RULES OF THE COURT OF ARBITRATION

AT THE

NATIONAL BUSINESS AND LAW ASSOCIATION

(The present Rules were approved on 25.07.2002 by the Administrative Council of the National Business and Law Association and confirmed by the President of the National Business and Law Association, came in force on the date of its approving, and amended by a resolution of the Administrative Council of the National Business and Law Association on 14.03.2003, confirmed by the President of the National Business and Law Association, which amendments coming into effect on 15.03.2003.)

I. GENERAL PROVISIONS

Court of Arbitration

Art. 1. (1) The Court of Arbitration at the National Business and Law Association in the Republic of Bulgaria is a justice-administering institute, independent from the Club. The organization of the Court of Arbitration and the status of the arbitrators and mediators are determined according to the Statute of the Court of Arbitration.

(2) The Court of Arbitration shall resolve on civil law disputes, as well as on disputes about gaps to be filled in contracts or their adaptation to newly arisen circumstances, regardless of whether the seat or the residence of one or both parties is in the Republic of Bulgaria or abroad.

(3) The Court of Arbitration shall resolve also on other disputes, submitted to it with an arbitration agreement, which disputes have contractual or out-contractual grounds.

(4) The Court of Arbitration shall organize conciliation proceedings of domestic and international disputes of private-legal character, which allow signing an agreement.

Reasons about the Jurisdiction of the Court of Arbitration

Art. 2. (1) The Court of Arbitration shall examine the disputes referred to in Art. 1 (2) and (3) provided that they have been submitted to it either by means of an arbitration agreement or of an international treaty.

(2) The arbitration agreement must be in writing. The agreement shall be deemed to be in writing provided that it is contained in letters, telegrams or any other written means of telecommunications, exchanged between the parties as well as in general conditions referred to in a written contract concluded between the parties.

(3) An arbitration agreement shall be considered as written provided that the claimant brings a suit before the Court of Arbitration, and the defendant, either in writing or through a statement, entered into the records of the arbitration sitting, agrees the case to be heard by the Court of Arbitration or proceeds towards a decision of the case on its merits, without challenging the jurisdiction of the Court of Arbitration.

Independence of the Arbitration Proceedings

Art. 3. (1) The arbitration proceedings may be commenced, continued and a decision could be taken, even if there is a pending case regarding the same dispute before a domestic or international court.

(2) If the proceedings upon the preceding subsection is pending before a domestic court, and the valid arbitration agreement is doubtful, the Court of Arbitration shall suspend the proceedings, commenced before it till the termination of the first session at the court, and till coming into effect of the court decision if a challenge for arbitration agreement has been done. If a challenge has not been done or not regarded, the Court of Arbitration shall terminate the proceeding.

(3) The existence of a pending legal or arbitration proceeding referring the same dispute is not an obstacle for commencement of a conciliation proceeding upon the present rules.

Art. 4. (1) The parties may agree upon the rules, upon which the court shall try the case, but they may not contradict to the present rules and to the authoritative regulations of the law, applied for the arbitration.

(2) If not otherwise provided by the parties, their consent to submit the dispute to the Court of Arbitration at the National Business and Law Association shall also mean their approval of the present rules as well as of the Court of Arbitration in its part, regarding the arbitrators.

(3) The arbitrators shall proceed on their own opinion, on the arbitration merits and on the subject of the dispute, guaranteeing to each party an equal opportunity for defence referring matters, not settled by the Law for International arbitration, or by the present rules, or by the agreement between the parties.

(4) For proceedings, based on arbitration agreements, the parties shall apply such rules, which are in force at the moment of commencement of the arbitration proceedings, unless both parties want to apply the rules, which are in force at the moment of signing the arbitration agreement or which have come in force after the commencement of the arbitration proceedings.

(5) If the party does not claim immediately in a written or in arbitration session against the offence of a procedure rule referred in subsection 1 and 2, the party shall be deemed to refuse its right to base its arguments on the offence.

Initiating Conciliation proceedings

Art. 4a. (1) The conciliation proceeding shall commence upon the common consent between the parties of the dispute or upon request from one of them.

(2) The parties shall submit to the Secretariat of the Court of Arbitration at the National Business and Law Association a conciliation appeal in three copies, where they shall expose in brief the subject of the dispute and the statement referring it. They shall pay a charge for the conciliation proceeding, which is determined in the Tariff to the present Rules.

(3) When the conciliation Appeal is submitted to one of the parties, the Secretariat of the Court of Arbitration shall send immediately a copy of this appeal to the other party, providing a 15-day term from the date of message receiving to declare whether it accepts or refuses to participate in the conciliation. Conciliation proceeding shall not be initiated in case of refusal or lack of response. The Secretariat shall notify the claimer for this and reimburse him 50 % from the paid fee.

(4) If the other party agrees to take part in conciliation, it shall notify in written the Secretariat for its consent. The Secretariat shall commence a conciliation proceeding and immediately send a copy of the statement to the applicant.

