Code of rules

CODE OF RULES FOR CASE ADJUDICATION BY THE COURT OF ARBITRATION OF COMMERCIAL DISPUTES

Passed on 25.09.2006, in force from 01.10.2006; Amended on 01.11.2006; Amended on 15.06.2007; Amended on 01.03.2008; Amended on 08.07.2008; Amended on 11.01.2010; Amended on 30.06.2010; Amended on 14.03.2013; Amended on 30.09.2016.

GENERAL REGULATIONS

Court of Arbitration

Article 1

(1) The Court of Arbitration of Commercial Disputes at Association “Court of Arbitration of Commercial Disputes” is an independent justice administering institution. The Court of Arbitration organisation and the arbitrators’ status are determined by the Court of Arbitration Statute.

(2) (Amended on 11.01.2010) The Court of Arbitration shall decide civil disputes, as well as disputes due to contract deficiencies or adaptation of contracts to newly arisen circumstances, irrespective of whether the seat or abode of one or both parties is in Republic of Bulgaria or abroad.

Grounds of Court of Arbitration competence

Article 2

(1) The Court of Arbitration shall hear disputes under article 1 , paragraph 2, if they are assigned to it by an Arbitration agreement.

(2) The Arbitration agreement shall be in writing. The agreement shall be deemed to be in writing also when it is contained in letters, telegrams and other written means of communications, exchanged between the parties, or in general conditions, referred to in a written contract signed by the parties.

(3) Existence of a written Arbitration agreement is also presumed, when the claimant submits a claim to the Court of Arbitration and the defendant, in writing or by declaration, recorded in the minutes of the arbitration session, accepts the dispute to be heard by the Court of Arbitration or performs an action, aimed at hearing the dispute upon its merits, without challenging the Court of Arbitration competence.

Applicable rules of procedure

Article 3

(1) Unless the parties have agreed otherwise, their consent to assign the dispute to the Court of Arbitration of Commercial Disputes represents also acceptance of the present Code of rules .

(2) The Court of Arbitration shall apply the rules for hearing the dispute, agreed between the parties, unless they contradict some imperative regulations of the law, applicable to arbitration or the principles of this Code of rules.

(3) When the rules of procedure are not set by the International Commercial Arbitration Act, by this Code of rules or by agreement between the parties, the arbitrators shall proceed according to their reasonable judgement, taking into account the nature of arbitration and the disputed issue, in each case providing equal defence opportunities to the parties.

(4) In cases, based on Arbitration agreement, shall apply the rules of this Code, which are in force at the beginning of the arbitration proceedings, unless both parties request the application of the rules, which were in force at the time of conclusion of the Arbitration agreement or came in force after the beginning of the arbitration proceedings.

(5) If a party does not react without delay, in writing or during an arbitration session, against infringements of a rule of procedure under paragraph 1 and 2, it shall be presumed that it has renounced its right to refer to the infringement.

CLAIM AND REPLY BRIEF

Claim presentation

Article 4

(1) The arbitration proceedings shall begin by lodging a claim application at the Court of Arbitration of Commercial Disputes.

(2) The claim application shall be deemed lodged on the day it is delivered at the Court of Arbitration Secretariat, or if sent by mail – on the day, stamped at the Post office of dispatch.

Claim application content

Article 5

(1) (Amended on 11.01.2010) The claim application shall contain:

  1. Full names of the parties.
  2. Parties’ addresses, telephones, telefaxes, e-mail addresses for summoning.
  3. Claim value.
  4. Statement of the circumstances on which the claim is based.
  5. The essence of the claim.
  6. The name of the arbitrator and his/her deputy, chosen by the claimant or a request for them to be appointed by the Court of Arbitration Chairman, except in the case of non-attended proceedings under article 47a-47k of this Code of rules.
  7. A list of documents, enclosed with the claim application.
  8. Signature of the claimant.

(2) The claimant shall be obliged to present in the claim application all evidence and submit the written evidence of the circumstances, on which the claim is based.

(3) The following documents shall be enclosed with the claim application:

  1. Arbitration agreement, when the Court of Arbitration of commercial disputes has the competence.
  2. (Revoked on 14.03.2013)
  3. Proof of payment of arbitration fee and expenditures deposit.
  4. A number of claim application transcripts and written evidence, corresponding to the number of defendants plus one set for a reserve file.

(4) The claimant may add to the claim application a written request for an expert appraisal, pointing out particular issues.

Claim value. Determination of Arbitration fee.

Article 6

(1) The claim value shall be determined:

for claims about pecuniary takings – by the magnitude of the claimed amount;

for claims about handing over of things – by their value;

for claims about establishment or conversion of legal relations  –   by the value of the contract at the time of  claim application submission, and for renting contracts of unlimited duration –  by the rate of annual rent;

for claims about periodic payments for a fixed period of time – by the sum of all payments, and for unlimited period of time – by the sum of payments for three years.

