AIC Arbitration Rules
Approved by the Board of AIC and adopted as from 25th January 2017. These Rules replace the former AIC Arbitration Rules dated 10th July 2013.
Rule 1. Preliminary
1:1. Any dispute arising out of a contract embodying these Rules, or where both parties to a dispute do so agree shall be referred to arbitration, in accordance with the following provisions.
1:2. Arbitrations shall take place in Peterborough, or elsewhere if mutually agreed by the parties.
1:3. Unless otherwise agreed by the parties, the juridical seat of the arbitration shall be England, and proceedings shall be conducted under English Law. All documents and evidence shall be submitted in the English language. The provisions of the Arbitration Act 1996 and of any statutory amendment, modification or re-enactment thereof for the time being in force shall apply to every arbitration and/or appeal held under these Rules other than as such provisions are modified by or are inconsistent with these Rules.
1:4. In these Rules:-
(a) `AIC' means the Agricultural Industries Confederation Limited.
(b) ‘Claim’ means the initial correspondence sent by the Claimant to notify the Respondent of the intention to commence Arbitration.
(i) Where the arbitrator or arbitrators are to be appointed by the parties, arbitral proceedings are commenced in respect of a matter when one party serves on the other party or parties notice in writing of the appointment of an arbitrator requiring him or them to appoint an arbitrator or to agree to the appointment of an arbitrator in respect of that matter.
(ii) Where the arbitrator or arbitrators are to be appointed by a person other than a party to the proceedings, arbitral proceedings are commenced in respect of a matter when one party gives notice in writing to that person requesting him to make the appointment in respect of that matter.
(d) `Board' means the Board of AIC. 'NFU' means the National Farmers Union of England and Wales. 'NFUS' means the National Farmers Union of Scotland.
(e) `Officers' for the purpose of these Rules, means the Chairman, the Vice-Chairman or Vice-Chairmen, the Treasurer and the Chief Executive of AIC
(f) References to the masculine gender shall include the feminine gender.
(g) "Tribunal" shall mean a sole arbitrator or three appointed arbitrators
(h) "Member of AIC" shall be taken in these rules to include any company licensed by AIC to use the current AIC No.1 contract.
1:4 Where a dispute arises between members of the NFU, NFUS or AIC , and the monetary amount of the claim, excluding interest, is not more than £10,000 (or a sum as amended from time to time) the disputing parties shall submit the dispute for resolution under these Rules by a sole arbitrator. There is no provision for an appeal for such claims where the disputes involve £10,000 or less. Should any member of the NFU or NFUS fail to notify the counterparty in an arbitration of their membership of such organisation (and therefore their eligibility to this clause) within 9 days of the commencement of the arbitration such failure to notify shall be deemed to remove either party's eligibility to apply the terms of this clause unless both parties agree to waive this time bar.
1:6. Each party engaging in an arbitration or an appeal pursuant to these Rules, whether or not a member of AIC, NFU or NFUS is deemed thereby to agree to abide by these Rules and to agree with AIC to be liable to AIC (jointly and severally with the other parties to the arbitration and/or appeal) for all fees and expenses incurred in connection with the arbitration or appeal or any remissions, which said fees shall, upon notification by AIC under the provisions of Rules 7 and 13, be and become a debt due to AIC. Any costs incurred by AIC in connection with Rule 3, will be debited direct to that party by AIC when deemed appropriate.
1:7 Should any member of the NFU or NFUS fail to notify both the counterparty and the tribunal in an arbitration of their membership of such organisation within 9 days of the commencement of the arbitration, such failure to notify shall be deemed to remove either party's eligibility to any discount in fees which AIC may, at its sole discretion, grant members of these organisations from time to time. The arbitrators may, at their sole discretion, set aside this time limit.
Rule 2. Procedure for Claiming Arbitration, and Time Limits
2:1. Parties claiming arbitration shall notify the other party in writing that they are claiming arbitration within the time limits stipulated in the contract, and shall, no later than nine consecutive days from the last day for claiming arbitration, appoint an arbitrator in accordance with Rule 3.
