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Rules concerning Ad Hoc Arbitration assisted by the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry (1989)

  • (These Rules were adopted with Minutes No. 1 by the Executive Board of the Bulgarian Chamber of Commerce and Industry under Art. 9.(4), item 2 of the Statute of the Bulgarian Chamber of Commerce and Industry at a session held on the 17th of January 1989. )

    Art. 1

    These Rules shall be applied where the parties to an international commercial contract have included in it a clause for arbitration "ad hoc", assisted by the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry (Art. 2 below).

    Art. 2

    The Bulgarian Chamber of Commerce and Industry proposes to the parties of international commercial contracts to include the following arbitration clause, which provides resolution of the dispute by "ad hoc" arbitration, assisted by the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry:
    "Any disputes arising from this contract or concerning it, including disputes arising from or concerning its interpretation, invalidity, nonperformance or termination, shall be settled by an arbitration in compliance with the Rules for "ad hoc" arbitration, assisted by the Arbitration Court at the Bulgarian Chamber of Commerce and Industry. The language to be used in the arbitration proceedings shall be ..."

    Art. 3

    1. The Court of Arbitration at the Bulgarian Chamber of Commerce and Industry shall render to the "ad hoc" arbitration cooperation for its formation as well as full administrative help and services which shall include the following:
    1. forwarding (by mail or telex) the correspondence of the parties and the arbitrators, related to the arbitration proceedings with the exception of that sent directly;
    2. drawing up the minutes of the hearings;
    3. interpretation during the hearings;
    4. provision of premises for the hearings and deliberations of the arbitrators;
    5. taking part in setting the date and place of the hearings and deliberations as well and in notifying the persons concerned of the settled date and place;
    6. hotel reservations for the arbitrators;
    7. book-keeping of the expenses in connection with the assisted "ad hoc" arbitration;
    8. other kinds of assistance designated in the following articles or considered by the "ad hoc" arbitral tribunal as necessary for the correct holding of the proceeding.
    1. The aforesaid functions shall be performed by the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry with the agreement of the "ad hoc" arbitral tribunal or of the sole arbitrator.
    2. In order to facilitate the election of the arbitrators the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry shall prepare and announce a list of persons of different nationalities who shall possess the qualification necessary to perform the functions of arbitrators in international commercial cases. The parties and the arbitrators may elect for arbitrators persons who have not been enrolled on this list.

    Art. 4

    1. The seat of the "ad hoc" arbitration shall be in the city of Sofia.
    2. The parties may agree upon the procedure for the initiation of the "ad hoc" arbitration, for the challenge of the arbitrators and for the hearing of the case. This agreement may be reached by referring to the Rules of an arbitral institution chosen by both parties.
    3. When no agreement exists on rules for the "ad hoc" arbitration then the UNCITRAL Arbitration Rules shall be applied together with the amendments ensuing from Articles 5 and 6 of the present Rules and as per Articles 38, 39 and 41 of the UNCITRAL Arbitration Rules, which shall be applied together with the amendments ensuing from Articles 7 trough 16 of the present Rules.
    4. The provisions of Articles 7 trough 17 of the present Rules cannot be amended by the parties.

    Art. 5

    1. The party that commences an arbitration under the present Rules shall have to send to the Secretariat of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry a copy of the request for arbitration, addressed to the other party, it shall designate the elected arbitrator and his deputy, suppling information about them, as well as deposit with the account of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry USD 250 for the preliminary administrative expenses for the arbitration.
    2. In his reply the defendant shall appoint an arbitrator and a deputy, furnishing information about them and may also raise his counter-claim, if any. The defendant shall send the original copy to the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry. Simultaneously with the raising of the counter-claim, the defendant shall deposit with the account of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry USD 250, as per the preceding subsection.
    3. If the preliminary payment referred to in subsections 1 and 2 is not made, the Court of Arbitration would not be obliged to render any assistance to arbitration proceeding related to the claim or to the counter-claim.
    4. The "ad hoc" arbitral tribunal shall keep contact with the parties through the Secretary of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry. The Secretary on his part may delegate this function to a specially designed employee of the Secretariat.
    5. The day when a letter or a document is served upon the Secretariat of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry, or when a registered letter is posted to the address of the latter, shall be deemed as the date of serving it on the "ad hoc" arbitral tribunal.
    6. The presiding arbitrator may agree the letters, notifications and documents to be forwarded directly to the addressee with a copy addressed to the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry.
    7. Letters, notices and documents sent through the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry shall be delivered to the Secretary of the Court in as many copies as are the addressees plus a copy thereof for the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry.