(5) After initiating the conciliation proceedings, the Chairman of the Court of Arbitration shall define the advance amount for expenses, which have to be deposited on time from both parties. In case one of the parties has not deposited its share from these expenses, but requests to take part in the conciliation procedures, the other party can cover its deposit as well. In case of failure to pay the whole amount of the advance deposit, the conciliation case shall be suspended, and both parties shall be immediately informed about that.

Art.4b. (1) If the parties have not selected a mediator from the List of Mediators at the Arbitration Court of the National Business and Law Association, the Chairman of the Court of Arbitration appoints a neutral mediator, taking into consideration the subject of the dispute and the mediator’s qualifications. The Secretariat informs the mediator and the parties about that, and gives a deadline within which they have to defend their standpoint.

(2) On undertaking this mission, the mediator presents to the Secretariat and both parties, participating in the conciliation proceedings, a written declaration of independence and impartiality, and confidentiality regarding the facts and circumstances, which he got to know in relation to that matter.

(3) Unless the parties agree, the mediator cannot take part as an arbitrator, representative or advisor of the arbitrary proceedings, concerning the same issue.

(4) The parties should not summon the mediator as a witness in legal or arbitrary proceedings with regards to the dispute, a question of conciliation, unless mutually agreed.

Art.4c.(1) To clarify the disputable circumstances and discuss the possible concessions, which either party is willing to make in order to finalize the dispute in a favorable way, the mediator can meet either parties separately, before inviting them to discuss the options for conciliation. The National Business and Law Association offers premises for the meetings of the mediator with the parties for free.

(2) In the propositions for possible agreement the mediator is guided by the facts, applicable law and justice.

(3) The parties take part in the conciliation proceedings personally or explicitly by authorized representatives. They can be assisted by advisors as well. Third parties can be present at the meetings of the mediator with the conciliation parties only if that is approved by the parties.

(4) If the attempt for conciliation is successful, the achieved agreement shall be signed up by the parties and by the mediator. One of its copies shall be applied to the file concerning the conciliation.

(5) When the conciliation regarding the dispute upon a pending case is achieved before the Court of Arbitration at the National Business and Law Association, the parties shall ask that the agreement signed between them to be reproduced in an arbitration resolution upon some agreed terms.

(6) The parties are obliged not to use as evidence in a legal or arbitration proceeding the following:

the exposed statements or suggestions by the other party, done during the attempt to conciliate;
the suggestions, done by the mediator;
the fact that one of the parties is ready to accept the suggestions of the mediator concerning the agreement.

Art. 4d. (1) The for conciliation ends up:

with signing an agreement upon the terms of Art. 4c, Par. 4;
with a written notice of the mediator by the parties or by one of them concerning their refusal to attempt to conciliate;
with a record by the mediator, ascertaining that the attempt to conciliate has been unsuccessful.

(2) The conciliation procedure before other organization or people shall not be an obstacle for conciliation as per the present rules.

Art. 4e. (1) The expenses for the legal procedures for conciliation shall include:

the administrative fee amounting to 20% of arbitration fee defined in the Tariff, which is an inseparable part from the present rules, but minimum 200 BGN;
the expenses of the mediator for business trips, when such are needed;
the mediator remuneration.

(2) The expenses for the conciliation shall be paid equally by each party, unless other provided in the agreement.

(3) regarding the expenses as per Par. 1 of the present article, each party shall pay the other expenses done by it concerning the conciliation.

(4) The mediator remuneration shall be determined by the Chairman of the Court of arbitration at the National Business and Law Association, which is guided by the nature of the dispute and the time used by the mediator. He could ask for the opinion of the other parties also.

II. CLAIM AND REPLY TO THE CLAIM

Making a claim

Art. 5 (1) The arbitration proceedings shall commence from the moment of filing the statement of the claim with the Court of arbitration.

(2) The statement of claim shall be considered as filed on the day on which it has been registered by the Secretariat of the Court of Arbitration, and if send by post, from the date indicated on the seal of the post-office at the place of mailing.

Content of the statement of claim

Art. 6. (1) The statement of claim shall contain:

giving the Court of Arbitration;
full names of the parties, addresses (legal address, respectively address for summoning), telephone, telefax, telex numbers;
the value of the claim;
the circumstances on which the claim is based;
what the claim consists of;
evidence in support of the claim;
the names of the arbitrator and his deputy elected by the claimant or a request that the arbitrator and his deputy should be appointed by the Chairman of the Court of Arbitration;
a list of the documents attached to the statement of claim;
the signature of the claimant.

(2) To the statement of claim shall be attached:

the arbitration agreement and all the written evidences in the list as per Par. 1, item 8;
the power of attorneys, when the claim is brought by an attorney;
all other necessary evidences for the active and passive legitimating of the parties;
copies from the statement of claim and its applications according to the number of the defendants and one set for the duplicate file;
the payment documents for paid arbitration fee and a deposit for expenses, representing a sum not less than 10% from the value of the arbitration fee.

