Law No. 10 of 2023 AD regarding Libyan Commercial Arbitration

Law No. 10 of 2023 AD regarding Libyan Commercial Arbitration

After viewing:

• The Interim Constitutional Declaration and its amendments were issued on August 3, 2011, AD.
• Law No. 10 of 2014 regarding the election of the House of Representatives during the transitional period.
• Law No. 4 of 2014 regarding the adoption of the internal system of the House of Representatives.
• The Civil and Commercial Procedures Law and its amendments.
• Law No. 6 of 2006 regarding the judicial system and its amendments.
• Law No. 9 of 2010 regarding the encouragement of investment.
• Law No. 23 of 2010 regarding commercial activity and the regulations issued pursuant thereto.
• And based on the conclusions of the House of Representatives in its meeting No. 1 of 2021 AD, which resumed its convening on Monday 28/Shaaban/1444 AH corresponding to 3/21/2023 AD.

The following law was issued:

Chapter One: General Provisions

Article 1

In applying the provisions of this law, the following expressions shall have the corresponding meanings:

1. The State: The Libyan State.
2. Arbitration: It is a special way used by the parties to the dispute to settle disputes through neutral individuals, instead of bringing the dispute to the judiciary.
3. Electronic Arbitration: It is a special mechanism for resolving disputes through electronic networks and modern means of communication, with the aim of issuing an arbitral judgment that settles a dispute that has force and authority.
4. Arbitration Tribunal: It is the authority competent to adjudicate the dispute, whether it is composed of a single arbitrator or a group of arbitrators, provided that their number is odd.
5. Institutional Arbitration: An agreement between the two parties to submit any dispute that arises between them to an arbitration center or institution for resolution in accordance with the rules of this institution.
6. Free Arbitration: It is the arbitration in which the parties to the dispute organize the arbitration process from its inception until its end with the issuance of the arbitral judgment.
7. Arbitration Agreement: It is a separate contract from the original contract that was concluded between the two parties, and in that independent contract all the arbitration terms are laid down.
8. Arbitration Clause: An agreement between the parties to a contract to submit disputes that may arise from that contract to arbitration.
9. Arbitration by Conciliation: It is the arbitration in which the arbitrators do not abide by the rules of substantive law when deciding the dispute.
10. Assignment Document: It is the document through which the arbitrators are authorized to conduct the arbitration process.
11. Arbitration Agreement: It is the agreement in which the parties undertake to resort to arbitration to settle all or some of the existing disputes or that may arise in the future, as a result of the establishment of a legal relationship between them, contractual or otherwise.
12. Weighted Arbitrator: He is the one who issues the arbitral judgment when the majority cannot be achieved.
13. International Arbitration: It is similar to litigation before local courts, but instead of being referred to a local court, it is held before special arbitrators known as arbitrators.
14. Internal Arbitration: It is the parties to the contract resorting to arbitration in all or some of the disputes arising from the contracts concluded between them pursuant to an arbitration agreement as long as the dispute is related to companies or civil and commercial obligations and exchanges within the territory of the Libyan state, taking into account the provisions of Chapter Five.
15. The Original Contract: it is the contract that contains the arbitration clause.

Article 2

The arbitration agreement can only be established by writing, whether it is formal, customary, traditional, or electronic.

Any reference in the contract to the provisions of a model contract, an international agreement, or any other document containing an arbitration clause shall be considered as a written agreement if the reference is clear that this clause is considered part of the contract.

Article 3

It is permissible to agree to arbitration, even if the dispute was brought before the courts or was decided by a judgment that does not possess the authority of the matter decided in it.

Article 4

The arbitration clause is considered a separate contract from the original contract that included the arbitration clause, and the invalidity, rescission or termination of the contract does not have any effect on the arbitration clause.

As an exception to that, if the original contract is absolutely null because it was concluded by someone who is incompetent or not competent to conclude it, or in matters in which arbitration is not permissible mentioned in Article 5 of this law, then in this case the arbitration clause falls, and the judiciary is competent to consider the validity of the original contract.

Article 5

Arbitration is not permitted in matters related to:

1. By public order.
2. Nationality.
3. The circumstances in which reconciliation is not permitted.

Article 6

The parties to the arbitration agreement must have the capacity to dispose of their rights.

Article 7

The arbitrator must be a natural person with full capacity, enjoying his full civil rights, independence, and impartiality, and if the arbitration agreement appoints a legal person, his authority is limited to appointing the arbitral tribunal.

The likely arbitrator must disclose any cases of conflict of interest to the parties to the dispute, and the parties to the dispute may remove the likely arbitrator if any case of conflict of interest is realized.

The arbitrator's acceptance of his assignment is proved by any method of proof, and he is deemed to have accepted his assignment by signing the arbitration agreement, or by embarking on the mission entrusted to him.

If the arbitrator abandons the arbitration after accepting it without justification, the injured party may claim compensation for the damage resulting from his abandonment.

Article 8

Parties can resort to free arbitration or institutional arbitration.

Free arbitration grants full freedom to the litigants in determining the procedures and rules to be applied to the subject matter of the dispute, and the arbitral tribunal is responsible for organizing it by specifying the procedures to be followed, unless the parties to the dispute agree otherwise.

In the case of institutional arbitration, the local or international arbitral institutions organize their procedures, which the parties to the dispute must submit to.

