RECONCILIATION
Reconciliation Rules
Introductory Provisions
Definitions
- The following words and expressions shall have the meanings assigned thereto, unless otherwise required by the context.
- IICRA: International Islamic Centre for Reconciliation and Arbitration as stated in the introduction above and all its branches.
- IICRA Headquarter: Main headquarter of IICRA, and/or any other headquarter lately approved by the Board of Trustees.
- Reconciliation Rules: These Rules of the IICRA for the resolution of disputes amicably, through conciliation, reconciliation, and mediation along with its annexes and appendices.
- Party or Parties: The party wishing to initiate the Conciliation and the other parties, regardless of their number, whether they are natural persons or legal persons.
- Dispute: Any disagreement that arises between the parties regarding their legal relationship, whether contractual or non-contractual.
- Means for an Amicable Settlement: The means identify by the parties, with the assistance of Conciliator, to discuss amicable settlement of their dispute, wholly or partially, through conciliation, reconciliation, and mediation, pursuant to these rules.
- Conciliator: A natural or legal person in charged to discuss the ways of amicable settlement between the parties.
- Settlement Agreement: It is a document that incorporates Terms and Conditions agreed upon by and between the parties to resolve their dispute with the assistance of interests.
- Communications: It Includes, but not limited to, all notifications, letters, requests, pleadings, statements, notices, warnings, documents/memos, applications, suggestions, and any documents or exhibits, and attachments circulated to discuss the means for an amicable settlement.
- Higher Shari’ah Committee: The Committee formed to perform its task according to the Rules of IICRA.
- Electronic Platform: E-platform developed by IICRA for online resolution of disputes through Arbitration and Reconciliation pursuant to the provisions of E-rules – Annex (2).
- Day: Calendar Day.
- The words used in singular include in their meanings the plural and vice versa wherever the context so requires. Similarly, these shall be construed as gender neutral.
Scope of Application
- These rules apply in an attempt to resolve disputes brought before IICRA under an agreement for discussing the means for an amicable settlement, and the parties, however, may designate any additional, complementary rules instead of these rules, provided that they do not violate the provisions of Islamic Shari’ah.
- The Parties and Conciliators may not be bound to comply with specific procedures to discuss an amicable settlement, and that is what the parties may agree to waive.
- The agreement of the parties in writing to discuss ways of amicable settlement shall be considered their acceptance to comply with these Rules without any exception, and this agreement shall preclude the dispute being brought for settlement before any other judicial or arbitral body.
- IICRA shall apply these rules to discuss the means for an amicable settlement at its headquarters or via its e-platform and at any other place that it deems appropriate for this purpose.
- The parties shall be bound to comply with these rules in effect as of the date of the submission of the Request for such amicable settlement unless the parties agree otherwise.
Form & Effect of Agreement to Discuss Means of Reconciliation
- The agreement to discuss the means of reconciliation between the parties before or after the outbreak of the dispute shall be concluded with an aim to settle the dispute under these Rules. This agreement shall take a form of Clause to be incorporated in the Contract, or in the form of a different contract signed by the parties so as to specify the details of dispute and resolve it.
- The validity of the agreement to discuss the means of amicable settlement, shall be required to be in writing, clear, and unambiguous.
- IICRA shall consider the validity of the agreement for the discussion of the means for amicable settlement brought before it by the Applicants to be authentic, unless it is proven otherwise, or the other party questions its validity.
- In case the activation of the agreement to discuss the means for an amicable settlement coincides with other proceedings for resolution of dispute, the parties shall agree in writing on the effect of the agreement for discussing such ways of amicable settlement on the conduct of such proceedings, either by suspending, or terminating it, or continuing thereof.
- Any party may, during the course of proceedings for discussing the means for an amicable settlement, notify IICRA or Conciliators of its desire to suspend the proceedings for any reasons whatsoever, or of its desire to terminate such proceedings, believing that it will never reach an amicable settlement.
Authority of the Parties
- The parties shall consider adopting the outcome of amicable settlement in accordance with the provisions of Chapter Two (2) of these rules
- Any party may appoint a representative to initiate the proceedings for discussing ways of amicable settlement and adopt the settlement agreement, provided that its representative has all necessary authority to conclude settlement agreement, and if the powers of representative are limited, IICRA and all parties shall be notified if such limits of authority.
