Asian International Arbitration Centre (AIAC), which used to be known as Kuala Lumpur Regional Centre for Arbitration (KLRCA), is the leading provider of the best institutional support in matters of domestic and international arbitration and other alternative dispute resolution litigations in Malaysia The most common form of alternative dispute resolution is arbitration. There are three types of arbitrations, seat of arbitration (institutional arbitration), ad hoc arbitration, and Islamic arbitration.
Seat of Arbitration.
Seat of arbitration, also known as institutional 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 is different from the place of hearing. Seat of arbitration determines the legislature to be employed and the place of hearing determines the physical location of the arbitration. For example, one’s seat of arbitration can be Metropolis, but their place of hearing might be Central City. The processions will be held in Central City, but will follow Metropolis’ legislature. The courts of Central City are allowed to intervene under special circumstances.
Ad Hoc Arbitration.
Ad hoc arbitration is a form of arbitration in which the conflicting parties do not choose a modus operandi, the law of an institution, for the arbitration. While this form of arbitration does offer more flexibility to the parties in question, it does not offer much when it comes to external support. Ad hoc arbitration is more time efficient than institutional arbitration but it can run into hindrances if the conflicting parties run into difficulties with the appointment or conduct of the arbitration tribunal. An ad hoc arbitration allows for edits in the proceedings governing laws in the case of a dispute arising. In some rare cases the proceedings governing laws are changed if the need arises.
While it is a widely held belief that an ad hoc arbitration might be less expensive than an institutional arbitration, that is not always the case. Ad hoc arbitrations are carried out by people who are not lawyers and this may lead to misinformed decisions in cases of international commercial arbitrations. Sometimes lack of cooperation from the partiers or continued delays from the governing tribunal could lead to the parties seeking traditional courts intervention. This intervention is not cheap and in the case of ad hoc arbitrations, harder to come by because this form of arbitration limits intervention from outside forces.
Islamic arbitration is a form of alternative dispute resolution that follows the Sharia. This type of dispute resolution is employed by Muslims when they wish to settle disputes without the intervention of courts while still following the Sharia. The tribunals from Islamic arbitrations are allowed to refer to the Shariah council in matters that concern the Shariah law. However, the Shariah council has to be a relevant shariah council in order for its ruling to be recognized. The tribunal of the arbitration has to rule, following a consultation with the parties involved, to decide whether the arbitral proceedings are to continue after the Sharia Council has given its ruling.
AIAC in Bangunan Sulaiman offers Islamic arbitration. They also offer a number of comfortable conference and hearing rooms that guarantee privacy. To learn more about AIAC, visit their website today!