International Commercial Arbitration at Maldives
Certainly! Here's an overview of International Commercial Arbitration in the Maldives — an emerging jurisdiction for arbitration in South Asia:
International Commercial Arbitration in Maldives
1. Legal Framework
a. Arbitration Act, Law No. 1/2017 (Arbitration Act)
Maldives enacted its Arbitration Act in 2017, which is based largely on the UNCITRAL Model Law on International Commercial Arbitration.
The Act applies to both domestic and international commercial arbitration conducted within the Maldives or where parties agree the law applies.
It governs the arbitration agreement, conduct of arbitration, recognition, and enforcement of awards.
b. International Treaties
Maldives acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) in 2017.
This accession significantly improved the enforceability of foreign arbitral awards within the country.
2. Arbitration Institutions
Currently, Maldives does not have a prominent local arbitration institution like many larger jurisdictions.
Arbitration is typically ad hoc or administered by international institutions such as:
ICC (International Chamber of Commerce)
SIAC (Singapore International Arbitration Centre)
HKIAC (Hong Kong International Arbitration Centre)
Others chosen by the parties in their arbitration agreements.
3. Key Features
Party Autonomy: Parties are free to select arbitrators, governing laws, and procedures.
Recognition of Arbitration Agreements: The Arbitration Act upholds the validity and enforceability of arbitration agreements.
Court Intervention: Courts in Maldives have a limited supervisory role, primarily supporting arbitration without undue interference.
Enforceability of Awards: Domestic courts are empowered to enforce both domestic and foreign arbitral awards under the Arbitration Act and the New York Convention.
Language and Procedure: Parties can agree on the language and rules of arbitration, often choosing English for international cases.
4. Enforcement of Arbitral Awards
Foreign arbitral awards are enforceable in Maldives subject to the New York Convention grounds for refusal (e.g., public policy, lack of due process).
Courts have the authority to refuse enforcement if the award conflicts with Maldivian public policy or if procedural fairness is not respected.
Enforcement procedures are relatively new but increasingly aligned with international standards.
5. Practical Considerations
Developing Arbitration Culture: Arbitration in Maldives is still developing; the legal and judicial infrastructure supporting arbitration is improving.
Use of International Institutions: Because Maldives lacks its own arbitration center, parties often opt for internationally recognized arbitration bodies.
Legal Representation: Foreign parties often engage local counsel to navigate Maldivian courts if enforcement or related court procedures are required.
Summary
Maldives offers a modern legal framework for international commercial arbitration with strong international treaty support, but lacks a local arbitration institution. It is most suitable for parties willing to rely on ad hoc arbitration or international arbitration centers while benefiting from enforceability backed by the New York Convention.
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