Arbitration is increasingly popular in international trade and dispute resolution. Individuals and businesses may prefer this alternative resolution because it is internationally enforceable, efficient, and equitable. In some cases, legal interpretation and evaluation may determine whether an arbitration agreement is enforceable. With the recent rulings from the Dubai Court of Cassation, the significant aspect of arbitration law is clarified.
In accordance with the provisions of Article 20 of Dubai Law No. (13) of 2016 on the Judicial Authority in the Emirate of Dubai, the Court of Cassation has the power to handle complicated legal matters as well as the power to overrule earlier court decisions. Further, the aforesaid law established that the interpretation of arbitration agreements and their enforceability are under the sole authority of the General Authority.
In a previous case, the General Assembly issued a landmark decision regarding the effect of a party’s failure to pay arbitration fees on the arbitration agreement’s legality. In this case, the court re-examined and overruled its previous decision regarding the effect of a party’s failure to pay arbitration fees on the legality of the arbitration agreement. In the past, the enforceability of arbitration agreements was undermined by uncertainty about the consequences of nonpayment of arbitration fees. Hence, the Cassation Court’s recent decision has once again reinforced the inviolability of arbitration agreements thereby adding a level of clarity and certainty to the subject.
In addition to this aforesaid law, Federal Law No. (6) of 2018 on Arbitration establishes the legal structure regulating arbitration proceedings in order to encourage expedient dispute resolution procedures. Termination of arbitration proceedings and the procedure for appealing arbitral awards are controlled under arbitration law. Arbitration proceedings may be terminated under certain circumstances, such as the claimant’s abandonment of the case or the parties’ mutual agreement, as stipulated in Article 45. Moreover, Article 54 of the aforesaid law explains the guidelines and procedure for arbitral decision appeals. The inviolability of court rulings on nullification is emphasized in this article, as is the arbitration agreement’s preservation even in cases where the award is deemed null and void unless specific requirements are fulfilled.
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