• DRA-3 DRA-3 Arbitration

    • DRA-3.1 DRA-3.1 Arbitration Proceedings

      • DRA-3.1.1

        An Arbitration Committee shall be established and constituted by a Directive of the Governor.

        July 2010

      • DRA-3.1.2

        The Arbitration Committee shall be responsible for settling all disputes between CMSPs and, between CMSPs and their customers relating to transactions executed through the SROs or regulated activities undertaken by the CMSPs.

        July 2010

      • DRA-3.1.3

        Trading on an exchange or transacting on an SRO shall be deemed as an acceptance of arbitration and this fact shall be recorded in the documents of the transactions and customer agreement. The awards passed by the panel shall be binding upon both parties of a dispute.

        July 2010

      • DRA-3.1.4

        During the course of an arbitration under this Module, neither party may pursue any suit, action or proceedings against the other in respect of the dispute referred to arbitration under this Module.

        July 2010

      • DRA-3.1.5

        All SROs shall have an Arbitration Cell and the Arbitration Cell of the SRO shall receive the arbitration petition submitted to the Arbitration Committee by one of the parties to the dispute, subject to arbitration committee jurisdiction, after payment of the prescribed fee in full.

        July 2010

      • DRA-3.1.6

        The arbitration petition referred to in rule DRA-3.1.5 shall be registered upon receipt in a special register with serial numbers, commencing on the first day of the Gregorian year and ending on the last day thereof. The original petition must be filed with the fee receipt in a special record.

        July 2010

      • DRA-3.1.7

        The petition shall contain the name, profession, domicile, place of residence, name of principals if the parties are employed by other persons, the relief claimed, and items of evidence establishing the claim. A copy of all supporting documents must be attached and accompanied by a memorandum explaining the dispute.

        July 2010

      • DRA-3.1.8

        The Arbitration Cell shall submit the arbitration petition, upon receipt, to the Chairman of the Arbitration Committee, in order to fix a date for hearing the dispute. The Arbitration Cell shall notify all parties of the date of the hearing, along with a copy of the arbitration petition.

        July 2010

      • DRA-3.1.9

        All documents relating to the arbitration and notices affected by the Arbitration Cell shall be sent by registered mail.

        July 2010

      • DRA-3.1.10

        On the day the dispute is heard, the parties shall be in attendance in person, or be represented by their respective representatives. In the event of non-appearance of one of the parties, the committee shall, if notice was duly served, proceed to issue the decision in his absence.

        July 2010

      • Representation

        • DRA-3.1.11

          (a) A party may attend arbitration proceedings in person or be represented by any other person;
          (b) Where a party is a body corporate or a partnership, it may be represented by a director or a partner (as the case may be) or any other person authorised by it;
          (c) A party shall send the name and address of its representative (if any) or other person (if any) authorised by it under (a) or (b) (as the case may be) to the other party, with a copy sent to the Arbitration Cell for filing, as soon as reasonably practicable after they have been decided on; and
          (d) A party shall notify the Arbitration Cell and the other party immediately of any change of its representative or person authorised by it, or any change in the name or address of the representative or person authorised by it.
          July 2010

      • Oath and Affirmation

        • DRA-3.1.12

          All evidence shall be given under oath or affirmation.

          July 2010

        • DRA-3.1.13

          The members of the Arbitration Committee are to be paid such remuneration and allowances by the SRO, as per the Directive of the Governor.

          July 2010

      • Rules Relating to Arbitration Proceedings

        • DRA-3.1.14

          (a) Despite other provisions of this Module, the Arbitration Committee:
          (i) May conduct the arbitration in such manner as the chairman of the Arbitration Committee considers appropriate and has the power to adopt, whenever possible, a simplified or expedited procedure (including interim relief) and to conduct proceedings to ensure the just, expeditious, economical and final determination of the dispute; and
          (ii) Shall ensure that the parties are treated with equality and that at any stage of the proceedings each party is given a full opportunity to present that party's case.
          (b) The Arbitration Committee may decide whether to hold hearings for the presentation of evidence by witnesses, including expert witnesses, or for oral argument, or to conduct proceedings only on the basis of documents and other materials;
          (c) All documents or information to be supplied to an Arbitration Committee shall be sent to the Arbitration Cell for transmission to the Arbitration Committee, save where documents or information are submitted during a hearing;
          (d) All documents and information to be supplied to an Arbitration Committee shall be sent to the Arbitration Cell as follows:
          (i) Where a party submits documents or information during a hearing, one copy shall be sent to the Arbitration Cell by that party immediately after the hearing; and
          (ii) In all other cases, a party shall supply 2 sets of all documents or information to the Arbitration Cell; and
          (e) The Arbitration Committee may appoint any legally qualified person to advise the Arbitration Committee on any matter relating to the arbitration.
          July 2010