(3) The Chairman of the Court of Arbitration upon request of the relevant concerned party could delay or cancel entirely or partially the payment of the arbitration fee.

Value of the claim

Art. 7. (1) The value of the claim shall be equal to the monetary amount or the value of the rights, which have been claimed. The value of the claim shall be pointed out by the claimant in the statement of the claim.

(2) When the claims are for settling or transforming legal relations, the value of the claim shall be the value of the subject of the legal relation at the moment of claiming, when the claim is for contracts for rent with an unlimited term – by the rent price for one year, when the claims are for periodical payments for unlimited period – by the sum of the payment for three years, when the claims are for specific action or inaction – by the size of the property interest of the claimant.

(3) When several claims are joined in one statement of claim, the value of each claim shall be pointed out separately.

(4) When the value could not be determined with accuracy or is difficult to be determined by the claimant, as well as when the value is determined wrongly by the claimant or has not been determined at all, the value shall be determined by the Chairman of the Court of Arbitration.

(5) If in the course of examining the case it is laid down that the value of the claim is not determined in accordance with the rules referring the previous items, the Resolving body shall finally determine the value of the claim.

(6) The above rules shall be referred also for determining the value of the due price.

(7) The claimant shall pay an arbitration charge, determined on the grounds of the total sum from the value of all claims, and the claimant shall pay an arbitration charge, determined on the grounds of the value from the claims and objections for deduction.

Verification of the jurisdiction of the Court of Arbitration

Art. 8. (1) The resolving college shall pass judgment on the jurisdiction of the Court of Arbitration and if objected due to non-existence or invalidity, it shall pass judgment on the arbitration agreement. The arbitration agreement, included in the contract, is independent from the other of its agreements. The contract insignificance, taken alone, does not mean also invalidity of the arbitration agreement in it.

(2) The fact that the Court of Arbitration has not the jurisdiction to resolve entirely or partially on the arisen dispute, shall be objected at the least with the response of the claim, to which all the written evidences shall be applied for ascertaining that circumstance. This objection could be done also by the party, which has chosen or participated in choosing the arbitrator.

(3) When an issue, out of the jurisdiction of the Court of Arbitration, is brought up in the arbitration proceeding, the matter of non-jurisdiction shall be objected immediately.

(4) The resolving college could also take into consideration an objection for non-jurisdiction, done later, if there is a reasonable cause for the delay or if the continuing of the case shall result in insignificant or unacceptable resolution. In the last case, the court could officially pronounce on the matter for its jurisdiction.

(5) The objection against the non-jurisdiction shall be considered by the Resolving college, which shall pronounce a decision in the preparatory session or in the session, when it has been done, unless the resolving of the dispute regarding the jurisdiction is determined by the judgment on the merits of the proceeding.

(6) If the Resolving College rejects the objection for non-jurisdiction, the arbitration procedure shall be done despite of the fact that the defendant rejects or forbears from taking part in it.

(7) If the claimant of the statement of claim does not base his arguments on the arbitration agreement or does not present it, the Secretariat of the Court shall invite him to submit such agreement or to declare in writing that although the lack of arbitration agreement, he wants a copy from the statement of claim to be delivered to the defendant, providing him a seven-day time-limit, and if the procedures are international – a fifteen-day time-limit. If the claimant does not submit an agreement during the given time-limit, determining the jurisdiction of the Court of Arbitration at the National Business and Law Association and if he does not declare in writing that he would like a copy from the statement of claim to be submitted to the defendant, the statement of claim shall be returned to the claimant available to the Chairman of the Court of Arbitration. If the claimant submits an arbitration agreement during the time-limit provided in the invitation, determining the jurisdiction of the Court of Arbitration at the National Business and Law Association, the Secretariat of the Court shall send him a notice for payment of the due arbitration charge and the specified deposit for expenses. If the claimant does not submit an agreement in the time-limits, specified in the present item, but he declares in writing that he would like a copy from the statement of claim to be submitted to the defendant, the Secretariat shall send him a notice to pay the minimal arbitration charge upon the relevant tariff. If the defendant does not object that the Court of Arbitration examines the procedure, the Claimant shall pay an arbitration charge to the due amount according to the Tariff.

Removal of defects of the Statement of claim

Art. 9. (1) Should the Secretariat of the Court establish that the statement of claim does not comply with the requirements provided under Art. 6, items 1 and 2, it shall grant the claimant a time-limit to remove the defects. This time-limit shall not exceed seven days for domestic cases, or respectively fifteen days for disputes between parties with seats or domiciles out of the Republic of Bulgaria, considered from the date on which the claimant has received the notification or the notice by the telecommunications. If the claimant contests the standpoint of the Secretariat whether the statement of claim is in order, the dispute shall be considered by the Chairman of the Court of Arbitration.

(2) No court proceedings shall be undertaken until the defects are removed.

