Act No. 98 / 1963 Coll.
Law on arbitration in international trade and on the enforcement of arbitration findings
Valid
Effective from 01.04.1964
98.
THE LAW
of 4 December 1963
on arbitration in international trade and on the enforcement of arbitration findings
The National Assembly of the Czechoslovak Socialist Republic decided on this law:
Purpose of the law
In order to facilitate the development and conduct of international trade relations, arbitration procedures shall be used, in particular to enable participants in international trade to deal with disputes quickly, flexibly and professionally. In order to achieve this purpose, the performance of arbitral findings issued in the arbitration procedure shall also be ensured.
Arbitration Agreement
The Parties may agree that, in disputes concerning property rights arising from international trade, one or more arbitrators (arbitration agreement) shall decide between the Parties on matters in which there would otherwise be a competent court.
(1) The arbitration agreement may cover both the individual parties to the dispute (the agreement on the arbitrator) and any dispute (the arbitration clause) which would arise in the future from a particular legal relationship or from a defined range of legal relations that could occur between the parties in the future.
(2) Unless otherwise stated in the contract, the rights arising from legal relations shall be covered both by the law directly and by the question of the legal validity of such legal relations, as well as by the rights relating thereto.
(3) The Arbitration Agreement also binds the parties' legal successors.
(1) The arbitration agreement must be concluded in writing. The request for a document shall be granted if the contract is contained in interchangeable letters, telex, telegrams or other documents, or if the parties agree orally and subsequently confirm the agreement in writing.
(2) However, if the arbitration clause forms part of the terms and conditions governing the main contract to which the arbitration clause relates, the arbitration clause shall be valid even if the written draft of the main agreement with the arbitration clause has been accepted by the other party in another way.
Arbitrators
(1) A Czechoslovak citizen may be an arbitrator, if he is of age and has legal capacity.
(2) An alien may be an arbitrator if, under the law of his State, he is eligible for legal action; However, even if it does not have such competence, it may be an arbitrator if it is capable of legal action under at least Czechoslovak law.
(1) As a general rule, the arbitration agreement is to determine the number and persons of the arbitrators or at least the manner in which the number and persons of the arbitrators are to be determined.
(2) If the arbitration agreement does not have provisions in accordance with paragraph 1 or if that provision is unclear, each party shall appoint one arbitrator and they shall elect the chairperson of the arbitrator.
(1) If the arbitrator is not to appoint an arbitrator within a reasonable period of time, the arbitrator shall be appointed by the court on a proposal from the Party, unless the Parties have agreed otherwise. The same applies if the appointed arbitrators cannot agree on the person holding the chair; either Party or each of the designated arbitrators is entitled to the proposal.
(2) Unless otherwise agreed by the Parties, the court shall appoint a new arbitrator, on a proposal from either Party or an arbitrator, if the designated arbitrator refuses to act as arbitrator or is unable to exercise the activities of the arbitrator.
(1) The Parties may also agree in the arbitration agreement that disputes between them (Section 3) are to be decided by a permanent arbitration court.
(2) The establishment of permanent arbitration courts is governed by specific provisions.
Effects of the application on the initiation of proceedings (action)
(1) An application for the initiation of proceedings (application) brought before an arbitrator or a permanent arbitration tribunal has legal effects as if an application had been lodged before a court in this case.
(2) Where a Party applies its claim before an arbitrator or before a standing arbitration panel within a limitation period or a forfeit period and where the arbitrators or a standing arbitration panel have declared their incompetence (Section 12), or where the arbitration panel has been annulled and the applicant has again lodged with a court or other authority an application for the initiation of proceedings or an application for the continuation of proceedings within 30 days of the date on which the decision on the incompetence or revocation of the arbitration panel has been served, neither the limitation nor the termination of its entitlement may be contested by the expiry of the period.
Management
(1) Unless otherwise provided for in the arbitration agreement, the arbitrators shall determine at their discretion the time, place and procedure. In proceedings, they are to proceed in such a way that, without unnecessary formalities, they find out as effectively and quickly as possible the true state of affairs, giving both parties the same opportunity to defend their rights.
(2) Arbitrators may question witnesses, experts and parties only if they come voluntarily. Other evidence may also be provided only if it is provided to them by a party or, where appropriate, by someone else.
(3) Acts which the arbitrators cannot carry out themselves shall be carried out by a court at their request. The court shall be required to comply with the request, unless the action is inadmissible under the law; he is entitled to make all the decisions necessary for the execution of the request.