In the event that the parties agree to resort to arbitration, without referring to the arbitration institution, the arbitration is considered free.

Article 9

The arbitrators must apply the law chosen by the will of the parties unless the parties delegate to them the status of conciliatory arbitrators in the arbitration agreement. In this case, the arbitrators are not bound by the application of legal rules and follow the rules of justice and equity.

If the parties neglected to choose the law applicable to the subject matter of the dispute, the arbitrators may apply the appropriate law to govern the dispute, provided that it is relevant to the subject matter of the dispute.

Article 10

In the event that the parties agree during the arbitration procedures to settle the dispute between them, the arbitral tribunal shall approve this settlement, and it shall issue an arbitral judgment in this regard.

Article 11

The provisions of this chapter do not apply unless the place of arbitration is on Libyan territory, or if the parties to the dispute wish to implement the provisions of this law.

Article 12

International Arbitration: Arbitration is international in the following cases:

• If the arbitration is related to international trade.
• If the subject matter of the arbitration agreement is related to more than one country.
• If the workplace of the parties to the arbitration agreement at the time of its conclusion was located between two different countries.
• If one of the following places is located outside the country in which the parties have their place of business:

1. The place of arbitration stipulated in the arbitration agreement.

2. The place of performance of the largest part of the obligations arising from the contractual relationship.

The workplace is determined as follows:

• If one of the parties has more than one place of business, the considered is the place of work that is most closely related to the arbitration agreement.
• If one of the parties does not have a place of business, the considered is his usual place of residence.

Chapter Two: Arbitration Agreement

Article 13

If a dispute is brought before an arbitral tribunal before the judiciary, the court before which the dispute is raised may rule that it has no jurisdiction to adjudicate the dispute at the request of one of the parties.

Article 14

The temporary matters judge may issue provisional or precautionary measures, within the limits of his competence, before or during the arbitration proceedings at the request of one of the parties, taking into account the provisions of the Civil and Commercial Procedures Law.

If the arbitral tribunal begins its work, taking any temporary or conservatory means becomes within its competence by the force of this law.

The arbitral tribunal or the judge can oblige any party to pay part of the expenses involved in this procedure.

Article 15

The judgment of the arbitral tribunal shall be issued within the territory of the Libyan state, whether the dispute is related to internal or international arbitration, and it shall have – as soon as it is issued – the authority of the ruling in relation to the subject matter of the dispute in which it was decided.

The competent court shall append the arbitral judgment in the executive form at the request of one of the parties to the dispute.

Chapter Three: Arbitral Tribunal

Section One: Formation of the Arbitral Tribunal

Article 16

The subject matter of the dispute must be specified in the arbitration agreement with the names of the arbitrators and the arbitration institution expressly or implied, otherwise the agreement is null and void.

If the parties do not specify the names of the arbitrators or choose a specific arbitration institution, the Court of First Instance in whose jurisdiction the original contract was concluded shall have jurisdiction to specify the names of the arbitrators or to determine the arbitration institution.

Article 17

The arbitral tribunal may be composed of one or more arbitrators, and if there are more than one arbitrator, their number must be odd.

If the number of arbitrators is odd, they must appoint a president for the panel, if the parties to the relationship fail to specify it.

Each party may choose one or more arbitrators, provided that the selected arbitrators choose an arbitrator weighted to preside over the arbitral tribunal.

Article 18

If the arbitration is institutional, the parties to the arbitration agreement may agree on the selection of arbitrators and on the method of their selection. If agreement between them is not possible, or they are negligent about that, or the arbitrators do not agree, or an impediment prevents the arbitrators from carrying out their work for a period of thirty days from the date of submitting the arbitration request, the parties must refer to the procedures for appointing the arbitral tribunal contained in the regulation of the organization organizing the arbitration.

If the arbitration is free and one of the cases is fulfilled with the period mentioned in the previous paragraph, the President of the Court of First Instance in whose circuit the arbitration agreement was concluded shall appoint the arbitrator or the weighted arbitrator by an urgent decision that is not subject to appeal at the request of one of the parties.

Article 19

No person may be prevented by reason of his nationality from serving as an arbitrator unless otherwise agreed by the parties.

Anyone who assaults an arbitrator during the exercise of his duties shall be punished with the penalties prescribed for assaulting judges in the Libyan Penal Code.

Section Two: Rejected and Dismissal of the Arbitrator

Article 20

The arbitrator must declare all the reasons that may raise doubts about his impartiality or independence, and he must not delay in notifying the parties to the dispute of the existence of any reason unless he has previously informed them of them, specifying a time limit for the parties to respond.

If the parties accept the reasons of the arbitrator and it is considered that they do not affect his independence and impartiality, the arbitrator can complete his tasks, otherwise his appointment is considered invalid.

Article 21

If the arbitrator does not have the required qualifications, or if there are reasons that raise doubts about his impartiality or independence, the arbitrator may be challenged by any of the parties to the dispute, and none of the parties to the dispute may challenge an arbitrator appointed by him or participated in his appointment except for reasons he discovered after appointment.

In all cases, the arbitrator responds with the same reasons as the judge provided for in the Civil and Commercial Procedures Law

The recusal request shall be submitted to the President of the Court of First Instance in whose circuit the arbitration is located if the arbitration is institutional, or to the President of the Court of First Instance in whose circuit the arbitration agreement was concluded if the arbitration was free. In all cases, the decision of the Court of First Instance is not subject to appeal.

