Arbitration Law in Mongolia
Mongolia has established a comprehensive legal framework for arbitration, aligning with international standards to facilitate both domestic and international dispute resolution.
Legal Framework
The primary legislation governing arbitration in Mongolia is the Law on Arbitration, revised on January 26, 2017. This law regulates the settlement of legal disputes through arbitration, encompassing both domestic and international proceedings.
Scope and Application
The Law on Arbitration applies to arbitrations where the tribunal is located within Mongolia. It defines arbitration as the settlement of disputes by a permanent or temporary arbitration tribunal. An arbitration is considered international if, at the time of the agreement, the parties have their places of business in different countries, among other criteria.
Arbitration Agreement
An arbitration agreement in Mongolia must be in writing and can be concluded before or after a dispute arises. The agreement is valid regardless of the form or nature of the contract it pertains to.
Arbitral Tribunal
The law allows for the establishment of permanent or temporary arbitral tribunals. Parties have the autonomy to determine the number of arbitrators and the procedure for their appointment. In the absence of such agreement, the default number is three arbitrators.
Conduct of Proceedings
Parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings. Failing such agreement, the tribunal may conduct the arbitration in such manner as it considers appropriate, ensuring equal treatment of parties and giving each party a full opportunity to present its case.
Recognition and Enforcement of Awards
Mongolia is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, facilitating the enforcement of foreign arbitral awards within its jurisdiction. The Law on Arbitration stipulates that arbitral awards, irrespective of the country in which they were made, shall be recognized as binding and, upon application in writing to the court, shall be enforced.
Arbitration Institutions
The Mongolian International Arbitration Center (MIAC), operating since 1960, serves as a prominent institution for administering arbitration proceedings in Mongolia. MIAC provides a structured framework for resolving commercial disputes, both domestic and international.
Recent Developments
The 2017 revision of the Law on Arbitration incorporated the 2006 amendments of the UNCITRAL Model Law, reflecting Mongolia's commitment to aligning its arbitration practices with international standards. This revision introduced significant changes aimed at enhancing the efficiency and effectiveness of arbitration proceedings in the country.
In summary, Mongolia's arbitration law provides a robust and internationally aligned framework for the resolution of disputes, offering parties flexibility and assurance in the arbitration process.
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