In recent times, many arbitration practitioners and scholars in the State of Qatar were of the opinion that arbitration was not a particularly user “friendly” dispute resolution process. This opinion prevailed for several reasons including the absence of independent legislation regulating arbitration as an alternative method to settle disputes out of the local courts, since the only piece of legislation that regulated arbitration was Chapter 13 of the Qatari Civil and Commercial Procedures Code No. (13) of 1990 (“Procedures Code”).
This opinion is no longer applicable given the enactment of the Qatari Arbitration Law No. (2) of 2017 (“Arbitration Law”), which repealed Chapter 13 of the Procedures Code and regulated the arbitration process from the arbitration agreement, to the formation of arbitral tribunals, arbitration procedures, issuing the arbitration award, challenging the arbitral award, and the enforcement and recognition of arbitral awards and arbitration institutions.
What should you know about the Enforcement of arbitral awards in Qatar?
According to Article (34) of Arbitration Law, arbitral awards are enforceable before Qatari Courts and the decisions are final (i.e. res judicata) regardless of the country where the awards are handed down.
Unlike the enforcement process under the Procedures Code, the enforcement process for an arbitral award has been simplified under the Arbitration Law.
Unless the parties to an arbitration agree on an alternative way to enforce the award, all that is required is to (a) file an enforcement request before a competent judge (i.e. an enforcement judge of the Court of First Instance or an enforcement judge of the Qatar Financial Center Court) and; (b) pay the associated court fees within 30 days from the date on which the tribunal rendered the award, or when parties are notified of the arbitral tribunal, as the case may be. In addition, the said request for enforcement should attach a copy of the arbitration agreement, together with the original arbitral award or a signed true copy thereof. It should be noted that if the arbitral award is handed down in a foreign language, an Arabic translation to the arbitral award must be attached to the enforcement application.
While the Qatari courts generally do not scrutinize or review the award or the merits of the dispute, Article (35) of the Arbitration Law provides for two circumstances where a competent judge may refuse or decline the enforcement request. These two circumstances are as follows:
- If the party against whom the enforcement is sought presents to the competent judge of enforcement proof or evidence on any of the following:
- A party to the arbitration agreement was, at the time of its conclusion, under some incapacity, or the said agreement is not valid according to its governing law as per the law of the state where the award is handed down.
- The party against whom the enforcement is sought was not duly notified of appointing an arbitrator or of the arbitration proceedings, or failed to submit a defence for any reasons falling beyond its control.
- The arbitral awards has decided on matters not covered by, or gone beyond the limits of, arbitration agreement.
- The formation of arbitral tribunal, or the appointment of arbitrators or the arbitration proceedings have violated the applicable law, agreement of the parties, or, in the absence of agreement, the law of the seat of arbitration.
- The arbitral award is no longer binding on the parties, invalidated or stayed by virtue of an order by a court on the state where the seat of the arbitration is located or pursuant to the laws thereof.
- The competent judge may, acting in his own discretion, refuse to recognize or enforce an arbitral award in the following cases:
- If the subject matter of the dispute is not arbitrable under the laws of the State of Qatar, or
- If such enforcement violates the public order of the State of Qatar.
Moreover, a competent judge of enforcement is entitled to hold the enforcement process if the party against whom the enforcement is sought has submitted evidence that the arbitral award is subject to a challenge/appeal process in the State of Qatar or in the place where the award was rendered.
For more information on the process and mechanism of enforcement of arbitral awards in the State of Qatar, please send your question to info@alansarilaw.com
Kind Regards,