Bylaw of
Al Rustom Arbitration and Reconciliation Center
 

 
First Chapter
General Provisions
 

Article 1 - Name: Al Rustom Arbitration and Reconciliation Center.

 Article 2 - Premises: Damascus - Abu Roumaneh - Shakib Arslan Street - Building No. /8 / - First Floor.

 Article 3 - Objectives: to act as grievance committee to meet the demands of the parties to resolve and settle civil, commercial and industrial disputes through arbitration or compromise and concession. Arbitrators, reconciliatory, and mediators, who enjoy independence, scientific efficiency, and practical experience; shall settle the dispute pursuant to the legal rules in force, the prevailing norms, the principles of justice, equity, strict neutrality, and by adaptation of simplified, decisive and punctual procedures.

 Article 4 - Definitions: For the purpose of this Bylaw, the terms and expressions set out hereinafter shall have the meaning ascribed next to it:

 

4-1 - The Ministry: The Ministry of Justice in the Syrian Arab Republic.

4-2 - Law 84: Code of Civil Procedures dated 09/28/1953.

4-3 - Law 04: Special Arbitration Law dated 25/03/2008.

4-4 - Competent Court: the Court pursuant to Article / 3 / of the Law No. / 4 /, or the court vested with jurisdiction to resolve disputes in accordance with Law No. /84/.

4-5 –Center: Al Rustom Arbitration and Reconciliation Center.

4-6 –Assembly: The Center’s Assembly.

4-7–Board: The Board of Directors at Al Rustom Arbitration and Reconciliation Center.

4-8 –Director: Director of Al Rustom Arbitration and Reconciliation Center.

4-9- Parties to arbitration: The two parties to arbitration, namely: "party requesting arbitration, and the party against it."

4-10 – List: the list of arbitrators and reconciliation mediators accredited by the Center.

4-11 - The Authority: The authorized arbitration, of a single arbitrator or more, to take the decision in a dispute, and resolve the issue thereof.

4-12 - Reconciliation: settle the dispute amicably, the path of reconciliation and compromise between the disputant parties.

4-13 - Committee: The committee authorized to mediate between the litigants seeking reconciliation which is formed of one or three mediators.

 

Article 5General Assembly: The General Assembly of the Center is composed of twelve Founding Members who mutually agreed on the establishment of Al Rustom Arbitration and Reconciliation Center. The Appendix (2) herewith attached lists their names and signatures in consent to the establishment of the Center and the election of the first Board of Directors.

    5-1 - The Assembly of the Center holds the following responsibilities:

 A- Run the elections of the Center’s Director and the members of the Board of Directors.

B- Endorse the Bylaw and the financial procedure in addition to institute the Center’s List (annual practice) consisting of the names of the arbitrators and the reconciliation mediators, including their credentials, expertise and competencies.

C – Set the procedures ruling the course of the arbitration procedures, reconciliation and compromise/ dispute resolution.

D- Subject to the Ministry’s approval, provide proposal to add or modify any article or paragraph of this Bylaw, to promote the Center’s operations, if deemed necessary.

E - Review and endorse the Center’s annual report, the activities and financial reports as prepared by the Board of Directors.

5-2 – The members of the Assembly shall be convened in an annual regular session by virtue of a call from the Center’s Director and pursuant to a Council's decision.

5-3 – Members of the Assembly shall exceptionally convene by virtue of a call from the Director, or by virtue of at least one third of the Council members’ written decision; however the decision or request shall state the purpose of the invitation and the agenda of the subject matters to be discussed.

5-4 – The Director chairs the Assembly’s meetings, in case of his absence, the sequence to chair the meeting is his Deputy, the Secretary, or the older member in attendance.

5-5 –The Assembly sessions quorum shall only be legal in the presence of the absolute majority of its members. If the majority mentioned is not realized, the Assembly shall be convened for the second time within one week after the date of the first meeting; nevertheless, the second meeting shall be legal regardless of the number of attendees.

5-6 - Decisions and motions at the Assembly are passed by the approval of a majority of the directors present at the meeting. The Chairman shall have a casting vote where the directors are split 50/50.

