I move amendment No. 12:
In page 5, before section 10, to insert the following new section:
10.-(1) The parties to an arbitration agreement are free to agree on how the costs of the international commercial arbitration are to be allocated and on the costs that are recoverable.
(2) An agreement of the parties to arbitrate subject to the rules of an arbitral institution shall be deemed to be an agreement to abide by the rules of that institution as to how costs are to be allocated and as to the costs that are recoverable.
(3) References in subsections (1) and (2) to 'costs' include the costs as between the parties and the fees and expenses of the arbitral tribunal.
(4) Where there is no agreement of the parties as to the recoverable costs of the international commercial arbitration as between the parties, the arbitral tribunal may, with the consent of the parties to the arbitral proceedings, determine by award those costs on the basis it thinks fit.
(5) Where there is no agreement of the parties as to the recoverable fees and expenses of the arbitral tribunal, the tribunal may determine by award those fees and expenses on the basis it thinks fit.
(6) Where the tribunal makes a determination under subsection (4) or (5), it shall specify-
(a) the basis on which it acted,
(b) the items of recoverable costs, fees or expenses, as appropriate, and the amount referable to each, and
(c) by and to whom they shall be paid.
(7) Where a party does not consent to the arbitral tribunal making a determination under subsection (4) or where for any other reason the arbitral tribunal does not make that determination-
(a) any party to the arbitral proceedings may apply to the High Court within 30 days after receipt of the award, or such further time as the Court may direct, for a determination of the recoverable costs as between the parties, and
(b) the Court may determine those costs on the basis it thinks fit or may order that they be determined by the means and on the terms it specifies.
(8) Notice of an application to the High Court under subsection (7) or subsection (9) shall be given to the arbitral tribunal and to the other parties to the arbitral proceedings.
(9) Where the arbitral tribunal makes a determination under subsection (5)-
(a) any party to the arbitral proceedings may apply to the High Court within 30 days after receipt of the determination, and
(b) the Court may order that the amount of the arbitral tribunal's fees and expenses be reviewed and adjusted by the means and on the terms the Court specifies.
(10) Subject to an order under subsection (9)(b), nothing in this section affects any right of the arbitral tribunal to payment of its fees and expenses.
(11) References in this section to the fees and expenses of the arbitral tribunal include the fees and expenses of any expert appointed by the tribunal.".
This amendment substitutes a new section for the existing section 10 which deals with the costs of the arbitral proceedings. The new provision entitled "Recoverable costs of arbitration and recoverable fees and expenses of arbitral tribunal" seeks to provide greater clarity by distinguishing between the various costs associated with the arbitral process, namely, the recoverable costs to the parties to the arbitral proceedings and the recoverable fees and expenses of the arbitral tribunal. It also sets out more clearly the scope of court intervention where a party disputes the fees and expenses of the arbitral tribunal.
Subsections (1) and (2) of the new section are the same in the Bill as initiated. Subsection (3) clarifies that the costs referred to in subsections (1) and (2) include the costs of the parties and the fees and expenses of the arbitral tribunal. This subsection is similar to section 10(8) of the Bill as initiated in so far as the arbitrator's fees and expenses are concerned.
Subsections (4) and (6) are similar to subsection (3) of the Bill as initiated. Subsection (4) provides that where the parties cannot agree as to the recoverable costs of the arbitration as between themselves, the arbitral tribunal may, with the consent of the parties, determine those costs on the basis it thinks fit.
Subsection (6) provides for the matters to be specified by the tribunal in the event of it making a determination under subsection (4). Subsection (5) provides for the arbitral tribunal to determine by award its recoverable fees and expenses on the basis it thinks fit where there is no agreement of the parties to those fees and expenses. Subsection (6) also provides for the matters to be specified by the tribunal in the event of it making a determination under subsection (5).
Subsection (7) deals with a situation where a party does not consent to the arbitral tribunal making a determination under subsection (4) or where, for any other reason, the arbitral tribunal does not make that determination. It provides that in such circumstances any party to the arbitral proceedings may apply to the High Court within 30 days after the receipt of an award or such further time as the court may direct for the determination of the recoverable costs as between the parties and that the court may determine those costs on the basis it thinks fit or may order that they be determined by the means and on the terms it specifies. This subsection expands upon the provisions of section 10(4) of the Bill as initiated.
Under subsection (8) notice of an application to the High Court under subsection (7) or (9) shall be given to the arbitral tribunal and the other parties to the arbitral proceedings. Subsection (9) provides for the review and adjustment of the arbitral tribunal's fees and expenses by the High Court by the means and on the terms it specifies following an application by any party to the arbitral proceedings within 30 days after receipt of the tribunal's determination under subsection (5).
Subsection (10) is a general statement of intent about the right of a tribunal to its fees and expenses, including those of any expert it may appoint to report on specific issues it may have to determine. The appointment of such an expert is provided for in article 26 of the Model Law. Subsection (11) clarifies that references in section 10 to the fees and expenses of the arbitral tribunal include those of any expert appointed by the tribunal.