About Us
Institute of Arbitration Proceedings
In the course of entrepreneurial activity, situations often arise where one has to face a number of legal problems, the resolution of which is possible only through civil proceedings.
In the modern world, as international experience has shown, along with courts of general jurisdiction (state courts), an alternative form of dispute resolution arising from contractual and other civil law relations is often the institute of arbitration proceedings.
In the Republic of Kazakhstan, the institute of arbitration proceedings has found its practical application as a result of the adoption of Law No. 88-V dated April 8, 2016, "On Arbitration" (hereinafter referred to as the Law).
Thus, arbitration proceedings represent a commercial arbitration court elected by the parties, regardless of ownership forms (JSC, LLP, individual entrepreneur, individual), to resolve property and related non-property disputes, thereby serving as a modern and civilized way to resolve disputes between business partners.
General Information about "International Center for Arbitration Solutions"
LLP "ISAC Arbitration" (hereinafter referred to as the Arbitration) is a commercial legal entity performing the functions of a permanent arbitration institution.
The Arbitration was established in accordance with the requirements of the Law and conducts its activities guided by the provisions of the Law, the Arbitration Regulations, and other internal normative documents of the Arbitration.
The Arbitration's register of arbitrators includes more than 50 arbitrators, consisting of highly qualified lawyers with many years of practical experience in the judicial system and law enforcement agencies of the Republic of Kazakhstan.
The goal of the Arbitration is the effective, prompt, and impartial resolution of civil (contractual) disputes with the participation of independent and experienced professionals in their field.
The Arbitration's competence includes the resolution of disputes arising from civil law relations involving individuals and/or legal entities, regardless of the residence or location of the disputing parties within or outside the territory of the Republic of Kazakhstan.
The Arbitration is not entitled to consider disputes:
- that affect the interests of minors, as well as persons recognized as legally incompetent or partially incompetent in the manner prescribed by law,
- disputes on rehabilitation and bankruptcy;
- disputes between natural monopoly entities and their consumers, between state bodies, quasi-public sector entities;
- disputes arising from non-property personal relations not related to property.
Advantages of Arbitration Proceedings over Courts of General Jurisdiction
1. Simplicity and flexibility of arbitration procedures, promptness of arbitration decisions
The Arbitration Regulations provide a procedure for resolving disputes that is as convenient and straightforward as possible for the parties, compared to proceedings in courts of general jurisdiction. Moreover, the timeframe for considering a case by the Arbitration and issuing a final decision does not exceed one month from the date the case is accepted for consideration. Arbitration proceedings aim to promptly resolve disputes and make decisions within the shortest possible time, thereby avoiding prolonged litigation and bureaucracy.
2. Territorial flexibility
Unlike courts of general jurisdiction, the Arbitration is more mobile and is not bound to the residence/location of the disputing party. As a result, a dispute by mutual agreement of the parties can be considered in any location in the Republic of Kazakhstan, which is convenient for the parties. Furthermore, upon request from the parties, the Arbitration may travel to any region of Kazakhstan or even abroad to resolve the dispute on-site.
3. Choice of law for resolving arbitration disputes
If one of the parties to the agreement is a non-resident of Kazakhstan, the parties may, according to Article 44 of the Law, determine the applicable law of a particular state for resolving disputes. In the absence of an agreement between the parties on the applicable law, the Arbitration determines the applicable law in accordance with the legislation of Kazakhstan.
4. Finality of arbitration decisions
Arbitration decisions cannot be reviewed on the merits by any state body or other instances. Moreover, there is no external control over the correctness of the arbitrators' decision-making. Only in the event of certain procedural violations, courts of general jurisdiction may annul arbitration decisions.
5. Binding nature of arbitration decisions
Arbitration decisions come into force upon issuance and are binding. In case of non-compliance, enforcement can be carried out by obtaining a writ of execution from courts of general jurisdiction and handing it over to private/public enforcement officers.
6. Simplicity and enforceability of arbitration decisions outside Kazakhstan
The enforcement of Arbitration decisions outside Kazakhstan is effectively ensured by the New York Convention "On the Recognition and Enforcement of Foreign Arbitral Awards," which has 156 member countries. Moreover, international arbitration practices have shown that arbitration decisions are easier to enforce abroad than decisions of courts of general jurisdiction.
7. Right to choose an arbitrator, independence, and impartiality of arbitrators
Given that the parties are entitled to select and appoint a specific arbitrator(s) from the Arbitration's roster to resolve their dispute, this ensures maximum impartiality, independence, objectivity, and professionalism in the arbitration decision-making process.
8. Cost-effectiveness and flexibility of arbitration expenses
Compared to litigation costs incurred in courts of general jurisdiction, arbitration fees for resolving disputes in the Arbitration are significantly lower. Furthermore, under certain conditions, the Arbitration may reduce arbitration fees below the established amount.
9. Confidentiality
Arbitration proceedings are conducted in closed sessions, and the Arbitration is prohibited from disclosing information about specific disputes except with the consent of the respective party to the case.
