International Relations Researches

International Relations Researches

The legal implications of the Seat of Arbitration in International Commercial Arbitrations

Document Type : Original Article

Authors
Bahareh Seddighi 1
Seyed Morteza Naeemi 2
1 M.A. in Private Law, Islamic Azad University, Bandar Anzali International Center, Bandar Anzali, Iran
2 Assistant Professor of Private Law, Ialamic Azad University, Bandar Anzali Branch, Bandar Anzali, Iran
Abstract
The seat of arbitration (the venue/place of arbitration) refers to the legal domicile of the arbitration, which connects it to a specific legal system. One of the significant issues in international arbitration is the determination of the venue by the parties, as failure to do so may result in certain legal matters falling outside the will of either party and being entrusted to arbitrators or arbitral institutions. This situation may create difficulties for the parties, including a lack of predictability of the dispute resolution process. Given the importance of the place of arbitration and the legal issues surrounding it in international commercial arbitration, this article, adopting a descriptive–analytical approach, seeks to elucidate the legal consequences of determining the venue in international commercial arbitration. In explaining these effects, it is demonstrated that the venue is not merely regarded as the physical place where arbitral proceedings are conducted; rather, in accordance with many international instruments and domestic laws, the law governing the arbitration agreement and the arbitral procedure is determined based on the place of arbitration. Moreover, the arbitral tribunal is obliged to observe the mandatory rules and public policy of the venue’s legal system. At the same time, pursuant to the law of the place of arbitration, local courts may be assigned an active role in the arbitral process and may consider themselves competent to intervene in various aspects of arbitration. This issue is particularly significant with respect to the setting aside of arbitral award.
Keywords
Seat of Arbitration
International Arbitration
Legal Effects of the Determination of the Seat
Place of International Arbitral Proceedings
Law Governing the Arbitral Procedure
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International Relations Researches
Volume 6, Issue 21 - Serial Number 1
Autumn 2016
Pages 263-294