FREQUENTLY ASKED QUESTIONS

 

 

What is Arbitration and conciliation?

Arbitration is an out of court  procedure than adjudications through courts, and it is conducted in private, away from the glare of the media and the public. Parties are free to appoint their own arbitrators and can choose simple procedures and rules for the conduct of arbitration. Arbitration is more cost-efficient and speedier than litigation.
Furthermore, due to the fact that SARCO has adopted the UNCITRAL Model Law on International Commercial Arbitration (1985), one can expect maximum judicial support in the region. Arbitral awards which are final are generally binding on the parties and are enforceable in approximately 150 countries signatories to the New York Convention (subject to any local legislation and/or requirements).
Conciliation is another ADR method where partners resolve their disputes to avoid the judicial process. In conciliation disputes are settled amicably with the assistance of a third party conciliator, who acts as a facilitator. Conciliation is a voluntary flexible, confidential, and interest based process, where the parties involved are free to agree and attempt to resolve their dispute with the assistance of the third party. The process is agile, allowing parties to define the time, structure and content of the conciliation proceedings. These proceedings are rarely public. They are interest-based, as the conciliator will, when proposing a settlement, not only take into account the parties’ legal positions, but also their; commercial, financial and / or personal interests. In conciliation, the ultimate decision to agree on the settlement remains with the parties.
SARCO has developed its own Arbitration and Conciliation Rules of procedure in conducting arbitration and conciliation proceedings.

 

What is SARCO?

SAARCO is the acronym of SAARC Arbitration Council which is a Specialized Body of South Asian Association for Regional Co-operation (SAARC), comprising the Member States, Islamic Republic of Afghanistan, People’s Republic of Bangladesh, The Kingdom of Bhutan, Republic of India, Republic of Maldives, Democratic Republic of Nepal, Islamic Republic of Pakistan and Democratic Socialist Republic of Sri Lanka. It is an inter-governmental body mandated to provide a legal framework/forum within the region for fair and efficient settlement of commercial, industrial, trade, banking, investment and such other disputes as may be presented to it by the parties. Presently SARCO provides Arbitration and Conciliation services in resolving disputes.

Who can apply to SARCO?

Any business entity from one of the Member Countries of SAARC can approach SARCO for settling their business related disputes. Parties having SARCO’s dispute settlement clause in their contracts or addendum may approach SARCO to initiate appropriate proceedings .

How do I start arbitration or conciliation at SARCO?

The claimant initiates arbitration by filing a request for arbitration with the SARCO Secretariat. For detailed information on step-by-step arbitration process go to “Arbitration | Arbitration Procedure “

What will be the cost of arbitration or conciliation at SARCO?

The costs are based on the value of the dispute and will be calculated in accordance with the schedule of fees published at our website (arbitration) (conciliation). The amount in dispute includes all claims, counterclaims and set-offs. Where the amount in dispute cannot be ascertained, the SARCO secretariat determines the costs taking all relevant circumstances into account.

For Fee Structure visit link Arbitration Registration Fee

 

Is there a limit on the claim amount made before SARCO?

There is no maximum or minimum claim limit for disputes referred to SARCO.

Does SARCO provide legal advice to parties to a dispute?

How long will it take for arbitration or Conciliation to be concluded at SARCO?

What types of disputes can be bought before SARCO for arbitration? Is SARCO authorized to resolve any dispute brought before it?

Is an arbitration clause mandatory for parties to come before SARCO for disputes resolution?

How do I select arbitrators?

Can parties to a contract who are not citizens of SAARC region, request for arbitration at SARCO if the contract contains a general arbitration clause?

Are SARCO rules of arbitration easy to follow and unambiguous?

Is it only regional disputes that could be brought before SARCO?

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