(2) The claim value shall be included by the claimant in the claim application. When the claim application refers to several claims,  the claim value of each of them shall be stated separately.

(3) When presenting objections for deduction, the defendant shall state the value of his/her receipts according to the rules in paragraphs 1 and 2.

(4) When the claimant has not determined or has determined incorrectly the claim value, as well as when the correct assessment of latter is not possible, the Court of Arbitration of Commercial Disputes Chairman, by his/her own initiative or at claimant’s request, shall determine the claim value on the basis of available data.

(5) If during the hearing of a case it becomes clear, that the claim value has not been determined in accordance with the rules of preceding paragraphs, the claim value shall be determined finally by the Deciding body.

(6) The above rules apply also to determination of  the value of any objections for deduction.

(7) The claimant shall pay in an arbitration fee, depending on the total amount of all presented claims, and the defendant shall pay in an arbitration fee, depending on the value of the submitted counterclaims and objections for deduction.

Preliminary verification of Court of Arbitration competence

Article 7

(1) If in his/her claim the claimant does not refer to arbitration agreement or fails to present it, the Court Secretariat shall invite him/her to present it or to declare in writing that, in spite of absence of arbitration agreement desires a transcript of the claim application to be delivered to the defendant.

(2) (Amended on 30.09.2016) If within the given time limit the claimant does not present an agreement, stipulating the Court of Arbitration of Commercial Disputes competence and does not declare in writing that desires a transcript of the claim application to be delivered to the defendant, as well as when a presented arbitration agreement refers to a dispute, that can not be heard by arbitrators, the claim shall be returned to the claimant by order of a member of the Court of Arbitration Chairman’s Council.

(3) If within the time limit stated in the invitation the claimant presents an arbitration agreement stipulating the Court of Arbitration of Commercial Disputes competence, The Court of Arbitration of Commercial Disputes Secretariat shall send him/her a notice to pay in the arbitration fee due and the specified expenditure deposit.

(4) If within the time limit of paragraph 1 the claimant fails to present an agreement, but declares in writing that desires a transcript of the claim application to be delivered to the defendant, the Secretariat shall send him/her a notice to pay in the minimal arbitration fee according to the respective scale. If the defendant does not object against the case being heard by the Court of Arbitration, the claimant shall pay in the remaining part of arbitration fee up to the full amount due according to the scale.

Claim deficiencies elimination

Article 8

(1) If the claim does not meet the requirements of article 5, paragraph 1 or the attachments under article 5, paragraph 3, points 3 and 4 have not been submitted, the Court Secretariat shall give the claimant a period of time to eliminate the deficiencies. The period shall not be longer than 15 days from the day of receiving the notification. The case shall remain suspended until the deficiencies are elimination.

(2) (Amended on 30.09.2016) If the claimant disputes the Secretariat’s stand on the claim regularity, the issue shall be resolved by a member of the Court of Arbitration Chairman’s Council.

Reply brief

Article 9

(1) After receiving the claim application and payment of the arbitration fee and expenditure deposit, the Secretariat shall notify the defendant by sending him/her a transcript of it together with the attachments, as well as a list of the arbitrators.

(2) (Amended on 15.06.2007) At the same time the Secretariat shall inform the defendant that within 10 (ten) days from receiving the copy of the claim application he/she may send his/her reply brief, supported by suitable evidence and suggest additional issues for the appraisal under article 5, paragraph 4.

(3) (Amended on 15.06.2007) (Amended on 30.09.2016) By the same time deadline the defendant shall announce the names of the arbitrator and the deputy, chosen by him/her. In case the defendant nominates an arbitrator or a deputy, chosen by the claimant, or fails to name them, they shall be appointed by a member of the Court of Arbitration Chairman’s Council.

(4) (Amended on 14.03.2013) The defendant may lodge a counterclaim or an objection for deduction if the dispute about its takings is within the Court of Arbitration competence. The counterclaim or objection for deduction has to be submitted within the time limit for the reply brief and the provisions of article 4, paragraph 2 and articles 5 – 8 apply to them. An objection for deduction may also be made later than that, provided that it is explicitly accepted by the claimant or it has been judicially established by force of res judicata.

(5) The absence of a reply brief does not indicate claim admission.

(6) (New – 01.03.2008) (Amended on 30.09.2016) In case of several claimants or defendants, who have named more than one arbitrator, a member of the Court of Arbitration Chairman’s Council shall appoint one among those chosen for the case and a spare one.

DOCUMENTS, NOTICES AND DELIVERY

Submission of case documents

Article 10

(1) All documents shall be submitted in such a number of copies, that each side shall have one and the Court of Arbitration at least two copies.

Sending and delivery of documents

Article 11

(1) The Court Secretariat shall send to the parties all documents, notices and subpoenas concerning them,  to the addresses, given by them or to addresses of their properly authorized representatives.

