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Arbitration in Israel
The Arbitration Law 1968
Recongnition and Enforcement of Foregin Arbitral Award
The Arbitration Agreement
The Arbiration Clause
A Consensual Appeal
Stay of Court Proceedings
Justice and Effiecnent Ruleling
Interim Measures
The Arbitral Award
Setting Aside the Award
The New York Convention Regulations
Institutional Arbitration v. ad hoc
International Arbitration & Mediation




Home page Arbitration & A.D.R The Arbitration Law 1968

The Arbitration Law 1968

The Arbitration Law 1968
Date 5/10/2010

The  Arbitration Law 1968 

Arbitration Law 5728-19681

 

Chapter 1: Interpretation

 

Definitions 1. For the purpose of this law —

"arbitration agreement” –

An agreement in writing to refer to arbitration a dispute which has arisen between parties to an agreement or which may arise between them in the future, whether an arbitrator is named in the agreement or not;

"arbitrator” –

An arbitrator appointed in an arbitration agreement or pursuant to an arbitration agreement, including an umpire and an alternate arbitrator;

"arbitral award” –

An award rendered by an arbitrator, including an interim award;

"foreign arbitral award” –

An arbitral award rendered outside of Israel;

"court” –

Except as stipulated in Sections 5 and 6 – the District Court.

 

Chapter 2: Arbitration Agreement

Implied Provisions

2.         An arbitration agreement is viewed as containing the provisions set out in the first addendum to the extent these are relevant and where no other intention is evident from the agreement.

Reservation to an Agreement

3.         An arbitration agreement concerning a matter that cannot be the subject of an agreement between the parties shall not be valid.

 

Substitute Parties and Arbitrators

4.         An arbitration agreement and the jurisdiction of an arbitrator thereunder shall also apply to substitute parties to the agreement, and the jurisdiction of an arbitrator under the arbitration agreement is also vested in an alternate arbitrator, to the extent no other intention is evident from the agreement.

Stay of Court Proceedings

5.      (a)        Where a claim has been filed before a court in a dispute agreed to be referred to arbitration and a litigant, who is a party to the arbitration agreement, has applied to stay the proceedings before the court, the court will stay the proceedings between the parties to the agreement, provided that the applicant was prepared to do everything required to conduct the arbitration and to proceed with it and is still prepared to do so. 

         (b)        An application for a stay of proceedings may be submitted in the statement of defence or by other means, but by no later than the date on which the applicant first argued on the merits of the case.

         (c)        The court may refuse to stay the proceedings if it finds that there is a special reason not to have the dispute heard in arbitration.

Stay of Proceedings under an International Convention

6.         If a claim has been filed before a court in a dispute agreed to be referred to arbitration and an international convention to which Israel is party applies to the arbitration and the convention states directions regarding stay of proceedings, the court shall act in accordance with its authority under Section 5 and in accordance with such directions and subject to them.

Remedy Against Alienation of Rights

7.      (a)        Where an agreement between the parties provides that the commencement or termination of arbitration proceedings within a certain period of time will be a pre-condition for the realization of a right between them and a dispute has arisen between the parties, a court may, if it deems it just to do so, extend the period, even if it has elapsed, under conditions it deems appropriate.

         (b)        Where a court decides that a dispute will not be heard in arbitration, whether pursuant to Section 5 or Section 6 or whether pursuant to Section 12(b), any condition in the agreement between the parties according to which the commencement or termination of arbitration proceedings will be a pre-condition to the realization of a right between them shall be void.

Chapter 3:  The  Arbitrator  Appointment and . Removal  of  an Arbitrator

The Appointment of an Arbitrator by a Court

    8. (a)        Where a dispute has arisen in a matter agreed to be referred to arbitration and no arbitrator has been appointed in accordance with the agreement, a court may, at the request of a party, appoint the arbitrator; The court may do so regardless of whether the arbitrator should have been appointed by the parties or one of them, or whether the arbitrator should have been appointed by the arbitrators already appointed or by a third party.

