In the modern business world, timely dispute resolution is critical. Arbitration, traditionally known for its procedural rigor and potential delays, has evolved to incorporate expedited proceedings designed to accelerate dispute resolution. The Dubai International Arbitration Centre (DIAC) Rules 2022 and the Abu Dhabi International Arbitration Centre (arbitrateAD) Rules 2024 both address expedited proceedings but with distinct approaches. This blog offers a detailed comparison of Article 32 of the DIAC Rules 2022 and Article 36 of the arbitrateAD Rules 2024, highlighting their implications for efficient dispute resolution.
Arbitration
The Imperative of Timeliness in Arbitration
The urgency of resolving disputes quickly cannot be overstated. Protracted arbitration can lead to substantial financial losses, disrupt business operations, and damage commercial relationships. As parties increasingly seek rapid resolutions, expedited arbitration procedures have become indispensable. The DIAC Rules 2022 and the arbitrateAD Rules 2024 both provide mechanisms for expedited proceedings, but they differ in scope and implementation.
DIAC Rules 2022:
Article 32 of the DIAC Rules 2022 outlines a structured framework for expedited proceedings:
1- Applicability Criteria:
- Expedited proceedings apply if the total amount claimed and counterclaimed is AED 1,000,000 or less.
- Parties may agree in writing to expedited proceedings, or the Arbitration Court may determine urgency.
2- Application Process:
A party can request expedited proceedings before the Tribunal is constituted. The application must be notified to all parties, who have seven days to respond.
3- Tribunal Appointment:
If approved, a sole arbitrator is appointed within five days.
4- Procedural Flexibility:
The Tribunal may limit evidence and streamline procedures to meet expedited timelines.
5- Timeframe for Award:
The Tribunal must issue the Final Award within three months, with possible extensions on exceptional grounds.
6- Switch to Non-Expedited Proceedings:
The Tribunal can request a switch to non-expedited proceedings if necessary.
Arbitration
arbitrateAD Rules 2024: Article 36
Article 36 of the arbitrateAD Rules 2024 provides a detailed framework for expedited
proceedings:
1- Applicability Criteria:
Expedited proceedings apply if the aggregate amount in controversy does not exceed AED 9,000,000.
2- Procedure Adjustments:
- The Request for Arbitration also serves as the Statement of Claim, and the Answer serves as the Statement of Defence.
- The Tribunal is appointed as a sole arbitrator, bypassing certain standard procedural rules (Articles 11, 12, and 24).
- The Arbitrator may decide the dispute based solely on documentary evidence if deemed appropriate.
3- Timeframe for Award:
The Final Award must be issued within four months of receiving the case file, with an extension of up to two months possible.
4- Flexibility and Modifications:
The Tribunal may request modifications to the expedited procedures if required, or apply expedited procedures even if the criteria are exceeded.
Comparative Analysis
- The DIAC Rules 2022 cover a lower threshold of AED 1,000,000, making them suitable for smaller disputes that require quick resolution. In contrast, the arbitrateAD Rules 2024 cater to larger disputes up to AED 9,000,000.
- The DIAC framework allows for limited procedural flexibility, focusing on timely resolution while ensuring that the Tribunal can adjust procedures as necessary. The arbitrateAD Rules, on the other hand, incorporate significant procedural adjustments, including the combination of claim and defence documents and allowing decisions based solely on documentary evidence.
- The DIAC Rules stipulate a three-month timeframe for issuing the Final Award, with possible extensions on exceptional grounds. The arbitrateAD Rules provide a slightly longer period of four months, extendable by an additional two months if justified.
- The arbitrateAD Rules offer greater flexibility in modifying procedures and extending timelines, which can be advantageous in complex cases where strict adherence to expedited timelines may be impractical. The DIAC Rules have a more rigid structure but provide a clear process for switching to non-expedited proceedings if needed.
Conclusion
Both the DIAC Rules 2022 and the arbitrateAD Rules 2024 address the need for expedited arbitration but with different approaches. The DIAC Rules offer a more streamlined, structured process suitable for smaller disputes, while the arbitrateAD
Rules provide flexibility and detailed procedural adjustments for larger or more complex cases.
Understanding these frameworks is crucial for parties aiming to leverage expedited proceedings effectively, ensuring that disputes are resolved swiftly and efficiently in alignment with their specific needs and circumstances.
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Authors:
Mrs. Jouslin Khairallah (Founder and Managing Director)
Dr. Abdultaiyab Bahrainwala (Partner and Senior Lawyer)