5-7 – In the event an Assembly seat is vacated for any reason, the substitute shall be administered through election at the first ordinary or exceptional session of the Assembly.

 Article 6Center’s Management: The Center's management is conducted by a Board consisting of five members elected by the Center’s General Assembly. It consists of three Original constituent members, namely; the Center’s Director, the Deputy Director, and the Secretary in addition to two Reservist members to substitute for either of the Original constituent absent members.

6-1 – The Board term is four calendar years commencing from the date of election, however; the first term beginning from the date of the Center’s official declaration.

6-2 - The Director must be, in addition to the stated conditions for the Center’s Director pursuant to Article /59/ of the Law No. /4/, a shareholder of in kind shares of the Center’s assets.

6-3- In case of a vacancy in the membership of the Council for any reason, a replacement is elected by the Assembly at the first regular or special session of the Council following the vacancy.

6-4- The first Council has been elected by the Board of Directors as follows:

 Lawyer, Dr. Souheil Al Rustom, Director of the Center.

  • Lawyer Mohammad Mumtaz Al-Fawakhiri Deputy Director.
  • Lawyer Muataz B. Al Jundi, Secretary.
  • Mr. Nabil Mallah, Reservist member.
  • Lawyer Samer Al Rustom, Reservist member.

 6-5 - The Board of Directors convene in a monthly regular session, and is entitled to convene for extraordinary sessions by virtue of the Director's invitation to discuss any such business as specified thereof.

6-6 – The Director chairs the Council's sessions, however; a quorum shall consist of three members present, Decisions and motions are passed by the approval of a majority of the attendees present at the meeting. The Chairman shall have a casting vote where the directors are split 50/50.

6-7 - On condition all business correspondence issued by the Director are on behalf of the Center, he shall be deemed the Center's legal representative in all corporations, versus judicial authorities, and official and private bodies.

6-8 – The Director manages all administrative work, supervises the financial business, and controls the Center's annual budget. In case of the Director's absence, the Deputy Director assumes his duties.

6-9 – The Director appoints the Center's Accountant and full time administrative staff as needed and assigns tasks as deemed necessary for the progress of the financial and administrative work of the Center.

 Article 7 - the Board of Directors Jurisdiction: The Center's Board of Directors holds the following areas of expertise:

 7-1 - The Board shall supervise the arbitration procedures, compromise and concession, and follow-up the administrative and financial procedures to ensure compliance with the provisions of the Bylaw herein.

7-2 - The Board shall annually initiate a list of arbitrators as selected from qualified individuals enjoying reputation and known for their efficient legal qualifications, practical experience, and independence of opinion.

7-3 - The Board shall prepare a statement for the operating costs and expenses pertinent to arbitration and compromise, the arbitrators' fees, and the compromise mediators' fees. The statement thereto shall be effective immediately by virtue of the Assembly and Ministry's approvals.

7-4 - The Board shall prepare the Center's activities and finance reports, while ensuring to abide to the provisions of the Bylaw herein, and shall pledge for the proper functioning of the Center.

7-5 – The Board shall nominate an arbitrator from the members' list which will be supplied to the parties to arbitration by virtue of their request.

 Article 8 – The Center's Services: The Center offers the following services to parties requesting arbitration:

 8-1 - Provide special hall/room fully equipped with customized appliances for arbitration hearings.

8-2 - Provide all necessary technical services such as clerical work including the organization of arbitration and reconciliation dossiers, taking and printing minutes of meetings, copying and organizing correspondence, exchange of correspondence and documentation for the arbitrators and parties to arbitration.

8-3 - Serve notices, notifications, and invitations to all parties thereof.

8-4 - Nominate and appoint a Referee for the Committee or the Arbitral Tribunal to manage the sessions' proceedings.

8-5 – Arrange the documentation of the arbitral awards and communicate the same to the parties thereof.

8-6 – Provide technical and legal support, organize qualifying sessions, supply a library including books and legal researches and judicial decisions related to the subject matter of the arbitration and put the same at the disposal of the arbitrators and the parties thereof.

 

Chapter II
Arbitration
 
  • The arbitration hearing shall be held at the Center in accordance with the following procedures:

 Article 9 - The request for arbitration:

 9-1 – A requesting party shall execute a written request to the Center's Director in the form prescribed by the Center including the following:

 9-1-1 - The name, surname, status, nationality and address of the requesting party.