(2) The claim application, reply brief, arbitration awards and rulings shall be sent by registered mail with advice of delivery. Subpoenas and other notices may also be sent by telegram, telex or telefax and are considered delivered if there is evidence of being received.

(3) All above mentioned documents may be personally delivered to the party or its representative against a receipt.

(4) (New – 01.03.2008) (Amended on 11.01.2010) (Amended on 30.09.2016) By order of a member of the Court of Arbitration Chairman’s Council or an arbitrator from the panel of the particular case, documents may be delivered also by a private judicial executor or notary public. In such a case the rules of the Code of Civil Procedures are applicable.

(5) (Amended on 11.01.2010) In the presence of explicit notification or consent of the party, recorded in the minutes of an open arbitration session, the documents mentioned in the preceding paragraphs may be delivered to the party or its representative also at an e-mail address, the delivery being attested by the respective employee at the Court of Arbitration for Commercial Disputes Secretariat. Under the same conditions the parties and experts may send to the Court of Arbitration any statements, pleadings, conclusions, etc.

Receiving of documents, subpoenas and notices

Article 12

(1) (Amended on 11.01.2010) When after a diligent search the seat, domicile, usual place of abode or postal address of the recipient cannot be found, the documents, notices or subpoenas are deemed received if sent to his/her last known seat, domicile, usual place of abode or postal address by registered mail or by any other means, which proves the attempt to be delivered. Diligent search shall be considered diligent when the documents have been sent at least twice and by different courier companies, by a private judicial executor or notary public.

(2) (Amended on 14.03.2013) The document under paragraph 1 shall also be considered delivered when the recipient has refused or failed to appear at the post office or the office of the courier service to receive it, if they attest to it.

(3) The period for procedural actions of the parties shall begin on the day in which the addressee receives the notice. Should the deadline happens falls on a non-business day, the period of time shall expire on the next working day.

DECIDING BODY

Deciding body composition

Article 13

(1) The Court of Arbitration hears and decides the disputes assigned to it through a Deciding body, which may consist of one or three arbitrators.

(2) (Amended on 30.09.2016) A member of the Court of Arbitration Chairman’s Council may offer to the parties to agree the case to be heard and decided by one arbitrator, nominated by mutual agreement of both parties or alternatively to leave to the member of the Court of Arbitration Chairman’s Council to name it.

Panel of arbitrators

Article 14

(1) When the Deciding body consists of three arbitrators, each party shall selects one arbitrator and his/her replacement, and on their part, within 7 days from the announcement of their selection, the two arbitrators shall select from the list of arbitrators the Deciding body chairman.

(2) (Amended on 11.01.2010) (Amended on 30.09.2016) If the claimant or the defendant fails to name an arbitrator, or the arbitrators fail to select Deciding body chairman within the time limits of the preceding paragraph, a member of the Chairman’s Council shall appoint an arbitrator or Deciding body chairman from the list of arbitrators.

(3) When there are several claimants or defendants, they shall select by mutual agreement one arbitrator and his/her replacement. If no consent between claimants or defendants is reached, the arbitrator and the replacement shall be appointed by a member of the Court of Arbitration Chairman’s Council.

(4) (Amended on 11.01.2010) The decision under paragraph 2 and 3 is final.

Single arbitrator

Article 15

(Amended on 30.09.2016) By consent of the parties or if explicitly stated in the arbitration agreement, the case may be heard and decided by a single arbitrator, selected by them from the list of arbitrators. In such a case they shall also select his/her replacement. If the parties cannot agree about the selection, the arbitrator and his/her replacement shall be appointed by a member of the Court of Arbitration Chairman’s Council.

Arbitrators replacement

Article 16

(1) If the arbitrator does not accept the appointment, passes away, is impeded or fails to carry his duties for more than 30 days, he shall be replaced by the arbitrator, named as his/her replacement. The same shall apply if the arbitrator is suddenly prevented from participation in a scheduled session or some of the grounds under article 7, paragraph 2 of the Statute of the Court of Arbitration of Commercial Disputes arises with respect to him. The replacing arbitrator shall continue with the case until its conclusion.

(2) Under the condition of the preceding paragraph, the Deciding body chairman shall be replaced by the method by which he was elected. The replacement of an arbitrator after a Deciding body chairman has been selected shall not lead to replacement of the Chairman.

(3) If conditions under paragraph 1 arise with respect to the replacement, the party which named him/her shall be invited to name another arbitrator and a replacement.

(4) In the cases outlined in paragraphs 1 – 3, if necessary and after consulting the parties, the Deciding body may discuss again the issues, discussed in sessions prior to the replacement.

Arbitrators challenge

Article 17

(1) When a person is nominated as an arbitrator, he/she shall state all circumstances, which may give rise to reasonable doubts about his/her impartiality and independence, by presenting a personally signed declaration at the Court Secretariat. The arbitrator has the same obligation after his/her appointment.

