International arbitration law and rules in Algeria

  1.  HISTORICAL BACKGROUND AND LEGISLATIVE FRAMEWORK
    1.  Historical background
    2.   Legislative framework
  2.  SCOPE OF APPLICATION AND GENERAL PRINCIPLES
    1.  Distinction between domestic and international arbitration
    2.  Algerian definition of international arbitration
  3.  THE ARBITRATION AGREEMENT
    1.  Definition
    2.  Formal requirements
    3.  Special tests and requirements of the jurisdiction
    4.  Autonomy of the arbitration agreement
    5.  Legal consequences of a binding arbitration agreement
  4.  COMPOSITION OF THE ARBITRAL TRIBUNAL
    1.  Constitution of the arbitral tribunal
    2.   Procedure for challenging and substituting arbitrators
    3.  Duty of disclosure
    4.  Arbitrator fees
    5.  Liability and immunity of arbitrators
  5.   JURISDICTION OF THE ARBITRAL TRIBUNAL
    1.   Competence to rule on jurisdiction
    2.   Power to order interim measures
  6.  CONDUCT OF PROCEEDINGS
    1.  Legal framework applicable to international arbitral proceedings
    2.  Arbitral tribunal’s discretion and its duty of fairness and diligence
    3.  General procedural principles
    4.  Commencement of arbitration
    5.  Seat, place of hearings and language of arbitration
    6.  Oral hearings and written proceedings
    7.  Default by one of the parties
    8.  Evidence generally and court assistance in taking evidence
    9.  Confidentiality of arbitral proceedings
  7.  MAKING OF THE AWARD AND TERMINATION OF PROCEEDINGS
    1.  Applicable law
    2.  Timing
    3.  Form, content and notification of the award
    4.  Settlement
    5.  Power to award interest and costs
    6.  Effect of the award
    7.  Correction, clarification and issuing of a supplemental award
  8.  THE ROLE OF THE COURTS
    1.   Jurisdiction of the courts
    2.  The supporting role of the courts
    3.  Interim protective measures
  9.  CHALLENGING AND APPEALING AN AWARD THROUGH THE COURTS
    1.  Jurisdiction of the courts
    2.  Action to set aside an international award made in Algeria
    3.  Appeals
  10.  RECOGNITION AND ENFORCEMENT OF AWARDS

The accession of Algeria to the New York Convention and the move towards a market-based economy has facilitated the evolution of international commercial arbitration. There is even a local centre for conciliation, mediation and arbitration, which is an alternative institution for the administration of arbitrations where the parties do not wish to use one of the major arbitral institutions based overseas. Parties may choose to submit any claim concerning an economic interest to arbitration, unless the claim deals with disputes over the status and capacity of persons, family matters or other matters of public order.

1. HISTORICAL BACKGROUND AND LEGISLATIVE FRAMEWORK

1.1 Historical background

1.1.1 Algeria has only experienced international commercial arbitration relatively recently. From Algerian independence on 5 July 1962 until the 1990s, the Algerian economy was a planned economy with a high proportion of state-owned companies which were considered an extension of the Algerian state. Arbitration was possible in this period but was mainly governmental arbitration rather than commercial arbitration.

1.1.2  After its accession to the New York Convention in 1989, it was not possible for Algeria to maintain the same rules. This, combined with a move towards a market-based economy, helped accelerate changes to the rules governing arbitration in Algeria. An amendment to the Civil Procedure Code in 1993 1 Legislative Decree 93-09 of 25 April 1993.  also introduced the possibility for companies (private as well as public companies that engage in international commercial relations), to settle their disputes by arbitration.

1.1.3 In 2008, a new Civil and Administrative Procedure Code, 2 Law 08-09 of 25 February 2008.  (CPCA) also made arbitration available for the resolution of domestic disputes (excluding disputes that fall within the mandatory competence of the Algerian courts) and administrative conflicts.

1.1.4 Algeria has adopted the traditional features of arbitration such as the autonomy of the arbitration agreement, the possibility of enforcement of international awards, limited court interference and party autonomy.