         (b)        The court shall not appoint an arbitrator as stated in subsection (a) unless the requesting party provided the other party with a written notice as provided herein  and did not receive a  response within seven days from the day on which it was delivered:

(1)        Where the arbitration agreement provides that each party is to appoint an arbitrator, the requesting party shall stipulate in its notice the name of the arbitrator it appointed and shall demand that the other party appoint an arbitrator;

(2)        In all other cases the requesting party shall propose an arbitrator in its notice and demand that the other party agree to its appointment.

         (c)        Where the arbitration agreement provides that each party is to appoint an arbitrator, a court may, at the request of the party who has appointed an arbitrator, appoint that arbitrator, or another person, as a sole arbitrator.

 

 

 

The Appointment of a Sole Arbitrator by a Court

9.         Where an additional arbitrator or an umpire   is appointed, whether pursuant to the arbitration agreement or by a court, the court may, upon the request of a party and notwithstanding the terms of the arbitration agreement, appoint that arbitrator as a sole arbitrator, if the court finds special reason to do so in order to conduct or end the arbitration.

The Status of an Arbitrator Appointed by a Court

10. An arbitrator or a sole arbitrator appointed by a court shall have the same status as an arbitrator appointed by the parties to an arbitration agreement.

The Removal of an Arbitrator

11. The court may remove an arbitrator in one of the following circumstances:

(1)        It is evident that the arbitrator is not worthy of the trust of the parties;

(2)        The arbitrator behaviour during the arbitration proceedings is causing a delay of justice;

(3)        The arbitrator is unable to fulfil their duties.

The Appointment of an Alternate Arbitrator

12. (a)           Where the position of an arbitrator has become vacant, whether due to their resignation or death or whether due to their removal , the provisions of Sections 8 to 10 shall apply to the appointment of an alternate arbitrator, where no other intention is evident from the arbitration agreement.

         (b)        Where an arbitrator has been removed, a court may, instead of appointing an alternate arbitrator, decide that the dispute, which is the subject matter of the arbitration, shall not be heard by arbitration if the court finds that there is special reason to do so.

 

 

 

Chapter 4: The Arbitration Proceeding

The Summonsing of Witnesses

13. (a)           Arbitrator shall have the same authority to summon witnesses to give testimony or to produce documents as a court has in a case filed before it, and the arbitrator may award them fees and expenses.

         (b)        The duties and privileges of a witness testifying in an arbitration shall be the same as those of a witness testifying before a court.

         (c)        Where a witness has been summonsed by an arbitrator, a court may, upon the request of the witness, cancel the summons, if the court finds that the summons constitutes an abuse of the arbitration proceedings.

Means of Taking Testimony

14.       The testimony of a witness, including the testimony of a party, shall be taken under oath   or word of honor, unless the arbitrator and the parties have agreed to take the testimony  without an oath or word of honor, provided a witness shall not be compelled to testify under oath where a court would not compel them to do so.

Hearing in the Absence of a Party

15. (a)           Where a party who has been lawfully summonsed to a certain session fails  to attend it, the arbitrator may discuss the dispute in that session in its absence; Where a party who was required to provide its arguments at a certain date fails to do so, the arbitrator may rule on the dispute in its absence.

 

 

 

 

         (b)        Where an arbitral award was rendered subsequent to a hearing that was conducted in the absence of a party or in the absence of  its arguments, the arbitrator may set aside the award and reopen the case pursuant to a request of one of the parties brought before them within 30 days from the date on which that party was provided with a copy of the award , if they are persuaded that the party who was absent or did not provide its arguments had a justified reason for doing so.

Ancillary powers of the Court

 16.   (a)        In the following matters the court has the same powers to grant relief regarding arbitration as it does  regarding cases  filed before it: 

(1)        Summonsing witnesses, awarding them fees and expenses;

(2)        Applying coercive and punitive measures to a witness who does not respond to a summons of an arbitrator or a court or who refuses to testify;

(3)        Taking of testimony immediately or outside of the jurisdiction;

(4)        Alternative service of notices or documents to parties;

(5)        Attachment of assets, stay of exit order, guarantee for providing assets, appointment of a receiver, mandatory order and injunctive order..