Notification of Communications and Calculation of Deadlines
- 1) Each party shall be notified on the addresses designated by that party, and in the event of any update or declared changes to these addresses for the purpose of notification, such party shall notify IICRA and other parties thereof.
- 2) The Conciliator shall approve or authorize such addresses as specified under paragraph (1) in communications and Minutes of hearings.
- 3) For the purpose of calculation of periods and deadlines in accordance with these rules, their calculation shall begin from the day following the day on which the communication is received, and if the last day of such period or deadline is an official holiday at the workplace of recipient, the period or deadline shall extend to the following business day. This period and deadline shall include holidays or days-off falling during such period.
- 4) Each party shall send a number of copies of all communication, sufficient to provide one for each party, one for Conciliator, and one for IICRA.
Reconciliation Proceedings
Request to Discuss the Means for an Amicable Settlement
- A party, or parties, may make a Request to IICRA stating therein its desire to discuss the means for an amicable settlement of dispute in accordance with these rules, pursuant to the previously concluded Reconciliation Agreement, or proposal tabled by one of the parties in order to settle its dispute with other parties through Reconciliation which shall require the approval of all concerned parties.
- The party wishing to discuss the ways of amicable settlement shall communicate to IICRA and other parties a copy of the Request which shall include the following:
- the names and addresses of the parties to the dispute, and their representatives (if any).
- means of communication of the parties, whether by phone, e-mail, mailing addresses, etc.
- a brief statement of nature of the dispute and points at issue between the parties.
- a proposal as to the language for discussing the ways of amicable settlement, venue of Hearings, if they are convened.
- a proposal of specified time period believed to be sufficient to discuss the ways of amicable settlement.
- any proposals on defining the terms and conditions, and any specific qualifications the Conciliator should possess, or nomination of a specific Conciliator.
- any proposal as to the resolution of dispute amicably.
- a notification of filing fee submission for the request as specified in the Rules for controlling the Arbitration and Reconciliation expenses. Appendix (1)
Registration and Notification of Request for Amicable Settlement
- The party wishing to reconcile shall submit the Request to IICRA fulfilling the data provided for under Article (22/), and IICRA shall then examine the Request within (3) days from the date of its filing in order to ensure that it satisfies all necessary data and documents, only then it shall be registered. However, if such requirements are not satisfactory, IICRA shall notify the applicant to complete the requirements within an additional prescribed time period.
- IICRA shall, within three (3) days of registration of the Request, notify the other party of the Request for discussing the ways of amicable settlement at the addresses provided for in the Request.
- IICRA shall grant the other parties a period of ten (10) days to respond to the Request either by accepting such request for discussing the ways of amicable settlement or refusing thereof.
- If IICRA does not receive any response from the other party within the period specified in paragraph three (3), the Request for discussing the means for an amicable settlement shall be considered rejected, and IICRA shall then notify the Requesting Party of such rejection.
- if the other party accepts the request for discussing the ways of an amicable settlement, IICRA shall then notify the Requesting party of such acceptance and appoint the Conciliator.
Appointment of Conciliator
- Within seven (7) days, following the receipt of the acceptance from the other party to discuss the ways of amicable settlement, or from the date of filing the request signed by the parties, IICRA shall, in consultation with the parties appoint the Conciliator, in a manner it deems appropriate, taking into account the parties’ proposals and their claims.
- IICRA shall, with designated Conciliator, sign the Mission Contract before handing over the case file which shall include the following:
- the name and contact details of the Conciliator within the framework of carrying out his mission.
- express agreement by the Conciliator to discuss the means for amicable settlement.
- undertaking & conformation by the Conciliator to comply these Rules and Provisions of the Mission Contract.
- determination of the Conciliator’s remunerations, based on the Regulations for controlling Arbitration and Reconciliation expenses – Annex (1).
- The parties must agree upon a Conciliator appointed by IICRA and cooperate with him in discussing the ways of amicable settlement. The parties may also request IICRA to appoint other Conciliators to enhance the dispute resolution efforts amicably.