(3) If the claimant does not remove the defects in due time, the statement of claim together with the enclosures shall be returned from the Chairman of the Court to the claimant. Half of the paid arbitration charge and a part from the deposit for expenses, which are not received, shall be subject to refunding.

Replay to the Statement of claim

Art 10. (1) After the statement of claim has been filed and the arbitration charges and the deposit for expenses have been paid, the Secretariat of the Court shall inform the defendant by serving him a copy of the statement of claim together with its enclosures and the list of arbitrators.

(2) The Secretariat shall at the same time inform the defendant that he may within a 7 day time-limit counted from receiving the copy of the statement of claim submit his reply. The reply shall comply all the objections and arguments on which the party shall base his arguments in the procedure, applying all written evidence to it.

(3) On the request of the defendant, the above time-limits may be extended by the Chairman of the Court.

(4) Within the same time-limit the defendant shall advise the Court of the name of the arbitrator and his deputy elected by him or authorize the Chairman of the Court of Arbitration to select them.

(5) Within the time-limit given for reply, the defendant may bring a counter-claim or an objection for set-off if the dispute regarding his claim is under the jurisdiction of the Court of Arbitration. The dispositions of Art. 6 and 9 shall be applied to the counter-claim. Where the claim of the defendant has been confirmed with the effect of something adjudged or is not contested by the claimant, it may be raised also in every moment of the procedure.

(6) Failure to file a reply shall not be deemed as an admission of the claim.

III. PAPERS, COMMUNICATIONS AND SERVING OF DOCUMENTS

Submission of the documents referring the case

Art. 11. (1) All documents must be submitted in a sufficient number of copies to provide one copy for each party and not less than two copies for the Court of Arbitration.

(2) The documents specified in subsection 1, with the exception of the documentary evidence shall be submitted in the language of the contract, or in the language in which the parties have kept up their correspondence or in Bulgarian. The written evidences, intended to be used in the course of the procedure shall be submitted both in original and translation, done by an authorized translator, if they are drawn up in foreign language. The expenses for translation shall be for the account of the party, which has submitted them.

(3) The Bulgarian enterprises shall submit their papers in Bulgarian accompanied by a translation in the language in which they have kept up their correspondence with the other party if that party has its seat or domicile abroad.

(4) If the papers are submitted in a language that may cause difficulties with the translation, the Secretariat of the Court shall oblige the respective party to submit them translated in English, Russian or Bulgarian. If the translation has not been submitted within the time-limit given to the party, no proceedings shall be undertaken.

Sending and serving documents

Art. 12. (1) The Secretariat of the Court shall serve on the parties all the documents, notices and summons at the addresses given by them, or at the addresses of their duly authorized representatives in a three-day term from the date of their receiving.

(2) The statement of claim, the reply to the statement, the awards and the rulings shall be sent by registered mail against a return receipt. The summons and other communications may be sent by cable, telex, or telefax. The summons, sent by telex or telefax shall be deemed served if proved to have been received and the summon by a telegram shall be verified with a return notice for its receiving.

(3) All above-mentioned papers may be served personally on the party or on his representative, if he is a juridical person, or on an attorney against a receipt. When summoning juridical persons, the telex or the telefax is sufficient to be sent to the appointed in the legal documents filed telex and telefax apparatuses.

(4) The serving could be done also by a representative of the other party.

Receipt of papers, summons and communications

Art. 13. (1) When the seat, the domicile, the habitual place of residence or the postal address of the party cannot be traced even after a through investigation, the papers, communications or summons shall be considered as duly served if they have been sent to the last known seat, domicile, habitual place of residence or postal address, by registered letter or by any other means by which the attempt for delivery can be certified.

(2) The document referred to in the provisions of subsection 1, shall be deemed served also in case the addressee refuses to receive it, or has not contacted the post office to receive it, if this fact is certified by the post office.

(3) The time-limit of the parties for proceedings shall commence from the date on which the addressee has received the notice. When the last day of the time-limit happens to fall on a holiday, the time-limit shall expire on the first working day following.

IV. THE ARBITRAL TRIBUNAL

The Arbitral Tribunal

Art. 14. (1) The Court of Arbitration shall examine and resolve on the disputes submitted to it by an arbitral tribunal, which may consist either of a sole arbitrator or of three arbitrators.

(2) The Chairman of the Court of Arbitration may propose to the parties to agree the case to be heard and adjudicated on by a sole arbitrator selected by both of them or by the Chairman of the Court of Arbitration.

(3) If the parties agree, the case shall be examined and resolved by one sole arbitrator, whom they shall select from the list of arbitrators. In that case they shall select his deputy-arbitrator. If the parties fail to agree for the choice, the arbitrator and his deputy shall be appointed by the Chairman of the Court of Arbitration.

(4) If the Arbitral Tribunal should consist of three arbitrators, each of the parties shall select one arbitrator and his deputy, and the two arbitrators shall on their part within a three-day time-limit, commencing from the day of notification of their election, choose from the list of arbitrators the presiding arbitrator.