(2) Each party has the right to challenge an arbitrator and the Deciding body chairman if in doubt about their impartiality and particularly if there are indications of their personal, direct or indirect interest in the case outcome.

(3) The arbitrator or the Deciding body chairman shall be obliged to withdraw for the reasons stated in paragraph 1.

Withdrawal procedure

Article 18

(1) Challenge of an arbitrator shall be made not later than 7 days after the party has learned of Deciding body formation or after it has learned of circumstances, providing grounds for the challenge. A challenge cannot be made after the case has been declared clarified from factual and legal point of view and the Deciding body has proceeded to enact the case closing act.

(2) The challenge shall be in writing, addressed to the Court of Arbitration, stating the grounds for it.

(3) If the arbitrator does not withdraw and the opposite party does not agree with the challenge, the Deciding body shall pronounce a judgement on the challenge.

(4) If the opposite party agrees with the challenge or it is upheld, the new arbitrator or the Deciding body chairman shall be named or elected according to the provisions of this Code of rules. If the new arbitrator accepts the already elected chairman, he/she shall countersign the minutes of chairman’s election. In the opposite case a new chairman shall be elected by the method and within the time limits of article 14, paragraph 1.

Experts and interpreters challenge

Article 19

A challenge to an expert or interpreter may be made on the grounds, stated in paragraph 2 of article 17. The Deciding body shall pronounce a final judgement on the challenge.

CASE HEARING

Preparation for the hearing of a case

Article 20

(1) The Deciding body shall check whether the case is ready for a hearing and shall take steps for clarification of the case circumstances and completion of facts finding, so that the case could be decided quickly, economically and correctly. For that purpose the case may be discussed at a preliminary session without inviting the parties, who shall be  informed by the Deciding body about the contemplated measures and the time frame for their implementation.

(2) (Amended on 11.01.2010) An arbitrator, named by a party in the claim application or the Deciding body chairman may give the Court Secretariat directives concerning the case preparation. He/she may schedule the first session for hearing the case and direct the secretary to summon the parties, witnesses, experts and interpreters.

(3) (New – 01.11.2006) (Amended on 11.01.2010) (Amended on 30.09.2016) In the opinion of a member of the Court of Arbitration Chairman’s Council, after the claim application submission he may schedule the first session of the case hearing.

Court sessions venue

Article 21

(1) The court sessions shall be held in the town of Burgas.

(2) At parties’ request or by its own initiative, the Deciding body may hold its sessions in another place when necessary.

Summon to a session

Article 22

(1) The parties shall be sent subpoenas, indicating the time and place of the session. The subpoenas and notices shall be sent in such a way, that each party has at least 7 days to prepare and participate in the case hearing.

(2) By parties’ consent this interval can be shortened.

(3) When summoning a person with place of abode or seat outside Republic of Bulgaria, the period under paragraph 1 is 30 days.

Claim admission

Article 23

If the claim is admitted entirely and unconditionally in the defendant’s reply brief, the case shall be heard immediately without summoning the parties.

Case hearing

Article 24

(1) (Amended on 11.01.2010) The case shall be heard in a session at which the parties may participate personally or be represented by properly authorized representatives. A party’s representative may be a lawyer, jurisconsult or a person, explicitly authorized by a letter of authority with a notarial attestation.

(2) The case hearing shall not be public. By Deciding body’s decision and parties’ consent, the session may be attended by persons not involved in the case.

(3) With parties’ consent the case may be heard without them being summoned to a session, solely on the basis of the written evidence and written opinions, submitted by them. However, if the Deciding body finds that the case needs additional clarification, it may summon the parties to a session.

Failure of a party to appear

Article 25

(1) Failure of a party to appear, after being properly notified of the arbitration session time and venue, shall not be grounds for case postponement. It may be done only if the party, that failed to appear, has requested a postponement for good reasons.

(2) Each party may request the case to be heard in its absence.

(3) (New – 11.01.2010) In its request for postponement the party shall give a current address for a summon to the next session.

(4) (New – 11.01.2010) When a case is postponed, properly summoned parties will not be summoned to the next session, if its date has been announced during the previous one.

Objection about incompetence

Article 26

(1) The Deciding body shall pronounce a judgement concerning the Court of Arbitration competence when it has been challenged due to non-existence or invalidity of an arbitration agreement.

(2) An arbitration agreement, included in a contract, is independent from the rest of its clauses. A contract invalidity shall not mean by itself also invalidity of an arbitration agreement, contained in the contract.

(3) The objection that the Court of Arbitration is not competent shall be made at the latest in the reply brief. It may be made also by the party, which has appointed or has participated in the appointment of an arbitrator.

(4) When in the course of a case an issue arises, which is outside the Court of Arbitration competence, the challenge for incompetence shall be made immediately.

