicate its statement of During the course of the arbitral proceedings, a party
defence in writing to the claimant and to each of the may amend or supplement its claim or defence, including
arbitrators within a period of time to be determined a counterclaim or a claim for the purpose of a set-off,
by the arbitral tribunal. The respondent may elect unless the arbitral tribunal considers it inappropriate to
to treat its response to the notice of arbitration allow such amendment or supplement having regard to
referred to in article 4 as a statement of defence, the delay in making it or prejudice to other parties or
provided that the response to the notice of any other circumstances. However, a claim or defence,
arbitration also complies with the requirements of including a counterclaim or a claim for the purpose of
paragraph 2 of this article. a set-off, may not be amended or supplemented in
such a manner that the amended or supplemented
2.
The statement of defence shall reply to the claim or defence falls outside the jurisdiction of the
particulars (b) to (e) of the statement of claim arbitral tribunal.
(article 20, paragraph 2). The statement of defence
should, as far as possible, be accompanied by all
documents and other evidence relied upon by the Article 23
respondent, or contain references to them. Pleas as to the Jurisdiction of the Arbitral Tribunal
3. In its statement of defence, or at a later stage in the 1. The arbitral tribunal shall have the power to rule
arbitral proceedings if the arbitral tribunal decides on its own jurisdiction, including any objections with
that the delay was justified under the circumstances, respect to the existence or validity of the arbitration
the respondent may make a counterclaim or rely on agreement. For that purpose, an arbitration clause
a claim for the purpose of a set-off provided that that forms part of a contract shall be treated as an
the arbitral tribunal has jurisdiction over it. agreement independent of the other terms of the
contract. A decision by the arbitral tribunal that the
4.
The provisions of article 20, paragraphs 2 to 4 contract is null shall not entail automatically the
shall apply to a counterclaim, a claim under article invalidity of the arbitration clause.
4, paragraph (2) (f) and a claim relied on for the
purpose of a set-off. 2.
A plea that the arbitral tribunal does not have
jurisdiction shall be raised no later than in
the statement of defence or, with respect to a
counterclaim or a claim for the purpose of a set-off,
in the reply to the counterclaim or to the claim for
44 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 45
The arbitral tribunal shall decide which further i) current or imminent harm or
written statements, in addition to the statement of claim
and the statement of defence, shall be required from ii) prejudice to the arbitral process itself;
the parties or may be presented by them and shall fix
the periods of time for communicating such statements. c) Provide a means of preserving assets out of
which a subsequent award may be satisfied; or
The arbitral tribunal shall decide which further i) current or imminent harm or
written statements, in addition to the statement of claim
and the statement of defence, shall be required from ii) prejudice to the arbitral process itself;
the parties or may be presented by them and shall fix
the periods of time for communicating such statements. c) Provide a means of preserving assets out of
which a subsequent award may be satisfied; or
of damages is likely to result if the measure prevailing, the measure should not have been
is not ordered, and such harm substantially granted. The arbitral tribunal may award such costs
outweighs the harm that is likely to result to and damages at any point during the proceedings.
the party against whom the measure is 9. A request for interim measures addressed by any
directed if the measure is granted; and party to a judicial authority shall not be deemed
incompatible with the agreement to arbitrate, or as
b)
There is a reasonable possibility that the a waiver of that agreement.
requesting party will succeed on the merits
of the claim. The determination on this
possibility shall not affect the discretion of the Article 27
arbitral tribunal in making any subsequent Evidence
determination.
1. Each party shall have the burden of proving the
4. With regard to a request for an interim measure facts relied on to support its claim or defence.
under paragraph 2 (d), the requirements in
paragraphs 3 (a) and (b) shall apply only to the 2.
Witnesses, including expert witnesses, who are
extent the arbitral tribunal considers appropriate. presented by the parties to testify to the arbitral
tribunal on any issue of fact or expertise may be
5.
The arbitral tribunal may modify, suspend or any individual, notwithstanding that the individual
terminate an interim measure it has granted, is a party to the arbitration or in any way related to
upon application of any party or, in exceptional a party. Unless otherwise directed by the arbitral
circumstances and upon prior notice to the parties, tribunal, statements by witnesses, including expert
on the arbitral tribunals own initiative. witnesses, may be presented in writing and signed
by them.
6. The arbitral tribunal may require the party requesting
an interim measure to provide appropriate security 3.
At any time during the arbitral proceedings
in connection with the measure. the arbitral tribunal may require the parties to
produce documents exhibits or other evidence
7.
The arbitral tribunal may require any party within such a period of time as the arbitral tribunal
promptly to disclose any material change in the shall determine.
circumstances on the basis of which the interim
measure was requested or granted. 4.
The arbitral tribunal shall determine the
admissibility, relevance, materiality and weight of
8.
The party requesting an interim measure may the evidence offered.
be liable for any costs and damages caused by
the measure to any party if the arbitral tribunal
later determines that, in the circumstances then
46 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 47
of damages is likely to result if the measure prevailing, the measure should not have been
is not ordered, and such harm substantially granted. The arbitral tribunal may award such costs
outweighs the harm that is likely to result to and damages at any point during the proceedings.
the party against whom the measure is 9. A request for interim measures addressed by any
directed if the measure is granted; and party to a judicial authority shall not be deemed
incompatible with the agreement to arbitrate, or as
b)
There is a reasonable possibility that the a waiver of that agreement.
requesting party will succeed on the merits
of the claim. The determination on this
possibility shall not affect the discretion of the Article 27
arbitral tribunal in making any subsequent Evidence
determination.
1. Each party shall have the burden of proving the
4. With regard to a request for an interim measure facts relied on to support its claim or defence.
under paragraph 2 (d), the requirements in
paragraphs 3 (a) and (b) shall apply only to the 2.
Witnesses, including expert witnesses, who are
extent the arbitral tribunal considers appropriate. presented by the parties to testify to the arbitral
tribunal on any issue of fact or expertise may be
5.
