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][CLP
INSTITUTE FOR THE DEVELOPMENT OF
COMMERCIAL LAW & PRACTICE
1

THE CONSTITUTION
AND RULESOF THE
ARBITRATION CENTRE
OF THEINSTITUTEFOR
THE DEVELOPMENTOF
COMMERCIALLAW
AND PRACTICE
IL
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v WHEREASthe ICLP is desirousof establishingin Colornboan ArbitrationCentreof
internationalstandard for resolving domestic and internationalommercialdisputes.

CONSTITUTION
OF THE
ICLPARBITRATIONCENTRE

Interpretation
1. In thesepresents unlessthe contextotherwiserequires

"Category" meansa categorymentionedin Section

3(2)of the Constitution.
Recommended
ArbitrationClause
"Centre"
meansthe ICLPArbitrationCentre.

"Anydoubt,difference,dispute, controversyor claimarising "Chairman" meansthe Memberof the Board

from,out of or in connection with this contract, or on the
appointedas Chairmanof the Board.
interpretationthereofor on the rights, duties, obligation,or
liabilitiesof any parties theretoor on theoperation, breach, "Constitution" meansthe Constitutionof the Centre.
termination
or invalidity
thereof,shallbesettledbyarbitration.
in accordancewiththe Rulesof theArbitration Centreof the "Council"
meansthe Councilof Managementof
Institute for the Development of Commercial Law and the ICLP
Practice"
"DeputyChairman" meansthe Memberof the Board
appointedas DeputyChairmanof the Board.

"Dispute" meansa commercialdispute.

"ICLP" meansthe Institutefor the

Development
of Commercial
LawandPractice.

"Member" meansa Memberof the Board.

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"Parties"
meansall the partiesto a dispute.

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Powersof the (3) The, Board shallbe vestedwiththe powerscontainedin the

"Party" meansa partyto a dispute. Board Rules.
"Rules" meansthe Rulesof the ICLPArbitration
Centre Duties and (4) The Board shall perform and dischargethe duties and
functions of functionscontainedin the Rules,
"SecretaryGeneral" meansthe ChiefExecutiveOfficerof the the Baord
Centre,employedby the ICLP.
Appointmeht (5) The Members of the Board shall be appointedby the
"TheAct" meansthe ArbitrationAct.No. 11of 1995. of the Board Councilof ICLP.

"The Board" means all the Membersof the ICLP

ArbitrationCentreBoardincluding where Period and (6) .Each member shall hold office for a periodof three(3)
the context so requires qr .adr;nitsthe.' vacation of yearsunless suchofficeis vacatedby removal,resignation
Membersof the Board assembledat a office or deathof the member.
BoardMeeting.
Reappointment (7) A membershallbe eligiblefor re-appointment.
"ThesePresents" means the Constitutionand the Rules.
Removalfrom (8) The Council shall have the powerto removeany Member
The words,importingthe singularnumberonly shallincludethe office of the Board of the ICLP ArbitrationCentre fromoffice'at
pluraland,vice-versaand wordsimportingthe masculinegender anytimeduringthe periodof three(3)years.
shall incll\dethe femininegenderand wordsimportingpersons
shallincludecorporationsandcompanies.
Resignation (9) Any membermay at anytimeduringthe periodof'three
Saveas aforesaidany'wordsor expressions definedin the Act (3) years resignfrom officeby sendinga letterto the
shallif not inconsistent
with the subjectorcontextbearthe same SecretaryGeneral.
meaninginthesepresents.
Filling (10)ln the event of vacationof office by removal,resignation
Themarginalnotesareirisertedforconvenience
onlyandshallnot vacated office or death, the Council shall appoint another person from
affecttheconstruction
ofthesepresents. the samecategoryas thatof the vacatingmember.

Organisation 2 (1) There shallbe a body within the ICLP to resolvedomestic Period of (11)The membersoappointedinplaceofthevacatingmember
of thelCLP andinternationalcommercialdisputes.
incoming shall subjectto Section3 (8) and (9) of theConstitution
Arbitr'~tion
member hold-officefor' the unexpiredperiodof the term of the
Centre (2) The nameof suchbodyshallbe the "ICLPArbitrationCentre"
vacating'member.