Challenge, Revocation & Replacement of Conciliator
- The parties may raise objection to the appointment of the Conciliator and challenge him within five (5) days from the date of having been notified thereof, or from the date on which one of the parties becomes aware of the Conciliator violating IICRA Rules of and Mission Contract or his inability to p mission for any reason.
- If the Conciliator becomes unable to serve or decides to step down for any reason, IICRA may, after mutual consent of the concerned parties, appoint a substitute Conciliator in the same manner the withdrawing Conciliator was appointed or in a manner it deems appropriate.
Language of Amicable Settlement Proceedings
- The parties shall agree upon the language or languages to be used for discussing the means for an amicable settlement, which the Conciliator must be proficient in in order to fully perform his task.
Duration for Discussing the Means for Amicable Settlement
- The amicable settlement proceedings must complete within a maximum period of thirty (30) days from the date of acceptance of Request for Reconciliation at IICRA. The Conciliator may, with the mutual consent of the parties, extend this period further, unless IICRA decides otherwise.
- The period specified for discussing the ways of amicable settlement shall begin soon after the Request is registered under IICRA.
Duties & Responsibilities of Conciliator
- The Conciliator shall undertake to make every effort to discuss the ways of amicable settlement between the parties, in compliance with his Mission Contract and the Provisions of these rules. These responsibilities include:
- The Conciliator shall, in coordination with the parties, where possible, conduct the proceedings to discuss the means for an amicable settlement, which include the language, the place for holding the Hearing (if any), and the duration for discussing the ways of such amicable settlement etc.
- The Conciliator, with an adequate attention shall examine the subject matter of the dispute and the claims of the parties, review communications and documents produced by the parties, and give them free will to reach an appropriate decision as to their submissions and procedures for discussing the ways of amicable settlement, and un-coerced outcome thereof.
- The Conciliator shall bring the views expressed by the parties as closer as possible by making proposals leading to the resolution of the points at issue between the parties.
- The Conciliator shall respect the regulatory deadlines set forth in these rules, and he may also reduce or extend these deadlines further in order to achieve the interest of the parties to reach settlement agreement.
- The Conciliator shall contact the parties and convene meetings with them, separately or jointly, in accordance with the mechanism he deems appropriate to discuss the ways of amicable settlement.
- The Conciliator shall urge each party to exchange its opinions with other party in order to reach a resolution agreed upon by the parties.
- The Conciliator shall clearly and explicitly document the settlement agreement, signed by all parties agreeing the settlement agreement.
- The Conciliator may, after the consent of the Parties, seek the assistance from an expert to provide expertise in the subject matter of the dispute.
- The Conciliator shall respond to any attempt or endeavor made by any party with an aim to resort to the procedures for discussing the means of amicable settlement to further procrastinate, so as to prevent other party from initiating another mechanism for dispute resolution.
- The Conciliator shall, upon mutual consent of the parties, use e-platform to discuss the ways of amicable settlement and adopt its outcomes.
- The Conciliator may, step down and notify IICRA thereof in case he is certain during the course of amicable settlement proceedings that he has become unfit to carry out the assigned task.
Outcomes of Discussing Amicable Settlement
Conclusion of Amicable Settlement
- In case, the parties reach a full or partial resolution of their dispute with the assistance of the Conciliator, then the procedures for discussing the means for amicable settlement shall end with conclusion of a settlement agreement that clarifies the amicable resolution reached by the parties in order to address the points at issue.
- Each party may waive or hold on to any claims not incorporated in the settlement Agreement.
- IICRA may refer the draft settlement agreement prior to its adoption to the Higher Shari’ah Committee in order to express its advisory opinion on the legitimacy of the settlement agreement and its non-contradiction to the provisions of the lofty Islamic Shari’ah.
- The Parties agreeing to settlement agreement shall sign it in order to act as a pledge to comply with its terms and shall work on to implement it without any further delay in order for it to acquire an authoritative executive deed.
Termination of Amicable Settlement proceedings
- If the Conciliator becomes unable to adjudicate dispute between the parties, he shall directly notify IICRA of the termination of proceedings for discussing the ways of amicable settlement, without expressing any opinions on the reasons for failure.
- IICRA shall notify the parties that a dispute has been brought before it for resolution through Reconciliation. However, if it has not been possible to do so, the duration of the proceedings for discussing the failed amicable settlement shall be indicated.