2:2. In the event of non-compliance with any of the time limits in the contract and such non-compliance being raised by the respondents as a defence, claims shall be deemed to be waived and absolutely barred, unless the Tribunal shall in its absolute discretion, otherwise determine. If the Tribunal does not exercise its discretion to admit a claim then the Board of Appeal, on appeal, shall have the power in its absolute discretion to determine otherwise, but the Board of Appeal shall not over-rule or set aside any determination already made by the Tribunal to admit a claim.
2:3. No award by the Tribunal shall be questioned or invalidated on appeal or otherwise on the ground that the claim was not made within the time limits stipulated in this Rule if the respondents to the claim did not raise the matter before the Tribunal so as to enable it to consider whether or not to exercise the discretion vested in it by Rule 2:2.
2:4. Lapse of Claim
If neither the claimant nor the respondent submits any documentary evidence or submissions to the arbitrator appointed by or for him with a copy to the other party, within the period of one year from the date of the appointment of the first named arbitrator, then the claim to arbitration shall be deemed to have lapsed on the expiry of the period of one year unless before that date the claim is renewed by either party notifying the other during the 30 days prior to the expiry date. The claim may be thus renewed for no more than one period of one year by either party serving on the other notice of renewal of the claim to arbitration, such notice to be served during the 30 days prior to the expiry of the previous notice. If the claim is not so renewed then it shall lapse unless, prior to the expiry of the last notice of renewal, documentary evidence or submissions have been submitted by either the claimant or the respondent.
In the event of failure to renew a claim as provided in this Rule, or on completion of one period of renewal such claim shall be deemed to have been withdrawn and abandoned unless the Tribunal or Board of Appeal on appeal shall in its/their absolute discretion otherwise determine. Whenever a claim is renewed any counterclaim is also deemed to have been renewed.
Rule 3. Appointment of Arbitrators
3:1. An arbitrator is a person appointed to adjudicate impartially in a dispute between two or more parties. He shall not assume the role of an advocate.
3.2 Where the sum claimed in a dispute between a member of the NFU or NFUS and a member of AIC does not exceed £10,000 (excluding interest) parties submitting the dispute to arbitration shall appoint a sole arbitrator who shall be a member or employee of a member of AIC, NFU or NFUS on the AIC List of Approved Arbitrators. The Arbitrator shall promptly notify AIC of his appointment. In the event that the parties are unable to agree upon an arbitrator either party shall, within 21 days of the commencement of arbitration, apply to AIC who, shall appoint a sole arbitrator from the AIC List of Approved Arbitrators to determine the dispute. In order that the appointment shall be valid the arbitrator shall signify his acceptance of his appointment to the parties and to AIC.3:3. Other than as described in Rule 3.2, a party claiming arbitration shall within the time limits specified in Rule 2 either:
(a) Appoint an arbitrator and give notice to the other party of the name of the arbitrator so appointed, or
(b) Apply to AIC for the appointment of an arbitrator as provided in Rule 3:8.
The other party shall within nine consecutive days of their receipt of such notice of appointment either accept the appointment of that arbitrator as sole arbitrator in the dispute, or appoint a second arbitrator, or claim a string arbitration.
If a claim for a string arbitration is made, this must be confirmed to both the party claiming arbitration and also to the party against whom arbitration is now being claimed in the string and must include the details of the appointment of an arbitrator by the original claimant.
If a string arbitration is claimed the new respondent shall within nine consecutive days of their receipt of such notice claiming a string arbitration including the notice of appointment either accept the appointment of that arbitrator as sole arbitrator in the dispute, or appoint a second arbitrator, or claim a string arbitration.
3:4. When two arbitrators have been appointed they shall jointly appoint a third. The third arbitrator shall be chairman of the Tribunal so formed unless the members of the tribunal agree that another of their number be appointed chairman. The names of the Tribunal shall be notified forthwith to AIC by the sole arbitrator or by the chairman of the Tribunal, and to each party. On receipt of such notice, AIC shall promptly issue to the sole arbitrator or to the chairman of the Tribunal a reference number for the arbitration. The sole arbitrator or the chairman of the Tribunal shall promptly advise the reference to each party, and to each of the other arbitrators in the case of a tribunal, If either party has sent his documentary evidence and/or submissions to the arbitrator appointed by or for him and has not been notified of the name of the third arbitrator he may apply to AIC for the appointment of a third arbitrator. Any such appointment by AIC under this Rule shall, after consultation with the two appointed arbitrators, be made at the absolute discretion of any two Officers of AIC.