(5) The Deciding body may accept a challenge for incompetence made later, if there are good reasons for the delay.

(6) (Amended on 11.01.2010) The Deciding body shall make  a ruling concerning a challenge for incompetence before  the case becomes at issue upon its merit, unless the resolution of the challenge for incompetence dispute depends itself on the resolution of the dispute, which is the essence of the case. In such cases the Deciding body shall give the judgement in the award of the case.

(7) If the Deciding body rejects the challenge for incompetence, the arbitration proceedings shall continue, despite the fact that the defendant may refuse or refrain from participation in it.

Agreement

Article 27

(1) After the session opening the Deciding body shall offer to the parties to conclude the case by an agreement.

(2) The Deciding body may offer agreement in any stage of the case until pronouncing the award.

(3) If the parties reach an agreement in the presence of the Deciding body, it shall be entered in the session’s minutes and signed by the parties and the arbitrator(s).

(4) The agreements shall be reproduced in the arbitration award.

Claim security

Article 28

Unless the parties have agreed otherwise, the claimant may request the Court of Arbitration to provide a testimonial letter in confirmation of the existence of an arbitration case, to be used in a state court for securing his/her rights, presented in the claim in accordance with the International Commercial Arbitration Act.

Evidence

Article 29

(1) Each party shall prove the circumstances which are grounds of its claim or objections.

(2) Depending on the case circumstances, the Deciding body may accept as proven the facts, with respect of which a party has created obstacles in collecting evidence allowed by the Deciding body.

(3) A party may submit written evidence in original or as a copy certified by it. The Deciding body is entitled to request translation of these evidence into another language, when this is in the interest of the case hearing. Written evidence, submitted by a party, shall be delivered in due time to the other party .

(4) The evidence verification shall be carried in a manner, established by the Deciding body. It may entrust one of the arbitrators with the task. The parties shall be notified in due time about examinations of goods and things as well as inspections.

(5) The arbitrators asses the evidence by their own free conviction.

Collection of evidence

Article 30

(1) The Deciding body may demand that the parties present more evidence, may appoint experts or request organisations or persons to provide certificates or other documents in their possession, when it is necessary for the establishment of truth about the case. The parties shall be notified in due time of the officially collected evidence and they shall be allowed suitable time for taking a stand and presenting counterevidence.

(2) The Deciding body may order the parties to provide the experts with the necessary information or to provide access for inspection of documents, goods or other things, when this is necessary for reaching a conclusion. At each party’s request or by its own initiative the Deciding body may request the expert, after delivering his/her conclusion, to attend a session in order to provide clarification on the contested issue.

(3) The Deciding body may send one of its members abroad to collect evidence and the expenditures shall be advanced by the party, requesting the collection of those evidence.

(4) The witnesses shall be questioned if brought by the party, which has named them and has explained what circumstances they are going to establish.

(5) (New – 11.01.2010) The experts’ findings shall be submitted 5 (five) days before the session. They shall be available to the parties at the Court Secretariat. On demand, the findings shall be sent to a party, if it has provided an e-mail address.

State court assistance

Article 31

The Deciding body or an interested party with its consent, may request a competent court in the country or abroad to collect some evidence, necessary for the case.

Claim alteration

Article 32

The claimant may alter the submitted claim without the defendant’s consent. The Deciding body may refuse to allow the claim alteration, if that would impede unjustifiably the defendant’s defence or the timely conclusion of the case. These rules apply also to counterclaim alteration.

Third party participation

Article 33

Intervention and involvement of a third person shall be admissible only with the consent of both parties, and when involving – with the consent of the person to be involved. The same applies to recourse claim preferment against the involved person. The  involvement is possible until the deadline for the reply brief. The consent shall be in writing.

Case postponement and suspension of proceedings

Article 34

(1) At parties’ request or by its own initiative, the Deciding body may postpone or suspend a case by a ruling for a certain period of time not exceeding 6 months.

(2) The suspended case shall be terminated if within 6 months of the case suspension no party requests its resumption,

Minutes

Article 35

(1) For each arbitration session a secretary-stenographer, appointed by the Deciding body, shall take minutes. They shall be signed by the arbitrator or the panel chairman, as well as the secretary-stenographer.

(2) (New – 11.01.2010) The minutes shall be sent to the parties at their request, made during the session and after providing an e-mail address.

Applicable law

Article 36

(1) The Deciding body shall apply the law chosen by the parties. Unless they have agreed otherwise, the choice of law refers to substantive law and not to the collision norms.

(2) When the choice of law is inadmissible or the parties failed to chose applicable law, the Deciding body shall apply the law, specified by the collision norms, which the Deciding body considers applicable.

(3) In all cases the Deciding body shall apply the contract conditions and shall take into consideration the commercial traditions.

CONCLUSION OF THE PROCEEDINGS

Arbitral Award

Article 37

(1) When there are no obstacles for the case to be decided by merit, the arbitration proceedings shall be concluded by an award.

