Challenging Arbitration Awards in the UAE

The issues about the agreement entailed the invalid agreement, un-enforceable agreement, subject matter beyond the scope of the arbitration, violation of public policy. Whereas, the grounds related to the proceedings include the inadequate composition of the arbitral tribunal. A tribunal not authorized to issue an award.

Failure to determine the dispute, the party’s lack of agreement, failure to abide by arbitration rules and regulations can be a reason too. The Dubai lawyers are well aware of the fact that there can be certain complications in the legal procedures. Moreover, they are always available in the UAE for legal help and assistance.

Reasons to Challenge Arbitration

Below are some common reasons for challenging arbitration awards in the UAE.

  • Capacity to Sign the Agreement

The legal capacity is the ability of an individual to agree and conclude to be a party to the arbitration. Lacking such status would result in the annulment of the award. Court of Cassation in 164/2008 and similar other cases opined that the manager of a Limited Liability Company has full authority to carry out functions of the company. Thus, holds the right to enter into the arbitration.

  • Defects in Arbitral Award

Previously under Article 212(5) of the Civil Procedure Law, it was obligated that the award shall be signed by the arbitrators. Accordingly, the signature of just the chairman would not suffice the requirement. In case the matter is presented by a tribunal of numerous arbitrators with the help of Dubai lawyers.

This is by the Court of Cassation case 233/2007 where the court held the award void, due to the formal defect in the award.

  • Matter Opposing the Public Policy

The Dubai Court of Cassation lately held that the public policy is not the only ground for challenging the arbitral award. Because earlier Article 216 of the civil procedure code did not proclaim public order as a ground for challenging the award. To this effect, the rules regarding public order as mentioned under Article 3 of the Civil Transactions Code albeit imperative.

It should not be considered for setting aside the award. This, however, a very restrictive approach towards the definition of public policy and does not make a part of international public policy.

To Finalize

Hence, if you see any ambiguities in the arbitration awards given, you can seek legal help. The Dubai lawyers are there for your legal support and help. Moreover, they provide their services in Ajman, Sharjah, Abu Dhabi, and Fujairah too.

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