3:5. It shall be the duty of the sole arbitrator or the chairman of the Tribunal to ensure the prompt progress of the arbitration. Any delay in the proceedings on the part of the Tribunal shall be notified to AIC and, if appropriate, AIC shall, after consultation with the Tribunal or arbitrator, set down dates for proceeding with the arbitration.
3:6. Not withstanding Rule 9.1, an arbitrator appointed under these rules shall be an AIC qualified arbitrator. In all cases an arbitrator appointed under these Rules shall either be a member of AIC or NFU or NFUS or, with the consent of his principals, an employee of a member, but in either case shall be a person engaged, or who has been engaged, in the trade and shall not be interested in the transaction or directly interested as a member of a firm or a company named as a party to the arbitration, or financially retained by any firm or company financially associated with any party to the arbitration. Any arbitrator who has served as a sole arbitrator or member of a panel at a 1st tier hearing may not have any involvement, in any capacity and/or for either party, in any subsequent arbitration appeal.
3:7. (a) An appointment of an arbitrator shall be valid provided that:-
(i) the party making the appointment has notified the arbitrator of his appointment, confirmed that appointment in writing to the arbitrator, and
(ii) that arbitrator has signified his acceptance of the appointment to the party appointing him, or to AIC, as the case may be, prior to the hearing. If the originally appointed arbitrator is unwilling or unable to act, and a substitute has confirmed in writing to the appointing party or AIC as the case may be, his acceptance of the appointment prior to the hearing, and
(iii) in the case of a third arbitrator, when his acceptance has been communicated to the two appointed arbitrators, or to AIC as the case may be.
(b) In arbitrations for quality and/or condition when parties claim to be in a string, intermediate parties may pass on the name(s) of the arbitrator(s) without his/their prior acceptance provided that subsequently the provisions of Rule 5:1 are complied with. When a party claims string arbitration they do not appoint an arbitrator.
3:8. Any party requiring an arbitrator to be appointed on their behalf may apply to AIC for an appointment. Any two Officers shall appoint an arbitrator to act for the party applying provided that such application is addressed in writing to AIC and provided that a copy has been despatched to the other party within the time limit stipulated in Rule 3:3. Such application for an appointment shall, for the purpose of any time limit stipulated in these Rules, be equivalent to the appointment of an arbitrator by the applicant.
3:9. If one party has appointed an arbitrator, despatched notice of the appointment in writing to the other party and called upon that party either to concur with the appointment of that arbitrator as sole arbitrator or to appoint an arbitrator, and the other party fails to comply within nine consecutive days of the notice being served, then the party claiming arbitration may apply to AIC for the appointment of an arbitrator to act on behalf of the party who failed to appoint. Any two Officers shall appoint an arbitrator on behalf of the party who failed to appoint an arbitrator provided that the application is accompanied by evidence that:-
(a) the parties had, prima facie, entered into a contract subject to these Rules,
(b) notice was despatched to the other party that arbitration was claimed,
(c) notice was despatched to the other party that application was being made to AIC for the appointment of an arbitrator and
(d) the appropriate fee ruling at the date of application had been paid.
3.10 Where under Rules 3.3 (b) or 3.8, application is made to AIC by a full member of the NFU or NFUS for the appointment of an arbitrator, the arbitrator so appointed will, subject to availability, be selected from the members of those organisations who appear on the AIC list of approved arbitrators.
3:11. If an arbitrator dies, refuses to act, resigns his appointment, becomes incapable of acting, fails to proceed with the arbitration, or is found to be ineligible, the party appointing such arbitrator shall forthwith appoint a substitute. If a substitute is not appointed by the appointing party within seven consecutive days after notice of such death, refusal, incapacity, failure, or finding of ineligibility, as the case may be, any two of the Officers of AIC shall have power to appoint an arbitrator and, in the case of failure to proceed, to set down a date for the arbitration, provided that application is made in accordance with Rule 3:9.
