January 26, 2021
Publication of New Arbitration Circulars
The AIAC is pleased to announce the publication of two (2) new arbitration circulars to clarify certain matters relating to the AIAC suite of arbitration rules. A summary of these circulars that will take effect from 26th January 2021 is set out below.
AIAC Arbitration Circular 02
This circular clarifies the manner in which advance deposits on costs in arbitration proceedings administered by the AIAC under the AIAC Arbitration Rules 2018 are collected pursuant to Rules 13 and 14. Specifically, the circular explains the three (3) tranches in which advance deposits on costs are collected – provisional advance deposit, advance preliminary deposit, and additional deposit – as well as clarifying the power of the Director of the AIAC to fix separate advances on costs where a counterclaim is filed. This circular also sets out the impact of the non-payment of advances on costs on the continuation of the arbitral proceedings, as well as reinforcing the AIAC’s obligation to provide an accounting of the deposits received in the arbitral proceedings.
AIAC Arbitration Circular 03
This circular clarifies the scope of the Fee Agreement the Parties and the Arbitral Tribunal may agree to enter into pursuant to Rule 13(4) of the AIAC Arbitration Rules 2018, Rule 14(4) of the AIAC i-Arbitration Rules 2018, and Rule 24(4) of the AIAC Fast Track Arbitration Rules 2018. Specifically, it clarifies that in administered arbitrations, all advance deposits on costs shall be made to and held by the AIAC, irrespective of the existence of a Fee Agreement.
It is anticipated that the abovementioned circulars will aid users of the AIAC’s suite of arbitration products to better understand their rights and obligations for the payment of advance deposits on costs in arbitral proceedings.
For general enquiries, please write to email@example.com.
TAN SRI DATUK SURIYADI BIN HALIM OMAR