    Art. 6

    1. When the defendant has not elected an arbitrator within the time-limit of 30 days upon receipt of the request for arbitration or 50 days when the parties have their seats in different continents, the arbitrator shall be appointed by the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry, chosen amongst persons who are not citizens or residents of the country where the seat of the claimant is.
    2. When within a 30 day time-limit from the election of the second arbitrator the arbitrators have not managed to elect a presiding arbitrator, the latter shall be appointed the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry.
    3. The parties may agree the presiding arbitrator to be elected from a group of candidates nominated by the arbitrators; in such case each one of the arbitrators shall have the rights to nominate no more than three candidates.
    4. On a request by any of the parties the presiding arbitrator may be elected by casting lots drawn by the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry. Authorized representatives of both parties may be present at the drawing. For that purpose the Secretary of the Court of Arbitration shall inform the parties about the date on which the drawing shall take place but not later than 15 days before this date.
    5. When within a 15 day time-limit from the respective request of one of the parties the arbitrators or one of them do not nominate candidates for presiding arbitrator, the latter shall be appointed by the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry.
    6. When the parties have agreed on their dispute to be resolved by a sole arbitrator but have not elected that arbitrator within a 30 day time-limit from the date of application of one of the parties for electing a named person, the arbitrator shall be appointed by the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry.
    7. When the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry appoints a presiding arbitrator or a sole arbitrator, the appointed person must be a citizen or a resident of a country different from the countries where the seats of the parties are.
    8. The provisions of this Article shall also apply to procedures of replacing an arbitrator, if such replacement has been envisaged in the applicable arbitration rules.

    Art. 7

    1. The amount of the advance payment to cover the expenses of the proceedings shall be determined on the request of the Secretary of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry by the Chairman of this Court in accordance with the provisions of Articles 8 trough 12 of the present Rules. When determining the amount of the advance payment, the value of the claim specified in the request for arbitration and that of the possible counter-claim raised with the reply of the defendant shall be taken under consideration as well as the expected expenses connected with the arbitration proceedings. If necessary the sum of the advance payment may be increased within the course of the proceedings.
    2. Each party shall be obliged to deposit one half of the advance payment with the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry within the time-limit determined by the Chairman of that Court, which shall be not less than 30 days.
    3. When within this time-limit the defendant against whom the principal claim or the counter-claim has been raised does not pay his share of the advance payment this part may by paid by the claimant within the time-limit determined by the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry. When the advance has not been paid, the proceedings in respect of the principal claim or of the counter-claim shall be suspended and the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry shall grant the claimant additional time-limit. When within this period the advance has not been paid, the proceedings in respect of the principal claim or the counter-claim shall be terminated.
    4. The file of the case shall be delivered to the arbitrators or to the arbitrator after payment of the advance.
    5. The advance payments referred to in Art. 5 shall be deducted from the administrative charges determined in accordance with Art. 11.

    Art. 8

    1. The expenses for the arbitration proceedings shall include the administrative charges of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry, the arbitrators' fees determined according to Art. 11 and 12 of the present Rules, travelling expenses, accommodations and daily expenses of the arbitrators, as well as the expenses for the expert reports or for the collection of other evidence by the arbitral tribunal.
    2. The amount of the advance payment covering the expenses for the appointed experts and for collecting other evidence shall be determined by the arbitral tribunal with the consent of the Secretary of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry. The advance shall be paid by the party requesting the evidence. When the expert is appointed on the initiative of the "ad hoc" arbitral tribunal or on the request or with the consent of both parties, then each of them shall pay one half of the advance. In case the advance is not paid the evidence shall not be collected.