9-1-2 - The name, surname, nationality and address of the second party against whom the arbitration proceedings will be held.

9-1-3 - A précis of the facts and merits of the dispute, with the requests for arbitration.

9-1-4 - The name of the arbitrator of the requesting arbitration party, or authorization to the Center to nominate the arbitrator pursuant to Article /9/.

9-1-5 - The down payment receipt to initiate the arbitration dossier.

9-2 – The requesting party shall include the arbitration agreement, or the contract stating provision by which arbitration is the resort to settle dispute between the parties thereof, or any agreement about the place, language of arbitration, the legal procedures, and the rules agreed upon, in addition to all documents pertinent to the subject matter of the arbitration dispute.

9-3 - The Director, upon receipt of the request, shall provide the requesting party a notice of receipt against the documents, whereas; he shall notify the other party to arbitration a copy of the request to arbitration and the relevant documents.

9-4 - The Director shall supply the parties to arbitration a proposal on the number of arbitrators (i.e. one arbitrator or more) if the parties have not agreed to it in advance under the agreement or provisions stating for arbitration.

9-5 - The Director shall supply copies of all documents, requests and submissions by any of the parties to arbitration, a copy for each arbitrator and an additional copy to be filed at the Center.

9-6 - Taking into account the provisions of Article /4/ of the Law /4/, the Center shall supply notifications and correspondence via the Bailiffs Department to any of the parties to arbitration to the address specified in the arbitration agreement or contract. In case of a special agreement between the parties, notifications will be served by registered mail against notice of receipt, or by any other means of written telecommunication in case it provides for transmission and receipt.

9-7 – The other party to arbitration will be requested to provide a response within a /15/ day's notification as of the date of rendering the arbitration request, he should provide a response note including his motions and the corresponding requests, if any, together with supporting documents' copies and the name of his appointed arbitrator. The second party to arbitration is entitled to supply a written request for additional time to provide his response.

9-8 - If the other party fails to provide a response on the arbitration request within the /15/ day's notification, the Director will assign the requester of arbitration to nominate an arbitrator via the competent court.

 Article 10 - Appointment of Arbitrators: The arbitrators' nomination and the appointment of the Arbitral Tribunal as follows:

 10-1 – The Arbitral Tribunal is formed by the two parties' agreement on a single arbitrator or more, failing such agreement, the number of arbitrators shall be three. If the arbitrators are more than one, the Tribunal members must, under pain of nullity, be composed of an odd number of arbitrators. The Center shall select additional arbitrator to become an odd number.

10-2 – The parties to arbitration have the freedom to determine and decide over the manner and number of arbitrators, according to the provisions stipulated in Articles /12 and 13/ of Law No. /4/. In all cases, the parties' agreements shall prevail.

10-3 - If there are several plaintiffs or defendants, and the number of arbitrators is three, each of the plaintiffs, on one hand, will select one arbitrator, the defendants; on the other hand, will select an arbitrator, whereas the Council shall appoint the third arbitrator.

10-4 - If the parties to arbitration do not authorize the Center to appoint any arbitrator and the parties or the authorized arbitrators did not agree on the selection of a third arbitrator; the party requiring brisk process will ask the competent court to nominate the third arbitrator.

10-5 - The third arbitrator shall chair the Arbitral Tribunal and shall set the date and place for the hearing sessions and shall notify the parties and the arbitrators involved, taking into account giving them sufficient period of time to attend.

10-6 - The arbitrator shall not be changed upon appointment by the nominating party. However, it is not permissible for an arbitrator to resign after accepting the mission until the date to be completed at the end of the arbitration. If reasons or circumstances arose to prevent the arbitrator from pursuing the said mission, an alternate will be nominated in the same manner the initial arbitrator was appointed.

10-7 - In all cases, the provisions of Articles 17, 18, 19 and 20 of the Law No /4/ with regard to the Arbitrator's acceptance for his mission, his response, retirement and dismissal shall prevail.