(5) In cases, where one of the parties is a foreign person or a person with predominating foreign participation, a person, not filed in the list of arbitrators may be appointed as arbitrator. The presiding arbitrator, not filed in the list of arbitrators could also be elected upon the same conditions.

(6) If the claimant or the defendant does not elect an arbitrator or the arbitrators fail to elect the presiding arbitrator of the tribunal within the time-limit referred to in the preceding subsection, the Chairman of the Court of Arbitration shall appoint the arbitrator or the presiding arbitrator from the list of arbitrators in a seven-day term.

(7) Where there are more than one claimants or defendants, they shall elect by common consent one arbitrator and his deputy. In case the claimants and the defendants cannot reach an agreement, the arbitrator and his deputy shall be appointed by the Chairman of the Court of Arbitration.

(8) The decision of the Chairman of the Court of Arbitration, as referred to in subsections 2 and 3, shall be considered as final.

(9) The persons, appointed or elected for Chairmen of the Arbitration Tribunal, who are not included in the lists of the Court of Arbitration at the National Business and Law Association, in the moment when they give their consent to be arbitrators, they shall fill in a written declaration as per Art. 6, subsection 4 from the Statute of the Court of Arbitration and also a written declaration, where they explicitly state that they shall observe the Rules of the Court of Arbitration.

Replacement of an Arbitrator

Art. 15. (1) If the arbitrator should not accept his appointment or dies, or is prevented from fulfilling his obligations or fails to fulfil them for more than 20 days, he shall be replaced by the arbitrator chosen as his deputy. The same shall apply in case when the arbitrator is unexpectedly prevented from taking part in a scheduled hearing. The deputy shall take part in the proceedings until the termination of the case.

(2) Under the conditions of the preceding subsection, the presiding arbitrator shall be replaced in the same manner as he has been elected. The replacement of an arbitrator, after the residing arbitrator of the tribunal has been yet elected, shall not replace the residing arbitrator.

(3) If the conditions stated in subsection 1 occur in respect to the deputy arbitrator, the party that has elected him shall be invited to elect another arbitrator and his deputy.

(4) When it is necessary and after consulting both parties, the arbitral tribunal may in the cases referred to in subsections 1, 2 and 3 re-examine the issues which have been dealt with in the sitting held before the replacement.

Challenging the Arbitrator

Art. 16. (1) When a person is nominated for an arbitrator, he must disclose any circumstances, which may give rise to reasonable doubts either about his impartiality or his independence, presenting to the Secretariat of the Court a personally signed declaration. The arbitrator shall have this obligation after his election as well.

(2) Each party is entitled to challenge the arbitrator or the presiding arbitrator in case of doubts about his impartiality, and in particular if there are data that they personally are directly or indirectly involved in the outcome of the dispute.

(3) The arbitrator or the presiding arbitrator shall be obliged to withdraw in the event of the grounds specified in subsection 1.

Challenging Procedures

Art. 17. (1) A challenge to an arbitrator shall be made only if there are circumstances, which may rise to reasonable doubts either about his impartiality or his independence, or if he does not have the necessary qualification, agreed between the parties.

(2) The party could make a challenge to an arbitrator, appointed by it or in which appointment it has taken part, only due to reasons, which have become familiar to it after his appointment.

(3) The parties could agree on the challenge procedure.

(4) If there isn’t such an agreement, a challenge of an arbitrator could be done not later than a period of seven days after the party has found out the constituting of the arbitral tribunal or after it has known some circumstances, which could raise a reason for the challenge.

(5) The challenge must be made in writing specifying the grounds on which it is based and addressed to the arbitral tribunal.

(6) If the arbitrator does not withdraw and the opposite party does not agree with the challenge, the Arbitral Tribunal shall decide on the challenge.

(7) If the opposite party agrees with the challenge or it has been granted, the new arbitrator or presiding arbitrator shall be nominated or elected according to the present Rules.

(8) A challenge could not be made after the case is pronounced for clarified from factual and legal point and the arbitral tribunal has proceeded to enact a statement, concluding the case.

Challenge of Experts and Interpreters

Art. 18. (1) On the grounds specified in Art. 17, subsection 2, an expert or an interpreter may be challenged. The arbitral tribunal shall render the final ruling on the challenge.

V. HEARING THE CASE

Preparation for the hearing

Art. 19. (1) The arbitral tribunal shall examine whether the case is ready for hearing and shall take the necessary measures to clarify the circumstances of the case and to supply it with evidence in order to ensure its speedy, economical and right resolution.

(2) The arbitrator or the presiding arbitrator may give the Secretary of Court separate orders for the preparation of the hearing.

(3) The residing arbitrator shall set the date of the preparatory session in a three-day term from the date of receiving a reply of the statement of claim.

(4) When the arbitral tribunal estimates the existing conditions as suitable, and with a determination of the preparatory session it shall summon the parties, the adepts, the interpreters and the other participants in the procedures. The date of the session shall be set at the latest after a thirty-day period from the date the statement of claim has been filed in the court.

