Arbitration judgment in disputes related to money market transactions

The law establishing the Capital Markets Authority and Regulating Securities Activity in Article 148 of it permits the settlement of disputes arising from the obligations stipulated in the law or any other law if they are related to money market transactions through the arbitration system stipulated in the executive regulations of the law establishing the Capital Markets Authority.

The articles of the arbitration system from Article No. 12-4 to 12-4-6 included the rules for issuing an arbitration award in disputes related to money market transactions as follows:

Arbitral Tribunal meeting for deliberation

Before issuing its judgment, the arbitral tribunal must meet to deliberate to issue the judgment, and the deliberation must be confidential, and the arbitrators may not participate in the deliberation except those who participated in hearing the pleading, otherwise the pleading is reopened and then rebooked for judgment.

Return the case to pleading

The arbitral tribunal may not, during the deliberation, hear one of the litigants, unless it decides to open the pleading again for justified reasons submitted by one of the arbitration parties, provided that the other litigant is notified of the date of the session set by the arbitral tribunal for pleading.

Conditions to be fulfilled in the arbitration award

  • The arbitral award is issued by a majority of opinions, and the arbitral tribunal pronounces it in the session before the litigants or their representatives
  • It must include the names of the parties, its date and place of issuance, the facts of the arbitration case, the litigants’ requests and a summary of their defenses and defenses, and their response to them.
  • It must be reasoned and include the names and signatures of the arbitrators and specifying the party who bears the arbitration fees and the arbitrators’ fees
  • The award must be in Arabic, even if the language of arbitration is another language, provided that it is accompanied by an official translation approved in the language of arbitration by the arbitral tribunal.

The judgment shall be valid if signed by the majority of arbitrators, even if one of them has resigned or has resigned after the case has been reserved for judgment and deliberation has begun.

Depositing, recording and sending the arbitration award

The original copy of the judgment, attached to the case file, shall be handed over to the Capital Markets Authority in order to deposit and register it with it. The Authority shall instruct the Authority to send a copy of the judgment attested by it (a true copy) to each of the two parties to the arbitration, by registered mail with acknowledgment of receipt or by any other method within Three working days from the date of issuance of the judgment.

Final judgment

The arbitration award shall be binding and final, and shall not be enforceable except after obtaining the executive form in accordance with the legal procedures established in Chapter twelve of the Kuwaiti Civil and Commercial Procedures Law.

Correction and interpretation of the arbitral award

Each of the two parties to the arbitration may submit requests for correction or interpretation of the arbitral award or a request for a ruling on requests that have been neglected to be decided upon, to the Capital Markets Authority, which in turn invites the arbitral tribunal to consider these requests. The requests, and the judgment issued in these requests is considered complementary to the arbitration judgment and its provisions shall apply to it.

If the arbitral tribunal that issued the award is unable to convene to decide requests for correction or interpretation of the arbitral award, or to decide on requests that were omitted, a new arbitral tribunal will be formed with the same procedures, and a ruling will be issued within two months from the date of starting to consider those requests.

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