General Rules
Confidentiality & Privacy
- All communications and proceedings for discussing the means for an amicable settlement and all documents presented during such proceedings shall be confidential and affixed with a special seal for discussing the means for such amicable settlement.
- Hearings convened for discussing the ways of amicable settlement shall be confidential, with attendance limited only to the relevant parties and Conciliator, unless the parties agree otherwise.
- Subject to applicable law and parties’ agreement, any information, reports, or records disclosed to a Conciliator during the course of proceedings for discussing the means of Reconciliation, shall not be divulged by the Conciliator.
- All documents and information presented during the course of proceedings for discussing the means for amicable settlement or arising thereof shall be preserved and cannot be accepted if produced as evidence or proof in any any judicial or arbitral proceedings related to the dispute in which the amicable settlement has already reached, unless otherwise stipulated by applicable law, or required by disclosure for the purpose of implementation.
- Unless otherwise agreed by the parties, the Conciliator shall refrain from assuming the functions of Arbitrator, Attorney, Legal Consultant, or Witness for either of the parties in any judicial or arbitral proceedings related to the dispute, the subject matter of the discussion for amicable settlement.
Limitation of Liability
- Neither IICRA, nor its employees, nor any Conciliators (individually or within a group) shall be liable to any party participant in the in the proceedings for discussing means for an amicable settlement for any unintentional act or omission in connection with reconciliation conducted in accordance with these rules.
Language of Rules
- These Rules have been prepared in both Arabic and English languages, and in the event of a conflict in their interpretation, the Arabic language shall prevail.
Amendment & Validity
- The Board of Trustees reserve the right to amend the provisions of these rules, annexes, and appendices, at any later time.
- These rules shall be effective as of 15 Jumada Al-Ula 1443 AH corresponding to 30 December 2020.
Reconciliation Features
Specialization
Professionalism
Independence
Internationality
Efficiency
Integrity/Binding Award
Multifuctional
Confidentiality
Non-profitability
Arbitration & Reconciliation Costs
Pursuant to the provisions of Articles (6) and (21) of IICRA Chart, and in accordance with the decision made by the IICRA Board of Trustees in its meeting held dated 15 Jumada Al-Ula 1443 AH corresponding to 30 December 2020, in the Emirate of Dubai, United Arab Emirates (UAE), regarding the adoption of the provisions of this regulation for controlling Arbitration and Reconciliation expenses as Annex (1) for the Arbitration Rules and Reconciliation Rules, are as follows:
Introductory Provisions
Clauses of Arbitration Costs
- Arbitration costs include the Clauses which are as follows:
- IICRA administrative fees are the fees charged by IICRA in order to cover its administrative costs, as specified in Article (A-1-9) of these regulations.
- The fee of the Arbitral Tribunal is the fee of all the members of the Tribunal, whether it consists of a Sole Arbitrator or a number of Arbitrators, as provided for in Article (B-1-9) of these regulations.
- The fee of Arbitral Tribunal Secretary is the remuneration of Secretary for performing his/her task which is to be fixed at the rate of five percent (5%) of the total fees determined for the Arbitral Tribunal and deducted from the fee of the Tribunal for the secretary.
- Additional Arbitration Costs include the reasonable travel and accommodation expenses incurred by the Arbitrators, Witnesses, remuneration of Experts and Translators, and other costs to be disbursed in order to duly complete the Conciliation proceedings.
Clauses of Reconciliation Costs
- Reconciliation Costs include the Clauses which are as follows:
- a) IICRA administrative fees include the fee charged by IICRA in order to cover its administrative costs to be determined in accordance with the provisions of Article (9), paragraph (2).
- b) Fee of Conciliator is the remuneration of Conciliator to be determined in accordance with the provisions of Article (9), paragraph (2).
- c) Additional Reconciliation Costs include the reasonable travel and accommodation expenses incurred by the Conciliator, and other costs to be disbursed in order to duly complete the Conciliation proceedings.
Control of Arbitration Costs
Ceiling of Administartive Costs
- In all cases, given the non-profit nature of the IICRA and it resolution of disputes in a manner that does not contradict the provisions of lofty Islamic Shari’ah, IICRA ensures that the value of the administrative fees for Arbitration or Conciliation under IICRA does not exceed 2% of total value of the dispute.