3:12. The Tribunal may call upon the claimant to deposit with AIC such sum or sums as it considers appropriate on account of the anticipated fees, costs and expenses.
3:13. If the arbitration is abandoned, suspended or concluded by agreement or otherwise, before the final award is made, the parties shall be jointly and severally liable to pay to AIC the fees, costs and expenses of the Tribunal and of AIC.
Rule 4. Arbitration Procedure
4:1. All statements and evidence provided for below shall in every case be delivered by being sent by each party as follows:-
(a) one copy to the other party.
(b one copy to each member of the tribunal, or one copy to a sole arbitrator, or as directed by the Chairman of a tribunal
4:2. The claimant shall draw up a clear and concise statement of his case which, together with a copy of the contract and all supporting documents, and the deposit to AIC if called upon under rule 3.12 shall be delivered as required under this Rule.
4:3. The respondent shall, upon receipt of the claimant's case and documents, draw up a clear and concise statement of his defence (and counterclaim, if any) which, together with all supporting documents, shall be delivered as required under this Rule.
4:4. The claimant shall have the right to submit further written comments and/or documents in reply, such to be delivered as required by this Rule.
4:5. The Tribunal may admit further evidence from either party upon its being delivered as required by this Rule, providing that it is delivered no less than 14 days from the date set for the meeting of the Tribunal, or that of the Appeal hearing, unless otherwise decided and directed by the Tribunal.
4:6. Where samples are involved the above procedure shall apply to the exchange of statements and documentary evidence, but the arbitrator(s) may examine samples prior to the completion of this exchange.
4:7. Nothing in this Rule shall prevent the respondent from delivering his statement and documentary evidence before receiving documents/ statements from the claimant.
4:8. If any party to the arbitration wishes to attend the arbitration hearing they shall notify the Tribunal prior to completion or closure of the exchanges. If the Tribunal considers that an oral hearing is necessary they shall confirm to the parties the date, time and place of the arbitration hearing, which shall - where possible - be set in conjunction with the parties.
4.9 Any party shall at the hearing be entitled to make oral submissions reliant upon the submissions exchanged prior to the hearing. Fresh or un-exchanged submissions shall not be made, nor new documentary evidence adduced. If a party seeks to have such new submissions or evidence entered, and the other party resultantly seeks an adjournment, the additional fees, costs and expenses arising directly from that adjournment shall in any event be payable by the party causing that adjournment.
4:10. No person (including any solicitor/barrister or other legally qualified advocate wholly or principally engaged in private practice) other than the parties and witnesses shall be permitted to attend the arbitration hearing, unless the Tribunal in its absolute discretion otherwise decides. Any party to an arbitration intending to have as their representative a solicitor, barrister or other legally qualified advocate, shall declare this fact to the other party and to the chairman of the Tribunal (or sole arbitrator) not less than 14 days prior to the date set for the hearing.
4:11. To gain admission to the Register of Approved Arbitrators, trainee arbitrators progress to probationary arbitrators by way of attendance at arbitration hearings as observer. Aspirant Arbitrators listed by AIC may therefore observe at arbitration hearings upon the invitation of the Chairman of the Tribunal. Any observer so invited, shall take no part whatsoever in the consideration or determination of the reference, but nevertheless shall decline the invitation to observe in the event of any potential or perceived impartiality.
4:12. All arbitrations shall be in private. The proceedings shall be absolutely confidential and no disclosure concerning them shall be made by any party, witnesses or observers thereto. Breach of this Rule shall be considered misconduct.
Rule 5. String Arbitrations (Quality and/or Condition)
5:1. In the event of a contract forming part of a string of contracts which are in all material points identical in terms, except as to price, any arbitration for quality and/or condition may be held between the first seller and the last buyer in the string as though they were contracting parties, provided that every party against whom arbitration is claimed, and who claims to be in the string, shall have supplied his contract and all relevant information to the Tribunal.
Any award so made, hereinafter referred to as a 'String Award', shall, subject to the right of appeal, be binding on all intermediate contracting parties as though a separate award had been made under each contract.
