On 24 August 2023, the Asian International Arbitration Centre's ("AIAC") Arbitration Rules 2023 ("2023 Rules") came into effect. This easy-to-digest set of Rules promotes certainty, and by extension, provides the end user with confidence when seeking to rely on these Rules.
This update highlights four key changes introduced in the 2023 Rules.
The first is that an arbitration is taken to have commenced when the AIAC receives the complete notice of arbitration and the accompanying documents. This change, reflected in Rule 2 of the 2023 Rules, places AIAC in the central position between parties and removes the potential uncertainty which may arise when the commencement of an arbitration is pegged to service on the respondent.
The second is in respect of the Tribunal’s power to make Summary Determinations (previously introduced in the AIAC's Arbitration Rules 2021 ("2021 Rules")). The new Rule 11 maintains this power but the earlier procedural and time limitations have been removed altogether. This provides greater flexibility about when such an application may be made, and how the Tribunal deals with such applications.
Third, the new Rule 12 requires parties to an arbitration to disclose the existence of any third party funding and the identity of the funder. This Rule conforms with the international standard and duty of disclosure.
Finally, the addition of Rule 14 creates a dynamic role for the arbitrator. As the arbitrator is in the best position to weigh the evidence led by both parties to the arbitration, this Rule empowers the arbitrator to guide the parties to a potentially favourable outcome without compromising the progress of the arbitration. The Rule is drafted widely so as to provide the arbitrator with the freedom and discretion to facilitate the settlement as befits the specific facts of each arbitration.
All in all, the 2023 Rules remove the bells and whistles which previously adorned the 2021 Rules, and leave a clear and core set of arbitration rules designed to encourage rather than clutter the arbitration process.