(2) An award is made not only when the claim is upheld but also when the claim is disallowed. When the case circumstances necessitate, a preliminary or partial award may be made.

(3) Award, which under the conditions of article 27, paragraph 4 reflects an agreement reached between the parties, has the validity of an ordinary award.

Award pronouncement

Article 38

(1) After the Deciding body finds that all circumstances, pertaining to the dispute, have been sufficiently clarified, it shall pronounce the contest concluded and proceed to give an award.

(2) The award shall be decided at a closed session by the majority of Deciding body members. The chairman shall vote last. If no majority can be formed, the award shall be given by the chairman.

(3) The award shall be reasoned, unless it reproduces an agreement reached by the parties.

(4) The award shall be prepared by the reporter and shall be signed by the chairman and members of the Deciding body. If some arbitrator cannot or refuse to sign the award, the Deciding body chairman shall certify that by his/her signature on the decision, stating the reasons.

(5) An arbitrator of dissenting opinion shall sign the decision immediately, indicating his stand by the abbreviation “d.o”. Within 7 days of the signing the arbitrator shall deposit in writing his/her dissenting opinion, which shall be attached to the decision. After that period of time it shall be deemed that the arbitrator has renounced his/her dissenting opinion. In such case the Deciding body chairman shall confirm the time limit expiration.

(6) When the case is decided by a single arbitrator, the award shall be prepared and signed by him/her.

(7) If before the deadline for submission of written stands on the case, given to the parties by the Deciding body, it is found that the right of a party to be heard has been infringed, that it has not been able to appear by reasons beyond its control, as well as not been able to inform the Court of Arbitration of such inability, that the case needs additional evidence or clarification of circumstances, vital for its correct resolving, the Deciding body shall resume the case hearing.

Award content

Article 39

The award shall contain:

The name of the Court of Arbitration.

Date and place of the award.

Arbitrators’ names.

Names of the parties and other persons, participating in the case.

Issue under dispute and a brief outline of case circumstances.

Dispositive of the award.

Reasons for the award.

Arbitrators’ signatures

Entering the award

Article 40

(1) (Amended on 11.01.2010) After signing the award in accordance with article 38, it shall be presented to the Secretariat by the Deciding body chairman or the single arbitrator and it shall be entered in the Court of Arbitration Awards Ledger. From that moment the award is considered given and becomes irrevocable. The Awards Ledger shall be available to the parties and their representatives.

(2) (Amended on 11.01.2010) The award shall be entered not later than 15 days after the deadline for submission of written stands by the parties, given by the Deciding body, and in the cases under article 38, paragraph 5 – when a dissenting opinion is presented or absence of such is certified by the Deciding body chairman – after the expiration of the 7 days period under the same paragraph.

(3) (Amended on 11.01.2010) When necessary, if there are factual or legal complications, a member of the Court of Arbitration Chairman’s Council may extend the time limit under the preceding paragraph.

(4) The arbitration award is final and brings the dispute to an end.

Award transcript

Article 41

(1) Award transcripts shall be delivered to the parties.

(2) The court secretary shall attest the transcripts by his/her signature and the Court of Arbitration seal.

(3) The award transcripts shall be delivered to the parties only after the arbitration costs are paid in full to the Court of Arbitration.

Corrections and interpretation of an award

Article 42

(1) At the request or a party or by its own initiative, the Deciding body may correct the award with respect to a calculation, writing or other obvious factual error it has made.

(2) Each party may request an interpretation of the award by the Deciding body. Interpretation cannot be requested after the award has been complied with.

(3) (Amended on 14.03.2013) The Deciding body shall hear the parties in connection with the requested correction and interpretation or shall give them the opportunity to present, within a period of time determined by it, their written standpoint. The Deciding body shall announce a decision concerning the correction or interpretation within 60 days of the request. The decision on these issues shall be given in compliance with articles 38 and 40 of this Code of rules.

(4) Correction of an award, concerning arbitration costs, shall be done by a ruling, in compliance with paragraphs 1 and 3.

(5) (Amended on 14.03.2013) The Court of Arbitration may extend the time for correction or interpretation of the award. The correction and the interpretation shall become part of the award.

Additional award

Article 43 (Amended on 14.03.2013)

When the Deciding body has not taken a decision about the whole claim of a party, the latter may request an additional award. A written request about that, together with a copy for the opposite party, may be lodged within 60 days after receiving the award. When the request is meritorious, the Deciding body may make an additional award, observing the prescription of article 42, paragraph 3. The Court of Arbitration may extend the time for award supplementation.

Arbitral award execution

Article 44

The arbitral award is final and compulsory to the parties.

Conclusion of proceedings by a ruling

Article 45

(1) If it is not possible to make an award, the arbitration proceedings are terminated by a ruling, to which the rules of article 38, paragraph 5 and article 40 apply.