Preparatory session

Art. 20. (1) The preparatory session shall resolve on the following issues:

the presence of active and passive legitimating of the parties;
the applied rules for arbitration proceedings;
the admissibility and relativity of the submitted evidences;
the jurisdiction of the court regarding the dispute brought before it – total or partial;
the circumstances, taken as undoubted;
the amount of the due deposit for expenses in the proceeding;
the appointment of adepts, interpreters, as well as the admissibility and non-admissibility of the counter-claim, brought before it.

(2) The Court shall pronounce a decision, which shall be sent together with the summon for the set session and it is obligatory for the parties in the proceeding. Its failure in the due time-limit is a reason for the delinquent party to suffer a material sanction. It shall be determined by the tribunal as a part of the due arbitration charge.

(3) When the Court finds out some defects of the statement of claim or in the reply, it could leave the case again till its removal.

(4) The Court could also pronounce a decision upon the nature of the dispute, if it finds available that all the terms for setting a right, well grounded and lawful deed in the following cases:

the claim is admitted by the defendant in the response of the statement of claim;
the parties have given their consent in the statement of claim and response, that the court could pronounce a decision also in the cases of their absence.

Place of the hearing the sessions of the court

Art. 21. (1) The sessions of the court shall be hold in its sitting in the city of Varna.

(2) When necessary, the arbitral tribunal may on request of the parties or on its own initiative hold its hearings at another place.

Summoning to hearing

Art. 22. (1) Summonses specifying the time and place of the hearing shall be served upon the parties. The summonses and the notices should be sent forward in such a manner that each party should have at least 10 days at its disposal to prepare for and take part in the hearing. When the seats or the domiciles of the parties are in this country the time-limit shall not be shorter than 14 days.

(2) A shorter period may be set by common consent of the parties.

The language in which the hearing shall be conducted

Art. 23. The hearing of a case shall be conducted in Bulgarian language but when one of the parties has a seat or domicile abroad, an agreement may be reached on using another language, unless the dispute is under the mandatory jurisdiction of the Court or the representative of the foreign party is in command of the Bulgarian language. The agreement must be reached before the composition of the arbitral tribunal. It shall appoint an interpreter for the party that does not speak Bulgarian. The interpreter’s fee shall be for the account of this party, regardless of the outcome of the case.

Hearing a case

Art. 24. (1) The case shall be heard at a sitting in which the parties may take part in person or through duly authorized representatives.

(2) The case shall be held in private. Only the parties and their representatives, as well as the persons directly engaged in the arbitration proceeding shall be allowed when hearing the case. When examining the case, ppersons not involved in the proceedings may be present at the hearing with permission of the arbitral tribunal and the consent of the parties.

(3) By agreement of the parties the case may be heard and resolved without their summoning on the basis only of documentary evidence and submissions presented in writing. The arbitral tribunal shall summon the parties when it finds that the case needs additional clarification.

(4) The case shall be examined without summoning the parties, if the defendant in the reply to the claim recognized the claim.

Non-appearance

Art. 25. (1) Non-appearance of a party, duly informed for the time and place of the arbitration session, shall not be deemed a reason for its adjournment. This could happen only if the non-appeared party has claimed to adjourn it upon good reasons.

(2) Each party may ask the case to be heard in its absence.

Settlement

Art. 26. (1) After opening the hearing, the tribunal shall propose to the parties to terminate the case with a settlement.

(2) The arbitral tribunal may propose a settlement at any stage of the proceedings before the award is made.

(3) When the parties reach a settlement before the arbitral tribunal, it shall be entered into the records of the hearing and shall be signed by the parties and the arbitrator or arbitrators.

(4) The parties are entitled to request that the settlement be recorded in an arbitral award made by consent of the parties.

Security for the claim

Art. 27. Unless the parties have agreed otherwise, the Court of Arbitration may, on the request of one of the parties, oblige the other to furnish a suitable security to safeguard the rights of the applicant. The security should not infringe upon the rights of third parties. If the request is granted, the Court of Arbitration may order a guarantee to be submitted by the applicant.

Evidence

Art. 28. (1) Each party is to prove the circumstances on which its claims or objections are based.

(2) The parties may submit the original written evidence or certified copies of it. The arbitral tribunal is entitled to request a translation of this evidence into another language when this is necessary for the examination of the case. The written evidence, produced by one of the parties, shall be handed over to the other party in due time.

(3) The arbitral tribunal may accept some definite facts as proved if one of the parties hinders or fails through its action or inaction collecting the admitted evidences by them.

(4) Written and oral evidences, appointment of adepts and examination are admissible in the arbitration proceeding.

(5) The arbitrators shall assess the evidence according to their free convictions.

Collecting and examining evidence

Art. 29. (1) The examination of evidences shall be performed upon the order, specified by the Arbitral tribunal. It may assign that examination to one of the arbitrators. The parties shall be duly notified about the examination of stocks and goods, as well as for the inspection.