1.1.5 This chapter deals with international arbitration and domestic arbitration. Administrative arbitration is outside the scope of this chapter.

1.2  Legislative framework

1.2.1 The legislative provisions and legal principles governing commercial arbitration are set out in Title II (Arbitration) of Book V (Alternative ways of dispute resolution) of the CPCA. International arbitration is governed by Chapter VI (Specific provisions to international commercial arbitration) of Title II.

1.2.2 As mentioned above, Algeria is a signatory to the New York Convention and therefore subject to certain conditions (set out further in section 10 below) and it recognises international arbitral awards.

2. SCOPE OF APPLICATION AND GENERAL PRINCIPLES

2.1 Distinction between domestic and international arbitration

2.1.1 Like most countries with a civil law code, Algeria distinguishes between domestic and international arbitrations. This distinction is based on geographic and economic criteria.

2.1.2 Most of the provisions relating to domestic arbitrations 3 If we exclude administrative arbitration provisions.  are set out in Chapters I-V of Title II (Articles 1006–1038) of the CPCA. The CPCA is structured as follows:

  • Chapter I: The arbitration agreement;
    • Section I: Arbitration clause
    • Section II: Compromise
    • Section III: Common provisions
  • Chapter II: The arbitral tribunal;
  • Chapter III: The arbitral award;
  • Chapter IV: Recourse against arbitral awards;
  • Chapter V: Execution of arbitral awards. 

2.1.3 Chapter VI deals with International Commercial Arbitration (Articles 1039-1061 of the CPCA) and is structured as follows:

  • Section I: General provisions;
  • Section II: Organisation of international arbitration;
    • Sub-Section I: Designation of arbitrators
    • Sub-Section II: Arbitration body
  • Section III: Recognition and enforcement of arbitral awards made abroad or in international arbitrations;
    • Sub-Section I: Recognition of international arbitral awards
    • Sub-Section II: Execution of international arbitral awards
    • Sub-Section III: Recourse against international arbitral awards.

2.1.4 Despite the fact that the CPCA deals with international and domestic arbitrations separately, some of the domestic arbitration provisions are also applicable to international arbitration (e.g. provisions governing the execution of awards).

2.2 Algerian definition of international arbitration

2.2.1 In accordance with the CPCA, arbitration is considered international when a dispute relates to the economic interests of at least two states. 4 Art 1039 of the CPCA. “Economic interests” here refers to either private or public economic interests but excludes government interests. 5 It is worth mentioning that public entities cannot enter into arbitration agreements except in the case of international commercial contracts or public procurement (see 3.3.3 below).  

2.2.2 Algerian law does not distinguish between international commercial arbitrations seated in Algeria and arbitrations seated abroad, except when applying procedural rules (see section 9.1 below). Awards in both international commercial arbitrations seated in Algeria and arbitrations seated abroad are subject to the same conditions of validity.

3. THE ARBITRATION AGREEMENT

3.1 Definition

3.1.1 The CPCA maintains a distinction in domestic arbitrations between agreements to arbitrate future disputes (clause compromissoire) and agreements where the parties agree to submit already existing disputes (not governed by an arbitration clause) to arbitration (compromis). In both cases, the agreement to submit the dispute to arbitration must be in writing and must include the names and/or designations of the arbitrators.

3.1.2 However, the above distinction does not apply to international commercial arbitrations.

3.2 Formal requirements

3.2.1 Under Algerian law, an arbitration agreement is valid only if it is in writing. 6 Para 2 of Art 1040 of CPCA.  

3.2.2 Arbitration agreements are valid if they are contained in a document signed by the parties (either in the form of an arbitration clause included in a contract or compromis agreement) or in a written exchange of mutual, concordant understanding between the parties such as letters, emails, or other means of written communication.

3.3 Special tests and requirements of the jurisdiction

3.3.1 In principle, any claim concerning an economic interest can be the subject of an arbitration agreement.

3.3.2 However, disputes over the status and capacity of persons, family matters or other matters of public order may not be submitted to arbitration.