         (b)        A request for relief pursuant to this section may be submitted by a party or an arbitrator; Where an arbitrator has not yet been appointed, a party may submit the request after providing the other party with notice as stipulated in Section 8(b).

         (c)        With respect to subsection (a), the appointment of an arbitrator or the provision of said notice shall be considered as filing a claim before a court.

         (d)       This Section shall not derogate from the powers of the arbitrator under the arbitration agreement or under this Law. 

Extension of Interim Relief

17.    (a)        Relief granted under Section 16(a)(5) shall remain valid, if not cancelled by a court, until the rendering of the arbitral award, and in the arbitral award the arbitrator may make such relief final  in whole or in part.

         (b)        A decision by an arbitrator pursuant to subsection (a) shall be considered, except for appeal, as a decision of a court.

Application to a Court Does not Stay the Hearing

18.       The filing of an application concerning an arbitration before a court, whether by a party or by the arbitrator, shall not stay the arbitration proceedings, unless the court or the arbitrator has so ordered.

Extensions of Time for the Arbitrator’s Actions

19.    (a)        Where a time limit has been set in an arbitration agreement or in this Law for rendering the arbitral award or for another action of the arbitrator, the court may, upon the request of a party or an arbitrator, occasionally extend the time limit for a length of time as  determined by it,  even if the previous time limit has elapsed.

         (b)        In calculating the time limit under subsection (a), the period of time during which the arbitration was stayed pursuant to Section 18 or Section 33 shall not be counted.

 

Chapter 5: The Arbitral Award

The Form of the Arbitral Award

20.       The arbitral award shall be in writing and shall be signed by the arbitrator, indicating the date of the signature; In an arbitration before a number of arbitrators, the signature of the majority of the arbitrators shall be sufficient if the award notes that the other arbitrators cannot or do not wish to sign it.

The Legal Effect of the Arbitral Award

21.       Subject to Sections 24 to 28, and where no other intention is evident from the arbitration agreement, the arbitral award shall be binding on the parties and their substitutes as a judicial award.

 

 

 

 

Appeal before an Arbitrator

21A. (a) Where the parties to an arbitration agreement have agreed that the arbitral award may be appealed before an arbitrator -

(1)               The arbitrator shall state the reasons upon which the arbitral award is based;

(2)               The provisions of the Second Addendum shall apply in addition to the provisions of the First Addendum, so long as they do not contradict the provisions of the Second Addendum, and unless the parties have agreed otherwise.

(b) The provisions of this law that apply to an arbitrator, to an arbitration proceeding,  and to an arbitral award, shall apply to the appellate process before an arbitrator and the appellate arbitral award, subject to required adjustments, so long as the arbitral award for the purpose of the definition of "arbitral award" shall be the appellate arbitral award, or the arbitral award of the first arbitrator if no appeal was filed or where the time limit for its filing has passed.

(c) Where the parties have agreed as stated in subsection (a) -

(1) It shall be possible to file a request to set aside the arbitral award  on the grounds specified in Sections 24(9) and (10) only;

2. It shall not be possible to file a request before the court for leave to appeal an arbitral award .

 

Amendment of an Arbitral Award

 22.   (a)        The arbitrator may, upon the application of a party and after the other parties were given a proper opportunity to present their arguments, amend or complete the arbitral award, if it was defective in one of the following ways:

(1)        The arbitral award contains a scribal error, lapsus calami, an omission, a mistake in the description of a person or property, in a date, a number, a calculation, etc.;

(2)        The arbitral award is defective in a matter which does not relate to the merits of the dispute;

(3)        There is no instruction in the arbitral award regarding the payment of interest;

(4)        There is no instruction in the arbitral award regarding the expenses of the parties, including attorney’s fees.

