Art. 7 (1) LICA

Art. 1 (1) and (2) Rules of the CA at the BCCI

Art. 2 (1) Rules of the CA at the BCCI

* Award on Domestic Arbitration Case No. 56/02, ruled on 22.11.2002

THE SPECIALISED BODY FOR RESOLVING CIVIL MONETARY DISPUTES ESTABLISHED AT THE BULGARIAN CHAMBER OF COMMERCE AND INDUSTRY, IS THE COURT OF ARBITRATION AT THE BCCI. THE FACT THAT ART. 1 (3) OF THE STATUTE OF THE CA AT THE BCCI DECLARES ITS INDEPENDCE FROM THE BCCI, DOES NOT LEAD TO THE CONCLUSION THAT THE CA IS A STRUCTURE SEPARATE FROM AND EXTERNAL TO THE BCCI. THE ABOVE CITED PROVISION OF THE STATUTE SHALL ONLY BE CONSTRUED IN A SENSE THAT WHEN RESOLVING CASES THE CA SHALL SOLELY BE SUBORDINATE TO THE LAW.

" Any disputes which arise between the parties in relation to the interpretation, the validity and the performance of this contract, which cannot be resolved by the parties’ consent, shall be submitted for resolution by the Bulgarian Chamber of Commerce and Industry".

The defendant objects to the jurisdiction of the CA arguing that pursuant to Art. 1 (3) of the Rules of the CA at the BCCI the CA is an independent institution from the BCCI and designating the BCCI as the decisive body in the contract does not by itself lead to the conclusion that the CA at the BCCI is the deciding arbitration authority.

At an open hearing, the Arbitral Tribunal pronounced on this objection and decided not to favour it for the following reasons:

The present dispute is characterised as a civil monetary dispute and the specialised body created by the Bulgarian Chamber of Commerce and Industry, which deals with such matters, is in fact the Court of Arbitration at the Bulgarian Chamber of Commerce and Industry. The fact that Art. 1 (3) of the Statute of the CA at the BCCI grants jurisdiction to the AC and gives it independence from the BCCI, does not contemplate that the CA is a structure separate from and external to the BCCI. The above cited text of the statute only provides that in resolving cases the CA is solely subordinate to the Law.

Accordingly, when interpreting the common will of the parties, the Arbitral Tribunal holds that by appointing BCCI as an arbitrator, in fact they actually expressed their consent to submit the resolution of their disputes to the specialised arbitration body of the BCCI. The only way in which the BCCI solves arbitration disputes is through its specialised arbitration institution.

* Published in Bulgaria in collection 2002-2003 under reference No. 155, p. 370