(3)The Centre shall functionas a separatebodywithinthe Chairman 4 (1)The Councilshallappoint,out ofthetwo(2)businessmen:

ICLPsubjectto the provisionscontainedintheConstitution Members of the Board,one(1)Memberas the Chairman
aridtheRules. ~
of the Board.The otherbusinessmen membershclll
be'the'
DeputyChairman oftheBoard.
The Board 3 (1)Thereshallbea BoardnamedTheBo(lrdof theICLP
ArbitrationCentre. ~
j Only thre,e 5 (1) Meetingsof the Boardshallbeof three(3)members
ofthe
membersto Bo~rdbne(1)eachfroma category.
Composition (2)The Boardshallcompriseof six(6)membersof whomtwo
(2)shallbeactivebusinessmen,two(2)shallbe Attorneys- meelat
of the Board
at-Lawandtwo(2)shallberetiredJudges. any'one (2) TheChairman
orin hisabsencetheDeputyChairman
shall
time I nominate
the'threemembers
thatshouldattendthe
meetingoftheBoard.

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 (3) The Chairmanor in his absencethe DeputyChairmanshall RULESOFTHEICLPARBITRATION
CENTRE
presideat the BoardMeetings.
(As adopted by the Council of Managementof the Institutefor
the Developmentof CommercialLaw and Practiceand in force from the
(4) Decisionsof the Board shall be reached only at such
andsuchdecisionsshallbe finalandconclusive. 29th of February1996)
REQUEST FORRESOLUTION BYARBITRATION
Provided howeverthat a decisibnreached by the three(3)
members appointedin accordancewith Article5(2)hereof, 1. A request for the resolutionof a dispute by arbitrationat the Centreshallbe
by a resolutionin writing signed by all the saidthree(3) madeby a partyfilingwiththe Centrea statementwhichshallinclude;
members expresslyconsentingor dissentingthereto and
communicated by means of post,handdelivery,facsimile (a) the namesandaddressesof the partiesto the dispute:
transceiveror otherwise,shall be valid and effectualas if
it had been passed at a meeting of the saidthree (3) (b) the factsrelevantto the dispute;
membersdulyconvenedandconstituted.
(c) the reliefclaimedby the Claimant;
Minutes of 6 Minutes of Board Meetingsshall be keptby the Secretariat
Board of the Centre. (d) together with a copy of the agreementon whichthe claim is based and a
Meetings copy of the ArbitrationAgreement,if the latteris not includedin the former;
and,
Secretariatof 7 The Centre shall have a Secretariatcomposedof 9neor
the Centre severalpersonsemployedby the ICLP. (e) where applicable,the names and particularsof the arbitratoror arbitrators
appointedby the Claimant.
Secretary 8 (1) There shallbe a SecretaryGeneralemployedby the ICLP
General who shallbe the ChiefExecutiveOfficerof the Centre. PROCESSINGOF REQUEST

(2) The SecretaryGeneralshallbe an Attorney-at-Law. 2 Within three working days of the submissionof the request to the Centre
such request shall be submitted by the Secretary General to the Chairman
(3) The ICLPmay appoint any personto actfor the Secretary of the Board.
General.
3 On receipt of such request the Chairmanshall expeditiouslyconvene a
(4) The Secretariatof the Centre shall be underthe direction meetingof the Boardto considersuchrequest.
andcontrolof the SecretaryGeneral.
4 (a) Where the Board is of the opinionthatsuchrequestmaybe entertainedby
Duties and 9 (1) Duties and functionsof the Secretary General shallbe to the Centre,the Board shall convery such opinion to the SecretaryGeneral,
functions of ensure the. efficient functioningof the Centre and to
for the SecretaryGeneral to take the furtherstepsnecessaryin accordance
the Secretary promote the use of the Centre for the resolution of with the Rules.
General domesticandinternationaldisputes.
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(b) Wherethe Board is of the opinion that the requestcannotbe entertainedby
Arbitration the Centre for resolutionunder the ICLP ArbitrationCentre Rules,the Board
(2) The SecretaryGeneral may facilitatethrough the Centre
resolution of commercial disputes, international or shall refer the requestbackto the SecretaryGeneralfor action underSection
under other
9 (2) of the Constitution.
Rules domestic, under Rules other than the ICLP Arbitration
Centre Rules providedthat such otherRulesare deemed
acceptableby the Council.

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NOTI,CE
TO RESPONDENT 7..3 In the event thatthe partieshaveagreedthatthe disputeshallbe decidedby a ~
sole arbitrator but cannot agreeon the personthe appointmentof suchsole
. 5.1 ,In the event that the Boarddecidesthat' such requestshould.beentertained
i underthe Rules:the SecretaryGeneralshallwithin,seven working days.from
arbitratorshallbe madeby the Board. ')
such decision'requirethe Respondentparty to submit a reply to the Centre 7.4 In the event that the partieshave so agreedthe Boardshall appointall the
withinthe timeperiodnominatedbythe SecretaryGeneral,whichshallinclude. arbitrators.

