International Commercial Arbitration at Afghanistan

Certainly! Here’s an overview of International Commercial Arbitration in Afghanistan:

📘 International Commercial Arbitration in Afghanistan

1. Legal Framework

Afghanistan’s arbitration law is primarily governed by the Law on Arbitration and Conciliation (2018), which aligns with international arbitration standards.

Afghanistan is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, facilitating enforcement of foreign arbitration awards.

The law applies to both domestic and international commercial arbitration.

2. Key Features

a. Arbitration Agreement

Parties must have a written arbitration agreement specifying arbitration as the dispute resolution method.

The agreement can be part of a contract or a separate agreement.

b. Arbitral Tribunal

Parties can freely select arbitrators, subject to impartiality and independence requirements.

Typically, an arbitral tribunal consists of one or three arbitrators.

c. Conduct of Arbitration

Parties can agree on arbitration rules; otherwise, default procedures under Afghan law apply.

Arbitration proceedings are confidential.

The law supports party autonomy in procedure and choice of seat.

d. Recognition and Enforcement

Afghan courts recognize and enforce both domestic and foreign arbitral awards under the New York Convention.

Enforcement may be refused only on limited grounds (e.g., invalid arbitration agreement, public policy).

3. Judicial Support and Intervention

Courts generally support arbitration and minimize intervention.

Courts may assist in the appointment or removal of arbitrators and in taking evidence.

Courts can set aside arbitral awards on limited grounds, including procedural irregularities or violation of public policy.

4. Challenges

Due to political instability and developing legal infrastructure, arbitration enforcement can face practical challenges.

Limited specialized arbitration institutions in Afghanistan; parties often choose regional centers (e.g., Dubai, Singapore) for international arbitration.

5. Summary Table

AspectDescription
Governing LawLaw on Arbitration and Conciliation (2018)
Arbitration AgreementWritten agreement required
Arbitrator AppointmentParty autonomy with impartiality and independence
Arbitration RulesParty choice or Afghan default rules
ConfidentialityArbitration proceedings are confidential
EnforcementRecognized under New York Convention
Court InterventionLimited to support and setting aside awards
Practical ChallengesPolitical/legal instability affects enforcement

 

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