10-8 - If the Center is requested by any party to appoint an arbitrator to represent him, or the parties thereof requested the appointment of the third arbitrator; the Center shall proceed immediately after filing the request, or the arbitration agreement, in the following manner:

 10-8-1 - If the required is to nominate a single arbitrator, or the third arbitrator, the Director shall supply a list of seven selected arbitrators from the candidates' list. Each party is entitled to exclude two from the seven names.

10-8-2 – In the event the Director is required to name an arbitrator for either party, he shall supply the names of five arbitrators to the requester, who is entitled to select a name from the list as his arbitrator or to exclude three candidates.

10-8-3 – The recipient of the arbitrators' candidates list shall return the same upon selection to the Center Director within one week. In the event the recipient fails to provide the selection during the stated period, this will be considered consent to all the candidate names and an authorization to the Council to appoint arbitrators as deemed suitable from the list.

10-8-4 - The Council shall nominate an arbitrator from the candidates who were not excluded by the parties within one week of receipt of the last response from the parties to arbitration.

10-8-5 - The nominated arbitrator by the Center shall sign, before being appointed or acknowledged, a declaration stating independence and impartiality toward the parties. The latter shall supply the Center in writing the facts or circumstances which would suggest ambiguity towards his impartiality. The arbitrator shall maintain impartiality towards the parties to arbitration during the dispute resolution.

 Article 11 - Arbitration Procedure: Arbitration hearing shall be conducted at the Center according to the following rules and procedures:

 11-1 - Subject to the provisions of the rules herein, the parties thereof have the freedom to agree on the procedures the Arbitral Tribunal shall follow during the arbitration hearing.

11-2 - In the absence of an agreement between the parties, the Arbitral Tribunal shall select the arbitration procedures as deemed suitable and provided the Arbitral Tribunal shall act equally toward the parties to arbitration, nonetheless each party is awarded equal opportunity to present the case, the motions, and the demands thereof.

11-3 – In the absence of an agreement between the parties to arbitration on the language and place of arbitration, thus; the Arabic language shall be adopted and the place of arbitration shall be Damascus city. The language of arbitration shall apply to the request for arbitration, the oral and written arguments, in addition to submissions. The Arbitral Tribunal may request the translation of; some or all, the original supportive documents into the selected arbitration language.

11-4 - Unless the parties to arbitration stated the law to be applied on the subject matter of the dispute, hence; the Syrian law shall be the applicable law. The Arbitral Tribunal shall select the applicable legal rules, as it deems suitable, to the subject matter of the dispute.

11-5 - The Director shall prepare the arbitration mission document based on the documents submitted by the parties to arbitration, to be supplied to the   Tribunal and the arbitration parties, the document shall include the following:

 11-5-1- The names, titles, and status of the parties to arbitration.

11-5-2-The parties' chosen addresses for correspondence and notifications during the arbitration proceedings.

11-5-3- A copy of the arbitration agreement, or the contract stating for the arbitration clause.

11-5-4- A list of the supplied facts and documents with reference to the party who provided the same.

11-5-5- A précis of the dispute subject matter under arbitration, and the demands of the parties thereof.

11-5-6 - Determine the points of dispute to be adjudicated.

11-5-7- The names of the Arbitral Tribunal members, the method of their appointment, and their mandate.

11-5-8- The time schedule for the proceedings as stated in the arbitration agreement.

11-5-9- Duration, place, the language of the arbitration, and any agreement pertinent to the arbitration procedures.

11-6 - Each recipient of the document for arbitration is entitled to object to the stated within a week of receipt, if no objection received, thus; it shall be considered consent thereon. The document, hence; shall be signed in the Director's presence by the Arbitral Tribunal and the parties to arbitration.

11-7 – Upon conclusion of the procedures specified above; the Director delivers the arbitration dossier and mission to the Arbitral Tribunal chairperson who shall notify the parties and arbitrators of the dates and place of the meetings as stated in Article /10/ Paragraph /5/ of this Bylaw.

11-8 – The Director shall appoint a Reporter to the Arbitral Tribunal to organize the hearings, the notifications required for the parties to arbitration, witnesses and experts, and shall print all the produced papers. The Director shall also provide administrative and technical assistance as required by the Arbitral Tribunal from the Center.