      • Record of Proceedings

        • DRA-3.1.15

          Record of proceedings before an Arbitration Committee shall be taken by a staff member of the Arbitration Cell.

          July 2010

      • Statement of Claim

        • DRA-3.1.16

          (a) Unless a statement of claim was contained in or attached to the arbitration petition, the claimant shall send his statement of claim to the respondent and to the Arbitration Committee within 14 days from the date of the arbitration petition;
          (b) A copy of the relevant customer contract shall be annexed or otherwise attached to the statement of claim;
          (c) The statement of claim shall include the following particulars:
          (i) The names and addresses of the parties;
          (ii) A statement of the facts supporting the claim;
          (iii) The points at issue;
          (iv) The remedy sought; and
          (v) Acknowledgement of receipt by the respondent.
          (d) The claimant may:
          (i) Annex or otherwise attach to the statement of claim all documents that the claimant considers relevant; or
          (ii) Add a reference to the documents or other evidence that the claimant intends to submit.
          July 2010

      • Statement of Claim or Counter Claim

        • DRA-3.1.17

          (a) The respondent shall send a statement of defence to the claimant and to the Arbitration Committee within 14 days from the date on which the statement of claim is sent to the respondent;
          (b) The statement of defence shall reply to the particulars of the statement of claim;
          (c) The respondent may:
          (i) Annex or otherwise attach to the statement of defence documents on which the respondent relies in defence; or
          (ii) Add a reference to the documents or other evidence that the respondent intends to submit.
          (d) In the statement of defence, or at a later stage in the arbitration proceedings if the Arbitration Committee decides that the delay is justified under the circumstances, the respondent may:
          (i) Make a counterclaim arising out of the same dispute; or
          (ii) Rely on a claim arising out of that dispute for the purpose of a set-off.
          (e) Rule DRA-3.1.16 applies to a counterclaim and a claim relied on for the purpose of a set-off in the same manner as it applies to a statement of claim.
          July 2010

      • Amendments and Further Statements

        • DRA-3.1.18

          (a) During the course of an arbitration, a party may amend or supplement that party's claim, defence or counterclaim except where the Arbitration Committee considers it inappropriate to allow this, having regard to:
          (i) Any delay involved;
          (ii) The likelihood of prejudice to the other party; or
          (iii) Any other relevant circumstances.
          (b) The Arbitration Committee may require or accept amendment to or supplement of a party's claim, defence or counterclaim, and shall fix the period for the sending of such amendment or supplement.
          July 2010

      • Time Period for Sending Further Statements

        • DRA-3.1.19

          The period fixed by an Arbitration Committee for the sending of any amendments or supplements under rule DRA-3.1.18 may not exceed 21 days from the date of such amendments or supplements, unless an extension is requested by a party and the Arbitration Committee is satisfied that such an extension is justified in the circumstances.

          July 2010

      • Evidence

        • DRA-3.1.20

          Each party has the burden of proving the facts relied on to support that party's claim, defence or counterclaim.

          July 2010

        • DRA-3.1.21

          The Arbitration Committee:

          (a) Shall determine the admissibility, materiality, relevance and weight of any evidence; and
          (b) May admit evidence irrespective of the rules governing the admissibility of evidence in court if, in his opinion, the interest of justice is served by so doing.
          July 2010

        • DRA-3.1.22

          If the Arbitration Committee considers it appropriate, he may require a party to send to him and to the other party, within a period stipulated by him, a summary of the documents and other evidence which that party intends to present in support of the facts in issue set out in that party's statements.