Rule 6. Jurisdiction, Provisional Orders & Awards on Different Aspects
6:1 Issues of substantive jurisdiction
(a) The Tribunal may rule on its own jurisdiction, that is whether there is a contract and whether there is a valid arbitration agreement; whether the Tribunal is properly constituted and what matters have been submitted to arbitration in accordance with the arbitration agreement.
(b) In the event that the Tribunal determine it has no jurisdiction, AIC will notify the parties of the Tribunal's decision. Such decision shall be final and binding upon the parties subject to any right of appeal pursuant to Rule 8. AIC will invoice the claimant for any costs, fees and expenses incurred. In the event that the Tribunal determine that they have jurisdiction, no appeal against that finding shall lie to a Board of Appeal.
(c) If the Board of Appeal upholds the Tribunal's decision that it does not have jurisdiction, the Board of Appeal shall order accordingly. AIC shall notify the parties and will charge the appellants for any fees, costs and expenses incurred by the Board of Appeal, the Tribunal and by AIC.
(d) If a Board of Appeal reverses the Tribunal's decision that it has no jurisdiction, the Board of Appeal shall order accordingly and shall notify the parties, the Tribunal and AIC, and shall order that the dispute be referred to arbitration afresh, whereupon:-
(i) The dispute shall be deemed to be one arising out of a contract embodying these Rules.
(ii) The Tribunal formerly appointed shall cease to act and shall not be re-appointed when the dispute is referred for consideration.
(iii) The provisions of Rule 3 shall apply, the times for appointment running from the date of the Board of Appeal's order.
(iv) The Board of Appeal may, in its absolute discretion, extend the time limits in these Rules, and no objection that time has expired shall be taken if the requirements of these Rules were complied with.
6:2 Provisional Orders
Where the Tribunal decides to order, on a provisional basis, any relief which it would have power to grant in a final award, no appeal shall lie to a Board of Appeal until the Tribunal has issued a Final Award determining the issues between the parties.
6:3 Awards on Different Aspects Where the Tribunal decides during the course of an arbitration to make an award dealing finally with one or more aspects of the dispute, but which leaves to be decided by it other aspect(s) of the dispute, it may make an award which shall be final and binding as to the aspect(s) with which it deals subject to any right of appeal pursuant to Rule 10.
Rule 7. Awards of Arbitration
7:1. All awards of arbitration shall be in writing and shall be signed by the sole arbitrator or by all members of the Tribunal. The Tribunal shall have the power to award the costs of and connected with the reference, including costs of any experts consulted by the Tribunal, and may assess its own fees. AIC's fees shall be those for the time being in force as prescribed by AIC. An arbitrator dissenting from the majority verdict shall in any event sign the award form. The attachment of minority statements to awards is prohibited, as is any expression of such dissent outside the hearing or any meeting of the Tribunal.
7:2. The award shall be fully reasoned. It shall state whether any sum awarded carries interest thereon and at what rate.
7:3. The Tribunal shall, on the application of either party, before the arbitration award is made, have power to extend the time for appealing any case which it considers it just or necessary to do. Any such extension must be stated in the award of arbitration.
7:4. It shall be the duty of the Tribunal to lodge three signed copies of the award with AIC. AIC shall then give notice to the parties named in the award, that the award is available to them upon payment of the fees, costs and expenses to AIC. If payment is not received by AIC within 14 consecutive days from the date of such notice, AIC may call upon any one of the parties named to take up the award. In such case the party called upon shall pay the fees, costs and expenses as directed. Upon receipt of the fees AIC shall date the award and issue it to the parties.
7:5. Awards of arbitration (subject to the right of appeal hereinafter mentioned) shall be conclusive and binding with respect both to the matter in dispute and to all fees, costs and expenses of, and incidental to, the reference and to the award.
7:6. No award shall be questioned or invalidated on the grounds that the Tribunal (or any member of it) is not qualified or entitled to act as provided in Rule 3, unless objection to any appointment has been made not more than 14 days after the third arbitrator has confirmed his appointment or the members of a Board of Appeal have notified the name of the chairman.