(a) a statementcommentingonthe requestmade by the Claimant;and 7.5 In the eventthata party fails to appointan arbitratorwithinthe timeprescribed
f'
by the Board,the Boardshallmakethe appointment.
(b) where applicable,a statementidentifyingthe arbitratoror arbitrators
appointedby the Respondent. ~I 7,6 In the eventof the deathof an arbitratorappointedby a party,suchappointing
partyshallappointanotherarbitratorin placeof the deceasedarbitrator.
5.2 In the eventthat theRespondent wishesto raiseanyobjectionagainstthe
validityor concerningthe applicability
of the ArbitrationAgreement,
such 7.7 In the eventof an arbitrator resigningor.beingremovedfromofficethe Board
objectionshallbemadeinthereplytogetherwiththegroundstherefor. shall appoint another arbitrator provided however, that 'in the event that if
the vacatingarbitratorhad been appointedby a party the Boardshallmake
5.3 The Respondentmaymakea counterclaimorpleada setoff.A statement such appointmentin concurrencewiththe party who appointedthe arbitrator
to that effectshall be madeinthe reply,including
the factsrelevantto the whovacatedoffice. "
,disputeand thereliefclaimeq.A counterclaimor a pleaby wayof set-off
mustbewithinthescopeoftheArbitrationAgreement. 7.8 Intheeventofthe partiesortheBoardfailingto appointarbitratorsas above,
a partymayapplyto theHighCourttotakenecessary measures towardsthe
5.4 The Boardmay requesttheRespondent to be morecomprehensive inthe appointment
ofthearbitrator/so
c'
counterclaimorpleaforset off. In the eventthat theRespondentfails to
makea comprehensive counterclaimor pleafora setoff upontherequest DUTIESOFAN ARBITRATOR
oftheBoardsuchclaimorpleamaybedismissed bytheBoard. '
8.1 A personwhois requestedto acceptappointmentas an arbitratorshalldisclose
5.5 The replyof the Respondent shall becommuni~aJedtothy,
Clajmqn,tby
the any circumstanceswhichis likely to affe€tthe impartialityor' independence,of
SecretaryGeneral.The Claimantshallbe giventheopportunity
tocomment suchperson, .
onany objections
and pleasraisedbytheRespondent. Suchcommentsshall
Deina statement.A copythereofshallbeforwarded
totheRespondent. 8.2 An arbitrator shall from the timeof his appointmentand duringthe arbitral
proceedings,disclosewithout delay any suchcircumstancesas are referred
5.6 Failureby theRespondent
to submita replyshallnotprevent
thecontinuance to in section8.1,to the partiesandto the otherarbitrators.
oftheproceedingsinthecase,
CHALLENGE/DISQUALIFICATION
OFANARBITRATOR
6 In theeventthat theCentrehasrequesteda partyto performanyactwithin
a specifiedtime,suchtimelimitmaybeextendedbytheCentre,onapplication 9. A partywishingtochallengean arbitratorshalldososettingout thereasons
bythepartiesorotherwise.. thereforein writingand shall submitsuchwritingtotheBoard,and copies
APPOINTMENT
OFARBITRATORS v thereoftothearbitrators
andtoeachoftheotherparties.
( " 10.1 TheBoardmaydecidethat anarbitratorisdisqualified, and upontheBoard
7.1 Eachpartyshall appointan equalnumberofarbitrators whoshallappointa . makingsucha decisionit shall be conveyedto the arbitratorsand the
Chairmanof the Tribunal.
If the arbitratorsareunabletoappointa Chairman
insuchaneventtheBoard.rnay makesuchappointment.
l .. disqualifiedarbitratorshall be deemedtohavebeenremovedwitheffectfrom
thedateofsuchdecision,
7.2 In the eventthat thepartieshavenotagreeduponthenumberofarbitrators, 10.2 The Boardmay remove.an arbitratorfor failureto performhisdutiesinan
thenumbershallbethree. adequate
manner.