The arbitral tribunal may modify, suspend or any individual, notwithstanding that the individual
terminate an interim measure it has granted, is a party to the arbitration or in any way related to
upon application of any party or, in exceptional a party. Unless otherwise directed by the arbitral
circumstances and upon prior notice to the parties, tribunal, statements by witnesses, including expert
on the arbitral tribunals own initiative. witnesses, may be presented in writing and signed
by them.
6. The arbitral tribunal may require the party requesting
an interim measure to provide appropriate security 3.
At any time during the arbitral proceedings
in connection with the measure. the arbitral tribunal may require the parties to
produce documents exhibits or other evidence
7.
The arbitral tribunal may require any party within such a period of time as the arbitral tribunal
promptly to disclose any material change in the shall determine.
circumstances on the basis of which the interim
measure was requested or granted. 4.
The arbitral tribunal shall determine the
admissibility, relevance, materiality and weight of
8.
The party requesting an interim measure may the evidence offered.
be liable for any costs and damages caused by
the measure to any party if the arbitral tribunal
later determines that, in the circumstances then
48 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 49
2.
The expert shall, in principle before accepting
appointment, submit to the arbitral tribunal and to
Article 28 the parties a description of his or her qualifications
Hearings and a statement of his or her impartiality and
independence. Within the time ordered by the
1. In the event of an oral hearing, the arbitral tribunal arbitral tribunal, the parties shall inform the
shall give the parties adequate advance notice of arbitral tribunal whether they have any objections
the date, time and place thereof. as to the experts qualifications, impartiality or
independence. The arbitral tribunal shall decide
2.
Witnesses, including expert witnesses, may be promptly whether to accept any such objections.
heard under the conditions and examined in the After an experts appointment, a party may object
manner set by the arbitral tribunal. to the experts qualifications, impartiality or
3.
Hearings shall be held in camera unless the independence only if the objection is for reasons
parties agree otherwise. The arbitral tribunal may of which the party becomes aware after the
require the retirement of any witness or witnesses, appointment has been made. The arbitral tribunal
including expert witnesses, during the testimony shall decide promptly what, if any, action to take.
of such other witnesses, except that a witness,
including an expert witness, who is a party to the 3.
The parties shall give the expert any relevant
arbitration shall not, in principle, be asked to retire. information or produce for his or her inspection
any relevant documents or goods that he or she
4.
The arbitral tribunal may direct that witnesses, may require of them. Any dispute between a party
including expert witnesses, be examined through and such expert as to the relevance of the required
means of telecommunication that do not require information or production shall be referred to the
their physical presence at the hearing (such as arbitral tribunal for decision.
video conferencing).
4.
Upon receipt of the experts report, the arbitral
tribunal shall communicate a copy of the report to
Article 29 the parties, which shall be given the opportunity to
Experts Appointed by the Arbitral Tribunal express, in writing, their opinion on the report. A
party shall be entitled to examine any document on
1. fter consultation with the parties, the arbitral
A which the expert has relied in his or her report.
tribunal may appoint one or more independent
experts to report to it, in writing, on specific issues to 5. At the request of any party, the expert, after delivery
be determined by the arbitral tribunal. A copy of the of the report, may be heard at a hearing where the
experts terms of reference, established by the arbitral parties shall have the opportunity to be present and
tribunal, shall be communicated to the parties. to interrogate the expert. At this hearing, any party
48 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 49
2.
The expert shall, in principle before accepting
appointment, submit to the arbitral tribunal and to
Article 28 the parties a description of his or her qualifications
Hearings and a statement of his or her impartiality and
independence. Within the time ordered by the
1. In the event of an oral hearing, the arbitral tribunal arbitral tribunal, the parties shall inform the
shall give the parties adequate advance notice of arbitral tribunal whether they have any objections
the date, time and place thereof. as to the experts qualifications, impartiality or
independence. The arbitral tribunal shall decide
2.
Witnesses, including expert witnesses, may be promptly whether to accept any such objections.
heard under the conditions and examined in the After an experts appointment, a party may object
manner set by the arbitral tribunal. to the experts qualifications, impartiality or
3.
Hearings shall be held in camera unless the independence only if the objection is for reasons
parties agree otherwise. The arbitral tribunal may of which the party becomes aware after the
require the retirement of any witness or witnesses, appointment has been made. The arbitral tribunal
including expert witnesses, during the testimony shall decide promptly what, if any, action to take.
of such other witnesses, except that a witness,
including an expert witness, who is a party to the 3.
The parties shall give the expert any relevant
arbitration shall not, in principle, be asked to retire. information or produce for his or her inspection
any relevant documents or goods that he or she
4.
The arbitral tribunal may direct that witnesses, may require of them. Any dispute between a party
including expert witnesses, be examined through and such expert as to the relevance of the required
means of telecommunication that do not require information or production shall be referred to the
their physical presence at the hearing (such as arbitral tribunal for decision.
video conferencing).
4.
Upon receipt of the experts report, the arbitral
tribunal shall communicate a copy of the report to
Article 29 the parties, which shall be given the opportunity to
Experts Appointed by the Arbitral Tribunal express, in writing, their opinion on the report. A
party shall be entitled to examine any document on
1. fter consultation with the parties, the arbitral
A which the expert has relied in his or her report.
tribunal may appoint one or more independent
experts to report to it, in writing, on specific issues to 5. At the request of any party, the expert, after delivery
be determined by the arbitral tribunal. A copy of the of the report, may be heard at a hearing where the
experts terms of reference, established by the arbitral parties shall have the opportunity to be present and
tribunal, shall be communicated to the parties. to interrogate the expert. At this hearing, any party
50 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 51
may present expert witnesses in order to testify on the arbitral tribunal may make the award on the
the points at issue. The provisions of article 28 shall evidence before it.
be applicable to such proceedings.
Article 30 Article 31
Default Closure of Hearings
1.