         (b)        The arbitrator will not hear an application under subsection (a)(3) or (4) that is brought before them after more than thirty days from the date on which the arbitral award was renderred, if it was renderred before the applicant, or from the date on which a copy of the arbitral award was delivered to the applicant, if it was not renderred before it.

         (c)        The arbitrator shall rule on an application under this Section within thirty days from the date on which a notice of the application was delivered to the other parties .

         (d)       The court may amend defects under subsection (a)(1) or (2), while hearing an application to approve or set aside the arbitral award, even if there was no application to the arbitrator or there was an application to the arbitrator but they did not rule on it.

Approval of an Arbitral Award

23.    (a)        The court may, upon the filing of a request by a party, approve an arbitral award; Where the arbitral award has been approved – it shall be considered, for all intents and purposes,  other than appeal, as a judicial award.

         (b)        The court shall not hear objections to the approval of an arbitral award other than by means of an application to set it aside or by means of an appeal of the arbitral award pursuant to Article 29B.

Setting aside of an Arbitral Award

24.       The court may, upon the filing of a request by a party (in this Law – Setting aside Request), set aside an arbitral award, wholly or partially, complete it, amend it or remit it to the arbitrator, for one of the following reasons:

(1)        There was no valid arbitration agreement;

(2)        The arbitral award was renderred by an arbitrator who was not lawfully appointed;

(3)        The arbitrator acted without jurisdiction or beyond the  jurisdiction greanted to them under the arbitration agreement;

(4)        A party was not given a fair opportunity to make its arguments or bring its evidence;

(5)        The arbitrator did not rule on one of the matters referred to them for ruling;

(6)        The arbitration agreement stipulated that the arbitrator must provide reasons for the arbitral award and they did not do so;

(7)        The arbitration agreement stipulated that the arbitrator must rule in accordance with the law and they did not do so;

(8)        The arbitral award was renderred after the time limit for  renderring it had elapsed;

(9)        The content of the arbitral award violates public policy;

(10)      A ground exists on the basis of which a court would have set aside a final judgment which cannot be further appealed.

Remitting the Arbitral Award to the Arbitrator

25.       Where a court has decided to remit an arbitral award to an arbitrator, the arbitrator shall rule within three months from the date of the decision, unless the court has provided a different instruction.

 

Restrictions on the Setting aside  an Arbitral Award

26.    (a)        The court may dismiss a setting aside request despite the existence of one of the grounds specified in Section 24 if it finds that no injustice was caused.

         (b)        The court shall not cancel an arbitral award in whole where it is possible to  set it aside partially it, to complete it, to amend it or to remit it to the arbitrator.

         (c)        No claim shall be heard by a party that an arbitral award was not renderred within the time limit, unless that party has reserved the right to make such a claim in a written notice to the arbitrator prior to the renderring of the arbitral award.

 

Timing of the Setting aside Request (Amendment 5734 - 1974)

27. (a)           The court shall not hear a setting aside Request  submitted after forty five days from the date on which the arbitral award was renderred, if renderred before the applicant, or from the date on which a copy of the arbitral award was delivered to the applicant by the arbitrator or a party, if it was not renderred  before it; The court may extend the said period, even if it has already elapsed, for special reasons to be recorded and in every case of an application filed for the approval of a foreign arbitral award.

         (b)        Where an application was filed to the arbitrator pursuant to Section 22, the forty five days period shall commence from the date on which the arbitrator decided or ought to have decided the application; and for a setting aside request pursuant to Section 24 (10) – from the date on which the facts on which the application is based  were discovered.

         (c)        The court shall not hear a setting aside Request filed after the arbitral award was approved.

         (d)       The dates stipulated in subsection (a) shall not apply to a setting aside request based on the grounds stipulated in Section 24(1), and the provisions of subsection (c) shall not apply to a setting aside request based on the ground stipulated in Section 24(10).

Setting Aside Request and Approval of an Arbitral Award

28.       Where a setting aside was filed and dismissed, or an appeal pursuant to Article 29B was dismissed, the court shall approve the arbitral award, even if no application was filed for its approval; Where the court partially dismissed a setting aside  request or an appeal or has completed or amended an arbitral award following a hearing, the court shall approve the arbitral award to the extent it has not been set aside or as completed or amended.

