Arbitration Process

A) Individuals can refer their disputes to the Arbitration Center before or after the dispute. Such an agreement may be included in the original contract of the parties or the articles of association of the company in the form of a stipulation, or the arbitration agreement may be arranged as a separate contract. In all these cases, the parties shall include the clause proposed by the Arbitration Center of the Kerman Chamber of Commerce directly in the text of the contract or articles of association.

B) After the entry of arbitration, the courts will no longer hear the cases of the parties, and each party can request the review and settlement of disputes at the request of the Arbitration Center of the Kerman Chamber of Commerce. The Arbitration Center then sent a request for a hearing and the reasons for it to the other party so that he/she could announce his/her defense. After completing the case and receiving the bills and documents of the parties, the Arbitration Center selects the arbitrator or arbitrators who have expertise in the subject matter as the arbitrator of the case with the agreement of the parties, and in case of disagreement, by the center itself.

C) After accepting the arbitration, the appointed arbitrator shall invite the parties to the lawsuit, convene a hearing, use the opinion of the official experts of the judiciary, if necessary, and finally, issue the appropriate judgment within three months. This judgment will be notified to the parties by the Arbitration Center of the Kerman Chamber of Commerce.

D) The party in whose favor the arbitrator’s judgment is (the winning party) submits the judgment to the courts of justice for execution. They also execute the arbitrator’s judgment as a final judicial judgment. Then, if the losing party does not execute the judgment within twenty days after the notification, the court is obliged to issue a “writ of execution” at the request of the beneficiary and according to the issued judgment. After the issuance of the “writ of execution”, if the judgment debt is an ascertained object, the property is taken and handed over to the beneficiary, and if the reclamation of the ascertained object is not possible or the judgment debt is not an ascertained object, the court, while identifying the property of the losing party (through the central bank, registration offices, municipalities, stock exchange, traffic police, etc.), seizes the property to the extent of the judgment debt and then sells it. Also, if the reclamation of the judgment debt is not possible in this way, the losing party will be imprisoned at the request of the beneficiary until the execution of the judgment (or the acceptance of the losing party’s insolvency claim or the winning party’s consent).

Article 454 of the Civil Procedure Code: All persons who can file a lawsuit may refer their dispute to the arbitration of one or more persons, whether or not it has been raised in the courts, and if so, at any stage of the proceedings, by mutual consent.

Article 455 of the Procedure Civil Code: The parties to the contract, while concluding the contract, maybe obliged or agree under a separate contract to refer to arbitration in the event of a dispute between them. They may also appoint their arbitrator or arbitrators before or after the dispute.

Note. In all cases of referring to an arbitrator, the parties may delegate the choice of arbitrator or arbitrators to a third party or court.

Arbitration Clause

In contractual relations and commercial transactions, disputes are always probable. Resolving disputes at home and abroad requires time and money, lengthy formal court proceedings, and enduring many worries and difficulties. Referral of commercial disputes to arbitration is the best way to resolve them. Using the services provided by the Arbitration Center of the Kerman Chamber to resolve disputes will save costs and professionally resolve the issue and is beneficial to both parties in addition to ensuring health, speed, and accuracy in handling.

It is recommended that the clause for resolving disputes be included through the Arbitration Center of the Kerman Chamber of Commerce and agreed upon by the parties to the transaction in domestic and foreign contracts and transactions. In the event of a dispute and failure to include the arbitration clause in the contract, the parties may refer the existing claim to the arbitration center, whether or not it has been raised in court, and use the center’s services to resolve the dispute by signing the arbitration agreement.

An example of an arbitration clause in the Arbitration Center of the Iran Chamber

If the parties intend to refer to the center arbitration, they can use the following text which has been prepared as an arbitration clause:

“All disputes and claims arising from this contract or related to it, including concluding, validating and terminating the contract, breach of contract, interpretation or execution, shall be referred to the Arbitration Center of the Kerman Chamber and shall be resolved as binding following the statutes and arbitration rules of the center and according to the rules and commercial custom. The present arbitration clause is considered a contract independent of the original contract and is binding in any case.”