Some notes on Arbitration Law of Mongolia and its implementation
The Parliament of Mongolia (the “State Great Khural”) ratified the current Arbitration Law of Mongolia (“Arbitration Law”) on 9 May 2003. The Arbitration Law is comprised of 8 sections and 43 articles. The Mongolian International and National Arbitration Center (the “MINAC”) has been key establishment for resolution of arbitration disputes. The MINAC’s arbitration tribunal resolves a disputes and issue an award pursuant to that of international treaties including 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1965 Convention on the Settlement of Investment Disputes between States and Nationals of other states, and 1972 Moscow Convention on the Settlement by Arbitration of Civil Law Disputes Arising out of Relations between Countries Engaging in Economic Scientific and Technological Cooperation, and the domestic laws, primarily Arbitration Law. As for procedural rules, the Arbitral Dispute Resolution Rules of MINAC (the “Dispute Resolution Rules”) and the Rules on Cost Allocation (the “Cost Rules”) shall be applied during the proceedings. As Ashid Advocates LLP, experienced Mongolian Law Firm, often represents and defends our clients in business and commercial disputes before the arbitration tribunal at the MINAC, it is our commitment to address some key legal and practical issues in place with regard to Arbitration Law and practices. For the reason, we summarize our thoughts and suggestions on this notes. We truly hope that a potential reader embraces our suggestions, and will obtain some legal and practical knowledge thereafter.
Key regulations and practical challenges
Commencement of Arbitration Proceedings: Article 25.1, Arbitration Law, sets out that “unless otherwise agreed by the Parties, arbitration proceedings shall commence on the same date as a respondent is served a notice of arbitration brought by a claimant in requesting a dispute to be resolved by the arbitration tribunal”.