 

 

 

 

  Attachment Order etc.

29.    (a)        Where an application was filed for the approval or setting aside of an arbitral award, the court may order the attachment of the assets of the party against whom the award  was rendered, order a stay of exit or order the provision of a guarantee for the fulfilment of the arbitral award; the application may be oral and the court may exempt the applicant from providing a guarantee.

         (b)        The provisions of any legislation regarding a temporary attachment, stay of exit  and . guarantee shall apply to relief granted under this Section, subject to required adjustments.

Foreign Arbitral Award

29A.    A request for the approval or setting aside of a foreign arbitral award to which an international convention that israel is a party to applies, and the convention provides directions regarding the relevant matter, shall be filed and decided in accordance with and subject to those directions.

 

29B Appeal of an arbitral award with leave of the Court

(a) Parties to an arbitration agreement who have stipulated that the arbitrator must decide in accordance with the law, are allowed to agree that the arbitral award may be appealed with leave of the Court if a fundamental mistake has occurred in the implementation of the law which could cause injustice. Such an appeal shall be decided by one judge and shall be subject to the provisions applicable to an appeal before the Court.

(b) Where parties to an arbitration agreement agree that the arbitral award may be appealed before the court as stated in subsection (a), the arbitration sessions shall be documented in a protocol and the arbitrator shall state the reasons upon which the arbitral award is based.

(c) Where an appeal of the arbitral award was filed to the Court, a request to set aside the arbitral award shall not be required, and the parties shall be allowed to raise during the appeal their claims regarding the setting aside of the arbitral award on the basis of the grounds specified in Article 24 of the Law.

 

Chapter F: Duties and Fees of the Arbitrator

Duties of the Arbitrator

30.       An arbitrator who has agreed to be appointed owes a fiduciary duty to the parties;  Where the arbitrator has breached this duty, the injured party shall be entitled, in addition to any relief under this law, to compensation for breach of a contract.

Fees of the Arbitrator

31.    (a)        Parties  must pay the arbitrator their fees and expenses (hereinafter jointly – the Fees), in the amounts, instalments and on the dates determined by the arbitrator, and where no other intention is evident from the arbitration agreement.

         (b)        A party may pay to the arbitrator’s account any amount which the other party is in arrears for paying, and after having done so it shall be entitled at any time to a repayment from the other party for the payments made by it.

Reduction of the Arbitrator’s Fees

 32.   (a)        The court may, upon the request of a party, reduce the Fees fixed by the arbitrator without the parties’ consent, if it finds the fees to be  excessive, and may accordingly order the repayment of amounts paid to the arbitrator’s account, so long as no other intention is evident from the arbitration agreement.

         (b)        The court shall not hear a request for the reduction of fees submitted before the rendering of the arbitral award or after the expiration of the period of time stipulated in Section 27(a) .

Right of Stay

33.    (a)        Where the fees have not been paid to the arbitrator, in whole or in part, by the due date, the arbitrator shall be entitled to stay the continuation of the proceedings and the rendering of the arbitral award or its delivery until the amount in arrears has been paid.

         (b)        Where the arbitrator has acted as stated in subsection (a) regarding fees which a party claims are exccesive, the court may, upon the request of a party, order the arbitrator to continue with the proceedings or to render or deliver the arbitral award, as the case may be, provided that the fees, in whole or in part, is deposited with the court or that the applicant provides a guarantee for the payment thereof.

Fees of an Arbitrator who was Removed

 34.      Where an arbitrator has been removed, the court may, pursuant to a request of a party, decide whether they are entitled to their Fees, in whole or in part or not, and the court may, accordingly, order the repayment of amounts paid to the arbitrator on account of their fees.

The Status of the Arbitrator and the Parties

35.       In a request submitted by one of the parties under Sections 32, 33(b) or 34, the arbitrator shall be the respondent and shall grant the other parties a fair opportunity to make their arguments.