3.3.3 State entities are restricted in the settlement of their disputes and may not enter into either clause compromissoire or compromis agreements. The only exceptions to this are government entities, which are parties to international commercial contracts or public procurement contracts. 7 ibid, art 1006  

3.4 Autonomy of the arbitration agreement

3.4.1 The CPCA provides that the validity of an arbitration clause is not dependent on the validity of the underlying contract. 8 ibid, art 1040

3.5.1 If a party challenges the court’s jurisdiction on the grounds that the dispute is subject to arbitration – either because the dispute has already been submitted to an arbitral tribunal or because an arbitration agreement exists – the court must decline jurisdiction over that dispute. The court cannot, however, decline to act unless a party makes an application contesting its jurisdiction.

4. COMPOSITION OF THE ARBITRAL TRIBUNAL

4.1 Constitution of the arbitral tribunal

The parties’ right to appoint arbitrators

4.1.1 In domestic arbitrations, the designation of arbitrators (or at least the provision for a mechanism for their appointment) is a condition of the validity of the arbitration agreement.

4.1.2  In international arbitrations, Algerian law does not provide detailed rules for the appointment of arbitrators. The parties are consequently free to designate the arbitrators, their number – subject to them being odd-numbered – or provide for a procedure for the appointment of an arbitrator, either directly or by reference to arbitral or procedural rules. However, if the parties fail to agree on the arbitrator(s), or on the procedure for their appointment, this will not affect the validity of the arbitration clause. 9 ibid, art 1041  

4.1.3 Natural persons cannot act as arbitrators if they do not enjoy their full civil rights, for example, if they are convicted of a crime and as a consequence are prevented from carrying out certain actions, such as taking on a public function, being employed in an educational establishment or acting as a guardian. A corporate body must designate natural person(s) to represent it in arbitration proceedings.

The courts’ assistance in the appointment process

4.1.4 Article 1041 of the CPCA outlines the procedure that must be followed when the parties do not agree on the constitution of the arbitral tribunal. There are three possible situations:

  • the seat of arbitration is in Algeria. In this case, the president of the court of the venue of arbitration has competent jurisdiction to decide on the constitution of the tribunal.
  • the seat is located abroad but the parties have agreed that Algerian procedural rules will apply. In this case, the president of the Algerian court would have competent jurisdiction.
  • the arbitration agreement does not specify the competent jurisdiction. The competent jurisdiction would be the place of signature or execution of the contract.

4.2  Procedure for challenging and substituting arbitrators

Procedure for challenging an arbitrator

4.2.1  An arbitrator may be challenged:

  • if the arbitrator does not fulfill the requirements agreed between the parties;
  • if the arbitration agreement provides for grounds under which the arbitrator may be challenged; or
  • if there are justifiable doubts as to the impartiality or independence of the arbitrator, in particular if the arbitrator has direct or indirect ties, including economic and/or family ties, with one of the parties. 10 ibid, art 1016  

4.2.2  However, once the arbitration tribunal is constituted, the arbitrator cannot be challenged unless the parties unanimously agree.

4.2.3  A party can only challenge an arbitrator that it has appointed if the grounds for such a challenge become apparent after the appointment has taken place. 11 ibid  

4.2.4  If the parties cannot agree on the removal of an arbitrator, Article 1016 provides that the issue will be resolved by a court order in a summary procedure upon the request of a party. The court order may not be appealed. 12 ibid  

Replacement

4.2.5  Arbitrators should carry out their mandate until it is completed unless they become legally incapacitated or there is a legitimate reason for them to resign. In cases of contestation, the same rules of designation/challenging arbitrators, as outlined above, apply.

4.3 Duty of disclosure

4.3.1 Arbitrators are under an obligation to disclose to the parties any information which could constitute a possible ground for challenge, as well as any circumstances that may affect their independence or impartiality.