If, pending the completion of the arbitration finding, a Party has not, in whole or in part, taken part in the proceedings or has not carried out, without its fault, any act required to defend its law, the arbitrators shall take appropriate measures to propose that the Party may carry out what it has missed retroactively.
If the arbitrators consider that they are not competent to discuss the conflict submitted to them, whether for the nullity of the arbitration agreement or for other reasons, they shall take a decision. Such a decision must be approved, signed, justified and served on the parties as an arbitration finding (Paragraph 14 (1)).
Provisional measures
If, before or in the course of the arbitration procedure, the execution of the arbitration award proves likely to be compromised, the court may, on application by the Party, order interim measures.
Arbitration finding
(1) The arbitration panel shall be seised by a majority of the arbitrators. It shall be issued in writing, signed by at least a majority of the arbitrators and delivered to the Parties or to their representatives by registered mail. The verdict in the arbitration finding must be certain. The reasons for the arbitration finding are required, unless otherwise agreed by the Parties.
(2) In deciding, the arbitrators shall observe the applicable substantive law.
The arbitration panel shall be composed of representatives of the Parties.
The arbitrators shall correct the errors in writing or numbers and other obvious errors that would appear in the arbitration finding at any time at the request of either Party. Such repair must be ordered, signed and delivered as an arbitration finding (Paragraph 14 (1)).
The Parties may agree that the arbitration finding may be reviewed by the same or other arbitrators on the request of either of them or both. Unless otherwise agreed by the Parties, the request shall be sent to the other Party within one month of the date on which the arbitration finding required in that provision was served on the complaining Party in accordance with Article 14 (1). Upon expiry of this or between the parties to the agreed period, the request for review of the arbitration finding shall be excluded. The examination of the arbitration award is part of the arbitration procedure and is subject to the provisions of this Law.
(1) The arbitration finding, which has the formalities laid down in Article 14 (1) and has been served there by the parties, shall take effect by serving a final judgment and shall be enforceable.
(2) However, if, under the arrangements of the Parties, the arbitration finding can still be reviewed (Paragraph 17), the provisions of paragraph 1 shall apply to the arbitration finding issued on the basis of that review.
Peace
(1) The arbitrators are to act at any time during the proceedings on the parties to agree.
(2) The settlement before the arbitrators concluded and signed by them is enforceable.
Cancellation of the arbitration award by the court
On application, the Tribunal shall revoke the arbitration finding if:
1. Issued in a case on which a valid arbitration agreement cannot be concluded (§ 2); or
2. the arbitration agreement is invalid for other reasons, or has been revoked, or does not apply to the decision; or
3. In the case, an arbitrator who has neither been called upon to take a decision under the arbitration agreement nor had no capacity to be an arbitrator has participated; or
4. the arbitration finding has not been sedated by most arbitrators; or
5. The party has not been given the opportunity to discuss the matter before the arbitrator; or
6. the arbitration finding condemns a party to a transaction which has not been applied for or to be carried out under Czechoslovak law to an impossible or illegal party; or
7. The arbitration finding was influenced by a crime.
The application for revocation of the arbitration award shall be filed within three months in the cases referred to in paragraphs 20 (1) to (6) from the date of service of the arbitration award to the party and in the case of No 7 from the date on which the final judgment in criminal proceedings took place.
An application for revocation shall not be admissible if:
1. has not been filed within the time limits set out in Paragraph 21; or
2. in the case referred to in Paragraph 20 (7), has not been filed within three years of the date on which the arbitration finding was delivered to the party; or
3. in the cases referred to in Paragraph 20 (2) or (3), although it may have, the party did not make such a statement in the arbitration proceedings at the latest before the hearing.
(1) If the court abolishes the arbitration finding for the reasons set out in Paragraph 20 (1) or (2), it shall proceed to the application of one of the parties after the legal authority of the judgment in the substance of the case and shall rule on the case.
(2) If the court cancels the finding for a reason other than that referred to in paragraph 1, the arbitration agreement shall remain in force. Each Party may request that arbitration be continued by arbitrators to be reappointed. Unless otherwise assessed by the Parties, the new arbitrators shall be appointed in the manner originally specified in the arbitration agreement or in support of the provisions of this Law; Arbitrators participating in an arbitration finding which has been cancelled shall be excluded from reconsideration and decision-making.
