In the modern World, taking the disputes between entrepreneurs to the arbitration court is widely spread. In worldwide practice, those ones are Permanently Acting Arbitration Courts at Chambers of Commerce and Industry. In 2006, Armenia adopted the low on “Commercial Arbitration”, according to which The Court of Arbitration adjacent to the Chamber of Commerce and Industry was established in 2007.
The aim of Arbitration
Arbitration aims at getting a fair and impartial settlement for disputes from Arbitration tribunal, without any irrelevant delays and expenses. In business environment, while signing a contract the responsibility level between partners increases. In arbitration court the parties identify the contract terms and conditions, their rights and obligations, and the settlement for possible disputes, which helps them to smooth away the arisen disagreements.
The establishment of Arbitration court
In accordance with the RA provisions of the laws “On Commercial Arbitration”, “On Chambers of Commerce and Industry”, as well as decision #04/2007 of the Presidium of CCI of RA, an institution called “Permanently Acting Arbitration Court at Chamber of Commerce and Industry of the Republic of Armenia” has been established on April 3, 2007. The arbitration process is based on the corresponding arbitrary agreement or reservation set in the contract.
The list of arbitrators was approved by RA CCI, where the involved members were selected on transparent basis. Preconditions of such selection were the candidates’ level of knowledge, their capacities and accumulated experience in business.
Jurisdiction of Arbitration
The arbitration process is based on the corresponding arbitrating agreement or reservation set in the contract between the parties. When the disputing parties come to a written agreement to apply to the Arbitration Court, their claim is reviewed under the jurisdiction of the Arbitration court. It is important that all parties involved are fully aware of the consequences of taking their dispute to arbitration, and understand how the arbitration regulations proceed.
“Trade” concept with RA law “On Commercial Arbitration” includes all commercial relations, both contractual and non-contractual.
Commercial relations particularly involve the following deals: Providing and bartering goods and services
- Transactions signed between banks, other financial organizations and their clients
- Commercial representation and agents
- Execution of works
- Exploiting or concession
- Joint venture or industry, other variant of entrepreneurial cooperation
- Transportation by sea, air, railway and car.