If, within the period of time fixed by these 1. The arbitral tribunal may enquire of the parties if
Rules or the arbitral tribunal, without showing they have any further proof to offer or witnesses to
sufficient cause: be heard or submissions to make and, if there are
none, it may declare the hearings closed.
a)
The claimant has failed to communicate its
statement of claim, the arbitral tribunal shall 2. The arbitral tribunal may, if it considers it necessary
issue an order for the termination of the owing to exceptional circumstances, decide, on
arbitral proceedings, unless there are its own initiative or upon application of a party, to
remaining matters that may need to be reopen the hearings at any time before the award
decided and the arbitral tribunal considers it is made.
appropriate to do so;
b)
The respondent has failed to communicate Article 32
its response to the notice of arbitration or its Waiver of Right to Object
statement of defence, the arbitral tribunal shall
order that the proceedings continue, without A failure by any party to object promptly to any non-
treating such failure in itself as an admission compliance with these Rules or with any requirement
of the claimants allegations; the provisions of of the arbitration agreement shall be deemed to be
this subparagraph also apply to a claimants a waiver of the right of such party to make such an
failure to submit a defence to a counterclaim or objection, unless such party can show that, under the
to a claim for the purpose of a set-off. circumstances, its failure to object was justified.
may present expert witnesses in order to testify on the arbitral tribunal may make the award on the
the points at issue. The provisions of article 28 shall evidence before it.
be applicable to such proceedings.
Article 30 Article 31
Default Closure of Hearings
1.
If, within the period of time fixed by these 1. The arbitral tribunal may enquire of the parties if
Rules or the arbitral tribunal, without showing they have any further proof to offer or witnesses to
sufficient cause: be heard or submissions to make and, if there are
none, it may declare the hearings closed.
a)
The claimant has failed to communicate its
statement of claim, the arbitral tribunal shall 2. The arbitral tribunal may, if it considers it necessary
issue an order for the termination of the owing to exceptional circumstances, decide, on
arbitral proceedings, unless there are its own initiative or upon application of a party, to
remaining matters that may need to be reopen the hearings at any time before the award
decided and the arbitral tribunal considers it is made.
appropriate to do so;
b)
The respondent has failed to communicate Article 32
its response to the notice of arbitration or its Waiver of Right to Object
statement of defence, the arbitral tribunal shall
order that the proceedings continue, without A failure by any party to object promptly to any non-
treating such failure in itself as an admission compliance with these Rules or with any requirement
of the claimants allegations; the provisions of of the arbitration agreement shall be deemed to be
this subparagraph also apply to a claimants a waiver of the right of such party to make such an
failure to submit a defence to a counterclaim or objection, unless such party can show that, under the
to a claim for the purpose of a set-off. circumstances, its failure to object was justified.
6.
Copies of the award signed by the arbitrators 2. If, before the award is made, the continuation of
shall be communicated to the parties by the the arbitral proceedings becomes unnecessary
52 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 53
6.
Copies of the award signed by the arbitrators 2. If, before the award is made, the continuation of
shall be communicated to the parties by the the arbitral proceedings becomes unnecessary
54 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 55
or impossible for any reason not mentioned in party, with notice to the other parties, may request
paragraph 1, the arbitral tribunal shall inform the arbitral tribunal to correct in the award any
the parties of its intention to issue an order for error in computation, any clerical or typographical
the termination of the proceedings. The arbitral error, or any error or omission of a similar nature.
tribunal shall have the power to issue such an If the arbitral tribunal considers that the request is
order unless there are remaining matters that justified, it shall make the correction within 45 days
may need to be decided and the arbitral tribunal of receipt of the request.
considers it appropriate to do so.
2. The arbitral tribunal may within 30 days after the
3.
Copies of the order for termination of the communication of the award make such corrections
arbitral proceedings or of the arbitral award on on its own initiative.
agreed terms, signed by the arbitrators, shall
be communicated by the arbitral tribunal to the 3. Such corrections shall be in writing and shall form
parties. Where an arbitral award on agreed terms part of the award. The provisions of article 34,
is made, the provisions of article 34, paragraphs 2, paragraphs 2 to 6, shall apply.
4 and 5 shall apply.
Article 39
Article 37 Additional Award
Interpretation of the Award
1. Within 30 days after the receipt of the termination
1. Within 30 days after the receipt of the award, a order or the award, a party, with notice to the other
party, with notice to the other parties, may request parties, may request the arbitral tribunal to make
that the arbitral tribunal give an interpretation of an award or an additional award as to claims
the award. presented in the arbitral proceedings but not
decided by the arbitral tribunal.
2. The interpretation shall be given in writing within
45 days after the receipt of the request. The 2. If the arbitral tribunal considers the request for an
interpretation shall form part of the award and award or additional award to be justified, it shall
the provisions of article 34, paragraphs 2 to 6, render or complete its award within 60 days after
shall apply. the receipt of the request. The arbitral tribunal
may extend, if necessary, the period of time within
which it shall make the award.
Article 38
Correction of the Award 3. When such an award or additional award is made,
the provisions of article 34, paragraph 2 to 6,
1. Within 30 days after the receipt of the award, a shall apply.
54 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 55
or impossible for any reason not mentioned in party, with notice to the other parties, may request
paragraph 1, the arbitral tribunal shall inform the arbitral tribunal to correct in the award any
the parties of its intention to issue an order for error in computation, any clerical or typographical
the termination of the proceedings. The arbitral error, or any error or omission of a similar nature.
tribunal shall have the power to issue such an If the arbitral tribunal considers that the request is
order unless there are remaining matters that justified, it shall make the correction within 45 days
may need to be decided and the arbitral tribunal of receipt of the request.
considers it appropriate to do so.
2. The arbitral tribunal may within 30 days after the
3.
Copies of the order for termination of the communication of the award make such corrections
arbitral proceedings or of the arbitral award on on its own initiative.
agreed terms, signed by the arbitrators, shall
be communicated by the arbitral tribunal to the 3. Such corrections shall be in writing and shall form
parties. Where an arbitral award on agreed terms part of the award. The provisions of article 34,
is made, the provisions of article 34, paragraphs 2, paragraphs 2 to 6, shall apply.
4 and 5 shall apply.