11-9 - The parties to arbitration may attend the sessions in person or be represented by their legal appointed reps.

11-10 – In accordance with the provisions of Articles /29, 30, 31, 32, 33, 34, 35 and 36/ stipulated in the Law No. /4/, and by using all possible means, the Arbitral Tribunal will examine the case in the shortest possible time, thus; shall determine over the entire facts thereof.

11-11 – The parties to arbitration may, during the course of the arbitration procedures, modify or complete their requests or motion aspects, unless the Arbitral Tribunal otherwise decides, based on delay of submission, or the resulting damage to the other party, or due to any other circumstances, however; the Arbitral Tribunal is due to provide an explanation of the cause of rejection.

11-12 - If the two parties to arbitration expressly agreed to authorize the Arbitral Tribunal to reconciliation, it shall rule on the dispute based upon the justice and equity rules without being bound by legal norms.

 Article 12 - Ruling on Arbitration: The Arbitral Tribunal shall issue its ruling in the case as follows:

12-1 -If, during the arbitral proceedings, the parties to arbitration agree to terminate the dispute, they may request the Arbitral Tribunal to evidence the settlement. In this case, the Arbitral Tribunal shall issue a decision stating the agreed terms.

12-2 – The Tribunal may, during the process of the hearings, and before final sentencing to terminate the dispute; issue interim or partial awards, prior to making the final award.

12-3 – The Arbitral Tribunal shall rule on any pleas of lack of jurisdiction, including pleas with respect to non-existence, expiration, nullity, or non- inclusion of the subject matter of the dispute. As stipulated in the provisions of Article /21/ of the Law No /4/.

12-4 – In the event a submitted document is challenged for forgery, the Arbitral Tribunal may suspend the proceedings especially if the document, or its authenticity, is indispensable for the dispute award.

12-5 - The Arbitral award shall be issued in writing after deliberation in the language of the arbitration and it must be reasoned. Unless the parties to arbitration otherwise agree, or the applicable law to the procedures does not require judgment award's justification.

12-6 - The Arbitral Tribunal shall issue its final award on the dispute within the timeframe specified in the arbitration agreement or arbitration clause. In the absence of such agreement, the award must be rendered within the timeframe stated for in Law No. /84/ if the agreement or the arbitration clause is entered prior to the Law No. /4/. In the event it was concluded after the entry of Law No. /4/ into force, the award, therefore; shall be issued pursuant to the Article /37/ of Law No. /4/. Subject to the agreement of the parties to arbitration, the Arbitral Tribunal may extend the agreement or legal arbitration deadline.

12-7 - The Arbitral Tribunal must submit the draft arbitration award to the Council before signing it. The latter may, without prejudice to the Arbitral Tribunal absolute freedom in issuing its ruling, draw the Arbitral Tribunal attention to complete formal requirements, or observance of procedural rules.

12-8 – In the event the Arbitral Tribunal is composed of more than one arbitrator, ruling shall be issued either by consensus or majority. The award shall be signed by the arbitrators; the desisting arbitrator may mention his dissenting opinion in the award and the reason for refusing to sign this ruling. In the event the arbitrator refuses to sign, the reasons will be stated in the award. The award is considered issued in the place of arbitration and on the date of its signature by the arbitrators. The arbitration agreement or clause shall be pursuant to the paragraph /2 / of Article /41/ of Law No. /4/ following entry into force.

12-9 – The Arbitral award must include the names of the Arbitral Tribunal members, the litigants' names, addresses, status, and nationalities, and a copy of the arbitration agreement, a précis of the parties' requests, motions and statements, documents, the text of the award verdict, and the date and place it was issued.

12-10 – The arbitral award must include the arbitration fees and expenses as determined by the Council pursuant to the provisions of this Bylaw. The Arbitral Tribunal shall indicate the distribution manner between the parties to arbitration.

12-11 – Subject to the parties to arbitration consent, the arbitration award, or any part thereof; shall be registered.

12-12 - The Director shall deliver duly signed copy of the award by the Arbitral Tribunal members within a week from the date of issue.

