GAFTA is a well-known organization all over the world, and its goal is to:
- establish uniformity in the language of contracts;
- set standards for product quality and quantity;
- verify and examine;
- make sure that the interests of the market’s participants are being looked for;
- raise the level of education and skill among workers.
The GAFTA’s arbitration process is open and available to the general public. Arbitrators and prominent experts review over 20 countries’ conflicts in international trade law.
Gafta arbitration is a process where a third party listens to all sides of a disagreement and then issues a decision. Instead of dragging things out in court, where it will likely cost a lot of money and cause stress, it’s generally preferable to find a way to settle the dispute out of court. A single arbitrator or a panel of three arbitrators may make arbitration rulings.
The parties to an arbitration agreement abide by the arbitrator’s ruling. After hearing evidence and testimony from both parties, the arbitrator will give a decision that is as legally binding as a contract. Eventually, the court might decide to sustain or overturn the award.
The claimant is required to provide written arguments outlining his case in detail, a copy of the contract executed per the procedures outlined in Rule 4.4, and any supporting documentation. The applicant must provide an agreed sum to cover all fees, charges, and disbursements associated with the arbitration. Gafta must receive deposits by 12 PM on the 60th day after the day on which the deposit was due.
STRlNG Disputes: Consolidated Arbitrations and Concurrent Hearings
If a dispute arises from several contracts that include basically the same terms, the tribunal may combine the arbitration processes into a single hearing. Though all parties engaged in the Gafta contracts agree in writing, it will be considered as if the first seller and last buyer in the chain had really contracted with each other.
Any award made in such procedures is binding on all parties and may be enforced against their counterparts by an intermediary party. Unless both parties agree otherwise, the tribunal may hold hearings and simultaneously make judgments in several arbitrations. Each award, however, must be granted in line with the provisions of the applicable contract.
How Does Arbitration Help?
There must be mutual respect and collaboration between the parties as they work out the settlement details. When opposed to the more onerous court system, GAFTA arbitration may be more cost-effective and efficient because of its flexibility.
Arbitration hearings, unlike trials, are often held whenever the parties involved are available.
There might be a watering down of the norms of evidence and process. Unlike in court, arbitration does not recognize the right to discovery, which is often considered a delaying tactic and a tool for playing games. It uses simpler standards of proof.
The arbitrator or panel of arbitrators is selected by the parties, allowing them to choose an impartial and knowledgeable individual or group to resolve the dispute. The details of any GAFTA arbitration proceedings must remain private.
When a dispute is resolved by stipulation arbitration, the parties have already resolved their dispute and agreed to have the case adjudicated by an arbitrator. The next step is for the litigants to come to terms with a unified set of rules and procedures for the lawsuit. A court will often uphold an arbitration provision, and the arbitrator’s decision will be binding.
In this case, the arbitrators will play the role of judges. They aren’t taking a stance for or against anything. The preparation of a case and evaluation of its viability need the services of skilled lawyers.
What is the procedure for arbitration?
After hearing all sides’ evidence and arguments, the neutral arbitrator will provide a decision. The arbitration hearing’s structure is worked out in pre-hearing talks. An arbitration hearing consists of opening remarks, evidence (documents and tangible items), testimony, and cross-examining witnesses by both sides.
Concluding arguments might be made orally at the hearing or in a written brief filed after the hearing. The arbitrator’s ruling will, after that, be final. The written judgment of the arbitrator may consist of as little as a summary of the relief given to each party or as much as a detailed explanation of the award’s reasons. The arbitrator’s judgment may only be contested or reviewed under certain conditions.