The arbitration procedures shall be stopped from the date of submitting the application for refusal until a decision is made on it, and the competent judge shall decide on the application within ten days from the date of its submission.

Article 22

If the arbitrator or one of the arbitrators dies, or an impediment arises from his conducting the arbitration, or he refrains from conducting it, or he abandons or is dismissed, or the arbitration period expires, the parties may agree to continue the arbitration by remedying these impediments. But if the parties do not agree or do not decide to terminate the arbitration, then the provisions of Article The precedent related to the jurisdiction of the Court of First Instance is applicable.

Article 23

If the arbitrator becomes de jure or de facto unable to perform his mission or fails to do so within thirty days from the date of his appointment, he shall be deemed to have abandoned his mission as arbitrator, and the party affected by the abandonment may claim compensation for the damage incurred.

The arbitrator may be dismissed either by agreement of all parties, or in accordance with the relevant rules approved by the arbitral institution entrusted with the task of settling the dispute, or in accordance with the provisions contained in the arbitration agreement.

In the event of disagreement or failure to resort to any arbitration institution, the dismissal shall be by a judgment issued by the President of the Court of First Instance in which circuit the headquarters of the arbitral institution is located, upon the request of one of the parties, within a maximum deadline of one month from the date of commencement of the dismissal procedures, and the judgment shall not be subject to appeal.

The arbitration procedures must stop from the date of submitting the request to dismiss the arbitrator until a decision is made on it.

Article 24

In the event of the death of one of the parties or the dissolution of the legal person, the arbitration litigation shall continue, and the arbitral tribunal shall summon those concerned and inform them of the course of the arbitration litigation and replace them with the deceased or the dissolved person, if this is required.

If the summons is not made, or if the concerned party does not initiate the dispute on his own within a two-month period from the death of the natural person or the dissolution of the legal person, the arbitration dispute shall lapse.

Section Three: Jurisdiction of the Arbitral Tribunal

Article 25

Subject to the second paragraph of Article Five, the arbitral tribunal shall be competent to consider its terms of reference and any objection related to the validity of the arbitration agreement.

Article 26

The plea for the lack of jurisdiction of the arbitral tribunal shall be raised within a deadline not exceeding the first session in which the preliminary pleadings were presented, whether oral or written.

The arbitral tribunal may accept a payment raised after the expiration of this period if the delay is considered valid.

As for the plea that the arbitral tribunal exceeds the scope of the subject matter of the dispute, it may be adhered to at any stage of the adjudication of the arbitral dispute.

Article 27

If the arbitral tribunal decides on any of the defenses referred to in the preceding Article by a partial judgment, any party may, within thirty days from the date of being notified thereof, request the President of the Court of Appeal in whose jurisdiction the place of arbitration is located to decide on the matter.

The court shall decide on the matter within a deadline not exceeding one month from the date of submitting the application, and the arbitration procedures shall be stopped until the court issues a judgment. As for the defenses raised after the issuance of the arbitral judgment in the aforementioned appeal, they shall be considered together with the original.

Chapter Four: Arbitration Procedures

Article 28

The parties to the arbitration agreement can agree on the procedures to be followed by the arbitral tribunal, and if the parties do not agree on that, the arbitral tribunal may apply the rules it deems most appropriate to resolve the dispute, and in both cases the basic guarantees are taken into account in the litigation procedures, especially those related to defense rights.

Article 29

The parties can determine the place of arbitration within or outside the territory of the country.

In the event of disagreement on the place of arbitration, the arbitral tribunal shall determine it, taking into account the stages of the litigation.

Article 30

Without prejudice to the previous article, the arbitral tribunal may meet in any place it deems appropriate for deliberation among its members or to complete the investigation procedures, or to hear witnesses or experts after taking an oath before it or the parties to the dispute and to study documents, reports and research, unless the parties to the dispute agree otherwise.

Article 31

The parties to the arbitration can agree on the language or languages to be used in the arbitration procedures, and in the event that the parties do not agree on the language of the arbitration, the arbitral tribunal can choose the language or languages used in these procedures, and it is not permissible to combine the languages in the same document.

The arbitral tribunal may request that each document submitted in a different language be accompanied by a translation into the language or languages agreed upon by the parties or specified by the arbitral tribunal.

Article 32

The arbitral tribunal shall carry out its task immediately upon its formation by receiving the requests of the arbitration parties and their documents, and the document defining the mission shall include the following data:

1. The names of the arbitrators.
2. The names and addresses of the parties to the arbitration, and a summary of their requests.
3. Determine the subject matter of the dispute to be decided.
4. Determine the arbitration procedures and the related timetable.

The arbitral tribunal and the parties must sign the assignment document by traditional or electronic signature within one week from the date of submission of the arbitration request.

If one of the parties refuses to sign the assignment document, the Authority may start the arbitration proceedings after verifying the validity of the arbitration clause, and proving the refusal in a separate document approved by the President of the Court of First Instance in whose circuit the arbitration seat is located and attached to the document.

Article 33

The arbitral tribunal undertakes the procedures of research and investigation, receiving testimonies, hearing witnesses, investigation procedures, appointing experts, and all actions that may reveal the truth and help settle disputes.