12-13 – Unless provided for in this Bylaw, any concluded agreements or arbitration clauses will be subject to the provisions of Law No. /4/ after its entry into force. However; with regard to the arbitration agreements concluded prior to this Act's entry into force; the Articles /506 to 534/ of Law No. /84/ applies.

 

Chapter III
Reconciliation and Compromise

 

  • Disputes are settled through reconciliation and compromise at the Center in accordance with the following procedures:

 Article 13 - Request of reconciliation and compromise:

13-1 - The party willing to settle the dispute amicably through reconciliation and compromise presents a written request to the Director including a précis of the subject matter of the dispute, its parties, requests, in addition to any documents related to the dispute. The down-payment receipt to open the reconciliation dossier must be attached with the request.

13-2 - The Director shall communicate to the other party a copy of the compromise request asking to determine his position on the opinion of settling the dispute amicably through reconciliation and compromise. During a period of two weeks from the date of notification of the request, the notified party is asked to announce consent or rejection on the dispute amicable settlement.

13-3 - If the other party rejects the dispute amicable settlement through reconciliation and compromise, or under pain of the two weeks period elapses without reply to the request; this act shall be considered the end to resort to resolve the dispute amicably. The Director shall notify results to the requesting party in writing.

13-4 – If the other party submits his answer in writing to resolve the dispute amicably through reconciliation and compromise; he shall submit, within a period of two weeks of receipt of the request, a written letter to the Director to inform of his consent thereof.

13-5 - Upon receiving the consent of the other party, the Director shall set up the reconciliation and compromise document and dossier based on the facts submitted by the parties to the dispute.

13-6 - The reconciliation and compromise document shall include the following information:

  • The names of the parties to the dispute and its subject matter.
  • The number of mediators to form the Committee thereof.
  • Fees and the estimated expenses and expenditures shall be determined and disbursed equally from both parties.
  • Place of reconciliation hearings.

 Article 14 – The Reconciliation and compromise committee.

14-1 - The Committee shall be formed immediately upon conclusion of the request registration procedures.

14-2 - The Committee shall consist of one or three mediators according to the parties to dispute desire and the case's significance. If the committee is composed of three mediators, the third mediator shall chair the Committee.

14-3 - The parties to the dispute may nominate one mediator, or each party shall nominate its mediator, and the two nominees shall agree on the selection of the third mediator. If the parties fail to appoint any mediator, the Council shall proceed in choosing the mediator as follows:

14-3-1- The Director shall provide a list of five mediators for the parties to the dispute.

14-3-2- Each party has the right to cross out two of the proposed the mediators.

14-3-3 - The Council shall nominate a mediator from the names that are not crossed out by the parties to the dispute.

14-4 – Upon the committee's designation, the Director shall deliver the dossier and the mission of reconciliation and compromise to the Chairman of the Committee who shall notify the parties of the taken actions and shall notify the time and place of the first session.

14-5 - The Committee members shall renounce to take over the functions of the arbitrator, or agent, or consultant for any of the parties to the dispute in any judicial or arbitral procedures relating to any of the dispute subject matters, or may state any opinion or information in connection with the dispute to any third party.

14-6 - The parties to the dispute shall sign a written undertaking not to call any mediator to testify in any court action or arbitration with relation to the dispute thereof.

14-7 - The Chairman of the Committee instructs the parties to express their views in writing on the subject matter of the dispute including their demands. The Chairman compels the two parties to equally disburse the Council's estimated fees.

 Article 15 - Reconciliation and compromise procedures.

15-1- Reconciliation and compromise procedures shall be strictly confidential, however; the Arbitral Tribunal, the parties to the dispute, and all the participants in the reconciliation shall be fully committed to the confidentiality of information that arises during the hearings.

15.2 - The Chairman of the Committee of reconciliation sessions shall rule on the dispute as he deems suitable and as inspired by the principles of strict neutrality, and justice.

15-3 - Parties may seek legal advisers and representatives' consultation.

15-4 - In case of any objection or motion from either of the parties to any of the dispute's raised aspects, the Committee shall be the rule in its jurisdiction.