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 , 10.3 Before a decisionof removal is madethe Board shallascertainthe viewsof ARBITRALPROCEEDINGS
,." the partiesandthe arbitrators.
14.1 The ArbitralTribunal shall complywith the stipulationsof the partiesin the
DUTIESOFTHE BOARD ArbitrationAgreement,the Rulesand the wishesof the partiesin determininig
the mannerin whichproceedingsare to be conducted.
11 When the filingof writtenstatementsas requiredby the foregoingRuleshas
beenconcludedthe Boardshall,as applicable 14.2 TheArbitral Tribunal shalldeal with the case in an impartial,practicaland
expeditious manner. Each party shall be given a sufficient opportunityto
(a) appointan arbitratorand/ or arbitratorsand/ ora Chairman
ofthe presenthis case.
ArbitralTribunal
14.3 When the Arbitral Tribunal is composedof three or more members,the
(b) determinethe place of arbitrationhaving due regard to the wishes Chairman may, if the other arbitratorshave so authorisedhim, decide
of the partiesand questionsof procedureon his own.

(c) fix the amount of securityandth.etimewithinwhicheachpartyshall 15 Unlessthe partieshaveagreedon the languageor languagesto be usedin
payhis sharethereof. the proceedings,theArbitralTribunalshallmakea determinationin suchrespect.

12.1 The Boardshallfix a sumwhichshall be paidto the Centreandwhich,together
withthe accruedinterest,shallconstitutesecurityfor thecostsof the proceeding.
Theamountthereofshallbe fixedin accordancewiththe regulationsissuedby
the Centre.The Boardmayfix separatesumsfor a counterclaimandfor a plea
by wayof set-off.Afternotificationby the ArbitralTribunalor on its ownmotion
the Boardmayin the courseof the arbitrationproceedingsincreasethe security.
12.2 In theeventof a partyfailingto makepaymentasperRule13.1 below,the Board
shallaffordthe otherpartyan opportunityto do so. Inthe eventthatthe required
paymentis not made,the caseshallbewhollyor partlydismissedor stayedby
the Board.
12.3 As soonas the ArbitralTribunal has been appointedand the securitybeen
provided,the Boardshallreferthe case to the ArbitralTribunal.
PAYMENTOF SECURITY
16 The Arbitral Tribunal may require a partyto be morecomprehensivein any
or all statementsfiled in accordancewith the foregoingRules.TheArbitral
Tribunal maydismiss the case if the Claimant fails to complywithsucha
requirement.In the eventthatthe Respondentfailsto do so, suchfailureshall
not preventthe continuationof the proceedingsin the case.
AMENDEMENTOF THE CLAIMOR DEFENCE
17.1 A partymay amend his claim or defencein the courseof the proceedingsif
his case, as amended,is still withinthe scopeof the ArbitrationAgreement
and unless the Arbitral Tribunal considers it inappropriatehavingregardto
the pointof time at whichthe requestis made,that prejudicemaybe caused
to the otherpartyor dueto othercircumstances.
17.2 The provisionsof the precedingparagraphshallapplyequallyto the rightof
a partyto introducea pleafor a set-offor a counterclaim.

13.1 Each party shall contribute half of suchsumsof moneyas are referredto in ORAL HEARING
Rule12.1 above provided however,thatone partymay paythe entiresumif
suchpartyso desires. 18.1 An oral hearing shall be held, guided by the wishesof the parties andthe
Arbitral Tribunal shall determinethe timeat whichsuch a hearingshalltake
13.2 The Secretariatmay,in the courseof the arbitrationproceedingsandthereafter, place,its duration andthe mannerin whichoral evidenceshallbe presented
drawon the security to pay fees to the arbitratorsand other costsof the fuere~. .
proceedings.
18.2 In the event that an arbitratoris replacedin the courseof the proceedings,
13.3 The Boardmaydecidethatthe securitymaypartlyconsistof a bankguarantee the newly composedtribunalshall decidewhetherand to whatextenta prior
or othersecurity. oral hearingshallbe repeated.