The arbitral tribunal – or one of its members – may request the parties to submit all documents, papers, and all means of evidence that the parties may possess, and it may also resort to the courts to obtain any decision that enables it to achieve the purposes set forth in this article within the limits of its authority.

Article 34

If the parties set a deadline for settling the dispute, that deadline shall start from the date the arbitrator, or the last arbitrator accepts his mission.

If the parties do not specify a deadline, the dispute must be decided within a deadline not exceeding six months.

In all cases, the arbitral tribunal may, by a decision, extend the deadline for deciding on the dispute twice at most, provided that the maximum period for deciding on the subject matter of the dispute does not exceed one year, and the arbitral tribunal’s decision regarding the extension is final and not subject to any form of appeal.

If a new arbitrator is appointed in place of the dismissed, deceased, or relinquished arbitrator, thirty days shall be added to the date of the deadline for issuing the judgment.

Article 35

The plaintiff must, within the period agreed upon in the arbitration agreement, or within the period specified by the arbitral tribunal, send to the defendant and the members of the arbitral tribunal a request containing his name and address, the name and address of the defendant, a presentation of the facts, the nature of the dispute, his requests, arguments, and documents supporting his claim, and the defendant must present his defence. with respect to such matters within the period to be determined by the arbitral tribunal.

The parties must also submit their arguments accompanied by the original documents that are relevant to the subject matter of the dispute, and they may indicate all the documents and evidence that they intend to submit, unless they agree on another way to present them.

Article 36

If the plaintiff fails, without an acceptable justification, to provide the supporting evidence for his claim in accordance with the previous article, the arbitral tribunal may terminate the arbitration procedures and demand the plaintiff reasonable arbitration expenses.

However, if the defendant fails, without an acceptable justification, to submit his defense in accordance with the provisions of the same article, the arbitral tribunal must continue the arbitral proceedings without considering this failure in itself as an admission of the validity of the case.

If one of the parties fails, without an acceptable justification, to attend a session or to submit its documents, the arbitral tribunal may continue the arbitration procedures and issue its judgment based on the evidence available to it.

All this unless the parties agree otherwise.

Article 37

The parties may amend or complete their requests or defense during the course of the proceedings, unless the arbitral tribunal deems that there are no acceptable justifications for that, and therefore it may suffice with the submissions and documents provided unless the parties agree otherwise.

Article 38

The arbitral tribunal has discretion as to whether it will hold a session or sessions in which it will hear the parties or will confine itself to considering the matter based on the documents submitted to it.

The parties to the dispute shall be notified of the dates of the sessions, meetings and every procedural action carried out by the arbitral tribunal by any means of notification with acknowledgment of receipt. All written notes, papers, information, tests and documents provided by the other party shall be sent to each party.

A summary of the facts of each session prepared by the arbitral tribunal shall be recorded in a special record, a copy of which shall be delivered to the parties to the dispute, unless the parties agree otherwise.

Article 39

All letters and advertisements shall be delivered to the addressee personally, to his place of business, habitual residence, or to his postal address known to all parties, or specified in the arbitration agreement, unless the parties agree on a special method for the delivery and advertisement process.

If it is not possible to know one of these addresses after conducting all the necessary investigations, the message is deemed to have been received if it is sent to the last place of work or habitual residence or postal address known to the addressee, by virtue of a guaranteed arrival notice or by any other means proving an attempt to deliver it. received since the day on which the message was received, and the provisions of this article do not apply to judicial declarations before the courts.

Article 40

The plaintiff shall send the defendant a notice of arbitration, and the arbitration proceedings shall be deemed to have commenced from the date on which the defendant receives the notice of arbitration.

The Notice of Arbitration shall also include the following:

1. A claim to refer the dispute to arbitration.
2. The parties' names, titles, and nationalities.
3. Determine the arbitration agreement.
4. A brief description of the relationship between the plaintiff and the defendant, the case and the amount claimed.
5. The plaintiff's suggestion of the names of the arbitrators, the appointment authority, the number of arbitrators, the language and place of the arbitration, if the parties do not agree on that.

The defendant must send to the plaintiff within thirty days from the date of his receipt of the notice of arbitration – a response to that notice containing the following:

1. The name of one or more defendants, his surname and nationality.
2. The respondent's response to the information contained in the notification.
3. The plaintiff's proposal for the names of the arbitrators, the appointing authority, the number of arbitrators, and the language and place of the arbitration.
4. A brief description of the corresponding defenses or requests made.

The formation of the arbitral tribunal shall not be prevented by the respondent's non-response to the notice of arbitration sent by the plaintiff, or sending the notice incomplete, or the defendant's delay in responding to it, and the tribunal shall in all cases deal with these matters.

Article 41

The arbitral tribunal shall notify the parties to the dispute of the closing date for pleadings when the case is ready for judgment.

Chapter Five: Arbitration Judgment

Section One: Issuance of the Arbitral Judgment

Article 42

Arbitration procedures end with the issuance of the arbitral judgment on the origin of the dispute, and in the following cases, with a decision of the arbitral tribunal:

1. If the parties agree to terminate the procedures by concluding conciliation, the Authority shall issue minutes signed by the parties or their representatives, and this record shall have the force of an executive document.
2. If the plaintiff withdraws his claim, and the defendant does not object to that, the arbitral tribunal has recognized his legitimate interest in the final settlement of the dispute.
3. If the arbitral tribunal finds that the continuation of the procedures has become unnecessary or impossible.