15-5 - It is the Arbitral Tribunal duty to clarify the disputed issues between the parties, to determine a timeframe to resolve the dispute, and to strive to reach an agreement between the parties on mutually acceptable terms. The Arbitral Tribunal may as well propose, from time to time, and at any stage of the proceedings, terms for a settlement.

15-6 – To facilitate the Committee's mission, the latter shall revise the parties' demands and motions, and shall contact the parties, or their advisers, and may summon them individually or set meetings between them. The parties thereof must cooperate with the Committee in good faith and must give due credit to its recommendations.   

15-7 - If the efforts of reconciliation and compromise prove successful, the Committee shall arrange for the minutes of the agreed upon terms. The Committee's recommendations will state the action plan to implement the reached resolution. The minutes will be signed by the Committee, the parties, and their advisers. The Director shall provide the minutes to the Council for endorsement.

15-8 - The reconciliation and compromise minutes is considered as ending the dispute between the two parties who commit to act in good faith and to implement the stated terms. Each party to the dispute will receive a certified copy of the minutes to act per its terms.

15-9 - The Council shall determine the fees and expenses of reconciliation, whilst taking into consideration the amounts involved in the dispute, the complexity of the case, and the time required for the proceedings. The Council shall consider the expenses as it deems suitable for the case circumstances.

15-10 - If the parties to the dispute fail to reach an agreement to resolve the dispute amicably; the Committee shall arrange for the minutes stating for the failure of the parties to arbitration to reach an amicable solution, the same will be provided to the Council, and the latter shall issue a decision to end the  reconciliation efforts unresolved. Each party to the dispute retrieves the freedom to resort to judiciary or arbitration if necessary.

15-11 – None of the parties to arbitration, during the reconciliation and compromise procedure, is entitled to provide to court or arbitration any suggestions, or recommendations, or opinions made by the Committee or made by either of the parties seeking the settlement of the dispute through reconciliation.

15-12 - Unless a special agreement stating for the allocation of the fees and expenses payment between the parties to the dispute exists; fees and expenses shall be paid equally between the parties thereof.

 

Chapter IV
Expenses of arbitration and reconciliation
 

Article 16 - Advance payment to file the arbitration or reconciliation dossier:

16-1 – A down payment must be enclosed with the request for arbitration or compromise and reconciliation according to this Bylaw. The down payment is an advance to file the request for arbitration or reconciliation and compromise dossier and shall cover the administrative expense.

 For the request for arbitration, the down payment amount of 75,000 SYP (seventy five thousand Syrian Pounds) shall be due.

  • For the request for reconciliation the down payment amount of 35,000 SYP (thirty five thousand Syrian Pounds) is due.

16-2 - No request for arbitration, reconciliation and compromise shall be eligible unless the down payment is thereto attached. Once the Center receives the down payment, it is eventually non refundable. Nevertheless; the said amount will be deducted from the party who settled the same as part of his administrative arbitration or reconciliation due expenses.

 

Article 17 – The down payment to cover the arbitration or reconciliation expenses:

17-1 - The Council shall determine the down payment for the original request, as such; it is paid to cover the arbitration fees and reconciliation expenses ahead of starting the procedures. It covers the estimated amounts for:

  • Mediators or arbitrators ' fees as specified in the attached table.
  • Administrative expenses as specified in the attached table.
  • Fees and expenses of expertise and other assistance required for technical consideration of the subject matter.
  • Transportation expenses for the arbitrators, experts and other related expenses.

17.2 - The Council may determine, in case of counteract requests independent from the original request, a specific down payment for each of the corresponding individual requests.

17-3 – The initial down payment must not exceed the total administrative expenses and the minimum arbitrators or mediators fees (attached Appendix Table) which are calculated on the basis of the request value, in accordance with the case circumstances, the expenses, and the estimated expenditures for technical and business expertise.

17.4 – The down payment for arbitration or compromise shall be settled equally by the parties to the dispute. If either party applied for counter request; he shall reimburse the expenses related to this request.

17-5 – The Arbitral Tribunal or Committee shall only review the original request or any other requests upon receipt of the Council’s estimated initial down payment. If not in compliance with this procedure, the arbitration or compromise document shall bear no impact.