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EVIDENCE 29. Where a party has partially admitted a claim, the Arbitral Tribunal may.
give a separateawardon the part thathasbeen admitted.
19.1 At the requestofthe ArbitralTribunal,
the partiesshallstatetheevidenceon
whichtheywish.torelyupon,specifying') whatthey wish toprovethereby. 30.1 The awardshall be rendered at the placeof arbitration.The award shall
containan orderor declarationandthe reasons therefor andshallbe signed
19.2 Thepartiesshallproduceasrequested
bytheArbitralTribunalthedocumentary by all thearbitrators. An awardmaybe rendered even inthe absence of the
evidence'on whichtheyrely.. signature of an arbitrator provided that the awardhas been signed bya
majority of the' arbitrators and contains a verification by them that the
20. TheArbitralTribunalmaywhenit deemsappropriaterequirethe submissionof arbitratorwhosesignatureis absenttook partin decidingthe dispute.
writtenaffidavits.
30.2 An arbitratormayattach a dissentingopinionto the award.
21. TheArbitralTribunalmayrefuseto acceptevidenceiofferedto (if.iLconsiders
that such evidenceis notrequiredor is irrelevantor thatproofcanbe es,tablished 30.3 In the event a settlementis made the ArbitralTribunalmayat the requestof
moresimplyby othermeanson a particularmatter. the partiesconfirmsuch settlementin anawar,d.
22. . Unlessiitheparties
agreeotherwise,
theArbitralJdbunalmayappointanexpert 31. An ArbitralTribunalshall after the close of the proceedings submit to the
to give his opinionon a particularmatter. Centreonecopyof each award~swellas.a record.ofall the proce~dings.

,23.. Intheevent.thata partyfails to appearat a hearingor otherwishto

comply PAYMENTOF FEESORCOSTS
. with;an
orderoftheArbitral
Tribunal
anddoesnotshowvalidcauseJorsuch
failUre,suchfailureshallnotprevent
theArbitralTribunalfromproceedingwith 32.1 The Arbitral Tribunalshall decide inthe awardthe amountof fees that are
thecaseand/orrendering anaward. dueto the Centreandthe arbitrators,respectively.
WAIVER 32.2 The Parties shall be liable jointly andseverally for the paymentof all such
sums.
24. A'partywho failsduringthe proceedingsto object withinCl\reasonabletime'to
capy,deviationfrom provisionsof the ArbitrationAgreementor. other Rules 32.3 Theparty againstwhom an awardis madeshall be orderedto paysuch fees
,applicable toJheproceedings, shall be deemed to ,havewaivedhis, rightto and costs as well as the fees and costs of the other party unless the
invokesuchirregularity. circumstancescallfor a differentresult.
THEAWARD 32.4 Whenac,aseisterminatedbeforeithasbeenreferredtothe ArbitralTribunal,
the Centrewill determinethe amountofcompensationdue to it. Whena
25. An awardshallbemadenot later than oneyearafterthe.case has been caseisterminatedbeforean awardhasbeenrendered,theArbitralTribunal
referredtotheArbitralTribunal.
AttherequestoftheArbitralTribunal,
theBoard maydecidethatthepartiesshall pay compensationto the Centreand the
may,hoWever, if appropriate
extendthisperiod. arbitrators.
26. After haVing
Tconscientiouslyconsidered
and evalua.tect.aIL
aspectsof the 33. Anawardmayberenderedevenif it dealsonlywithcosts.
, proceedings,
theArbitral
Tribunal
shalldetermine.what,hastbeenproved
inthe
ca~eandmake
theirawardaccordingly. ' 34.1 Thefeesofarbitratorsshallbereasonable
inamountandshallbedetermined
27. takingintoaccountthe timespentby thearbitrators,the complexityofthe
ThemajorityopinionoftheArbitralTribunalshallprevail.Intheeventthatsuch case,theamountindisputeandothercircumstances.
a majorityisnotattainedtheopinionof theChairmanshallprevail.
34.2 Theamountoffeesd,ueto theCentrewillbedeterminedinaccordance
with
28. Aseparateissueorpartofthematterindisputebetween thepartiesmay,atthe regulationsissuedbytheCentre.
requestofa party,be decidedbya separateaward.Ifanypartyobjects,such
anawardmaybe renderedonly if theArbitralTribunaldeemstbat thereare
exceptional
reasonstherefor.

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CORRECtiONORCHANGEOF tHE AWARD

35.1 Any obviousmiscalculationor clericalerrorin an awardshallbe corrected by

tlieArbitral TriBunal. .t

35.2 IQ,tbe
eventthata partyso requests,withinthiLty.(30}dCJys.of
receivingthe
awardthetribunalmaydecidea questionwhichshouldhavebeendecidedin
theawardbutwhichwasnotdecidedtherein.

35.3 In the eventthata partysorequests,

withinthirty(30)days,ofreceivingthe
awardthe Arbitraltribunal mayprovidean interpretation
thereofin writing.

35.4 Beforethe ArbitralTribunaltakes'sl.1ch

action,thepartiesshallbe'affordan
opportunity,to
expresstheirvie'{ls.

THEARBITRATION
AGREEMENT
TOPREVAIL

36. In the eventof a conflict-betweenadecisionof the Board and the Arbitration

Agreementthe lattershallprevail.

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