Article 43

The arbitral tribunal must decide on the dispute brought before it in accordance with the provisions of the law designated by the parties, and if the parties do not specify the law applicable to the dispute, then the tribunal must adopt the law it deems appropriate, and the tribunal may decide on the dispute in accordance with the rules of fairness and equity if the parties agree to that. Frankly.

The arbitral tribunal must decide the dispute in accordance with the terms of the contract, taking into consideration the commercial custom on which work was conducted in the same transaction.

Article 44

The arbitral tribunal must issue its judgment in writing with the majority of opinions after negotiations, and the judgment must be signed by all members of the tribunal.

In the event that one or more of the members of the arbitral tribunal refuses to sign the judgment, or is unable to sign, this fact must be established in the body of the judgment, and the judgment is valid if it is signed by the majority of the arbitrators.

Article 45

The arbitral judgment must include the following information:

1. The name of the arbitrator or arbitrators who issued the judgment.
2. The place and date of the arbitral judgment.
3. The names and titles of the parties to the dispute, their capacities and addresses, and the names, capacities, and addresses of their agents, if any.
4. A brief presentation of the facts, litigants' requests, defense, and documents.
5. The reasons for the judgment.
6. Judgment.
7. The value of the expenses and fees and the party that will bear the expenses.
8. Signature of the arbitrators.

Article 46

The arbitrators' fees are determined according to an agreement between the parties to the dispute and the arbitral tribunal.

If the arbitration is established, the arbitrators’ fees are subject to the fee schedule registered in the arbitration institution’s system. In the event of disagreement on the fees and the absence of the arbitral institution, the panel determines its fees by a reasoned decision, subject to appeal before the president of the Court of Appeal in whose circuit the arbitration seat is located.

Article 47

The arbitral judgment or part thereof may not be published without the consent of the parties to the dispute.

Article 48

The judgment of the arbitral tribunal shall be automatically enforceable by the parties or compulsorily with the permission of the President of the Court of Appeal in whose jurisdiction the arbitration seat is located.

The president of the arbitration body or organization shall send a copy of the judgment to the parties within fifteen days from the date of its issuance, and within the same period, the original judgment, together with the arbitration agreement, shall be deposited with the clerk of the competent court.

If the judgment was issued in a foreign language, an Arabic translation attested by judicial expertise shall be deposited with it, and the court clerk shall draw up minutes of this deposit, and the parties to the dispute may obtain a copy of this record. Deposit date.

Section Two: The Interpretation of the Arbitral Judgment

Article 49

One of the parties to the dispute may request the arbitral tribunal, within thirty days from the date of his notification of the judgment, to interpret the operative part of the judgment. days from the date of receipt of the request.

Article 50

The arbitral tribunal shall, on its own initiative or at the request of the parties, immediately correct the material, clerical or arithmetical errors found in its judgment.

The tribunal shall correct the error without making a pleading within a maximum deadline of ten days from the date of issuance of the judgment or from the date of filing the request for correction. The correction decision shall be issued in writing and shall be communicated to the two parties within fifteen days from the date of its issuance. The arbitral tribunal may also extend the legal period once and for the period, if necessary, for the correction or interpretation of the judgment or the issuance of a supplementary judgment.

Article 51

Any of the parties to the dispute may submit to the arbitral tribunal a request to issue a supplementary judgment in part of the original request that was omitted in the judgment, within a maximum period of thirty days from the date of being notified of the judgment, and the tribunal is obligated to notify the other party of the supplementary judgment within a maximum period of thirty days from the date of issuance of the judgment. Complementary judgment. The arbitral tribunal shall issue its judgment within thirty days from the date of submitting the application, and it may extend the deadline once for the same period.

The Authority shall direct a copy of the judgment to correct, interpret or supplement it to the parties within a period of fifteen days from the date of its issuance, and within the same period the original of that judgment shall be deposited with the clerk of the competent court.

The original judgment that has been corrected, interpreted, or supplemented must remain deposited with the clerk of the competent court.

Article 52

The judgment that has been corrected or interpreted or a part of it supplemented is considered to be the original judgment. The parties may not submit a request for a judgment to correct, interpret or supplement the original judgment, if the original judgment of the arbitral tribunal was automatically implemented. Appeal and request execution until the said judgment is issued.

Article 53

If the arbitral tribunal is unable to convene again, requests for interpretation, correction, or completion of a material deficiency in the judgment shall be submitted to the President of the Court of Appeal in whose jurisdiction the arbitration seat is located.

Section Three: Objection to the Arbitral Judgment

Article 54

It is permissible to request the annulment of the arbitral tribunal’s final judgment in the following cases:

1. If it is proved that one of the parties is incapacitated.
2. If it is issued without reliance on the arbitration agreement or outside its scope.
3. If it was issued based on a void arbitration agreement or outside the arbitration period.
4. If it includes matters that were not requested.
5. If he breaches a rule of public order.
6. If the arbitral tribunal was not properly constituted.
7. If the basic rules of procedure are not observed.
8. If the invalidation applicant has not been properly informed of the appointment of an arbitrator or of the arbitration procedures.
9. That the formation of the arbitral tribunal or what was followed in the arbitration procedures is contrary to the requirements of the arbitration agreement in general, the applicable arbitration system, the applicable law, or the rules of the provisions of this section related to the formation of the arbitral tribunal.

