BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Bradley Price and Raghad Al Matrook, Al Tamimi & Company
nism fails under Article 11, including situations where a party, arbitrator or appointing authority fails to act. Limits on Court Powers In exercising its appointing authority, the court must consider any qualifications required of the arbitrator and ensure independence and impartiality. Where a sole arbitrator or presiding arbitrator is being appoint - ed, the court also takes into account the desirability of appointing an arbitrator of neutral nationality, where appropriate. Court decisions relating to the appointment of arbitra - tors are final and not subject to appeal, which helps prevent procedural delay and ensures efficiency in constituting the tribunal. 4.4 Challenge and Removal of Arbitrators Grounds for Challenge An arbitrator may be challenged only where circum - stances exist that give rise to justifiable doubts as to their impartiality or independence, or where the arbi - trator does not possess the qualifications agreed by the parties. A party may challenge an arbitrator it has appointed only for reasons that become known after the appointment has been made. Challenge Procedure The parties may agree on a procedure for challenges. Failing such agreement, the challenging party must submit a written statement of reasons to the tribunal within 15 days of becoming aware of the tribunal’s constitution or the relevant circumstances. The tribunal decides on the challenge unless the chal - lenged arbitrator withdraws or the other party agrees to the challenge. If the challenge is unsuccessful, the challenging party may apply to the High Civil Court within 30 days. The court’s decision is final and not subject to appeal, and the arbitral proceedings may continue while the challenge is pending. Removal of Arbitrators Separately, an arbitrator’s mandate may be termi - nated under Article 14 of the UNCITRAL Model Law, as incorporated into Bahraini law through Legislative Decree No. 9 of 2015, if the arbitrator becomes unable
to perform their functions or fails to act without undue delay. 4.5 Arbitrator Requirements Independence, Impartiality and Disclosure The Arbitration Law imposes a continuing duty on arbi - trators to remain independent and impartial through - out the proceedings. A person who is approached in connection with a potential appointment must dis - close any circumstances likely to give rise to justifi - able doubts as to their impartiality or independence. Once appointed, an arbitrator must disclose any such circumstances without delay and continue to do so The same threshold – “justifiable doubts” as to impar - tiality or independence – also forms the substantive basis for challenging an arbitrator under Bahraini law. Supplementary Standards in Practice In international arbitration practice, parties and arbi - tral institutions frequently supplement these statutory requirements by reference to the IBA Guidelines on Conflicts of Interest in International Arbitration. throughout the arbitration. Standard for Challenge Bahrain recognises the principle of competence-com - petence under Article 16 (1) of the UNCITRAL Model Law, as incorporated into Bahraini law through Leg - islative Decree No. 9 of 2015. This allows an arbitral tribunal to rule on its own jurisdiction, including objec - tions relating to the existence or validity of the arbitra - tion agreement. Relationship With Separability This power operates alongside the principle of sepa - rability, meaning that a finding that the main contract is invalid does not, by itself, affect the validity of the arbitration clause. 5. Jurisdiction 5.1 Challenges to Jurisdiction Competence-Competence Principle
90 CHAMBERS.COM
Powered by FlippingBook