    Art. 9

    The amount of the advanced payment shall be fixed in US dollars by the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry on the proposal of the Secretary of the Court. When the claim or the counter-claim are brought in another currency the Secretary of the Court shall convert it into US dollars according to the rate of exchange of the Bulgarian National Bank on the day when the principal claim or the counter-claim have been brought.

    Art. 10

    When the claim cannot be assessed in money, the amount of the advance payment shall be fixed according to the circumstances and the nature of the dispute. In such cases the arbitrator's fee shall not be less than USD 1,000.

    Art. 11

    The administrative charges of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry shall be fixed according to the following table depending on the value of the claim, which in the cases of a principal claim and counter-claim shall be equal to the total amount of the value of both claims:

    Value of the dispute in USD

     

    Administrative charges in USD

    -

    up to 50,000

    500

    from 50,001

    up to 100,000

    500
    +1.0 % for the amount over 50,000

    from 100,001

    up to 500,000

    1000
    +0.5 % for the amount over 100,000

    from 500,001

    up to 1,000,000

    3000
    +0.2 % for the amount over 500,000

    over 1,000,000

    -

    4000
    +0.1 % for the amount over 1,000,000 but not more than 10,000



    Art. 12

    1. The arbitrators' fees shall be fixed according to the following table with respect to the value of the dispute which in case of principal and counter-claims shall be equal to the sum total of the value of both claims; the fee of the presiding arbitrator shall be 30% higher:
    2. Value of the dispute in USD

       

      Administrative charges in USD

      -

      up to 50,000

      1,000

      from 50,001

      up to 100,000

      1,500

      from 100,001

      up to 300,000

      2,000

      from 300,001

      up to 500,000

      2,500

      from 500,001

      up to 1,000,000

      4000

      from 1,000,001

      up to 2,000,000

      6,000

      over 2,000,000

      -

      10,000



       
    3. In accordance with the degree of complexity of the dispute and the time spent for its solution the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry may on the request of the presiding arbitrator or of the sole arbitrator increase the arbitrators' fees but not more than 50% from the amount given in the table in the previous subsection.

    Art. 13

    The arbitrators shall receive their fees within a 30 day time-limit from signing the award. An arbitrator who declines to sign the award shall lose the fee.

    Art. 14

    The Secretary of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry shall on the request of the presiding arbitrator or of the sole arbitrator submit to the latter the account for the expenses incurred in the case. After the award has been rendered, he shall authenticate it with his signature and seal of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry and shall forward it to the parties.

    Art. 15

    The arbitrator may ask an advance for the expenses connected with his participation in the proceedings. The amount of the advance shall be determined by the Chairman of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry on the request of the arbitrator.

    Art. 16

    The amount of the advance on costs which has not been spent shall be refunded to the parties that have made the deposit. The amount of US dollars 250 referred to in Art. 5 shall not be refunded.

    Art. 17

    The Secretary of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry nominated by the Chairman of the Court of Arbitration in the position of secretary of the "ad hoc" arbitration for a particular case, the short-hand secretary making the records for the hearings of the arbitral tribunal, and the interpreters shall receive their fees in leva according to the tariffs and rules in force in the Republic of Bulgaria.

    Art. 18

    1. The Court of Arbitration at the Bulgarian Chamber of Commerce and Industry may by agreement of the parties or of the "ad hoc" arbitral tribunal render only some of the administrative services connected with the "ad hoc" arbitration.
    2. In these cases the scope of administrative services to be rendered by the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry, as well as the amount of the administrative charges shall be determined by the agreement referred to in the preceding subsection.

    The administrative charges, arbitrators' fees as well as the expenses for the experts or for collecting other evidence by the Court of Arbitration shall be deposited with the bank account of the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry.