Revised law on Arbitration

• 2016-10-06
• 439

Mongolia intends to revise the Law on Arbitration. Reasons for such revision is to increase the number of cases to be arbitrated in Mongolian national and international arbitration, and to find a harmonization with the UNCITRAL Model Law on International commercial arbitration.

About 80 laws, In Mongolia, provide for dispute resolution by a court only, and therefore changes are required to be made into these laws in addition to the Law on Arbitration (2003).

Changes to be brought by the Revised Law on Arbitration are:

• A detail definition for ‘arbitration agreement’ and ‘arbitration agreement in writing’.
• A new chapter will be added in relation to approval of arbitral awards, and preliminary orders.
• Arbitration tribunal may decide to secure an arbitral award enforcement and a Party to the dispute may be subjected to an interim measure.
• Costs, guarantees and liabilities of a Party making a request for an interim measure will be clarified.
• Arbitration costs and cost items will be aligned with international standards.
• Confidentiality provisions will be more prescriptive.
• A Party to an arbitration agreement which is under bankruptcy may still be under the effect of the arbitration agreement unless an executor or a receiver objects.
• Mongolian laws such as the Civil Code of Mongolia, Civil Procedure Code, Law on savings, settlements, and loans by banks, and other competent legal entities, Currency regulations law, Land law, Concession Law, and Petroleum law will be amended with the adoption of the Revised Law on Arbitration.

Drafters of the Revised Law on Arbitration view that the Revised law on Arbitration will induce an investment, reduce the workload of courts and business costs and time spent on dispute resolution.