Registration Fee
- IICRA shall receive for each Request for Arbitration, a filing fee of one thousand (1,000) US dollars, which shall be reduced to five hundred (500) US dollars in case arbitration is filed via e-platform.
- IICRA shall receive for each Request for Conciliation, a filing fee of five hundred (500) US dollars.
- In all cases, the filing fee shall be non-refundable.
Deposit of Arbitration Fee
- IICRA shall, prior to the transmission of Case File to the Arbitral Tribunal, prepare a tentative estimates list for Arbitration costs, in order to request the parties to pay it in equal shares.
- The Parties, at any stage during the course of proceedings, may be mandated to make supplementary deposits.
- If the deposits requested, within seven (7) days from the date of receiving such request. are not made, IICRA shall then notify the parties thereof.
- IICRA shall mandate the willing party to deposit the required amounts within five (5) days. If such expenses are not paid, IICRA or Arbitral tribunal may suspend the Arbitral Proceedings, or administratively preserve it, or terminate it.
- Unless otherwise decided by IICRA, neither the Arbitral Tribunal shall be appointed, nor the Arbitral proceedings shall be initiated unless the entire arbitration costs are deposited.
- The Final Arbitral Award shall determine the party liable to pay the Arbitration costs either wholly or partially.
Methods of Payment for the Fee of Arbitrators and Secretary
- IICRA shall, at an Arbitration Case file delivery Meeting, pay half of the prescribed fees to the Arbitrator and Tribunal Secretary, provided that there is a commitment by the parties to pay the entire arbitration costs, and other half shall be made to them only after the issuance of the final Arbitral Award and expiration of the period for requesting an explanation and correction thereof.
- In the event of multiple members of the Arbitral Tribunal, the fee shall be distributed among them equally unless the members of the Tribunal agree otherwise.
Reconciliation Costs
Deposit of Reconciliation Costs
- IICRA shall, upon filing the Request for Reconciliation, prepare a tentative estimate list for Conciliation costs, based on the Provisions set out in these Regulations, and the parties shall be required to deposit a specified amount in equal shares to cover those expenses.
- The parties, at any stage during the course of proceedings for discussing the Means for Amicable Settlement, may be mandated to make supplementary deposits.
- If the deposits requested in Paragraphs (1) and (2) are not made within seven (7) days from the date of receiving such request, IICRA shall then notify the parties thereof.
- IICRA shall mandate the willing party to deposit such payment within five (5) days, and if the said payment is not made, the Conciliator or IICRA may suspend the Conciliation Proceedings, or administratively preserve it, or terminate it.
- The Conciliator shall not begin to perform the designated tasks prior to the deposit of the entire conciliation costs by the Parties unless the Conciliator and IICRA decide otherwise.
- The settlement agreement may include the party liable to pay the reconciliation costs in whole or in part, and in the absence of such inclusion in the settlement Agreement, the reconciliation expenses shall be paid by the Parties in equal shares.
Methods of Payment for the Fee of Conciliator
- IICRA shall, upon signing the Mission Contract, pay half of the prescribed fees to the Conciliator, provided that there is a commitment by the parties to pay the entire Reconciliation costs, and other half shall be made to him only after signing the Settlement Agreement.
- In case, the proceedings for discussing the Means for an Amicable Settlement are terminated without reaching a settlement agreement, IICRA shall then, in consultation with the Parties, decide on the costs based on the volume of the task accomplished by the Conciliator or any other relevant circumstances.