4.3.2 However, Algerian law is ambiguous as to whether this duty only applies before the arbitration commences or if it continues to apply throughout the arbitration.

4.3.3  Article 1015 of the CPCA provides that an arbitrator who finds himself in a situation where there are grounds for challenging his appointment, must disclose this relevant information and cannot accept the appointment as arbitrator unless the parties agree.

4.4 Arbitrator fees

4.4.1 Algerian arbitration law does not specifically address the fees and expenses of an arbitration. General provisions of civil law, notably those governing contracts, are therefore applicable.

4.4.2 Parties should therefore either agree on such fees or let the arbitrators decide how to fix the fees.

4.5 Liability and immunity of arbitrators

4.5.1 Algerian arbitration law does not provide specific rules for the liability of arbitrators. As arbitration is considered to be an alternative to judicial proceedings, the liability of an arbitrator will be similar to that of a court judge. General rules of civil law – and sometimes criminal law – related to personal liability are likely to apply, for example, in the case of negligence or non-disclosure of a conflict of interest.

5.  JURISDICTION OF THE ARBITRAL TRIBUNAL

5.1  Competence to rule on jurisdiction

5.1.1 Algerian law follows the doctrine of kompetenz-kompetenz, the principle that an arbitral tribunal may determine its own jurisdiction. This principle is reflected in the following provisions:

  • Article 1044 of CPCA provides for the competence of the arbitral tribunal regarding its own competence (subject to any objections in limine litis); and
  • Article 1045 of CPCA provides that a court shall decline jurisdiction if arbitral proceedings are pending or if one of the parties is contesting the court’s jurisdiction on the ground that an arbitration agreement is in place. 

5.2  Power to order interim measures

5.2.1 The arbitral tribunal may make an interim order, based on the request of any party, that it deems appropriate. 13 ibid, art 1046 of CPCA.  However, this competence is not absolute since the parties may agree to exclude the arbitral tribunal’s ability to make interim orders.

5.2.2 An interim measure ordered by the arbitral tribunal is not automatically enforceable. If a party does not comply with an order, the arbitral tribunal will request the courts to enforce it. 14 ibid  

5.2.3 Interim measures may also be subject to security provisions.

6. CONDUCT OF PROCEEDINGS

6.1.1 Algerian law does not specify the procedural rules for conducting an arbitration. However, there are some rules in the CPCA applicable only to domestic arbitrations, others to both domestic and international arbitrations and others applicable only to international arbitrations.

6.2 Arbitral tribunal’s discretion and its duty of fairness and diligence

6.2.1 If the parties do not specify the procedural rules applicable to the arbitration – either an ad hoc procedure or an institutional one – the arbitral tribunal has the discretion to establish or determine the applicable procedural rules either by preparing its own rules or by referring to a set of arbitration rules, meaning the procedural rules of an existing arbitration centre such as the ICC or the UNCITRAL Rules. 15 ibid, art 1043

6.3 General procedural principles

6.3.1 The CPCA does not specifically regulate the procedure applicable to arbitration, however its provisions do include some general principles to be followed.

6.3.2 For example, the principle of due process (principe de la contradiction) is mentioned as a possible ground for setting aside an arbitral award but is not present in any other provisions.

6.3.3 However, in domestic arbitration Article 1019 of the CPCA provides that, when the parties have not agreed on the deadlines or form of the arbitral proceedings, the rules of the competent local court will apply. These include rules such as that the form of the introduction of the request must be a written request signed and dated by the applicant, his representative or his lawyer and provided in as many copies as there are parties. In addition, this request must contain – though not exclusively so – under penalty of formal inadmissibility, information such as a summary statement of the facts to support the action. By contrast, international arbitration is governed by a more flexible rule which allows the arbitral tribunal to set its own rules based on legal provisions or institutional rules. 16 ibid  

6.4 Commencement of arbitration

6.4.1 Algerian law does not specify a commencement date for arbitral proceedings.

6.4.2 However, the CPCA provides that the arbitral tribunal is completely constituted once the arbitrators accept their mandate. 17 ibid, art 1015  Whilst this date is not very significant under Algerian law, it can serve as a reference point for the duration of the arbitrators’ mission in the absence of arbitral rules.

