Article 12 of the Saudi Implementing Regulations of the Arbitration Law
المادة 12 من اللائحة التنفيذية لنظام التحكيم
The article sets what the tribunal's decision appointing an expert must state, the effect of not depositing the advance for his expenses, and the tribunal's power if the expert is late with his report without an acceptable excuse.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على هيئة التحكيم أن تبين في قرارها المتعلق بتعيين الخبير مهمته والتدابير العاجلة التي يؤذن له في اتخاذها، والميعاد المحدد لإيداع التقرير، وتقدير أتعابه، ومبلغ السلفة الذي يودع لحساب مصروفات الخبير - عند الاقتضاء -، والطرف المكلف بإيداعها والميعاد المحدد لذلك.
2- في حال تخلف الطرف المكلف بإيداع مبلغ السلفة، ولم يبادر الطرف الآخر بإيداعه، يعد الخبير غير ملزم بأداء مهمته، ولهيئة التحكيم المضي في الإجراءات، وليس للطرف المكلف أن يتمسك بالقرار الصادر بتعيين الخبير إذا وجدت هيئة التحكيم أن تخلفه عن الإيداع كان بغير عذر مقبول.
3- لهيئة التحكيم أن تستبدل الخبير أو تتخذ ما تراه مناسباً عند تخلفه عن إيداع تقريره في الميعاد المحدد بغير عذر مقبول.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 12 explained in plain English
An arbitral tribunal may need an expert on a technical matter. This article of the Regulations governs the decision appointing him and the consequences of default in carrying it out.
First: contents of the appointment decision (paragraph 1). The tribunal must state in its decision:
- the expert's mission, and the urgent measures he is authorized to take;
- the deadline set for depositing his report, and the assessment of his fees;
- the amount of the advance to be deposited for his expenses where necessary, the party required to deposit it, and the deadline set for that.
Second: not depositing the advance (paragraph 2). If the party required to deposit the advance defaults and the other party does not take the initiative to deposit it:
- the expert is deemed not obliged to perform his mission;
- the arbitral tribunal may proceed with the proceedings;
- and the party required may not rely on the decision appointing the expert if the tribunal finds that its default in depositing was without an acceptable excuse.
Third: the expert's delay (paragraph 3). If the expert fails to deposit his report by the set deadline without an acceptable excuse, the arbitral tribunal may replace him or take whatever it considers appropriate.
Note that the effect of not depositing the advance depends on the other party not taking the initiative to deposit it, so a party that sees the expert's work as important to its case can take the initiative and deposit.
Anyone required to deposit an expert's advance who is unable to do so should consult a lawyer who specializes in arbitration and commercial cases.
Practical example
In an arbitration between a building owner in Riyadh and a contractor, the tribunal appointed an engineer as an expert to inspect the works, and required the contractor to deposit the advance for expenses by a deadline it set. The contractor did not deposit it and the owner did not take the initiative to deposit it, so the expert was no longer obliged to perform his mission, and the tribunal proceeded with the proceedings. Since the tribunal found that the contractor defaulted without an acceptable excuse, it could not rely on the decision appointing the expert.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 12 of the Saudi Implementing Regulations of the Arbitration Law
What happens if a party does not deposit the expert's advance in arbitration?
If it does not deposit it and the other party does not take the initiative to deposit it, the expert is not obliged to perform his mission and the tribunal may proceed with the proceedings; the required party may not rely on the appointment decision if the tribunal finds that its default was without an acceptable excuse.
Can the expert be replaced if he is late with his report?
Yes. The arbitral tribunal may replace him or take whatever it considers appropriate if he fails to deposit his report by the set deadline without an acceptable excuse.
What must the decision appointing the expert contain?
His mission and the urgent measures authorized, the deadline for depositing the report, the assessment of his fees, and the amount of the advance where necessary, the party required to deposit it and its deadline.
More articles on Arbitration Procedures and Request for Arbitration
- Article 8
The article requires the arbitral tribunal, if it chooses the procedures itself because the parties did not agree on them, to notify the parties of those procedures at least ten days before they take effect.
إذا لم يتفق طرفا التحكيم على الإجراءات التي تتبعها هيئة التحكيم، وقامت الهيئة باختيار إجراءات التحكيم التي تراها مناسبة وفقاً لحكم الفقرة (2) من المادة (الخامسة
- Article 9
The article lists the particulars a request for arbitration must contain, and provides that a dispute over their sufficiency does not prevent the arbitral tribunal from being formed, and the tribunal decides it.
1 - على طالب التحكيم تضمين طلب التحكيم - المنصوص عليه في المادة (السادسة والعشرين) من النظام - البيانات الآتية: أ - اسمه، واسم من يمثله - إن وجد - ومهنة كل منهم
- Article 11
If there are several parties to the arbitration, the proceedings begin on the day the last party receives the request for arbitration.
إذا تعددت أطراف التحكيم، تبدأ الإجراءات من اليوم الذي يتسلم فيه آخر طرف طلب التحكيم.
- Article 13
The article allows the arbitral tribunal to accept a non-party intervening in the arbitration or being brought in, after the consent of the parties and of the party to be brought in.
لهيئة التحكيم قبول تدخل طرف آخر من غير أطراف التحكيم أو إدخاله، وذلك بعد موافقة أطراف التحكيم والطرف المطلوب إدخاله.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.