Article 39
Article 37 Additional Award
Interpretation of the Award
1. Within 30 days after the receipt of the termination
1. Within 30 days after the receipt of the award, a order or the award, a party, with notice to the other
party, with notice to the other parties, may request parties, may request the arbitral tribunal to make
that the arbitral tribunal give an interpretation of an award or an additional award as to claims
the award. presented in the arbitral proceedings but not
decided by the arbitral tribunal.
2. The interpretation shall be given in writing within
45 days after the receipt of the request. The 2. If the arbitral tribunal considers the request for an
interpretation shall form part of the award and award or additional award to be justified, it shall
the provisions of article 34, paragraphs 2 to 6, render or complete its award within 60 days after
shall apply. the receipt of the request. The arbitral tribunal
may extend, if necessary, the period of time within
which it shall make the award.
Article 38
Correction of the Award 3. When such an award or additional award is made,
the provisions of article 34, paragraph 2 to 6,
1. Within 30 days after the receipt of the award, a shall apply.
56 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 57
Article 40 3.
In relation to interpretation, correction or
Definition of Costs completion of any award under articles 37 to 39,
the arbitral tribunal may charge the costs referred
1. The arbitral tribunal shall fix the costs of arbitration to in paragraphs 2 (b) to (f), but no additional fees.
in the final award and, if it deems appropriate, in
another decision.
Article 41
2. The term costs includes only: Fees and Expenses of Arbitrators
Article 40 3.
In relation to interpretation, correction or
Definition of Costs completion of any award under articles 37 to 39,
the arbitral tribunal may charge the costs referred
1. The arbitral tribunal shall fix the costs of arbitration to in paragraphs 2 (b) to (f), but no additional fees.
in the final award and, if it deems appropriate, in
another decision.
Article 41
2. The term costs includes only: Fees and Expenses of Arbitrators
5.
After a termination order or final award has
been made, the arbitral tribunal shall render an
accounting to the parties of the deposits received
and return any unexpended balance to the parties.
60 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION
5.
After a termination order or final award has
been made, the arbitral tribunal shall render an
accounting to the parties of the deposits received
and return any unexpended balance to the parties.
62 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 63
Schedule 1
Schedule of Fees
INTERNATIONAL ARBITRATION
Appendix A1 Appendix B1
Arbitrators Fees (USD) Administrative Costs (USD)
Schedule 1
Schedule of Fees
INTERNATIONAL ARBITRATION
Appendix A1 Appendix B1
Arbitrators Fees (USD) Administrative Costs (USD)
DOMESTIC ARBITRATION
Appendix A2 Appendix B2
Arbitrators Fees (RM) Administrative Costs (RM)
DOMESTIC ARBITRATION
Appendix A2 Appendix B2
Arbitrators Fees (RM) Administrative Costs (RM)
Appendix C Appendix D
Emergency Interim Relief Costs and Fees Notes on Schedule of Fees
2. Emergency Arbitrators Fees: 2.1 The fees payable to the arbitrator do not include
any possible taxes such as service tax, withholding
International Arbitration USD10,000.00
tax or other taxes or charges applicable to the
Domestic Arbitration RM30,000.00 arbitrators fees. Parties have a duty to pay any
such taxes or charges; however the recovery of
any such taxes or charges is a matter solely
between the arbitrator and the parties.
a)
An arbitrator shall be entitled to claim
for reasonable out-of-pocket expenses
relating to reasonable travel, living and
other miscellaneous expenses whilst
attending to the arbitration proceedings.
b)
The arbitral tribunals reasonable out-
of-pocket expenses necessarily incurred
shall be borne by the parties and
reimbursed at costs.
66 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 67
Appendix C Appendix D
Emergency Interim Relief Costs and Fees Notes on Schedule of Fees
2. Emergency Arbitrators Fees: 2.1 The fees payable to the arbitrator do not include
any possible taxes such as service tax, withholding
International Arbitration USD10,000.00
tax or other taxes or charges applicable to the
Domestic Arbitration RM30,000.00 arbitrators fees. Parties have a duty to pay any
such taxes or charges; however the recovery of
any such taxes or charges is a matter solely
between the arbitrator and the parties.
a)
An arbitrator shall be entitled to claim
for reasonable out-of-pocket expenses
relating to reasonable travel, living and
other miscellaneous expenses whilst
attending to the arbitration proceedings.
b)
The arbitral tribunals reasonable out-
of-pocket expenses necessarily incurred
shall be borne by the parties and
reimbursed at costs.
68 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 69
c)
The expenses will be reimbursed upon 2.3
Any disbursement towards the arbitrators
submission and verification by the out-of pocket and per diem expenses shall be
KLRCA of the supporting invoices and additional to the arbitrators fees and do not
receipts in original. form part of the advance preliminary deposits.
Parties shall bear these costs separately in
d)
An arbitrator who is required to equal shares upon request from KLRCA.
travel outside his place of residence
will be reimbursed with business class 2.4 Payment of fees to arbitrator:
airfare, subject to the submission of
invoice or receipt in original to the a) The arbitrators fees shall only be payable
KLRCA for verification. upon the delivery of the award to KLRCA
in accordance with Rule 11.
e) In addition to the out-of-pocket expenses,
a per diem of RM1800.00 shall be paid to b) The arbitrator shall not be entitled to any
an arbitrator who is required to travel interim fees.
outside his place of residence, whenever
overnight accommodation is required. c)
Where the arbitral tribunal constitutes
Where no overnight accommodation is more than one arbitrator, the chairman
required, a per diem of RM900.00 shall of the arbitral tribunal shall receive 40%
be paid. of the total arbitrators fee and the
co-arbitrators shall receive the remaining
f)
The expenses covered by the per diem 60% in equal shares.
above shall include the following items
which are not claimable as out-of- d) Where an arbitration matter is settled or
pocket expenses: disposed of before the commencement
of hearing, the costs of the arbitration
Hotel accommodation; shall be determined by the Director of
Meals/beverages; the KLRCA.
Laundry/dry cleaning/ironing;
City transportation
(excluding airport transfers); 3. KLRCA Administrative Costs
Communication costs
(telephone, faxes, internet usage etc.); 3.1
The KLRCA administrative costs shall be
and calculated in accordance with the Appendix
Tips. B1 and B2 of the Schedule of Fees, as the
case may be.