Article 55

The President of the Court of Appeal in whose jurisdiction the arbitral seat is located may suspend the annulment procedures at the request of one of the parties, provided that this suspension is for a period specified by the court to enable the arbitral tribunal to resume the arbitration procedures or to take what it deems necessary to remove the causes of invalidation.

If the competent court rules that the judgment or part of it is invalid, it shall rule on the subject matter of the dispute if one of the parties requests it to do so. It shall have the status of arbitrator of the interests stipulated in Article 9 of this law if requested by all parties.

If it decides to reject the appeal, the refusal ruling shall substitute for the order to implement the contested arbitral judgment.

Article 56

An action for invalidity shall be filed before the Court of Appeal in which circuit the arbitral judgment was issued within thirty days from the date of notification thereof.

Article 57

If the competent court decides to accept the appeal, it shall rule that the judgment or the arbitration procedures be invalid in whole or in part, as the case may be, and it must rule on the subject matter of the dispute if the parties request it to do so within thirty days from the date of the date of the first session set to consider the application for nullification. The principle is that the application for nullification does not Execution shall be suspended if an insurance amount decided by the court is paid as a guarantee of execution. However, the court may authorize a stay of execution at the request of one of the parties.

In the event that it issues a stay of execution order, it shall decide on the invalidity case within three months from the date of issuance of the stay order.

Article 58

The court may suspend consideration of the annulment application if the application is related to another case being considered by another court and the effect of the judgment of this court on the annulment application is likely.

But if it decides to reject the appeal, the refusal ruling takes the place of the order to implement the contested arbitral judgment.

Article 59

If the dispute is related to international arbitration, the arbitration judgment may not be appealed except in the following cases:

1. If one of the parties submits evidence proving that one of the parties to the arbitration agreement does not meet one of the conditions of eligibility.
2. If the agreement is not valid according to the provisions of the applicable law in the arbitration agreement or in view of the rules of international law to which the parties have subjected, it in the event that the applicable law has not been specified.
3. If the applicant was not properly notified of the appointment of an arbitrator or of the arbitration procedures, or if he was unable to defend his rights for a reason related to force majeure.
4. If the arbitral judgment includes a dispute that was not agreed upon in the arbitration agreement, or if it included issues outside the scope of the agreement.
5. If the procedures for forming the arbitral tribunal or the arbitration procedures signed by its affiliates violate the requirements of the arbitration agreement in general, the chosen arbitration system, the applicable law according to the arbitration agreement, or the rules of the provisions of this section.
6. If the arbitral judgment violates the public order in the concept of private international law, and the annulment request may not be submitted after the lapse of three months from the date of receipt of the request to challenge the arbitration judgment.

Chapter Six: Recognition of the Arbitral Judgment

Article 60

The judgments of the arbitral tribunal shall have the force of a decided order, and the special rules related to expedited enforcement shall apply to them after appending them with the executive formula by a decision of the president of the competent court in which the original judgment was deposited.

Article 61

The arbitration judgment may not be appended in the executive form except after verifying that the notification of the judgment is in accordance with the validity of the law.

Chapter Seven:  Recognition of Foreign Arbitral Judgment

Article 62

The foreign arbitral judgment shall be executed in accordance with the principle of reciprocity based on a written request submitted to the President of the Court of Appeal.

Article 63

The application for the enforcement of the arbitral judgment shall be submitted to the Court of Appeal, accompanied by the original judgment and arbitration agreement, provided that the two documents mentioned are accompanied, when necessary, by an official translation of them into Arabic.

Article 64

The President of the Court of Appeal in Tripoli shall postpone the decision on the application for execution, if it is proved that the person against whom the judgment was issued appealed the arbitral judgment. However, the President of the Court may, at the request of the party in whose favor the judgment was issued, request the other party to provide sufficient guarantees that guarantee the implementation of the judgment in the event that it is executed. Rejection of the appeal.

Chapter Eight: Electronic Arbitration

Section One: Electronic Arbitration Agreement

Article 65

For the validity of electronic arbitration, a written arbitration agreement must exist, whether the writing is traditional or electronic.

Article 66

The arbitration contract may be concluded electronically, and the will is expressed through this electronic means, whereby the offer is directed through it and acceptance is received through it by clicking on the “I accept” icon or any other sign indicating acceptance of the contract or acceptance of the purchase, which indicates satisfaction with the contract and agreement to its terms.

It is possible to challenge the validity of the electronic arbitration agreement with the availability of will defects legally, but it cannot be challenged under the pretext of coercion.

Article 67

It is possible to resort to a third party as a neutral arbitration institution that both parties trust to verify the identity of the parties to the electronic contract, and to ensure that the electronic customer has submitted accurate data about his personal identity.

Article 68

The electronic arbitration agreement is subject to the general rules of arbitration.

Section Two: Arbitral Tribunal

Article 69

The arbitration court consists of one arbitrator or three arbitrators, and in the event of multiple arbitrators, they assume the task of appointing an arbitrator to assume the presidency of the court.

Article 70

The arbitrator is rejected by a response request that is sent electronically via the Internet to the center in charge of arbitration, and all ordinary arbitration procedures are carried out on it, and the response request is not accepted after the pleadings are closed.

