Asian International Arbitration Centre (AIAC), formerly known as Kuala Lumpur Regional Centre for Arbitration (KLRCA), is Malaysia’s leading provider of the best institutional support in matters of domestic and international arbitration and other alternative dispute resolution litigations. The most common form of alternative dispute resolution is arbitration. There are two types of arbitrations, seat of arbitration (institutional arbitration) and ad hoc arbitration.
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.
Seat of Arbitration.
Seat of 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. The significance of the seat of arbitration cannot be ignored. It is imperative that the best possible seat of arbitration is chosen. An arbitration process needs to be as time efficient and structured as possible. The determination of the seat of arbitration will determine the amount of intervention the seat’s courts exercise during the proceedings. Ideally, the seat’s court should have minimal intervention.
Seat of arbitration is very different from the venue of the arbitration, a fact that many people tend to forget. A seat of arbitration refers to the place where the arbitration takes place. The seat of arbitration determines the primary legal jurisdiction to which the arbitration is attached and gives the courts supervisory jurisdiction over the arbitration. The selection of the seat of arbitration not only determines the law governing the arbitration procedure but also the rights relating to enforcement of the arbitration awards. The venue of the arbitration, on the other hand, refers to the physical location of the arbitration. This is where the members of the arbitration congregate, including the hearing tribunal, experts, and the witnesses who are meant to give a statement. The difference between the seat of arbitration and the venue of arbitration can be explained by the following example,
Let’s assume two opposing parties in Malaysia have decided to settle their feud outside of the courts. They choose to go through the process of arbitration. They decided, together, to have Australia be their seat of arbitration. Their venue would be Malaysia. Venue refers to the physical location and seat of arbitration refers to the primary legal jurisprudence to be followed. The arbitration mentioned in the example would then follow the legal procession of that of Australian courts instead of Malaysian courts. However, the Malaysian courts are allowed to intervene in case of things slipping out of hand.
The AIAC offers a world class arbitration venue. The firm provides venues that ensure the most conducive environment possible for a constructive and fast paced dispute resolution. The venue offers privacy, convenience, confidentiality and exclusivity throughout the entire process. The AIAC is equipped with a number of rooms necessary for accommodating any size and number of arbitrations.