68 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 69
c)
The expenses will be reimbursed upon 2.3
Any disbursement towards the arbitrators
submission and verification by the out-of pocket and per diem expenses shall be
KLRCA of the supporting invoices and additional to the arbitrators fees and do not
receipts in original. form part of the advance preliminary deposits.
Parties shall bear these costs separately in
d)
An arbitrator who is required to equal shares upon request from KLRCA.
travel outside his place of residence
will be reimbursed with business class 2.4 Payment of fees to arbitrator:
airfare, subject to the submission of
invoice or receipt in original to the a) The arbitrators fees shall only be payable
KLRCA for verification. upon the delivery of the award to KLRCA
in accordance with Rule 11.
e) In addition to the out-of-pocket expenses,
a per diem of RM1800.00 shall be paid to b) The arbitrator shall not be entitled to any
an arbitrator who is required to travel interim fees.
outside his place of residence, whenever
overnight accommodation is required. c)
Where the arbitral tribunal constitutes
Where no overnight accommodation is more than one arbitrator, the chairman
required, a per diem of RM900.00 shall of the arbitral tribunal shall receive 40%
be paid. of the total arbitrators fee and the
co-arbitrators shall receive the remaining
f)
The expenses covered by the per diem 60% in equal shares.
above shall include the following items
which are not claimable as out-of- d) Where an arbitration matter is settled or
pocket expenses: disposed of before the commencement
of hearing, the costs of the arbitration
Hotel accommodation; shall be determined by the Director of
Meals/beverages; the KLRCA.
Laundry/dry cleaning/ironing;
City transportation
(excluding airport transfers); 3. KLRCA Administrative Costs
Communication costs
(telephone, faxes, internet usage etc.); 3.1
The KLRCA administrative costs shall be
and calculated in accordance with the Appendix
Tips. B1 and B2 of the Schedule of Fees, as the
case may be.
70 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 71
3.2
The KLRCA administrative costs shall be Schedule 2
payable by the parties in equal shares and Emergency Arbitrator
shall form a part of the advance preliminary
deposit.
1. A party in need of emergency interim relief may,
3.3
The KLRCA administrative costs are not concurrent with or following the filing of a Notice
inclusive of other services such as rental of of Arbitration but prior to the constitution of
facilities, refreshments, secretarial assistance, the arbitral tribunal, make an application for
transcription services, videoconferencing emergency interim relief. The application for
and interpretation services which shall be emergency relief shall be made in writing and
chargeable on the requesting party separately. shall be sent simultaneously to the Director of
the KLRCA and all other parties to the arbitration.
The application for emergency interim relief
4. Advance Preliminary Deposit shall include:
b)
KLRCA administrative costs (as per d)
Reasons why the applicant requires the
Schedule of Fees). emergency relief;
c)
Bank charges amounting to RM150.00 e)
A statement certifying that all other parties
for domestic arbitrations or USD150.00 have been notified or an explanation of the
for international arbitrations. steps taken in good faith to notify the other
parties;
4.2
The advance preliminary deposit and
additional deposits, if any, shall be payable f) The relevant arbitration clause or arbitration
by the parties in equal shares pursuant to agreement; and
Rule 13.
g) An application fee pursuant to Appendix C.
70 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 71
3.2
The KLRCA administrative costs shall be Schedule 2
payable by the parties in equal shares and Emergency Arbitrator
shall form a part of the advance preliminary
deposit.
1. A party in need of emergency interim relief may,
3.3
The KLRCA administrative costs are not concurrent with or following the filing of a Notice
inclusive of other services such as rental of of Arbitration but prior to the constitution of
facilities, refreshments, secretarial assistance, the arbitral tribunal, make an application for
transcription services, videoconferencing emergency interim relief. The application for
and interpretation services which shall be emergency relief shall be made in writing and
chargeable on the requesting party separately. shall be sent simultaneously to the Director of
the KLRCA and all other parties to the arbitration.
The application for emergency interim relief
4. Advance Preliminary Deposit shall include:
b)
KLRCA administrative costs (as per d)
Reasons why the applicant requires the
Schedule of Fees). emergency relief;
c)
Bank charges amounting to RM150.00 e)
A statement certifying that all other parties
for domestic arbitrations or USD150.00 have been notified or an explanation of the
for international arbitrations. steps taken in good faith to notify the other
parties;
4.2
The advance preliminary deposit and
additional deposits, if any, shall be payable f) The relevant arbitration clause or arbitration
by the parties in equal shares pursuant to agreement; and
Rule 13.
g) An application fee pursuant to Appendix C.
72 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 73
2. The Director of the KLRCA shall, if he determines 7. Upon withdrawal or sustainment of the challenge,
that the KLRCA should accept the application, the substitute emergency arbitrator shall be
seek to appoint an emergency arbitrator within appointed in accordance with the procedure
2 business days (meaning working days and not provided in Rule 4.
including weekends and public holidays) of receipt
by the Director of the KLRCA of such application 8. If the parties have agreed on the seat of arbitration,
and payment of any required fee. such seat shall be the seat of the emergency
interim relief proceedings. Where the parties have
3.
Prior to accepting appointment, a prospective not agreed on the seat of arbitration, and without
emergency arbitrator shall disclose to the prejudice to the arbitral tribunals determination of
Director of the KLRCA any circumstance that may the seat of arbitration pursuant Rule 6, the seat of
give rise to justifiable doubts as to his impartiality the emergency interim relief proceedings shall be
or independence. Kuala Lumpur, Malaysia.
4.
An emergency arbitrator may not act as an 9.
The emergency arbitrator shall, as soon as
arbitrator in any future arbitration relating to the possible but in any event within 2 business days
dispute, unless agreed by the parties. of appointment, establish a schedule for
consideration of the application for emergency
5. Once the emergency arbitrator has been appointed, interim relief. Such schedule shall provide a
KLRCA shall so notify the parties. Thereafter, all reasonable opportunity to all parties to be heard,
written communications from the parties shall but may provide for proceedings by telephone
be submitted directly to the emergency arbitrator conference or on written submissions as
with a copy to the other party and KLRCA. alternatives to a formal hearing. The emergency
arbitrator shall have the powers vested in the
6.