          July 2010

      • Hearing of Witnesses

        • DRA-3.1.23

          (a) If any witness is to be heard, each party shall send a notice to the Arbitration Committee and to the other party at least 14 days before the hearing specifying:
          (i) The name and address of the witness;
          (ii) The subject matter of the witness's testimony or, if the Arbitration Committee so requires, a transcript of the witness's statement or expert report; or
          (iii) The language in which the witness will give his testimony; and
          (b) The Arbitration Committee may arrange for translations or recordings to be made at a hearing as he considers appropriate;
          (c) The Arbitration Committee may require the retirement of any witness during the testimony of any other witness;
          (d) Evidence of a witness may also be presented in the form of a written statement signed by him; and
          (e) The Arbitration Committee is free to determine the manner in which a witness is examined.
          July 2010

      • Default

        • DRA-3.1.24

          (a) If, within the period fixed by the Arbitration Committee, the claimant fails to file a statement of claim without showing sufficient cause for such failure, the Arbitration Committee may make an order for the termination of the arbitration proceedings;
          (b) If, within the period fixed by the Arbitration Committee, the respondent fails to file a statement of defence without showing sufficient cause for such failure, the Arbitration Committee may make an order of favour of the claimant or make an order for the termination of the arbitration proceedings; and
          (c) If one of the parties, duly notified under these rules, fails to appear at a hearing or fails to produce any document in that party's possession when required to do so, without valid excuse, the Arbitration Committee may proceed with the arbitration and such proceedings are deemed to have been conducted in accordance with rule DRA-3.1.14.
          July 2010

      • Consolidation of Proceedings

        • DRA-3.1.25

          Where in relation to 2 or more arbitration proceedings it appears to the Chairman of the Arbitration Committee:

          (a) That a common question of law or fact arises in both or all of them;
          (b) That the claims arise out of the same transaction or series of transactions; or
          (c) That it is desirable to make an order under this section for any other reason, the Chairman may order those arbitration proceedings;
          (i) To be consolidated on such terms as he thinks just; or
          (ii) To be heard immediately after one another; or
          (d) Order any of those arbitration proceedings to be stayed until after the determination of any other of them.
          July 2010

      • Jurisdiction

        • DRA-3.1.26

          (a) The Arbitration Committee has the power to rule on any objection by either party to its jurisdiction to hear the dispute;
          (b) No objection to the Arbitration Committee's jurisdiction may be raised after the sending of the statement of defence or, with respect to a counterclaim, after the sending of the reply to the counterclaim;
          (c) The Arbitration Committee may rule on an objection to its jurisdiction as a preliminary question or may proceed with the arbitration and rule on such an objection in his final award; and
          (d) Where applicable, an arbitration clause is treated as being independent of the other terms of a customer contract and any decision made by the Arbitration Committee or a court of law declaring that the customer contract is void does not of itself invalidate the arbitration clause.
          July 2010

      • Rules Relating to Termination of Arbitration Proceedings

        • DRA-3.1.27

          (a) If, before the award is made, the parties agree on a settlement of the dispute, the Arbitration Committee shall record the settlement in the form of an arbitration award on agreed terms;
          (b) The Arbitration Committee is not obliged to give reasons for an award made under (a);
          (c) An award made under (a) shall be signed by the Arbitration Committee, sent to the parties and lodged with the Arbitration Cell for filing; and
          (d) An award made under (a) is final and binding on the parties.
          July 2010

      • Termination of Proceedings

        • DRA-3.1.28

          (a) If, before the award is made, the continuation of the arbitration proceedings becomes unnecessary or impossible for any reason other than by way of an agreement to settle between the parties, the Arbitration Committee may, either on its own initiative or at the request of a party, make an order for the termination of the arbitration proceedings;
          (b) The Arbitration Committee shall state in the order the reasons for the termination;
          (c) An order made under (a) shall be signed by the Arbitration Committee, sent to the parties and lodged with the Arbitration Cell for filing; and
          (d) An order made under (a) is final and binding on the parties.
          July 2010