6.4.3 From the date the tribunal is constituted, the tribunal is empowered to determine its competence, make any interim orders or put in place protective measures.

6.5 Seat, place of hearings and language of arbitration

6.5.1 The CPCA does not regulate the seat and language of arbitral proceedings. These are determined by the parties or, in the absence of an agreement between the parties, by the arbitral tribunal itself, which will have the discretion to determine the language and the seat.

6.5.2 The seat of arbitration determines the competent court for the enforcement of interim or protective measures and the arbitral award.

6.6 Oral hearings and written proceedings

6.6.1 Algerian law does not regulate the exchange of the parties’ written arguments nor the form or dates of any hearings.

6.6.2 General rules based on the practice of arbitration (ie those utilised in international arbitrational practice) apply without restriction and are not considered to be in contradiction with the CPCA. The parties communicate written submissions containing their arguments and the legal basis for their request, supported by extensive documentation. In domestic arbitrations, documents and written submissions have to be submitted at least 15 days before the end of the arbitration deadline (please see sections 7.2.1 and 7.2.3 below). It appears that – without an agreement between the parties to the contrary – this deadline would also be applicable to international arbitrations.

6.6.3 Hearings are not mandatory but can be requested by the parties. The arbitral tribunal remains free to decide if hearings will take place but, generally, when a party requests a hearing in order to present oral arguments, the arbitral tribunal will respond favourably unless the parties have agreed beforehand that no hearings will be held. When a hearing is set, both parties must be notified sufficiently in advance so they can prepare their oral arguments.

6.7 Default by one of the parties

6.7.1  There are no specific provisions in the CPCA that deal with a default by one of the parties. The arbitral tribunal is free to take provisional measures. However, as considered previously (paragraph 5.2.2), enforcement of these measures would require the support of the court. Therefore, when a party is absent or does not respond to a request, the court can be requested to enforce or make an interim order.

6.8 Evidence generally and court assistance in taking evidence

6.8.1 Under Article 1047 of the CPCA, the arbitral tribunal is responsible for managing the rules related to the production of evidence. However, the arbitral tribunal cannot require a party to attend the proceedings or a third party to produce evidence. Nonetheless, the CPCA allows the tribunal to request assistance from the court at any moment if a party to the proceedings or a third party is reluctant to provide evidence. 18 ibid, art 1048

6.9 Confidentiality of arbitral proceedings

6.9.1 In contrast to other alternatives to dispute settlement, 19 ibid, art 1005 related to secrecy in the mediation.  there are no provisions in the CPCA governing the confidentiality of arbitral proceedings.

6.9.2 In the absence of a protective provision, it is necessary for the parties to include a confidentiality provision in the arbitration agreement or in a separate binding document in order to ensure the confidentiality of the proceedings.

7. MAKING OF THE AWARD AND TERMINATION OF PROCEEDINGS

7.1 Applicable law

7.1.1 The parties may choose the law to be applied to the dispute. In the absence of such a choice by the parties, the arbitrators will apply the rules of Algerian law and those that they consider appropriate. 20 ibid, art 1050  

7.1.2 The CPCA gives the parties and arbitrators greater flexibility in the choice of law, allowing the application of private rules instead of the law of one specific country and the possibility to refer to common practice in some specific sectors of activity (such as in maritime disputes). 21 ibid  

7.2 Timing

7.2.1 There are no specified time limits for arbitrations under Algerian law. The parties are free to fix the timing of the proceedings or to let the arbitral tribunal fix the timings.

7.2.2 However, when parties determine a time limit for an award to be made, the arbitration must be terminated at that date unless an extension is agreed. Even in the absence of case law, the courts would likely hold the arbitrator personally liable towards the parties if he/she does not respect the agreed time frames.

