AIAC- Alternative Dispute Resolutions and Arbitrations.

Ismail Saad
November 1, 2021
Seat of Arbitration

Asian International Arbitration Centre (AIAC), formerly known as Kuala Lumpur Regional Centre for Arbitration (KLRCA), is Malaysia’s leading provider of the best institutional support in matters of domestic and international arbitration and other alternative dispute resolution litigations. The recent change in identity was undertaken in order to reflect the organization’s commitment to the global Alternative Dispute Resolution (ADR) biosphere and the willingness to provide the most innovative and ideal services in the industry. 

Despite the change in identity, the trust that AIAC has built over the course of the past 40 years is still retained. This trust coupled with a fresh new identity has created the perfect combination of modern innovation and classic heritage. The new AIAC is still headquartered in the historic Bangunan Sulaiman and is a non-profit, non-governmental organization. It has been afforded certain freedoms and special immunities in order to be able to carry out its arbitration in the most efficient and effective manner. 

The AIAC allows for disputes to be worked out in a civil manner. The organization specializes in two types of arbitration, adjudication, mediation, and domain name dispute resolution.  

Arbitration- 

Arbitration is a form of alternative dispute resolution that does not involve judiciary courts. The dispute is settled by one or more people. The two most common types of arbitrations are, 

  1. Seat of arbitration. 
  2. Ad Hoc arbitration. 

Seat of Arbitration. 

 Seat of arbitration refers to a form of conflict resolution which involves the selection of a neutral location by the conflicting parties. This location determines the legislature followed. 

Seat of Arbitration vs. Place of Hearing-

A seat of arbitration is not the same as the place of hearing. A place of hearing is the physical location where the conflicting parties meet and hold hearings. A seat of arbitration determines the legislature adopted. While the parties generally do have free-reign in terms of deciding their seat of arbitration, there are certain organizations that geographically limit the parties from choosing a particular nation for their seat. In the unlikely event of the parties not being able to agree on a neutral location, the arbitration tribunal steps in and decides the seat of arbitration for them. 

Significance of Seat of Arbitration- 

The significance of the seat of arbitration cannot be ignored. It is imperative that the best possible seat of arbitration is chosen. An arbitration process needs to be as time efficient and structured as possible. The determination of the seat of arbitration will determine the amount of intervention the seat’s courts exercise during the proceedings. Ideally, the seat’s court should have minimal intervention. A factor that needs to be properly considered in the matter of deciding the seat of arbitration is the laws of the seat. Some countries have laws that clearly state the country’s courts can only intervene for the purposes of assisting the arbitral process while others have laws that allow the country’s courts to hinder the arbitral process. 

Seat of Arbitration
Seat of Arbitration

Process of Award and Challenges- 

The final ruling in a seat of arbitration is binding. It needs to be internationally enforceable. While it is ideal for the final ruling, also known as an award, to be unchallengeable, in the event of the ruling being challenged the laws of the seat of arbitration will dictate the grounds for challenging the ruling in local courts. These laws may limit the grounds for challenge or allow for broad grounds of challenge. Broad grounds of challenge could lead to the arbitration getting reopened. Hence, the selection of a proper seat of arbitration is paramount. 

The AIAC has always provided excellent service to its patrons in terms of Alternative Dispute Resolution. They absolutely make certain that their clients’ ADR matters are ultimately resolved and that the final ruling is enforced. The AIAC does so with the utmost confidentiality and neutrality expected of an organization of this caliber.