Withdrawal of the ordered execution
Even if it has not submitted a motion for annulment of the arbitration finding, the party against whom the execution of the arbitration finding is directed may submit a request to suspend the enforcement of the order, in addition to the reasons set out in Section 268 of the Civil Code, even if:
1. the arbitration finding is affected by a defect referred to in § 20 No 1 or No 4; or
2. The Party, if it needs a legal representative, has not been represented in the proceedings and its conduct has not been subsequently approved; or
3. Someone was acting in arbitration proceedings on behalf of the Party or its legal representative, without having the authority to do so and even its conduct was not subsequently approved.
If the court finds that the execution of an arbitration award is inadmissible for any of the grounds set out in Paragraph 24 (1), (2) or (3), it shall at the same time revoke the arbitration award. The parties have the option to proceed in accordance with the provisions of Paragraph 23 as if the arbitration finding had been cancelled on the proposal.
Jurisdiction of the court
The district court in whose district the arbitration procedure is held or held shall be responsible for deciding under this law if this place is domestic; otherwise the district court is competent which would have jurisdiction over the case if the arbitration agreement had not been applied.
(1) The provisional measures to ensure the entitlement for which the contract of the arbitrator has been concluded shall be ordered by the court competent pursuant to Paragraph 26 or by the court in whose territory the interim measure is to be taken.
(2) The action referred to in Article 10 (3) shall be carried out by the court in whose district the requested action is to be carried out; if they are to be carried out abroad, they shall arrange for the necessary court, competent pursuant to Paragraph 26.
(3) If it is not possible to establish within the territory of the country the competent court to act pursuant to Article 7, the competent district court shall, according to the place of residence of the applicant or his opponent; Such acts shall be carried out by the President of the Chamber.
(4) The application pursuant to Article 24 shall be decided by the court which is responsible for the execution of the arbitration award in the proceedings before the Senate.
Permanent arbitration courts
(1) Where the Parties have agreed on the jurisdiction of the Permanent Arbitration Court (Paragraph 8) and have not otherwise agreed in the Arbitration Agreement, they are deemed to have submitted to the published statutes, orders and other rules governing proceedings before the Permanent Arbitration Court at the time when the application for the opening of the Arbitration Procedure (application) was made.
(2) The provisions applicable to standing arbitrators may, in more detail and by way of derogation, determine the manner in which and in what number arbitrators will be appointed, in particular the selection of arbitrators may be linked to a particular list; they may also determine the manner of management and decision-making and other issues related to the activities of a permanent arbitration panel and arbitrators. However, the parties may not waive the right to seek the annulment of an arbitration award or to cease enforcement under the provisions of this Law.
Provisions relating to the ratio to foreign exchange
(1) The admissibility of the arbitration agreement is assessed in accordance with this Act (Section 2).
(2) The other elements of the arbitration agreement shall be assessed in accordance with this law if the arbitration finding is to be issued in the domestic territory. However, where a legal relationship is not merely a domestic legal relationship, the parties may choose the legal order under which the arbitration agreement is to be assessed. the choice must not contradict the requirement of a reasonable arrangement.
(3) The law applicable to the other elements of the arbitration agreement shall apply to the form of the arbitration agreement; It is enough, however, if the legal order of the place or places where the will took place has been made.
Arbitration findings issued in a foreign State will be recognised and executed as domestic arbitral findings if reciprocity is guaranteed. Reciprocity shall also be deemed to be guaranteed if a foreign State declares that the arbitration findings of a general nature are enforceable under the conditions of reciprocity.
However, recognition or enforcement of a foreign arbitral award shall be refused if:
1. An arbitration panel shall be subject, under the law of the State where it was issued, to an appeal or other means of redress which defer the legal authority or enforceability of the finding; or
2. the arbitration finding is affected by the defect referred to in § 20; or
3. there are other reasons for which the arbitration finding contradicts public order.
The recognition of a foreign arbitral finding shall not be pronounced with a specific decision. The foreign arbitration finding is recognised by the fact that a Czechoslovak court, another state body or arbitrator or a permanent arbitration tribunal considers it as a domestic arbitration finding when deciding.
The President of the Chamber of the District Court responsible shall order the execution of the arbitration award after the necessary inquiries have been carried out; the decision to order enforcement must be justified by the court.
Final provisions
The law applies to cases where the arbitration agreement was concluded after 31 March 1964; in other cases, the law still in force.
The provisions of this Act shall apply only if there is no other international treaty which the Czechoslovak Socialist Republic is bound by.
This Act shall take effect on 1 April 1964.
Novotný v. r.
Fierlinger v. r.
Lenárt v. r.
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Regulation Information
| Citation | Act No. 98 / 1963 Coll., on arbitration in international trade and on the enforcement of arbitration findings |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 16.12.1963 |
|---|---|
| Effective from | 01.04.1964 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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