Kuala Lumpur Regional Center for Arbitration

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[edit] General Information

  • Official name: Kuala Lumpur Regional Center for Arbitration
  • Country: Malaysia
  • City: Kuala Lumpur
  • Type of organization: Court
  • Date of creation: 2003
  • Interests: Arbitration - Conciliation - Mediation
  • Fields of expertise: trade, commerce and investment disputes

[edit] Description

Disputes can be settled through various means and Kuala Lumpur Regional Centre for Arbitration (KLRCA) was established in 1978 in the capital of Malaysia to offer the best available resolution outside the court.

Under the auspices of the inter-governmental international law body, the Asian-African Legal Consultative Organization, the Centre provides a neutral system for the settlement of disputes in trade, commerce and investment with and within the Asia-pacific region.

Government, individuals or bodies corporate may request for arbitration under the auspices of KLRCA, provided the dispute is of a commercial character. KLRCA is a non-profit making institution and has been established with the objective of providing a system for settlement of disputes for the benefit of parties engaged in trade and commerce and investments with and within the region.

One of the principal functions entrusted to KLRCA is the provision of facilities for arbitration under the rules of KLRCA for settlement of disputes in matters arising out of commercial transactions including investment disputes through fair, expeditious and inexpensive procedures, so that the resort to arbitration institutions outside the region may no longer become necessary.

The status of KLRCA as an independent arbitral institution for both and international arbitration is a clear policy of the Malaysian Arbitration Act 1952. The Amendment to Malaysian Arbitration Act 1952 in 1980 includes a section 34, which provides that any arbitration conducted under the Rules of the Centre is excluded from the supervision or intervention of the Malaysian Courts. Section 34 includes domestic arbitration and international arbitration.

The independent status of KLRCA is re-enforced under the Arbitration Act 2005. The power vested into the Director of KLRCA as the statutory appointing party is final and no appeal lies thereto as enunciated in section 13(9) of the 2005 Act. In this connection, KLRCA amended its Arbitration Rules in 2008. This Arbitration Rules shall come into force on the 3rd of March 2009.

[edit] Arbitration in Malaysia

There is no national Arbitration Centre in Malaysia. Instead, the Kuala Lumpur Regional Centre for Arbitration (KLRCA) was established in 1978 (under the auspices of the international governmental international law body, the Asian-African Legal Consultative organization (AALCO) to provide a forum for the settlement of disputes by arbitration in trade, commerce and investment within the Asia-Pacific region. While it has the support of the Malaysian government, KLRCA is a non-profit organization and is not a branch or agency of the government.

The rules for arbitrations under the auspices of KLRCA are the UNCITRAL Arbitration Rules of 1976 as modified and adopted by the Rules of regional Centre of Arbitration Kuala Lumpur. The UNCITRAL Rules have been recommended by the United nations General Assembly by its Resolution No. XXXI 98 adopted on the 15th December 1976 and has been widely accepted by the International community.

Unlike other institutional arbitrations, the rules of KLRCA allow a great deal of flexibility in the conduct of proceedings of the arbitration and leaves a wide discretion to the parties in regard to the choice of arbitrators, the place of arbitration and the applicability of the procedural rules.

[edit] Services

The Centre provides a wide range of services in keeping with its objective of providing a system for settlement of disputes for parties engaged in trade, commerce and investment with and within the region. These include administrative and support services, such as secretarial, interpretation and other assistance for the holding of arbitration, conciliation/mediation, or domain name dispute resolution proceedings.

The Centre can also render assistance in the enforcement of awards made in the arbitration proceedings held under the auspices of the Centre.

In addition, the Centre maintains a panel of experienced arbitrators and domain name dispute resolution panelists, which parties may appoint the Centre to nominate to oversee their respective dispute resolution proceedings.

As part of its Continuing Education Development Programme, the Centre holds workshops on the training of arbitrators and conciliators, as well as seminars and conferences on international commercial arbitration.

The fees and charges of the Centre are fixed, taking into account the actual expenses incurred and keeping in view the non-profit making character of the Centre. For details, please refer to the fee schedules under the respective service (arbitration, conciliation/mediation, or domain name dispute resolution).

[edit] Conciliation/Mediation

Conciliation or mediation is a voluntary process in dispute resolution whereby a neutral third party who is independent of the parties, assists them to reach agreement by developing options for them. Conciliation/mediation may be used in both domestic and international cases where parties opt to conciliate either preliminary to arbitration, in lieu of arbitration, or in the course of arbitration.

The conciliator/mediator does not impose a settlement upon the parties. He or she may propose a settlement if the parties so wish. The function of the conciliator/mediator is to help the parties to come to a settlement. If this fails, that is the end of the matter. The procedure is very flexible and the conciliator/mediator can confer with each party separately. The process could take one day, a few days, or longer, if circumstances permit.

[edit] Conciliation/Mediation in the KLRCA

The Rules for conciliation/mediation under the auspices of the Centre incorporate many of the provisions of the UNCITRAL Conciliation Rules. In the Rules, the words "mediation" and "conciliation" are used interchangeably and reference to "conciliator" and "conciliation" shall include "mediator" and "mediation". The conciliator/mediator may also make proposals for a settlement of the dispute only at the request of or with the consent of all parties.

The Centre offers facilities and assistance for the conduct of conciliation/mediation proceedings, including the enforcement of awards made in the proceedings held under the auspices of the Centre.

Parties are free to choose their own conciliators/mediators in the manner indicated in the Rules but they may also request that the Centre appoint conciliators/mediators from its international panel. There shall be one conciliator/mediator unless the parties agree that there shall be two or three conciliators/mediators. Where there is more than one conciliator/mediator, they ought, as a general rule, to act jointly. If the parties fail to reach agreement on the choice of the conciliator(s)/mediator(s), the Director of the Centre shall assist in the appointment of conciliators/mediators. The costs of conciliations/mediations include administrative charges as well as the fees of conciliators/mediators. The party initiating conciliation/mediation shall submit a written request to the Director of the Centre.

[edit] Contact

No 12, Jalan Conlay, 50450 Kuala Lumpur, Malaysia

Tel: 603-21420103 / 603-21420702 / 603-21420384

Fax: 603-21424513

Email: enquiry@rcakl.org.my

Official Website

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