17-6 - Each party shall pay in cash its share of the initial down payment to cover expenses, however; if the share of any party exceeds a certain amount as determined by the Council, from time to time, it is permissible for this party to submit a bank guarantee to cover the increase.

17-7 - If one of the parties settled his full share of the down payment set by the Council, it is permissible for him to settle the unpaid share of the initial down payment owed to the defaulting party, either in cash or in the form of a bank guarantee.

17-8 – When the Council determines separate expenses’ initial down payments, the Council is entitled to ask each party to settle the down payment associated with his requests.

17-9 - The Council shall determine the conditions governing the bank guarantees that may be supplied by the parties in accordance with the previous Paragraphs.

17-10 – If the dispute subject matter proves to be more complicated and difficult to conduct, whereupon; the expenses related thereto are increased, and if the dispute value increases; the down payment amount may be amended at any stage of the arbitration proceedings.

17-11 - The parties, or either of them, are bound to pay the determined amount by the Arbitral Tribunal and as deemed sufficient to cover the expenses and fees of the experts before the commencement of the expertise procedures. The Arbitral Tribunal shall ensure the parties’ payment to these fees and expenses.

 Article 18 - Expenses and fees:

18-1 - The Council shall determine the arbitrator or mediator's fees based on the table of the arbitrators' fees set forth in Appendix No. (3), or as deemed suitable if the dispute value is not forecasted.

18-2 – As the Council determines the fees for an arbitrator or a mediator taking into consideration the efforts and time devoted for the arbitration proceedings and the complexity of the dispute, thus; the amount will be rationalized within logical limits, increased or decreases in view of the exceptional circumstances as and when arbitration or reconciliation confronts them.

18-3 – It is the Council exclusively to determine the arbitrators or mediator’s fees and expenses according to the rules stipulated in this Bylaw. When deciding the fees and expenses, the Council shall take into consideration the amounts involved in the dispute, the fees and expenses’ tables; as well as the circumstances associated thereof and their impact on the proceedings. However, any individual agreement between the parties and the arbitrators concerning their fees shall be ruled out being a breach to this Bylaw.

18-4 - The Council shall determine the administrative expenses of each arbitration or reconciliation based on the fees and expenses’ table attached herewith, or as the Council deems suitable in case the disputed amount is not specified. The Council may, in exceptional cases, determine the administrative expenses higher or lower than the amounts stated in the fees and expenses table on condition it will not exceed the maximum amounts stated therein.

18-5 - If the arbitration ended before the release of final arbitration award, or reconciliation without reaching an amicable solution, the Council determines the fees and expenses of the arbitrators or mediators as it deems suitable, taking into consideration the reached stage of the arbitration or reconciliation procedures and all other influencing factors.

18-6 - The fees and administrative expenses for the reconciliation intermediaries are determined at the limits of half the specific fees and expenses of arbitration, taking into consideration the provision stated in Article /15/ of the Bylaw herein.

 

Article 19 – Table of the arbitrators and mediators’ fees and administrative expenses:

19-1 - The table of the administrative expenses and arbitrators' fees set forth in the two Appendixes attached herewith are applicable as of the launch of the first arbitration according to this Bylaw pursuant to the declaration of the Center and its ratification by the Ministry.

19-2 - The tables attached to this Bylaw provide the administrative expenses and the arbitrators and mediators’ fees calculated in rounded numbers in Syrian Pounds.

19 -3 – The Exchange rate for Syrian currency to the U.S. Dollar or Euro or any other foreign currency will abide to the Currency Bulletin as published by the Central Bank of Syria.

 Article 20 - General and Transitional Provisions:

20 - 1 – The parties to arbitration or reconciliation whose proceedings are held at the Center are deemed familiar with the stated terms and conditions in this Bylaw and, without any reservation, consenting to all of them.

20-2 - Contractors may include the following wording in their contracts: (Any dispute, controversy or claim arising of /or relating to this contract, or the breach, termination or revocation should be solved via consensual arbitration. The arbitration is implemented in accordance with Al Rustom Arbitration and Reconciliation Center's Bylaw."

    20-3 - Upon the adoption of this Bylaw and duly declaration of the Center, the Bylaw and the financial procedure will be set; thus shall be adopted and shall be effective upon the General Assembly's endorsement.