ARBITRATION – remittance and appeal?

ARBITRATION – remittance and appeal?

In commercial transactions it is becoming more and more common to have an arbitration clause contained in the agreement, in terms of which in the event of any dispute between the parties, recourse shall be had to an arbitrator with relevant experience to hear the parties dispute. Arbitration proceedings follow similar principles to civil procedure in the courts, however expedite the hearing of matters and usually the minimise costs involved therewith.

However it is important to note that in terms Section 28 of the Arbitration Act 42 of 1965, as amended, provides that unless the arbitration agreement provides otherwise, an award shall subject to the provisions of the Act be final and binding and not subject to any appeal.

Note however that in terms of Section 32 of the Act a party may within 6 weeks of publication of the award remit the award back to the arbitration tribunal for reconsideration provided good cause is shown.

Lastly if a member of the arbitration tribunal has misconducted himself with regard to his duties; or committed some gross irregularity; or has exceeded its powers; or the award has been improperly obtained, the aggrieved party may approach the court for an order setting aside the award. Provided good cause is shown to the court and the application is lodged within 6 weeks of publication of the award.

Aarninkhof Attorneys are commercial law practitioners and are able to assist in the drafting of agreements and the representation in arbitration. Contact us if you have any queries.