7.2.3 In domestic arbitrations, in the absence of a specified time limit, the arbitration must take place within four months of the arbitrators being appointed or from the date the arbitral tribunal is constituted. 22 ibid, art 1018  The statutory or contractual duration of the arbitral tribunal’s mandate may be extended by an agreement between the parties or, in the absence of such agreement, by a judge or arbitrator (the latter if permitted to do so by the arbitration rules).

7.3 Form, content and notification of the award

7.3.1 Algerian law does not prescribe a specific form for an international arbitral award. However, there are mandatory rules governing the form of domestic arbitral awards which will also be applicable to international arbitral awards.

7.3.2 Articles 1025-1031 of CPCA have implicitly introduced the requirement of ‘written awards’. Implicitly, because the law does not explicitly require the award to be in written form but does set out certain requirements for the form and content of the award 23 ibid, art 1027 and 1028  and requires the award to be signed. 24 ibid, art 1029  

7.3.3 However, the award should be in written form in order for it to be enforced or for the parties to have recourse to the courts. 25 ibid, art 1052  

7.3.4 Pursuant to Article 1027 of the CPCA, the award must succinctly set out the respective claims and arguments of the parties. Most importantly, the award must state the grounds upon which it is made.

7.3.5 The award must set out:

  • the names of arbitrators who made the award;
  • the date of the award;
  • the place where the award was made;
  • the full names of the parties as well as their domicile or corporate headquarters; and
  • if applicable, the names of counsel or other persons who represented or assisted the parties. 26 ibid, art 1028  

7.3.6 The award is given following a majority decision of the tribunal 27 ibid, art 1026  and must be signed by all of the arbitrators. 28 ibid, art 1027  However, if some of the arbitrators refuse to sign the award, the other arbitrators can sign the award and, in such circumstances, the award will be as valid as if it was signed by all arbitrators.

7.3.7 The deliberations of the arbitrators are secret. 29 ibid, art 1025  

7.3.8 Algerian law does allow the parties or the applicable arbitral rules to determine whether the award is final and binding. There is no specific provision in the CPCA governing appeals of international arbitration awards except those seated in Algeria. The parties may agree that an international arbitration award is not subject to an appeal on its merits, however, it may still be set aside by the competent local appeals court on the grounds set out in paragraph 9.2.3. In domestic arbitrations, the award may be subject to an appeal at the competent appellate court unless the parties have agreed to exclude the possibility of appeal.

7.4 Settlement

7.4.1 Parties may resolve their dispute during the arbitral proceedings. In such cases, the parties may sign an agreement providing for an amicable settlement of the dispute, thereby ending the arbitral proceedings. Alternatively, the parties may ask the arbitral tribunal to make an award setting out the terms upon which the dispute is to be resolved amicably, which is called an agreement award (accord-parties). The accord-parties is considered to have the same validity and enforceability as an arbitral award and the same rules and conditions apply to an accord-parties as they do to an arbitral award.

7.5 Power to award interest and costs

7.5.1 Algerian law does not specify any rules for the settlement of the cost of the arbitral proceedings. It is for the arbitrators to determine cost issues. An award of interest is usually a matter governed by the law applicable to the substance of the dispute. However, it is important to keep in mind that Algerian law prohibits usury. Therefore, the calculation of interest should be based on objective grounds, otherwise it could be considered usury and therefore would be prohibited.

7.5.2 The costs of the arbitration also include the fees and expenses of any arbitral institution involved in the proceedings. Although the arbitrators have the right to determine their fees, these amounts will often be determined in accordance with the applicable arbitral rules (ie the applicable ad hoc rules or the rules determined by arbitration centres such as the ICC or the UNCITRAL rules). 30 See ICC Arbitration Rules (2017), art 37 and appendix III, art 2 and LCIA Arbitration Rules, art 28.  

7.6 Effect of the award

7.6.1 The CPCA does not specify the binding effect of international arbitral awards. Algerian law allows the parties or the applicable arbitral rules to determine:

  • whether the award is final and has a binding effect upon the parties from the date it is given; or
  • whether it will have such an effect from the date the parties are notified of the award; or
  • whether any proceedings are necessary to give it such an effect.