(2) A ruling for termination of proceedings is given:

When the claimant cancels his/her claim.

In the absence of prerequisites, necessary for the hearing and deciding the case upon its merits, as well as when the case does not progress for more than 6 months due to claimant’s inaction.

(3) (Amended on 30.09.2016) If the Deciding body has not yet been constituted in the proper manner, the ruling about the arbitration proceedings termination shall be given by a member of the Court of Arbitration Chairman’s Council.

Keeping the cases and decisions

Article 46

The Court Secretary shall keep the closed cases for 5 years from the pronouncements of decisions and rulings about them. After that period of time the cases shall be destroyed, except for the decisions and the reasons for them, as well as the agreements reached, which shall be kept forever.

NON-ATTENDED PROCEEDINGS

Article 47a (New – 15.06.2007) (Amended on 11.01.2010) (Amended on 30.09.2016) Claims at a value below 25 000 (twenty five thousands) levs shall be subjected to non-attended proceedings of arbitration case hearings under the present chapter.

Setting up a Deciding body, replacement and  challenging of arbitrators in non-attended proceedings

Article 47b (New – 15.06.2007) The Deciding body shall consist of a single arbitrator and his/her replacement.

Article 47c (New – 15.06.2007) (Amended on 11.01.2010) (Amended on 30.09.2016) The arbitrator and his/her replacement shall be chosen by a member of the Court of Arbitration Chairman’s Council within 7 days of the submission of a valid claim application.

Article 47d (New – 15.06.2007)

(1) (Amended on 30.09.2016) Arbitrator replacement shall be performed according to the conditions and in the manner of article 16 of the Court of Arbitration of Commercial Disputes Code of rules and the period of time, during which the arbitrator is prevented or fails to carry his duties is more than 15 days.

(2) In case of an arbitrator being replaced, a member of the Court of Arbitration Chairman’s Council appoints new replacement.

Article 47e (New – 15.06.2007)

(1) Challenging of an arbitrator on the grounds, stipulated in article 17, paragraph 2 of the Court of Arbitration of Commercial Disputes Code of rules may be made not later than 7 days after the party has learned of the choice or appointment of arbitrator and his/her replacement, or has learned of circumstanced, giving it grounds for a challenge.

(2) When not done at a session, the written request of a challenge shall be sent immediately to the arbitrator (resp. his/her replacement) and the opposite party. Within 3 days they shall take a stand on it.

(3) If within the time period of the preceding paragraph the arbitrator or his/her replacement fails to withdraw, the party, requesting that has the rights under article 16 of International Commercial Arbitration Act.

Claim and reply brief

Article 47f (New –  15.06.2007)

(1) The claim application shall comply with the requirements of article 5 of the Court of Arbitration of Commercial Disputes Code of rules. The claimant shall present  all circumstances on which the claim is based as well as point out all evidence and supply all written proofs at his/her disposal.

(2) The letters of authority, accompanying the claim application, shall provide address, telephone as well as an e-mail address of the authorized person.

(3) The claim application shall be accompanied by a document for paid arbitration fee for accelerated proceedings and a minimal expenditure deposit of 100 levs.

Article 47g (New – 15.06.2007)

(1) Multiple claims against the defendant shall be admissible only if they have a common ground, or when they are demurrage or interest, originating from a corresponding principal amount. The above notwithstanding, it shall be admissible to make claims for terminating, declaring as terminated, dissolving or declaring void the contract, giving rise to the rights or legal relationships specified in the claim.

(2) Joining claims against more than one defendant shall be inadmissible except in cases of joint liability.

Article 47h (Amended on 30.06.2010)

It shall be admissible to amend either the grounds or the amount of claim, observing the limitations of article 32. A claim increase is admissible only if it does not necessitate collection of new evidence, which would delay the case hearing.

Article 47i (New – 15.06.2007)

Not later than 7 days after receiving the claim application transcript and the attachments to it, the defendant may submit a reply brief. In it the defendant shall declare all his/her contestations and objections, shall point out all evidence and supply any written proofs at his/her possessions. He/she shall take stand with respect to the evidence, attached to the claim application. The case arbitrator may extend the time period under this article because of special unforeseen circumstances.

Article 47j (New – 15.06.2007)

(1) (Amended on 30.06.2010) Within the time limits for reply and complying with the limitations of article 32, the defendant may lodge a counterclaim or objection for deduction, provided within the same time period he/she submits all relevant written evidence and pays the arbitration fee due plus a deposit for their hearing. Otherwise the counterclaim or objection shall not be heard.

(2) (Revoked on 14.03.2013)

(3) (Revoked on 30.06.2010)

Article 47k (New – 15.06.2007)

(1) After lodging the claim application, respectively the reply brief, the parties may declare facts and submit evidence only to rebut the arguments of the opposite party, submitted in due time. Apart from that, the parties may submit new facts, to point out and submit new evidence only if they were unable to do so in the .stipulated time limits due to reasons beyond their control.