(2) When this is necessary for revealing the truth of the case, the arbitral tribunal may ask the parties to submit additional evidence, appoint experts or require from organizations or physical persons to hand in certificates or other documents in their possession. The parties shall be duly notified about the evidence collected ex officio and shall be allowed an adequate time-limit to declare their standpoints to them as well as to present counter-evidence.

(3) The arbitral tribunal may order the parties to submit to the experts all the necessary information or ensure access to documents, goods or other objects for inspection when this is necessary for the preparation of the expert report. If asked by each of the parties or in his way, he may oblige the adept, after he presents his conclusion, to participate in a session, in order to give explanations. At the request of the parties other experts may be appointed as well in order to give their opinions on the matter under dispute.

(4) For collecting evidence the arbitral tribunal may delegate one of its members abroad, the party that has demanded such evidence being bound to advance the expenses.

(5) The witnesses shall be interrogated if taken from the country, which has pointed out and clarified what evidences they could found out.

(6) The arbitral tribunal or the concerned party upon its consent may ask the jurisdictional court in the country or abroad to collect some evidences, necessary for the case.

Modification of the claim

Art. 30. The claimant may change his claim without the consent of the defendant. The arbitral tribunal may refuse to allow the modification of the claim if this could unduly hinder the defence of the defendant or the timely resolution of the dispute. These rules shall apply also to any change of the counter-claim as well.

Third party participation

Art. 31. The intervention as well as the summoning of a third party may only be admitted with the consent of both parties, and in the case of summoning a third party - with the consent of this party. The same shall apply for bringing a claim against the summoned third party. The summoning of a third party is admissible only till the expiry of the time-limit for the reply to the statement of claim. The consent should be given in writing.

Adjournment of a hearing and suspension of proceedings

Art. 32. (1) On the request of the parties, adjournment of the proceedings is possible foe a period not longer than three months. On its own initiative and if considers as necessary, the arbitral tribunal may order the adjournment of the proceedings until clarifying the factual situation. In the latter, the case shall be fixed for a new session in a definite period of time which may not be longer than seven days.

(2) Upon the request of the parties or on its own initiative, the arbitral tribunal shall suspend or adjourn the proceedings with a decision for a definite period not shorter than six months.

(3) The suspended proceeding shall be terminated if none of the parties has not asked for its re-opening in a six-month term from the date of its suspension.

Records

Art. 33. (1) Shorthand records of the hearing shall be drawn up by a secretary appointed by the arbitral tribunal in a three-day term. The records shall be signed up by both of them immediately after its drawing and each party shall be served a copy from it.

(2) On request of one party, the arbitral tribunal may enter amendments or additions to the records by a ruling in case of errors or omissions. The other party is notified and may object it at the latest in the next session, and if the proceeding has been pronounced for decision – at the latest till the period for the decision.

VI. ENACT A DECISION OR TERMINATE A PROCEEDING

Applicable law

Art. 34. (1) The arbitral tribunal shall settle the dispute by applying the law chosen by the parties. Unless otherwise agreed, the choice of law shall refer to the substantive law and not to the conflict of law rules.

(2) When the choice of law is inadmissible or the parties have failed to choose the applicable law, the arbitral tribunal shall apply the law determined by the conflict of law rules, which it considers as applicable. When the seats or the domiciles of the parties are in the same country, the conflict of law rules of that country shall determine the applicable law. If the disputed relationship is governed by an international treaty, it shall be applied.

(3) In any case, the arbitral tribunal shall apply the terms of the contract, taking into account the usages of trade.

Award

Art. 35. (1) The arbitration proceedings shall be terminated by an award if there are no procedural obstacles to resolve the dispute on its merits.

(2) The decision is enacted not only at claim acquisition, but also at claim refusal. Provided the circumstances impose, there can be enacted advance or partial decision.

(3) The decision, reflecting the agreement between both parties is valid as a common decision.

(4) In case the arbitrators are not in the list of АС at the National Business and Law Association, the Chairman of АС appoints a committee of three arbitrators, who inspect whether the enacted act, concluding the arbitration proceedings, corresponds to the formal requirements of the LICA and the Regulations of АС. The committee should give a written statement within three days after deposition of the act in the Secretariat. The Resolution Committee should adhere to the stipulations and remove the formal flaws of the act within three days of introducing the stipulations to the Secretariat by the Committee. The act is not entered in the Term Book, until the flaws are removed.

Enact of decision

Art. 36. (1) As soon as the Resolution Committee admits that all circumstances, related to the dispute, are clarified, they announce the end of the competition and prepare the enact of decision. The decision should be enacted not later than fifteen days after the last meeting.

(2) The decision is taken at a closed session with common majority of the Resolution Committee members. The Chairman votes last. If no majority can be reached, the decision is enacted by the Chairman.

(3) The decision should be motivated, unless it reproduces an agreement between the parties.