      • Form and Effect of Awards

        • DRA-3.1.29

          (a) An award shall:
          (i) Give reasons for the decision;
          (ii) Be signed by the Arbitration Committee; and
          (iii) Contain the date on which and the place where it was made;
          (b) In addition to making a final award, the Arbitration Committee has the power to make interim, interlocutory or partial awards during the course of an arbitration;
          (c) An award made by the Arbitration Committee under this section shall be sent to the parties and lodged with the Arbitration Cell for filing;
          (d) The CBB:
          (i) Shall be notified by the Arbitration Cell of any award made in respect of a CMSP; and
          (ii) May make use of any findings made by an Arbitration Committee for the purposes of performing its functions under the CBB Law including, but without limitation, assessing whether the CMSP is a fit and proper person to be so licensed; and
          (f) An award made by the Arbitration Committee is final and binding on the parties.
          July 2010

      • Correction of Awards

        • DRA-3.1.30

          (a) Within 14 days after the receipt of the award, either party may, with notice to the other party, request the Arbitration Committee to correct in the award any errors in computation, any clerical or typographical errors or any errors of a similar nature;
          (b) If the Arbitration Committee considers the request made under (a) to be justified, he shall make the correction within 14 days after the receipt of the request;
          (c) The Arbitration Committee may, on its own initiative, correct any error of the type referred to in (a) within 28 days after the date of the award; and
          (d) Rule DRA-3.1.27 applies in relation to such corrections.
          July 2010

      • Additional Awards

        • DRA-3.1.31

          (a) Within 14 days after the receipt of an award, either party may, with notice to the other party, request the Arbitration Committee to make an additional award as to claims presented during the course of the arbitration but omitted from the award;
          (b) If the Arbitration Committee considers the request for an additional award to be justified and considers that the omission can be rectified without any further evidence, he may make the additional award within 14 days after the receipt of the request; and
          (c) Rule DRA-3.1.27 applies in relation to such additional award.
          July 2010

      • Costs

        • DRA-3.1.32

          (a) The Arbitration Committee shall make an order for costs whenever he makes an arbitration award, including an award on agreed terms, and an order for the termination of the arbitration proceedings;
          (b) Subject to (c), the costs of an arbitration are to be borne by the unsuccessful party;
          (c) The Arbitration Committee may apportion costs between the parties if it considers that apportionment is reasonable in the circumstances;
          (d) The order for costs shall specify:
          (i) The sum to be paid, which shall include:
          1. The amount of fees of the Arbitration Committee;
          2. Costs for legal advice or for other assistance such as translation, oral interpretation and note-taking required by the Arbitration Committee;
          3. Travel and other expenses or witnesses to the extent allowed by the Arbitration Committee; and
          4. The amount of administrative or other costs incurred by the Arbitration Committee and the arbitration panel;
          (ii) The parties to and by whom payment shall be made; and
          (iii) The time limit for making payment; and
          (e) A party against whom such an order is made shall make payment in accordance with the order.
          July 2010

      • Deposits of Costs

        • DRA-3.1.33

          (a) At any time during the arbitration proceedings, the Arbitration Committee may require any party to deposit with the Arbitration Cell such sum or sums to defray the expenses of the arbitration if the Arbitration Committee considers it expedient to do so in the circumstances;
          (b) In determining the amount of any deposit, the Arbitration Committee shall take into account the amount in dispute, the complexity of the subject matter, the costs incurred or to be incurred by the Arbitration Committee, and other relevant circumstances of the case;
          (c) If payment of the required deposit is not made by the relevant party within 14 days after the receipt of the requirement, the Arbitration Committee may make an order for the termination of the arbitration proceedings; and
          (d) After the termination of proceedings, with the approval of the Arbitration Committee, the Arbitration Cell:
          (i) Shall render an account to the parties of the total deposits received under these rules; and
          (ii) After all the costs required to be borne by a party have been paid, shall return any unexpended balance of the party's portion of the deposits to that party.
          July 2010

      • Notice Period

        • DRA-3.1.34

          (a) For the purposes of calculating a period of time under this Module:
          (i) The period begins to run on the day following the day when the document is sent or lodged;
          (ii) If the last day of the period is a public holiday or a day on which banks are not generally open for business, the period is extended until the first business day that follows; and
          (iii) Public holidays or days on which banks are not generally open for business occurring during the running of the period of time are included in calculating the period.
          July 2010

      • Interest

        • DRA-3.1.35

          The Arbitration Committee may order the payment of interest on any damages or costs, including the payment of compound interest if appropriate in the circumstances.