(2) The rules of the preceding paragraph apply respectively to the counterclaim and the objection for deduction.

Article 47l (New – 15.06.2007)

Together with the submission of the claim or counterclaim, each party may request an expert appraisal. It shall notify the other party about it and the latter will have 3 days, in which to pose additional questions for the appraisal.

Case hearing

Article 47m (New – 15.06.2007)

(1) After the reply brief deadline, respectively the counterclaim deadline, taking also into account  the parties’ statements, their demands and submitted evidence, the Deciding body shall determine by a ruling in a preliminary session the manner and the time frame for hearing the case.

(2) (Amended on 30.06.2010) The Deciding body shall proceed to a decision in a closed session solely on the basis of submitted evidence and if it decides, may give the parties time for submission of written stands and remarks in accordance with article 47(m), paragraph 5.

(3) If the Deciding body rules the case to be heard in an open session, it shall schedule it not later than 15 days after announcing its ruling. The parties shall be summoned at least 5 days before the scheduled session.

(4) By its ruling the Deciding body may allow questioning of witnesses and may appoint a court expert. The non-appearance of a witness allowed to be questioned at a given date shall not prevent proceeding to decision taking.

(5) After clarifying the dispute from a factual and legal point of view, the Deciding body shall give to each party a deadline for a written stand and remark, which shall not be longer than 5, respectively 3 days, after which it shall proceed to take a decision.

Conclusion of the proceedings

Article 47n (New – 15.06.2007)

(1) The Deciding body shall take a decision about the case within 10 days after the expiration of the stands and remarks deadline.

(2) If the Deciding body finds that there are no prerequisites for a decision on the case by its merits, it shall give a ruling within the time period of the preceding paragraph by which it shall terminate the case.

(3) When the parties have reached an agreement, which they wish to be reproduced in an arbitration award with agreed conditions, the Deciding body shall pronounce a decision not later than 5 days after the submission of a request to that effect, together with the agreement.

FEES, EXPENDITURES AND CARD-INDEX

Arbitration fees and expenditures

Article 48a (New – 15.06.2007)

(1) The calculation and distribution of the arbitration fees and covering the Court of Arbitration of Commercial Disputes’ expenditures shall be done in accordance with the scale of arbitration fees and expenditures and the scales of arbitrators’ remuneration, which are an integral part of this Code of rules.

(2) The Court Secretary or the Deciding body may oblige a party, which requests collection of evidence, to pay a deposit for the expenditures for collecting the requested evidence.

(3) Actions, for which no deposit has been paid, shall not be carried out.

(4) The Deciding body shall determine the remuneration of the interpreters, secretary-stenographer and experts as well as their travelling allowance when travels are necessitated.

Article 48b (New – 15.06.2007)

The fee for non-attended proceedings shall be equal to 80 (eighty) % of the fee, stipulated by article 2, paragraph 1 of the Scale of Arbitration Fee and Expenditures for cases, heard by the Court of Arbitration of Commercial Disputes.

Card-index

Article 49

(1) (Amended on 30.09.2016) The Court Secretaries, under instructions from a member of the Court chairman’s council, shall keep a card-index of the decisions, in which excerpts from the reasons for decisions of principal significance shall be entered.

(2) The card-index shall be accessible to all interested persons. Transcripts may be obtained for a fee.

(3) (Amended on 30.09.2016) A member of the Court chairman’s council may permit the publication of Court of Arbitration stands in the periodic press and separate collections. The publications shall not disclose the names of the parties nor any data, harmful to their interests. A member of the Court chairman’s council may also exclude from publication other information, the announcement of which he/she finds inappropriate.

 

The present Code of rules is passed by the General assembly of  Association “Court of Arbitration of commercial disputes” at its meeting on 25.09.2006 and is in force from 01.10.2006, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  01.11.2006, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  15.06.2007, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  01.03.2008, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  08.07.2008, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  11.01.2010, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  30.06.2010, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  14.03.2013, amended by the General assembly of  Association “Court of Arbitration of commercial disputes” on  30.09.2016г.

The Court of Arbitration is established in 2006 in the town of Burgas for the purpose of faster, more economical and confidential settlement of commercial disputes.

In order to be able to use the services of the Court of Arbitration of commercial disputes in the town of Burgas, you shall add to your contracts or agreements the following text:

 

“All disputes, pertaining to the present contract (agreement) shall be decided  by the Court of Arbitration of Commercial Disputes at Association “Court of Arbitration of Commercial Disputes”www.arbitar.eu, according to its Code of rules.”

or

“All disputes, pertaining to the present contract (agreement) shall be decided  by the Court of Arbitration of Commercial Disputes with a seat at the town of Burgas according to its Code of rules.”