 

Chapter 7: Miscellaneous Provisions

The Law Applicable to the State

36.       The law applicable to the State under this law shall be the same as the law applicable to any person, however the provisions of the Law for the Amendment of the Rules of Civil Procedure (The State as a Litigant), 5718 – 1958 shall apply to an arbitration to which the State is party.

Powers of the Registrar

37.       The powers granted to the court under this Law are also granted to the court registrar in the following matters:

(1)        Powers which would be granted to the registrar were the claim submitted in the arbitration filed before the court;

(2)        Appointment of an arbitrator;

(3)        Extension of dates under this Law;

(4)        Approval of an arbitrl award and granting an order under Section 29, when there is no application for the setting aside of the arbitral award.

Appeal

38.       A decision of the court under this Law may be appealed with leave pursuant to Section 19(b) of the Courts Ordiance, 5717 – 1957; A decision of a registrar under this Law may be appealed pursuant to Section 8(b) and (d) of the Registrars Ordinance, 1936.

Reservation of Rights and Obligations

39.       The provisions of this Law shall not prevent the filing of a claim before a court in accordance with the rights and obligations set out in an arbitral award under this Law or by a ruling given on the basis of a verbal agreement.

Reservation of Laws

39A.    The provisions of this Law shall not prevent the stay of court proceedings, the approval or setting aside of an arbitral award or another proceeding under this Law, even where a foreign law applies to the arbitration or the arbitral award is a foreign arbitral award, to which a convention as stated in Sections 6 or 29A does not apply or where such a convention does not provide directions in the relevant matter.

Annulment

40.       The Arbitration Ordinance is annulled.

Commencement and Transitional Provision

41.       This Law shall come into force on 11th Tevet, 5729 (1st January, 1969); However, arbitration that began prior to the commencement of this Law, whether by the giving of notice by one party to another demanding it to appoint  an arbitrator or agree to the appointment of an arbitrator, or by notice to the arbitrator demanding them to commence hearing the dispute – the previous law shall continue to apply to it.

Execution and Regulations

42.       The Minister of Justice is responsible for the execution of this Law and may regulate civil procedure regulations should such be required for the implementation of a convention as stipulated in Sections 6 and 29A.

First Addendum

(Section 2)

i.          The arbitration shall be before a sole arbitrator unless a greater number of arbitrators has been determined.

ii.         In an arbitration before an even number of arbitrators, the arbitrators shall appoint, upon demand of one of them, an additional arbitrator; Where an additional arbitrator has been appointed they will serve as the chairperson of the arbitration.

iii.        In an arbitration before an odd number of arbitrators, the arbitrators shall choose one of them to serve as chairperson.

iv.        The chairperson of the arbitration may decide the location and dates of the arbitration sessions and all matters relating to the procedures of the arbitration sessions.

v.         Decisions of the arbitrators and arbitral awards shall be made by a majority; Where there is no majority for the final arbitral award, the opinion of the chairperson shall be decisive; A minority arbitrator may express their dissenting opinion in the arbitral award.

vi.        In an arbitration in which an umpire arbitrator has been appointed, they shall commence their duties after the other arbitrators, or one of them, has provided them and the parties with a written notice that there is no majority for the final arbitral award, and once they commence their duties, they shall replace the other arbitrators.

vii.       Once an arbitrator has commenced their duties as an additional or alternate arbitrator or as an umpire, the arbitration shall continue from the stage that it had reached beforehand, unless the arbitrator demands otherwise.

viii.      The arbitrator may order parties to respond to interrogatories, to discover and produce documents and to do anything else related to the conduct of arbitration, in the same manner as a court in a claim filed before it.