Schedule of Costs
Table of Arbitration & Reconciliation Costs
Download
- Except for the cases as provided exclusively in these Rules, IICRA shall determine the Arbitration costs from its administrative fees and the fee of the Arbitral Tribunal composed of three arbitrators, as follows:
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IICRA’s Administrative Fees in US Dollar Amount in Dispute Administrative Fees From To Up To 1,500,000 2% 1,500,001 3,000,000 An amount of 15,000 + 1.6% on amounts exceeding 1,500,000 3,000,001 5,500,000 An amount of 25,000 + 0.8% on amounts exceeding 3,000,000 5,500,001 10,000,000 An amount of 35,000 + 0.6% on amounts exceeding 5,500,000 10,000,001 15,000,000 An amount of 45,000 + 0.3% on amounts exceeding 10,000,000 15,000,001 20,000,000 An amount of 55,000 + 0.2% on amounts exceeding 15,000,000 20,000,001 30,000,000 An amount of 65,000 + 0.1% on amounts exceeding 20,000,000 More than 30,000,000 An amount of 75,000 + 0.05% on amounts exceeding 30,000,000 -
IICRA’s Administrative Fees in US Dollar Amount in Dispute Arbitrators’ Fees consisting of three arbitrators From To Up to 250,000 An amount of 17,500 250,001 750,000 An amount of 17,500 + 7.5% on amounts exceeding 250,000 750,001 1,500,000 An amount of 32,500 + 7% on amounts exceeding 750,000 1,500,001 3,000,000 An amount of 55,000 + 3% on amounts exceeding 1,500,000 3,000,001 5,500,000 An amount of 75,000 + 1.85% on amounts exceeding 3,000,000 5,500,001 10,000,000 An amount of 100,000 + 1% on amounts exceeding 5,500,000 10,000,001 15,000,000 An amount of 125,000 + 0.65% on amounts exceeding 10,000,000 15,000,001 20,000,000 An amount of 150,000 + 0.45% on amounts exceeding 15,000,000 20,000,001 30,000,000 An amount of 170,000 + 0.25% on amounts exceeding 20,000,000 More than 30,000,000 An amount of 190,000 + 0.05% on amounts exceeding 30,000,000
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- Except for the cases as provided exclusively in these Rules, IICRA shall determine the Reconciliation costs including its administrative fees and the fee of the Conciliator, equivalent to half of the amounts determined in Arbitration in accordance with the provisions set out in paragraph (1) of this Rule.
- Fee of the Sole Arbitrator, fixed by IICRA, shall be half of the fees determined for the Arbitral Tribunal as specified in the Table or may even be less than that.
- IICRA shall determine the fee of the Arbitral Tribunal consisting of three (3) Arbitrators in accordance with the provisions of Article (A/9/1), at the rate of one third for each Arbitrator, unless agreed otherwise.
- Fees may, in exceptional circumstances, be fixed differently from the table, if the Higher Shari’ah Committee decides that it is required by the scale and complexity of the Arbitration Case.
- If the amount of the dispute is not specified, then IICRA shall, in light of the size and complexity of the dispute, determine the administrative fees, and fees of the Arbitral Tribunal or fee of the Conciliators.
Refunding Remaining Arbitration & Reconciliation Costs
- IICRA, a month after from the date of the issuance of the final Arbitral Award and from the date of reaching the settlement Agreement, shall prepare a statement of actual deposits and costs related to the Arbitration & Reconciliation Case, and shall produce it to the parties upon their request, followed by the settlement of all financial matters by refunding the remaining Arbitration expenses to the party which made such deposits.
Fee of Higher Shari’ah Committee
- IICRA shall pay the fees of the Higher Shari’ah Committee for the purpose of implementing the provisions of the Arbitration Rules and the Reconciliation Rules.
General Provisions
General Provisions
- The Arbitrator, Conciliator and Tribunal’s Secretary can’t, either directly or indirectly, make any separate agreement with the Parties and their representatives regarding his fee and the Arbitration costs.
- The Arbitrator can’t, either directly or indirectly, accept any form of gifts or benefits, from the arbitration parties or their representatives, either before commencement of arbitral proceedings, or during or after the completion of the proceedings, with their lasting commitment to the provisions of the Codes of Ethics.
- No additional fees may be charged by the Arbitral Tribunal for interpretation of final Arbitral Award or issuance of its additional award without prejudice to the right of the Tribunal to claim its fees and expenses under these rules.
- Counterclaims shall be treated as Requested for Arbitration (RFA) and shall be accompanied by a fee according to the value of the counterclaims.
- The Higher Shari’ah Committee shall decide, taking into account the efforts made, on the value of the fees and costs payable to the Arbitrator or the Conciliator who did not complete his designated task for any reason.
- The provisions of these rules shall be effective as of 15 Jumada Al-Ula 1443 AH corresponding to 30 December 2020.