In the event there is any challenge to the arbitral tribunal pursuant to these Rules, including
appointment of the emergency arbitrator, it must the authority to rule on his own jurisdiction, and
be made within one business day of the shall resolve any disputes over the application of
communication by the Director of KLRCA to the this Schedule 2.
parties of the appointment of the emergency
arbitrator or the circumstances disclosed. Rule 10. The emergency arbitrator shall have the power to
5 shall apply to the emergency arbitrator, except order or award any interim relief that he deems
that the time limits set out in the Rules 5(3) and necessary. The emergency arbitrator shall give
5(6) are reduced to one business day. reasons for his decision in writing.
72 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 73
2. The Director of the KLRCA shall, if he determines 7. Upon withdrawal or sustainment of the challenge,
that the KLRCA should accept the application, the substitute emergency arbitrator shall be
seek to appoint an emergency arbitrator within appointed in accordance with the procedure
2 business days (meaning working days and not provided in Rule 4.
including weekends and public holidays) of receipt
by the Director of the KLRCA of such application 8. If the parties have agreed on the seat of arbitration,
and payment of any required fee. such seat shall be the seat of the emergency
interim relief proceedings. Where the parties have
3.
Prior to accepting appointment, a prospective not agreed on the seat of arbitration, and without
emergency arbitrator shall disclose to the prejudice to the arbitral tribunals determination of
Director of the KLRCA any circumstance that may the seat of arbitration pursuant Rule 6, the seat of
give rise to justifiable doubts as to his impartiality the emergency interim relief proceedings shall be
or independence. Kuala Lumpur, Malaysia.
4.
An emergency arbitrator may not act as an 9.
The emergency arbitrator shall, as soon as
arbitrator in any future arbitration relating to the possible but in any event within 2 business days
dispute, unless agreed by the parties. of appointment, establish a schedule for
consideration of the application for emergency
5. Once the emergency arbitrator has been appointed, interim relief. Such schedule shall provide a
KLRCA shall so notify the parties. Thereafter, all reasonable opportunity to all parties to be heard,
written communications from the parties shall but may provide for proceedings by telephone
be submitted directly to the emergency arbitrator conference or on written submissions as
with a copy to the other party and KLRCA. alternatives to a formal hearing. The emergency
arbitrator shall have the powers vested in the
6.
In the event there is any challenge to the arbitral tribunal pursuant to these Rules, including
appointment of the emergency arbitrator, it must the authority to rule on his own jurisdiction, and
be made within one business day of the shall resolve any disputes over the application of
communication by the Director of KLRCA to the this Schedule 2.
parties of the appointment of the emergency
arbitrator or the circumstances disclosed. Rule 10. The emergency arbitrator shall have the power to
5 shall apply to the emergency arbitrator, except order or award any interim relief that he deems
that the time limits set out in the Rules 5(3) and necessary. The emergency arbitrator shall give
5(6) are reduced to one business day. reasons for his decision in writing.
74 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 75
13. The KLRCA shall notify the parties of its receipt 16. Any interim award or order of emergency interim
of the order or award from the arbitral tribunal. relief may be conditional on provision of appropriate
The order or award shall be deemed to have been security by the party seeking such relief.
received by the parties upon collection by hand
by an authorised representative or upon delivery 17.
An order or award pursuant to this Schedule 2
by registered mail. shall be binding on the parties when rendered.
By agreeing to arbitration under these Rules, the
14. Upon the constitution of the arbitral tribunal: parties undertake to comply with such an order or
award without delay.
a) The emergency arbitrator shall have no further
power to act; 18. The costs associated with any application pursuant
to this Schedule 2 shall initially be apportioned by
b) The arbitral tribunal may reconsider, modify the emergency arbitrator, subject to the power
or vacate the interim award or order of of the arbitral tribunal to determine the final
emergency interim relief issued by the apportionment of such costs.
emergency arbitrator; and
19. The decision of the emergency arbitrator as to such
c) The arbitral tribunal is not bound by the reasons matters is final and not subject to appeal.
given by the emergency arbitrator.
74 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 75
13. The KLRCA shall notify the parties of its receipt 16. Any interim award or order of emergency interim
of the order or award from the arbitral tribunal. relief may be conditional on provision of appropriate
The order or award shall be deemed to have been security by the party seeking such relief.
received by the parties upon collection by hand
by an authorised representative or upon delivery 17.
An order or award pursuant to this Schedule 2
by registered mail. shall be binding on the parties when rendered.
By agreeing to arbitration under these Rules, the
14. Upon the constitution of the arbitral tribunal: parties undertake to comply with such an order or
award without delay.
a) The emergency arbitrator shall have no further
power to act; 18. The costs associated with any application pursuant
to this Schedule 2 shall initially be apportioned by
b) The arbitral tribunal may reconsider, modify the emergency arbitrator, subject to the power
or vacate the interim award or order of of the arbitral tribunal to determine the final
emergency interim relief issued by the apportionment of such costs.
emergency arbitrator; and
19. The decision of the emergency arbitrator as to such
c) The arbitral tribunal is not bound by the reasons matters is final and not subject to appeal.
given by the emergency arbitrator.
76 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION
Schedule 3
Model Arbitration Clause Part IV
GUIDE TO KLRCA
Any dispute, controversy or claim arising out of or
relating to this contract, or the breach, termination
ARBITRATION
or invalidity thereof shall be settled by arbitration in
accordance with the KLRCA Arbitration Rules.
RULES
Schedule 4
Form of Agreement
Schedule 3
Model Arbitration Clause Part IV
GUIDE TO KLRCA
Any dispute, controversy or claim arising out of or
relating to this contract, or the breach, termination
ARBITRATION
or invalidity thereof shall be settled by arbitration in
accordance with the KLRCA Arbitration Rules.