          July 2010

      • Destruction of Documents

        • DRA-3.1.36

          The Arbitration Cell and the Arbitration Committee may destroy any document relating to an arbitration sent to them under this Module after the expiry of a period of ten years after the following, whichever is the later:

          (a) The last correspondence relating to the arbitration received by the Arbitration Cell;
          (b) The making of an arbitration award by the Arbitration Committee; and
          (c) The making of an order for the termination of the arbitration proceedings.
          July 2010

      • Confidentiality

        • DRA-3.1.37

          (a) The Arbitration Committee may in its discretion determine that certain information relating to the arbitration is to be kept confidential; and
          (b) Such confidential information may not be disclosed by any person, other than the CBB, without the written consent of the Arbitration Committee.
          July 2010

      • Applicable Law

        • DRA-3.1.38

          (a) Kingdom of Bahrain Law applies to the arbitration proceedings;
          (b) The Arbitration Committee shall take into account the trade practice applicable to the transaction; and
          (c) Laws relating to arbitration in the Kingdom of Bahrain shall apply to an arbitration conducted under this Module, save for those matters that have been specifically provided for in this Module.
          July 2010

        • DRA-3.1.39

          (a) The Arbitration Committee, or if the arbitration proceedings have not commenced, the Chairman may modify the requirements of this Module in relation to the sending of documents or the length of time periods in particular cases where, in his opinion, it is expedient to do so in the interest of justice; and
          (b) A party who knows or reasonably ought to know that any provision of, or requirement under, this Module has not been complied with and yet proceeds with the arbitration without promptly stating his objection to such non-compliance is deemed to have waived his right to object.
          July 2010

        • DRA-3.1.40

          The Arbitration Committee shall decide on the dispute heard by it within a period not exceeding three months.

          July 2010

        • DRA-3.1.41

          The Arbitration Committee shall, if required, undertake investigation in disputes heard by it, or may authorise one of its members, or one of the members of the Arbitration Cell of the SRO to carry out the investigation.

          July 2010

        • DRA-3.1.42

          The Arbitration Committee shall make its decision on disputes heard before it, based on the evidence produced by the parties, and subject to the rules applicable at the SRO. The decision shall be executed in accordance with the provisions of the Civil Procedure Law, as amended.

          July 2010

        • DRA-3.1.43

          Disputes shall cease before the Arbitration Committee, for the same reasons provided in the Civil Procedure Law, as amended, and shall have the same effect legally resulting from the cessation of the dispute.

          July 2010

        • DRA-3.1.44

          Where in any hearing by the Arbitration Committee any question arises which is not within the jurisdiction of the Arbitration Committee, or a claim of forgery of any document is raised, or any criminal proceedings have been taken due to such forgery, the Arbitration Committee shall suspend its work pending the issue of final judgement thereon.

          July 2010

        • DRA-3.1.45

          Deliberations on the decision shall be confidential, and no person besides the member of the Arbitration Committee who attended the session hearings shall be entitled to participate. Decisions shall be adopted by majority vote. The decision shall be valid if signed by the majority of the members.

          July 2010

        • DRA-3.1.46

          The decision passed by the Arbitration Committee shall be in writing, and shall contain in particular, statements and documents of the parties, the reasons for the decision, and date and place of the decision. The decision shall be signed by the Arbitration Committee. However, the decision shall be valid if signed by the majority of the Arbitration Committee.

          July 2010

        • DRA-3.1.47

          The Arbitration Cell shall file the original decision of the Arbitration Committee and its attachments with the Court Clerks Section, within three days from the date of the announcement. The parties shall be notified of such filing.

          July 2010

        • DRA-3.1.48

          The concerned party may apply to the Chairman of the competent court to obtain a copy of the Arbitration Committee's decision, accompanied by an execution order.

          July 2010

        • DRA-3.1.49

          The parties may, regardless of the situation of their dispute, apply to the Arbitration Committee to enter on the record any agreed settlement or other mutual agreement reached by them, to be signed by them or by their representatives. The written agreement shall, in this case, be attached to the Arbitration Committee record and the contents of the agreement shall be entered on the record.

          July 2010