Rule 8. Right of Appeal
8:1. If any party be dissatisfied with an arbitration award, there shall be a right of appeal provided that the following conditions are complied with:-
(a) Except as described in 1.4 the appellant shall give written notice of appeal to AIC accompanied by a copy of the notice which is required by Rule 8:1 (c) to be sent by them to the other party to the arbitration award, and (subject to the provisions of Rule 14) shall make payment to AIC of the appeal fee stated on the arbitration award.
(b) The appellant's notice and (except in the event stated in Rule 14) the remittance in respect of the fees shall reach AIC not later than close of business on the 30th consecutive day after the date of the arbitration award, or on such later date as may be specified in the award pursuant to Rule 7:3. The provisions of the Notices Clause 16:1 shall not apply to this sub-rule.
(c) The appellant, when giving written notice of appeal to AIC, shall also despatch written notice thereof to the other party.
(d) The fees and expenses of the arbitration award incurred by the Tribunal and/or AIC shall be paid by the Appellant, as specified in the arbitration award before the appeal is lodged.
(e) The appellant shall pay such further sum or sums on account of fees, costs and expenses as may be called for by AIC at any time after the lodging of the appeal and prior to the publication of the award by the Board of Appeal. The fees charged by the Board of Appeal shall be in accordance with the scale of fees laid down by AIC from time to time.
8:2. In cases of appeals lodged by more than one party in relation to the same award any two Officers of AIC shall have the power to consolidate such appeals for hearing by the same Board of Appeal.
Rule 9. Boards of Appeal
(a) Without prejudice to (b) below, only persons approved and listed by AIC may act as members of a Board of Appeal under these Rules [See Rule 3.6]. Boards of Appeal shall comprise three members. Immediately on formation of a Board of Appeal the members shall appoint one of their number to be Chairman, and the name of that person shall be advised to the parties by AIC.
(b) In the event there are insufficient AIC approved arbitrators available, then AIC may appoint to an Appeal panel (but not as Chairman) any arbitrators recommended by the AIC Secretariat and approved by the AIC Board.
9.2 On formation of a Board of Appeal a reserve member shall be nominated to be available to replace an appointed member in the case of illness, death, refusal to act, incapacity, or inability to act.
9.3 The reserve member shall retain his availability to attend / participate as a member of the Board of Appeal on the day/days set for the hearing. In the event of his non-participation he shall be entitled to a fee, as determined from time to time, for each day set aside.
Rule 10. Appeal Procedure
10:1. The Board of Appeal shall determine in conjunction with the parties and their representatives a date or dates and place for the hearing and shall confirm these to the parties in writing.
10:2. Each party to an appeal arising from an arbitration award shall be entitled to make oral submissions reliant upon the submissions made prior to the appeal hearing. No party shall be represented at the hearing of such appeal, or have present, a solicitor or barrister or other legally qualified advocate or advisor, wholly or principally engaged in private practice, unless special leave shall previously have been obtained in writing from the Board of Appeal, which leave the Board of Appeal may in its absolute discretion grant or refuse.
10:3. An appeal involves a new hearing of the dispute at which fresh evidence may be entered by way of exchange of submissions and new witnesses may be introduced at the hearing. The Board of Appeal may decide by a majority vote to confirm, vary, amend or set-aside the award of the Tribunal of first instance. In particular, but not by way of restriction, the Board may:-
(a) Vary an award by increasing or reducing the liability of any party.
(b) Correct any errors in the award or otherwise alter or amend it.
(c) Award interest on any sum(s) awarded, and determine if it should be simple or compound.
(d) Award the payment of the fees, costs and expenses incidental to the hearing of the arbitration of first instance and of the appeal; such costs and expenses shall normally follow the event.
10:4. The Award of the Board of Appeal, whether confirming, varying, amending or setting aside the original award of arbitration, shall be signed by the Chairman of the Board of Appeal. When so signed, it shall be deemed to be the Award of the Board of Appeal, and shall be final, conclusive and binding.
10:5. Where a party gives notice to a Board of Appeal that a reasoned award will be required with a view to a possible judicial review of the award as provided for in the Arbitration Act 1996, then, at the discretion of the Board of Appeal, both parties may be represented at the hearing by a Solicitor or Barrister or other legally qualified advocate.
