In business contracts, the terms ‘seat’ and ‘venue’ of arbitration are considered to be synonymous to refer to the location where arbitration will take place. Is it the same thing?
Section 2 of the Arbitration Act 2005 defines the ‘seat’ of arbitration as the location where the arbitration is held. The basic legal jurisdiction to which the arbitration is tied is determined by the seat of arbitration, and the courts have supervisory authority over the arbitration. In simple terms, the arbitration seat affects not only the legislation controlling the arbitration procedure, but also the rights pertaining to the execution of the arbitral rulings.
The actual place where the arbitral tribunal hears witnesses and experts from the parties is referred to as the ‘venue’ of arbitration, like meeting rooms and so forth. As a result, an arbitration process can take place in Kuala Lumpur while the arbitral seat is in Singapore. Even though the arbitration hearings are held in Kuala Lumpur, the Singapore courts will have supervisory authority over the procedures.
Although this seat and venue of arbitration have different meanings in general, there are times when the seat might be taken to indicate the site of arbitration. When sides consent on the venue of arbitration but not on the seat, there is an ample evidence to suggest that the seat of arbitration will follow the venue of arbitration, based on the wording of the agreement and the parties’ intentions.
There are six stages of the arbitration proceedings.
The Case Initiation Stage: The agency notifies the parties via letter or email that the dispute has been submitted. This message will also include details on the arbitration procedure.
Arbitrator Invitation Stage: The agency chooses an arbitrator or arbitrators to work on the dispute, based on the method outlined in the Rules that govern your arbitration. The arbitrator evaluates case material, searches for problems, and sends a signed oath statement, as well as any related disclaimers, if appropriate, as part of this procedure.
Arbitrator Appointment Stage: Parties are advised of the arbitrator’s selection and given the option to object to him or her acting on the case. The case will proceed to the next level if the Arbitrator is confirmed.
Preliminary Hearing and Information Exchange Stage: The preliminary hearing scheduled meeting with the sides and the arbitrator will be planned and conducted after the arbitrator’s selection and approval. Preliminary concerns are discussed, the parties’ information exchange is planned, and a hearing date is determined during this session.
Hearing stage: The sides submit their arguments to the arbitrator at this stage.
Award stage: The hearing(s) are concluded and a date for the issuing of the award is determined once the hearing is concluded and the arbitrator deems that no further evidence will be submitted.
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