7.6.2 Nevertheless, the CPCA sets out general rules that are applicable to domestic awards and which also appear – given their general character – to apply to international arbitral awards. Based on these rules, as soon as the award is made, it acquires res judicata with regard to the claims adjudicated in that award. 31 Art 1031 of the CPCA  This means that the role of the arbitral tribunal with respect to the dispute subject to the arbitration, ends once it gives the award. 32 ibid, art 1030

7.7 Correction, clarification and issuing of a supplemental award

7.7.1 Once an award has been made, the arbitral tribunal cannot rule on the issues that have already been resolved by the granting of the award. It may, however, interpret the award, correct clerical errors and omissions or make an additional award where it has failed to rule on an issue. 33 ibid  The law does not fix a deadline for requesting a correction or clarification, but the request for clarification or correction should be made under the same rules as were followed in respect of  the initial application to the arbitral tribunal.

8. THE ROLE OF THE COURTS

8.1  Jurisdiction of the courts

The courts’ obligation to decline jurisdiction because of an arbitration agreement

8.1.1 As mentioned at paragraph 3.5.1, when a party challenges the court’s jurisdiction on the grounds that an arbitration agreement is in place, or when an arbitral tribunal is already constituted, Algerian courts must decline to exercise their jurisdiction.

8.1.2 In cases where the court is not automatically informed about the existence of an arbitral agreement or about the existence of a pending issue at the arbitral tribunal, a party who wishes to object to the court’s jurisdiction, must notify the court before any discussion on the merits of the case. In the absence of such an objection, and even if the court has knowledge of the existence of an arbitration agreement or a pending issue, the court cannot decline jurisdiction of its own initiative.

8.1.3  Moreover, the court cannot rule on the validity of the arbitration agreement because of the applicability of the kompetenz-kompetenz principle. 34 Please refer to para 5.1.  

Claims relating to the constitution of the arbitral tribunal

8.1.4  If the constitution of an arbitral tribunal is disputed before the courts and the arbitration agreement is manifestly void or not applicable, the president of the court will declare that no appointment needs to be made and the tribunal will not need to be constituted. 35 Art 1009 of the CPCA  

8.2 The supporting role of the courts

8.2.1 The president of the court of first instance has the power to support any international arbitral proceedings, including arbitral proceedings which have their seat in a foreign country. The judge may be requested to:

  • act as an appointing authority;
  • extend the time limits for arbitration;
  • decide on incapacity;
  • remove or replace an arbitrator;
  • obtain evidence;
  • enforce the arbitral award; and/or
  • review any interim measure decided or requested by the arbitral tribunal.

8.2.2 This supporting role of the court is meant to reinforce the authority of the arbitral tribunal and enable the parties to conduct the arbitral proceedings in accordance with the principles of due process and equal treatment of parties.

8.3 Interim protective measures

8.3.1 Pursuant to Article 1046 of the CPCA, provisional and protective measures may, in principle, be ordered by the arbitral tribunal itself. However, the enforcement of these measures – in cases where a party refuses to execute them – relies on the support of the court. Either the arbitral tribunal or the judge may request security to be put in place before ordering a provisional or protective measure.

9. CHALLENGING AND APPEALING AN AWARD THROUGH THE COURTS

9.1 Jurisdiction of the courts

9.1.1 In contrast to domestic arbitrations 36 Except as otherwise agreed by the parties.  where the award can be appealed, 37 Art 1033 of the CPCA.  arbitral awards in international arbitrations are not subject to appeal. Moreover, neither domestic nor international arbitral awards can be opposed by a party who has not attended the original proceedings. However, in domestic arbitrations, third parties may introduce proceedings in front of the competent court. 38 ibid, art 1032

9.1.2 The Algerian courts will not entertain any challenge or appeal against awards made in international arbitrations. Such awards can only be subject to an action by the unsuccessful party attempting to resist enforcement (for example, by arguing that seized goods are owned by a third party).