 

 

ix.        Where an arbitrator has ordered a party to do something related to the conduct of the arbitration proceedings, and that party, without justified cause did not comply with the order, the arbitrator may, after warning the party, dismiss the claim, if the order was given to the plaintiff, or strike off the defence and decide the dispute as if the defendant presented no defence, if the order was given to the defendant.

x.         The arbitrator shall not conduct a session in the absence of a party unless the arbitrator warned the party, in writing or verbally, that they will conduct a session in its absence if it is not present.

xi.        Prior to the taking of testimony, the arbitrator shall warn the witness that they must testify to the truth, for if they do not do so they will be liable to the penalties prescribed by law.

xii.       Where the resolution of the dispute requires expertise, the arbitrator may, at each stage of the proceeding and after having provided the parties with a fair opportunity to have their arguments heard, order the rendering of the matter to an expert who they will appoint; A copy of the expert opinion shall be delivered to the parties and they may object to it and demand to examine the expert as if they were a witness appointed by the arbitrator; The arbitrator may decide not to hear opinions of other experts in the matter rendered to the expert, if they provided prior notice to the parties and they did not object.

xiii.      The arbitrator shall make the arbitration file available to the parties, at any reasonable time, for examination and copying.

xiv.      The arbitrator shall act in the manner they deem most effective for a just and speedy resolution of the dispute and shall rule in accordance with their best judgment based on the material before them; The arbitrator shall not be bound by substantive law, rules of evidence or rules of civil procedure customary in the courts.

xv.       The arbitrator must render the arbitral award within three months from the day on which they began hearing the dispute, or on which they were required to commence hearing it pursuant to a written notice of a party, whichever is earlier, however the arbitrator may extend this period for up to an additional three months.

xv-a.    The arbitrator shall state the reasons upon which the arbitral award is based.

xvi.      The arbitrator may bring a legal question arising during the course of the arbitration proceedings or the arbitral award, in whole or in part, before a court in order to receive an opinion.

xvii.     The arbitrator may grant a declaratory judgment, a mandatory order or an injunctive order, an order for specific performance and any other relief which a court is authorized to give, and they may also render an interim award deciding on the issues in the arbitration in parts.

xviii.    The arbitrator may make an order regarding the costs of the parties, including attorneys’ fees, and regarding the fees and expenses of the arbitrator, in whole or in part, and may order the deposit of these amounts or the provision of a guarantee for their payment; Where the arbitrator has not ordered otherwise, the parties must pay them their fee and expenses in equal shares.

ixx.      The arbitrator must keep the arbitration file for seven years after the end of the arbitration.

xx.       A document relating to the arbitration sent to the arbitrator or to a party by registered mail with confirmation of delivery, shall be deemed to have been delivered on the date indicated in the confirmation of delivery or the confirmation of refusal to receive the document.

 


 

Second Addendum

Article 21A

 

a.         The arbitration sessions shall be evidenced in a protocol or in any other way agreed by the parties; The protocol shall reflect the conduct of the sessions and the statements made by the parties.

b.         The appeal shall be submitted within 30 days from the day on which the arbitral award was notified to the parties or from the day on which the appellate arbitrator was appointed, whichever is later, and shall be reasoned; The other parties may submit a reasoned answer to the appeal within 30 days from the day on which they were notified of the appeal; The appellant may submit a reply to the answer within 15 days from the day on which it was notified to it.

c.         Where an appeal is submitted, the other parties may submit a counter-appeal within 30 days from the day on which they were notified of the appeal; The other parties may submit a reasoned answer to the counter-appeal within 15 days from the day on which they were notified of the counter-appeal.

d.         The appellate arbitrator may conduct sessions in the presence of the parties, hear arguments and request written briefs, however, they are not allowed to hear witnesses; The decision in the appeal shall be based on the material that was before to the first arbitrator and on the pleadings and written briefs submitted in the appeal.

e.         The appellate arbitrator shall render the arbitral award within two months from the end of the appeal process.

f.          The appellate arbitrator shall state the reasons upon which the arbitral award is based.[1]

 

Levy Eshkol

Yakov M. Shapiro

 

Prime Minister

Minister of Justice.

Shneur Zalman Shazar

 

 

State President

 

 

 







 


. Sefer Hukim.



[1] All rights reserved to the author, Adv. Ronen Setty. This translation is a convenience translation whereas the original text remains the only legally-binding text.





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