10:6. (a) If the appellant, having received from AIC, as directed by the Board of Appeal, confirmation of the date fixed for the hearing of the appeal, subsequently requests a postponement or at the first or any subsequent hearing of the appeal requests an adjournment, then in such event the Board of Appeal may in their absolute discretion direct that, as a condition of granting an adjournment, all or any part of the money required by the terms of the award of arbitration shall be paid by either party to the other or shall be deposited in such bank and in such currency as the Board of Appeal may direct. Such money shall be held by such bank in an account in the name of AIC and otherwise on such terms as the Board of Appeal may direct. The Board of Appeal shall, where such money has been deposited, direct in their award how and to which of the parties the amount so held shall be paid. If in the opinion of the Board of Appeal after hearing the parties at a preliminary meeting, the appellant shall be found guilty of undue delay in proceeding with his appeal, he shall, after due warning and if the Board of Appeal so decides, be deemed to have withdrawn his appeal (with the consequences as stated in Rule 11). In which event the money on deposit shall immediately become due and payable to the party and/or parties entitled thereto under the terms of the award of arbitration.
(b) If the appellant fails to make such payment as aforesaid in accordance with the directions of the Board of Appeal and within such time as the Board of Appeal stipulates, then (subject to the provisions of Rule 14) the appeal shall be deemed withdrawn.
10:7. If the Board of Appeal shall determine that any of the conditions referred to in Rules 8-14 have not been complied with, they may in their absolute discretion extend the time for compliance (notwithstanding that the time may already have expired) or dispense with the necessity for compliance and may proceed to hear and determine the appeal as if each and all of those conditions had been complied with. The determination by the Board of Appeal of any matter to which Rule 10:8. applies shall be final, conclusive and binding.
10:8. No award of a Board of Appeal or decision by a Board of Appeal on a preliminary issue, as defined in Rule 6, shall be questioned or invalidated on the ground of any irregularity in the appointment of the Board of Appeal or of any of its members, or on the ground that any member of the Board of Appeal was not eligible to serve, unless objection is made in writing to AIC and the members of the Board of Appeal not more than 14 business days after notification of the members of the Board of Appeal.
Rule 11. Withdrawals of Appeals
11:1. An appellant against an award of arbitration shall have the right, at any time before an award of appeal is made, to withdraw his appeal by giving notice to AIC. AIC shall forthwith notify all parties that the appeal has been withdrawn. No part of the appeal fees shall be returned.
11:2. Settlement or abandonment of the appeal leading to cancellation of the hearing shall entitle each member of the Board of Appeal to a fee according to the scale laid down by AIC.
11:3. In the event of withdrawal of the appeal the other party to an award of arbitration shall nevertheless have the right of appeal against the first tier award in accordance with the provisions of Rule 8, save that the time limit laid down in Rule 8:1 (b) shall be 12 noon on the 30th consecutive day after the date of AIC's notice to the parties of the aforesaid withdrawal.
Rule 12. Appeals on String Contracts
12:1. In any case in which a string award shall have been made by the arbitrator(s) and the first seller, or the last buyer, or any intermediate party bound thereby, shall be dissatisfied therewith (whether the award shall be in his favour or against him), the first seller, the last buyer, and any intermediate party (as the case may be) or any of them, shall be entitled to appeal against that award to a Board of Appeal, provided that each of the following provisions, in addition to the provisions of Rule 8, shall first have been complied with.
(a) If the appellant is an intermediate party he shall state in such notice of appeal whether he is appealing as a buyer or a seller.
(b) If the appellant is the first seller or the last buyer he shall, when giving notice of appeal, also despatch written notice thereof to the party in immediate contractual relationship with him.
(c) If the appellant is an intermediate party and is appealing as a buyer or a seller he shall, when giving notice of appeal, also despatch written notice thereof to his own immediate seller or buyer, as the case may be.
(d) Every notice given to an intermediate party by a first seller, a last buyer or by another intermediate party, in accordance with the provisions of Rule 12:1, shall be passed on with due despatch, and such passing on shall, as between the intermediate party passing the same on and the party to whom the same is passed on, be deemed to be in compliance with the said conditions relating to appeals.
