On June 14, 2022, the French-Azerbaijani Chamber of Commerce and Industry officially presented its Arbitration Court as well as its Mediation Center at the Azerbaijani Embassy.
According to the introductory words of Edmond Verdier, President of the French Azerbaijan Chamber of Commerce and Industry, these two new institutions will help French investments in Azerbaijan and will offer Azerbaijanis the possibility to settle their disputes with foreign companies more easily.
The Arbitration Tribunal
During this two-part event, the Arbitration Tribunal was presented.
Why create such an institution?
It is necessary to specify the advantages of setting up such a structure:
- A simplified procedure: in front of the administrative length of the civil courts, the Arbitration Tribunal will allow to settle the conflicts in a faster way with a reduction of the delays of examination of the cases.
- Guaranteed independence: the Arbitration Tribunal will ensure complete independence thanks to the authority of foreign arbitrators who are among the best experts in the world.
- A Franco-Azerbaijani structure: the Arbitration Tribunal is a structure composed of French, Azerbaijani and foreign high-level arbitrators.
What is the Arbitral Tribunal?
The arbitral tribunal is composed of one or more arbitrators in an odd number.
It is completed if the arbitration agreement provides for the appointment of an even number of arbitrators.
If the parties do not agree on the appointment of an additional arbitrator, the arbitral tribunal shall be completed within one month of the acceptance of their appointment by the chosen arbitrators or, failing that, by the supporting judge.
The characteristics of the Arbitration Tribunal :
- A private legal system: Private arbitration is a form of adjudication that takes place outside the traditional channels of justice. It is used in the business world to protect the various industrial secrets that may be linked to disputes.
- A system instituted by laws and an international convention: The “New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards” presented in 1958 by an international conference organized under the auspices of the United Nations has as its main goal to facilitate the enforcement of arbitral awards. Member States undertake to recognize and enforce foreign arbitral awards made in another Member State.
- Arbitration is based on the existence of a clause: the arbitration clause defines the conditions of arbitration such as the language or the place where the proceedings will be conducted. This clause has the effect of removing from the state courts any jurisdictional power over the arbitration dispute.
- Equality of the parties: the parties must be treated on an equal footing and each party must have every opportunity to assert its rights.
- A paying system defined by a text: the Court fixes the advance on costs of an amount likely to cover the fees and expenses of the arbitrators
- Pre-eminence of the will of the parties in the appointment, dismissal or replacement of the arbitrators.
- Rapid arbitration: The arbitrator is generally given a maximum period of time in which to render the award (otherwise, it is 6 months by law) and the means of appeal against the award are limited.
- The award applies: once the arbitral tribunal has rendered its decision, it is not possible to launch an appeal or to go before another structure. However, there is a control over the arbitral tribunal to monitor the decisions and avoid serious mistakes