RULES
Schedule 4
Form of Agreement
1. What are the KLRCA Arbitration Rules? 3. What do I do if I do not have a model arbitration
clause in my agreement?
The KLRCA Arbitration Rules are a set of
procedural rules covering all aspects of the If both parties are agreeable that the dispute must
arbitration process, which parties may agree be resolved according to the KLRCA Arbitration
to in part or in whole in order to help resolve Rules, but there is no arbitration clause in their
their domestic or international disputes. The original agreement; then they may enter into an
KLRCA Arbitration Rules adopts the UNCITRAL arbitration agreement in the form as specified in
Arbitration Rules 2010, in its second part, which Schedule 4 of the Rules.
provide, among other things:
a) A model arbitration clause for contracts; 4. Why do the Rules have Part I and Part II?
Which part is applicable to the arbitration?
b) Procedures for the appointment and challenge
of arbitrators; The KLRCA Arbitration Rules has two Parts. Part
I specifies the KLRCA Arbitration Rules and Part
c)
Procedures for the conduct of arbitration II specifies the UNCITRAL Rules. Part II is an
proceedings; and incorporation of the UNCITRAL Arbitration Rules
2010, without any modifications. Modifications to
d)
Requirements about the form, effect and the UNCITRAL Rules however appear under Part I
interpretation of an arbitration award. of the Rules. Thus, Part II of the Rules shall be read
subject to Part I of the Rules.
1. What are the KLRCA Arbitration Rules? 3. What do I do if I do not have a model arbitration
clause in my agreement?
The KLRCA Arbitration Rules are a set of
procedural rules covering all aspects of the If both parties are agreeable that the dispute must
arbitration process, which parties may agree be resolved according to the KLRCA Arbitration
to in part or in whole in order to help resolve Rules, but there is no arbitration clause in their
their domestic or international disputes. The original agreement; then they may enter into an
KLRCA Arbitration Rules adopts the UNCITRAL arbitration agreement in the form as specified in
Arbitration Rules 2010, in its second part, which Schedule 4 of the Rules.
provide, among other things:
a) A model arbitration clause for contracts; 4. Why do the Rules have Part I and Part II?
Which part is applicable to the arbitration?
b) Procedures for the appointment and challenge
of arbitrators; The KLRCA Arbitration Rules has two Parts. Part
I specifies the KLRCA Arbitration Rules and Part
c)
Procedures for the conduct of arbitration II specifies the UNCITRAL Rules. Part II is an
proceedings; and incorporation of the UNCITRAL Arbitration Rules
2010, without any modifications. Modifications to
d)
Requirements about the form, effect and the UNCITRAL Rules however appear under Part I
interpretation of an arbitration award. of the Rules. Thus, Part II of the Rules shall be read
subject to Part I of the Rules.
6. What is the effect of exclusion of Part III of the 8. What are the advantages of using the KLRCA
Malaysian Arbitration Act 2005? Arbitration Rules?
The Rules (Rule 1(1)(c)) precludes the application The KLRCA Arbitration Rules incorporates
of Section 41, 42, 43 and 46 of the Malaysian the UNCITRAL Arbitration Rules which are
Arbitration Act 2005 where the seat of arbitration comprehensive, time tested and internationally
is in Malaysia, bringing domestic arbitrations in line accepted. The KLRCA provides administrative
with international standards. assistance to the tribunal and parties by making
available facilities, through the appointment of
By agreeing to arbitrate under the Rules, parties arbitrators, by getting involved in challenges of
therefore agree to waive their rights to apply to arbitrators, by providing a reasonable fixed schedule
the High Court of Malaya for the reference and of fees and by providing a balanced account of the
appeal of points of law. fees and costs applied to the proceedings. The
KLRCAs roles and functions are identified in Part I
This brings the arbitration under the Rules in line of the Rules.
with the UNCITRAL Model Law and the prevailing
trends of minimal intervention by the curial
courts. It ensures finality in respect of domestic 9.
How do I begin a matter under the KLRCA
arbitral awards. Arbitration Rules?
The Rules provides for certainty and smooth a) The arbitration clause and contract document
progression of arbitral proceedings. containing the arbitration clause; and
b)
Confirmation and proof of service of the
Notice of Arbitration;
80 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 81
6. What is the effect of exclusion of Part III of the 8. What are the advantages of using the KLRCA
Malaysian Arbitration Act 2005? Arbitration Rules?
The Rules (Rule 1(1)(c)) precludes the application The KLRCA Arbitration Rules incorporates
of Section 41, 42, 43 and 46 of the Malaysian the UNCITRAL Arbitration Rules which are
Arbitration Act 2005 where the seat of arbitration comprehensive, time tested and internationally
is in Malaysia, bringing domestic arbitrations in line accepted. The KLRCA provides administrative
with international standards. assistance to the tribunal and parties by making
available facilities, through the appointment of
By agreeing to arbitrate under the Rules, parties arbitrators, by getting involved in challenges of
therefore agree to waive their rights to apply to arbitrators, by providing a reasonable fixed schedule
the High Court of Malaya for the reference and of fees and by providing a balanced account of the
appeal of points of law. fees and costs applied to the proceedings. The
KLRCAs roles and functions are identified in Part I
This brings the arbitration under the Rules in line of the Rules.
with the UNCITRAL Model Law and the prevailing
trends of minimal intervention by the curial
courts. It ensures finality in respect of domestic 9.
How do I begin a matter under the KLRCA
arbitral awards. Arbitration Rules?
The Rules provides for certainty and smooth a) The arbitration clause and contract document
progression of arbitral proceedings. containing the arbitration clause; and
b)
Confirmation and proof of service of the
Notice of Arbitration;
82 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 83
10.
When is the arbitration deemed to have 12. How are arbitrators appointed under the KLRCA
commenced under the KLRCA Arbitration Rules? Arbitration Rules?