12:2. All appeals to which this Rule applies shall be held in the same manner in which the corresponding arbitrations are required by Rule 5 to be held. Any award made by a Board of Appeal shall in all respects have the same effect and shall be enforceable in the same manner as is provided in that Rule in the case of awards made in the corresponding arbitration, and non-compliance with any provisions of Rule 12:1(d) shall in no way limit or affect the rights and jurisdiction of the Board of Appeal.
Rule 13. Taking Up Appeal Awards
13:1. AIC may call upon either/any of the disputing parties to take up the award of the Board of Appeal and in such case the party so called upon shall take up the award having first paid the fees, costs and expenses of the Board of Appeal and/or AIC. If payment is not received by AIC within 14 consecutive days from such notice, AIC may call upon any other of the parties named to take up the award. In such case the party so called upon shall pay the fees, costs and expenses as directed. Upon receipt of the payment by AIC, AIC shall then date and issue the award to the parties.
Rule 14. Currency Regulations
14:1. If an appellant is precluded by currency regulations from paying immediately any money due to be paid by him under Rule 8, and notifies AIC in writing (a) in the case of payment of the appeal fee when giving notice of appeal and (b) in the case of any further sum being called for under Rule 8:1(e) or being directed to be paid under Rule 10:7 within nine consecutive days of the money being demanded accompanied in every case by evidence from a bank that he has already made application for the transfer of the required sum, he shall be entitled to an extension of up to 35 consecutive days from the date when the said payment became due in which to pay such sum.
Rule 15. Defaulters
15:1. In the event of any party to an arbitration or an appeal held under these Rules neglecting or refusing to carry out or abide by a final award of the Tribunal or Board of Appeal made under these Rules, the Board of AIC may, after giving due notice to the defaulting party, post on AIC's Notice Board at their headquarters and/or circularise members in any way thought fit, notification to that effect. The parties to such arbitration or appeal shall be deemed to have consented to the Board taking such action as aforesaid.
15:2. In the event that parties do not pay the arbitration or appeal fees and expenses when called upon to do so by AIC in accordance with these Rules, the Board may post on AIC's Notice Board at their headquarters, and/or circularise members in any way thought fit, notification to that effect. The parties to any such arbitration or appeal shall be deemed to have consented to the Board taking such action as aforesaid, but in any event the defaulting party shall be notified in advance of any action to be taken under this rule.
Rule 16. Notices
16:1. All notices given under these Rules shall be given by letter or by other method of rapid written communication (including telex, facsimile and e-mail) and shall be deemed to be properly given if proved to have been despatched within the required time limits. A notice to the Brokers or Agents named in the contract under which the dispute arose shall be deemed a notice under these Rules. So far as concerns such notices, this Rule overrides, in relation to them, any provisions as to notices that may be contained in the contract.
16:2. All Notices, Proceedings and Documents to be served on Members of a Board of Appeal shall be given by means of Rule 16:1 to AIC at AIC's offices and when so given shall be deemed to be properly served. For the purposes of any time limits, receipt of such notice by AIC shall be deemed to be the date of receipt by the Board of Appeal.
Rule 17. Discretion To Extend Time Limits
17:1. Whenever it shall appear to AIC that by reason of a state of war, war-like operation, strike, lock-out, riot or civil commotion, parties to contracts which have been or may be made incorporating these Rules, may be prevented from exercising any of their rights within the time limits prescribed by these Rules, AIC shall have, and shall be deemed always to have, the power to extend any of such time limits at any time and from time to time and to any extent necessary to enable justice to be done between the parties. Such extension may be made generally or with reference to any particular dispute.
17:2. In the event of AIC deciding so to extend any such time limits with reference to any particular dispute, notice thereof shall be given by AIC to such of the parties to the contract as may be available.
Rule 18 Samples
18:1. All samples sent to AIC for arbitration, appeal, analysis, testing and/or other purposes shall become and be the absolute property of AIC.
Rule 19 General
19: Neither AIC nor any of its Officers or employees shall be liable to all or any of the parties to any arbitration or appeal for any loss or damage caused to any such party by any act or omission of AIC or any of its Officers or employees whether such act and/or omission be negligent or not. This is deemed to be accepted by all parties applying for arbitration under these Rules having previously consented to arbitration with reference to them.
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