Section Three: Arbitration Procedures

Article 71

Electronic arbitration is subject to regular arbitration procedures in addition to the rules for electronic arbitration. The parties may also specify their own electronic arbitration procedures, such as determining how to communicate between the litigants and the arbitrators remotely, and how to submit documents electronically.

Article 72

In the event that the parties do not agree to consider the territory of a particular country or city as a place for arbitration, the country in which the headquarters of the arbitral institution is located may be considered as a place for arbitration.

Article 73

When a dispute arises between the parties, the plaintiff must submit a request for arbitration through the form placed on the website of the designated arbitration center and prepared in advance by the center or the party concerned with arbitration.

The form must specify the nature of the dispute and the dispute, specify the names of the parties, the means of contacting them, determine the number of arbitrators, choose the method of procedures that the parties wish to follow during the consideration of the dispute, determine the duration of the arbitration, and submit documents, documents and evidence supporting the claims of the plaintiff, with a copy of the arbitration agreement attached.

Article 74

The arbitral tribunal shall notify the respondent of the arbitration through the international information network or by hand delivery, or by letter with acknowledgment of receipt, or by any other means of communication that allows the submission of evidence of sending the notification within a maximum period of one week from the date of submitting the arbitration request form.

The defendant must respond to the arbitration request submitted by the plaintiff within ten days from the date of notification, and he may attach his defenses with any requests he wants to submit to the Authority and his position on the plaintiff’s requests and documents that support his position and possible objections to arbitration. The plaintiff must submit his responses to the defendant’s defense notes Within thirty days from the date of being notified of the defendant's defenses.

Article 75

The date of the sessions is determined by the arbitral institution, and the arbitration procedures are conducted electronically on the website of the arbitral institution.

The institution must provide a specific mechanism for storing data, documents, and documents related to the arbitration case electronically only, provided that they are deleted after five years have passed from the date of execution of the judgment.

Article 76

The arbitration institution must create a secure electronic portal for each case, to which no one can access except the parties to the dispute, the arbitrators, and those whom the arbitrators authorize with the majority of their votes. Access is made using secret numbers.

Article 77

Subject to the provisions of Article 74, the parties to the arbitration process, the General Secretariat, and the Arbitration Court must send all advertisements, documents, documents, notes, written evidence, and everything related to the subject matter of the dispute by e-mail to the claim portal. They are prohibited from using any other means.

Section Four: Managing Electronic Arbitration Sessions

Article 78

Arbitration sessions are conducted electronically in terms of the possibility of instant exchange of texts, images and sounds, and documents and data are transmitted via e-mail or the electronic portal designated for this purpose.

Arbitration sessions may only be held via audiovisual communication, and every arbitration session in which the parties to the arbitration process are not able to see each other visually through visual technology is null and void.

Section Five: Issuance of the Electronic Arbitration Judgment and its Documentation

Article 79

The arbitral tribunal shall close the case before issuing the judgment, and it shall study the merits of the case and evaluate the evidence before issuing a judgment.

The arbitrators must issue their judgment within the time limits specified for them by agreement or by law.

Article 80

The electronic arbitration judgment must be in writing and include the following:

1. The names of the arbitrators who issued it and the date and place of its issuance.
2. The names and surnames of its parties and their place of residence or centers of administration.
3. Names of lawyers and consultants, if any.
4. The signature of the arbitrator or arbitrators who issued it.

Article 81

The arbitral judgment shall be published on the online portal of the claim, and the parties shall be notified of its content.

Article 82

The electronic arbitration judgment shall be deposited with the Registry of the Court of Appeal, and the general provisions regarding the implementation of the arbitral judgment shall be applied.

Section Six: Appeal for invalidity

Article 83

Recognition and enforcement of the judgment may not be refused at the request of the party against whom the judgment was issued unless evidence is presented that:

1. The parties to the agreement are incapacitated or the said agreement is not valid according to the law chosen by the parties or the law of the country in which the judgment was made when the applicable law is not determined by the parties.
2. That the opponent against whom the judgment is requested to be executed did not properly announce the appointment of the arbitrator or the arbitration procedures, or it was impossible for him for another reason to present his defence.
3. That the judgment has settled a dispute that is not included in the arbitration agreement or the arbitration contract, or exceeded their limits in terms of its ruling. Nevertheless, it is permissible to recognize and implement a part of the judgment that is originally subject to settlement by arbitration if it can be separated from the rest of the parts of the judgment that are not agreed to be settled in this way.
4. That the formation of the arbitral tribunal or the arbitration procedures was contrary to what was agreed upon by the parties or did not comply with the correct law of the country in which the arbitration took place in the event of disagreement.
5. The judgment did not become binding on the litigants, or it was annulled or suspended by the competent authority in the country in which the arbitration took place or the judgment was issued in accordance with its law.

Chapter Nine: Formation of Arbitration Centers

Article 84

Arbitration institutions are established pursuant to a decision issued by the Minister of Justice and published in the Official Gazette of the State.

The application for obtaining the institution’s license shall be submitted to the Ministry of Justice, and the application shall be accompanied by the following:

1. The institution's name, objectives, headquarters, and branches, if any.
2. The name and nationality of the director of the institution, and a copy of his identity card or passport.
3. A copy of the residence certificate for foreigners.
4. A copy of the Memorandum of Association.
5. A copy of the foundation's articles of association.

All current arbitration institutions must re-register with the Ministry of Justice within six months from the date of issuance of this law, otherwise their license shall be considered automatically null after this date.

