Arbitration award is final and binding since it has resolved by arbitrator or arbitrators. It has been explained on Law No. 30 of 1999 concerning Arbitration and Alternative Dispute Resolution (“Arbitration Law“), It has made it impossible to appeal the arbitration award to other stage or jurisdictions of court. That nature of award is being the main characteristic of arbitration award which differentiates it with other settlement award.
In principle, arbitration award may be executed independently by the bounded parties. However if one of the parties refuses to execute that arbitration award, then the other party may request to District Court to execute the arbitration award by registering it first to the District Court.
According to Article 1 point 4 Arbitration Law, the arbitration award may be registered to the District Court which has a jurisdiction over the Respondent. However, registration for international arbitration should be registered to the Central Jakarta District Court.Who has the right to register the arbitration award?
According to Article 59 Arbitration Law, within 30 (thirty) days from the date the award is rendered, the original text or an authentic copy of the arbitration award must be delivered to the clerk of the District Court and registered there by the arbitrator or his/her/its proxy.
That means the authorized party to register arbitration award is the arbitrator who proceeding the case or its proxy. If the case is proceed in BANI, then BANI is obliged to register that arbitration award within 30 days since it was read by the arbitrators. Evidence showing the award has already registered by the authorized parties is the appointment letter as a arbitrator which is attached with the award.
. All costs regarding registration shall covered by the parties in dispute, even though the registration was carried on by the arbitrator.
Formal Requirement Notes
- Arbitration Law does not specifically govern the procedures to register the arbitration award, whether it must registered by written or oral. Therefore it can be assumed that the registration might be done by both of those ways.
The clerck of district court will provide note or signature in the end or edge of the award. The signature in the end or edge of the award is being an evidence that the award has been registered and can be executed. That such of registration also indicates that the arbitration award is authentic and ready to be executed as other court awards which are binding and inkracht. Further, refer to Article 59 Arbitration Law, the provision of 30 (thirty) days of registration arbitration is absolute. Therefore, if the arbitration award is not registered during that period of time, consequently the Court District can not execute it.
- In the case of a party is unwilling to execute the arbitration award voluntarily, then on the basis of the Petition of execution from other parties, The Chairman of the District Court court can give the command to carry out the award. The Chairman of the District Court will check whether the award has fulfill formal requirement so it can be examined in arbitration and as regulated in Article 4 and Article 5 Arbitration Law, the arbitration award should no have conflict with norm decency and public order.
- Formal requirements referred to the dispute is, the dispute should be in the field of trade and the parties already agreed on their agreement that any problem arose from that their agreement will be settled in the arbitration tribunal. In regard to that matter, the Chairman of District Court is only allowed to check the terms of formal requirement and not the reason and legal considerations on this award.
That kind of procedures show the independency of arbitration which can not be interfered by other judicial institutions. This is also the protection mechanism and warranties provided by the Arbitration Law so that the arbitration award remains its self, final and binding.
BP Lawyers can help you
Registration and execution of arbitration award needs certain expertise. We will assist you to ensure this process successful. We will ensure there is no possibility of the rejection of the court on the basis of public order. Well examination is part of our approach to successfull execution through the courts. Contact us for further information related to this issues :