Arbitration under the auspices of the KLRCA shall The arbitrators appointment shall be made by the
be deemed to commence on the date the Director Director of the KLRCA. The Director of the KLRCA
of the KLRCA receives a written request from the will now confirm the appointment of arbitrators
party initiating the arbitration complete with the appointed by parties or any appointing authority
relevant documentation and registration fee. agreed by them. An agreement between the parties
to appoint an arbitrator by them or any appointing
authority agreed by them shall be treated as an
11. How much will it cost to arbitrate under the agreement to nominate an arbitrator and not an
KLRCA Arbitration Rules? agreement to appoint an arbitrator.
10.
When is the arbitration deemed to have 12. How are arbitrators appointed under the KLRCA
commenced under the KLRCA Arbitration Rules? Arbitration Rules?
Arbitration under the auspices of the KLRCA shall The arbitrators appointment shall be made by the
be deemed to commence on the date the Director Director of the KLRCA. The Director of the KLRCA
of the KLRCA receives a written request from the will now confirm the appointment of arbitrators
party initiating the arbitration complete with the appointed by parties or any appointing authority
relevant documentation and registration fee. agreed by them. An agreement between the parties
to appoint an arbitrator by them or any appointing
authority agreed by them shall be treated as an
11. How much will it cost to arbitrate under the agreement to nominate an arbitrator and not an
KLRCA Arbitration Rules? agreement to appoint an arbitrator.
behalf of the respondent, the Director of the KLRCA 17. How long would the entire proceedings take?
may advise the arbitral tribunal to proceed with
the matter without consideration of the There are no restrictions on time taken to complete
counterclaim raised by the respondent. However, an arbitration under the KLRCA Arbitration Rules.
if the claimant defaults in paying its share, the However, there are certain mechanisms which
arbitral tribunal has the authority under the Rules ensure that arbitration proceeds in a time efficient
to suspend the arbitration proceedings until the manner. For instance, under Rule 7 the arbitral
required payments are made or terminate the tribunal is accorded with powers to conduct the
proceedings or any part thereof. matter in such manner as it considers appropriate
and may limit the time available for each party to
present its case. Under Rule 11 the arbitral tribunal
15. Are arbitration proceedings confidential in is required to render its final award within a
nature? period of 3 months from the date of delivery of the
closing oral submissions or written statements.
Yes. Arbitration under the KLRCA Arbitration There are extensions of time allowed which are
Rules is private and confidential in nature as subject to the approval of the Director of the
provided under Article 28 and Rule 15. The arbitral KLRCA. Another provision dealing with time under
tribunal, the parties and the KLRCA shall keep Part II, Article 25, is that the periods of time fixed
confidential all matters relating to the arbitral by the arbitral tribunal for the communication of
proceedings. Confidentiality also extends to any written statements (including the statement of
award, except where its disclosure is necessary claim and statement of defence) shall not exceed
for purposes of implementation and enforcement. 45 days.
Article 28 of the KLRCA Arbitration Rules specifies
that hearings shall be held in camera unless the
parties agree otherwise. 18.
How does a party apply for an Emergency
Arbitrator?
16. Are parties restricted to appointing arbitrators The new provision for the appointment of
from KLRCAs Panels of arbitrators when emergency arbitrators is found under Schedule 2.
arbitrating under the KLRCA Arbitration Rules?
Rule 7 and Schedule 2 allows the party in need
No. There are no restrictions imposed and parties of emergency interim relief to make such an
are free to appoint arbitrators of their choice. application and the application must be made
However, under the revised Rules, parties concurrently with or after the filing of a Notice
appointment of arbitrators shall be deemed as of Arbitration but not after the constitution of the
a nomination only, subject to confirmation of arbitral tribunal.
appointment by the Director of the KLRCA.
84 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION KLRCA ARBITRATION RULES 85
behalf of the respondent, the Director of the KLRCA 17. How long would the entire proceedings take?
may advise the arbitral tribunal to proceed with
the matter without consideration of the There are no restrictions on time taken to complete
counterclaim raised by the respondent. However, an arbitration under the KLRCA Arbitration Rules.
if the claimant defaults in paying its share, the However, there are certain mechanisms which
arbitral tribunal has the authority under the Rules ensure that arbitration proceeds in a time efficient
to suspend the arbitration proceedings until the manner. For instance, under Rule 7 the arbitral
required payments are made or terminate the tribunal is accorded with powers to conduct the
proceedings or any part thereof. matter in such manner as it considers appropriate
and may limit the time available for each party to
present its case. Under Rule 11 the arbitral tribunal
15. Are arbitration proceedings confidential in is required to render its final award within a
nature? period of 3 months from the date of delivery of the
closing oral submissions or written statements.
Yes. Arbitration under the KLRCA Arbitration There are extensions of time allowed which are
Rules is private and confidential in nature as subject to the approval of the Director of the
provided under Article 28 and Rule 15. The arbitral KLRCA. Another provision dealing with time under
tribunal, the parties and the KLRCA shall keep Part II, Article 25, is that the periods of time fixed
confidential all matters relating to the arbitral by the arbitral tribunal for the communication of
proceedings. Confidentiality also extends to any written statements (including the statement of
award, except where its disclosure is necessary claim and statement of defence) shall not exceed
for purposes of implementation and enforcement. 45 days.
Article 28 of the KLRCA Arbitration Rules specifies
that hearings shall be held in camera unless the
parties agree otherwise. 18.
How does a party apply for an Emergency
Arbitrator?
16. Are parties restricted to appointing arbitrators The new provision for the appointment of
from KLRCAs Panels of arbitrators when emergency arbitrators is found under Schedule 2.
arbitrating under the KLRCA Arbitration Rules?
Rule 7 and Schedule 2 allows the party in need
No. There are no restrictions imposed and parties of emergency interim relief to make such an
are free to appoint arbitrators of their choice. application and the application must be made
However, under the revised Rules, parties concurrently with or after the filing of a Notice
appointment of arbitrators shall be deemed as of Arbitration but not after the constitution of the
a nomination only, subject to confirmation of arbitral tribunal.
appointment by the Director of the KLRCA.
86 KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION
20.
What are the powers of the emergency
arbitrator?
20.
What are the powers of the emergency
arbitrator?