Article 85

Within two months of the date of issuance of its license by the Ministry of Justice, the institution must issue the following documents:

1. Its organizational and administrative structure that includes administrative and financial regulations, penalties, internal arbitration procedures, fees and charges.
2. The institution's policies, especially the anti-corruption and fraud policies, and the code of conduct.
3. The names and qualifications of the arbitrators approved by it.

Article 86

The person in charge of managing the arbitral institution must:

1. Obtaining the Libyan nationality.
2. Not have been convicted of a felony or misdemeanour.
3. Not to undertake any political tasks.
4. To have a university degree in law, economics, or business administration.
5. He should have scientific or practical experience in the field of arbitration for a period of not less than five years.

Article 87

A committee shall be established at the Ministry of Justice by a decision of the Minister under the name of the Committee for the Supervision of Arbitration Institutions. It shall consist of five members. It shall be chaired by a judge with the rank of president of a court. The rest of the members shall be experts and academics in the field of arbitration.

The committee is concerned with granting and withdrawing licenses and other issues related to supervising the field of arbitration in the Libyan state. A decision of the Minister of Justice regulates the committee’s work mechanism, procedures for granting and withdrawing licenses, fees for establishing arbitral institutions and other related provisions.

The committee may carry out all necessary investigations to issue the correct decision. It may also visit the headquarters of any arbitration institution to verify the authenticity of any documents and verify that the arbitral institutions follow the standards, policies and requirements issued by the committee.

Article 88

In the event that the committee rejects the request to grant a license, its decision must be reasoned, and the director of the institution may appeal the rejection decision before the administrative court within a maximum period of thirty days from the date of notifying the institution of the rejection decision.

Article 89

The arbitration institution is considered a legal entity from the date of publication of the licensing decision to practice in the Official Gazette and it acquires legal personality.

Article 90

Arbitration institutions are subject to the tax system. However, each arbitration institution is exempted from income tax for a period of five years from the date of granting its license or re-registration in accordance with the provisions of this law.

Article 91

The arbitral institutions must keep all their records and documents of any kind for a period of not less than fifteen years.

Article 92

Anyone who has been harmed by the work of the arbitral institution may submit a written complaint before the Supervisory Committee of the Arbitration Institutions, accompanied by an original copy of the documents proving the validity of his claims, if any, provided that the complaint includes the following data:

1. The name, surname, nationality and domicile of the aggrieved party.
2. The name and address of the arbitral institution.
3. An account of the facts, the damage caused to him, and his requests.

Article 93

The committee shall ensure the veracity of the plaintiff's allegations, and it shall have the right to summon whoever it deems necessary to hear his statements, conduct the necessary investigations with him, and move to the institution's headquarters.

The committee shall decide on the complaint within a maximum deadline of thirty days from the date of receiving the complaint.

Article 94

In the event that it is confirmed that there is no harm, the committee shall reject the complaint and send two copies of that decision to each of the plaintiff and the legal representative of the arbitral institution.

In the event that the plaintiff's claims are confirmed to be correct, the committee shall notify the arbitration institution by an official letter to correct the error it has committed within a maximum deadline of sixty days from the date of the letter.

In the event that the arbitral institution does not respect the legal deadlines stipulated in this article or the decision of the committee, the committee may freeze the work of the arbitral institution for a period of two months and refer the matter to the Court of Appeal in whose circuit the arbitration center is located to consider the issue of freezing in an urgent manner. And if the committee does not refer the freezing order To the competent court within ten days from the date of its freezing order, the institution may file a lawsuit to lift the freezing of the institution's business before the same court.

The competent court must issue its ruling on the freezing decision issued by the committee within a period not exceeding two months from the date the matter was referred to it.

Article 95

The competent Court of Appeal considers it and gives the arbitral institution, during the first session, room to conclude reconciliation and correct the error within a maximum period of thirty days from the date of the first session. The arbitral institution is obligated to pay compensation to the aggrieved party.

The committee is also obligated to publish a summary of the court’s ruling to dissolve the arbitral institution in the Official Gazette.

Article 96

After the issuance of the court ruling, the Supervisory Committee shall appoint an administrative director with extensive experience in the field of arbitration, who shall manage the work of the arbitral institution until all cases submitted to it are decided upon, and the decision shall be published in the Official Gazette.

Chapter Ten: Final Provisions

Article 97

Without prejudice to the provisions of international agreements in force in the Libyan state, the provisions of this law apply to all arbitration disputes between natural or legal parties, regardless of the nature of the legal or contractual relationship subject of the dispute, as long as the arbitration agreement provides for submission to the provisions of this law.

Bilateral or multilateral cooperation agreements that include arbitration provisions are only valid after ratification by the legislative authority.

Article 98

The provisions of this law do not affect the special laws that do not permit the settlement of certain disputes through arbitration, or impose special procedures for adjudicating them.

Article 99

This law applies with immediate effect to arbitration disputes and contracts, with the exception of those containing an arbitration clause or agreement prior to its issuance, until a decision is made and the means and deadlines for appeal have been exhausted.

Article 100

This law shall come into force from the date of its issuance, and any provision that contradicts its provisions shall be repealed and published in the Official Gazette.

• Parliament
• Issued in Benghazi.
• On the 26th of Ramadan 1444 AH
• Corresponding to April 17, 2023 AD