9.1.3 When the award is made in Algeria, the only court action available to an unsatisfied party is an action to set aside the award (recours en annulation). 39 ibid, art 1058

9.2 Action to set aside an international award made in Algeria

9.2.1 An action to set aside an award must be brought before the appeal court in the place where the award was made. 40 ibid, art 1059  The court deciding an action to set aside an award cannot re-hear the case or overturn the arbitral tribunal’s findings of fact or law. The court can only declare the award null and void on the limited grounds contained in Article 1056 of the CPCA, which are listed below. If the judge decides to set aside the award, this decision does not affect the existence of the arbitration agreement. As a result, the parties may resubmit their dispute to the arbitral tribunal.

Limited grounds of challenge

9.2.2 Article 1056 of the CPCA sets out the limited grounds upon which international awards made in Algeria may be challenged by an application to set aside the award. These grounds reflect the provisions of the New York Convention 1958, are restrictive and enable the courts to ensure observance of certain minimum standards for the international enforceability of an award.

9.2.3 An international award made in Algeria may be challenged on the following six grounds:

  • the arbitral tribunal was not properly constituted, or an arbitrator was wrongly designated;
  • there was no arbitral agreement, or the arbitration agreement was null or expired;
  • the arbitral tribunal did not comply with the mandate conferred upon it;
  • the adversarial principle (requiring that both sides must be heard) was not respected;
  • the arbitral tribunal had not explained its decision or there was inconsistency in the statement of reasons; or
  • the award was contrary to international public policy. 41 ibid, art 1056     

9.2.4  The action to set aside an award can be initiated as soon as the award is rendered but the right to do so expires after one month from the notification of the decision enforcing the award. An action to set aside an award will suspend the enforcement of the award.

Interim enforcement of international awards pending actions to set aside

9.2.5  During an appeal of the order for enforcement of the award or the time of the action to set aside an award, the enforcement of an award is suspended. However, this is not the case if the application to set aside the award or the challenge to enforcement is taking place in another jurisdiction.

9.2.6  An application to set aside an award is deemed to be an appeal against the enforcement order of the award or discharge of the court from deciding on the application for enforcement, if it has not yet decided on that application. 42 ibid, art 1058

9.3 Appeals

9.3.1 Appeals against the decision of the court can be made to the Supreme Court. Such an appeal is, however, limited to recognition of the arbitral tribunal, enforcement of the arbitral award or the setting aside of an award. 43 ibid, art 1061  

10. RECOGNITION AND ENFORCEMENT OF AWARDS

10.1.1  An international arbitral award, whether made in Algeria or abroad, is recognised in Algeria if its existence can be established by the presentation of the award and the arbitration agreement, and if its enforcement is not manifestly contrary to international public policy. 44 ibid, art 1051  Provisions governing the enforcement of foreign international arbitral awards are the same as those applicable to international arbitral awards made in Algeria,  except for the provisions concerning the competent court.

10.1.2 Based on Article 1052 of the CPCA, it is necessary to provide the court with an original copy of the award or copies of such documents which satisfy the conditions required for their authenticity to obtain an enforcement order. Hence, the existence of an award may be proven either by producing originals of both the award and the arbitration agreement or by producing duly authenticated copies. If these documents are not in Arabic, a translation must be provided to the court. Algerian law does not appear to permit the recognition or enforcement of an arbitral award if the award is not in written form.

10.1.3 The award may only be enforced by an enforcement order (exequatur) issued by the president of the first court (président du tribunal) of the place where the award was made. 45 ibid  In the case of international awards made outside Algeria, the competent jurisdiction will be the president of the first court of the place of execution. Exequatur proceedings are not adversarial and the request for enforcement must be filed with the Court Registrar. 46 ibid, art 1053  

10.1.4  Orders denying the enforcement of an award can normally be appealed. Such appeals must be brought within one month of service of the enforcement order. 47 ibid, art 1057  

Amine Sator