(4) The decision is prepared by the reporter and signed by the Chairman and the members of the Resolution Committee. If one of the arbitrators cannot or refuses to sign the arbitration decision, the Chairman of the Resolution Committee certifies that with his signature on the decision, pointing out the reasons.

(5) The arbitrator with the peculiar opinion should sign immediately the decision, marking his position with the initials “o.m”.Within seven days the arbitrator should present in written form his peculiar opinion, which is enclosed with the decision. After that period, it is considered that the arbitrator withdrew his opinion. In this case the end of the term is certified by the Chairman of the Resolution Committee.

(6) When the case is decided by one arbitrator only, the decision is prepared and signed by him only.

(7) In case, by the end of the term for presentation of written statements, related to the case, it becomes known that the right of any party to be heard was breached, that it could not appear before court due to unpredicted circumstances, and it could not inform the Arbitration Court about that, that the case needs additional proofs or clarification of the circumstances, important for its just resolution, the Resolution Committee refers the case for reconsideration.

(8) The Arbitration decision is final and it puts an end to the dispute.

(9) With regards to the questions regarding insignificance, inadmissibility of decision or limitation of rights of the parties to be fairly defended, on equal grounds in the court, as well as its compulsory execution, one applies the Law for International Commercial Arbitration.

Content of the decision

Art. 37. The decision shall contain the following:

1. name of the Arbitration Court;

2. place and date of decision execution;

3. names of the arbitrators;

4. names of the parties and other people, participating in the proceedings;

5. the case, a matter of the dispute and brief details of the circumstances, related to the case;

6. disposition of the decision, explicitly pointing out the person, who was granted the claim – physical or legal, enumerating all individual features – personal number, address, headquarters, company file entry, tax number, etc.

7. reasons for the decision;

8. signatures of the arbitrators.

Entry of the Decision

Art. 38. (1) As soon as the decision is signed according to par.36, it is brought forward to the Secretariat by the Chairman of the Resolution Committee, the arbitrator himself respectively and it is entered into the Resolution Book of the Court of Arbitration in his presence. After that procedure the decision is considered accepted and irretrievable.

(2) The Resolution Book is at the disposal of the parties and their representatives.

(3) The decision is entered within 10 days after the deadline given by the Resolution committee for written statements of both parties, and in cases on art.36, it.5 as soon as the special opinion is presented, respectively certifying the lack of such opinion by the Chairman of the Resolution Committee after the 7-days deadline with regards to the same paragraph.

(4) The Chairman of the Court of Arbitration can extend the terms of the above mentioned article.

Transcript of the Decision

Art. 39. (1) A Transcript of the decision is given to both parties.

(2)In case the parties have not agreed regarding the language of the transcript, the party, whose headquarters are abroad is sent a translation of the decision, if it requests that.

(3) The transcripts and translations are certified by the Secretary of the Court with his signature and the seal of the Court of Arbitration.

(4) If the translation is delayed, the Secretary of the Court informs the foreign party about the outcome of the case.

(5) Transcripts of the decision are given to both parties, after the arbitration expenses are paid in full amount to the Court of Arbitration.

Amendments and Interpretation of the Decision

Art. 40. (1) The Resolution committee, at the request of either party or of its own motion, may correct calculation, spelling or other obvious errors in the decision. The other party shall be informed by the applicant about the request for corrections, or by the Arbitration Court when the latter acts of its own mode.

(2) Each party, after advising the other, may request from the Resolution Committee to give an interpretation of the decision. No interpretation is possible, after the execution of the decision.

(3) Before the correction and interpretation of the award, the Resolution Committee shall hear the parties or shall give them the opportunity to present their written arguments within a time-limit determined by it. Within 7 days of the request, the Resolution Committee shall decide on the correction and the interpretation of the decision. The resolution on these issues shall be made according to Art. 36 and Art. 38.

(4) The correction of that part of the decision, regarding arbitration costs shall be made in accordance with the requirements of subsections 1 and 3.

(5) The correction and interpretation shall become a part of the decision.

Additional decision

Art. 41. The Resolution Committee upon request of any of the parties may render an additional decision on claims, which it has failed to adjudicate. The party requesting the addition must inform the other party of the request within 7 days from the receipt of the decision. When the request is grounded, the Resolution Committee shall render an additional award according to the provisions of Art. 40, subsection 3.

Execution of the Decision

Art. 42. (1) The award shall be final and binding for both parties.

(2) When a time-limit has not been set, it should be performed immediately.

(3) The arbitration decision is subject to immediate execution according to Law of International Commercial Arbitration and Civil Procedure Code.

Termination of the proceedings by a rule

Art. 43. (1) Where no decision can be made, the proceedings shall be terminated by a rule, according to Art.36, par.5 and Art. 38.

(2) The proceedings shall be terminated in the following cases:

a) when the claimant withdraws his statement of claim;

b) in case an agreement is reached between the parties, without necessity of arbitration decision:

c) when there are no prerequisites, necessary for the examination and resolution of the dispute as well as when due to the inaction of the claimant no proceedings have been undertaken for 6 months.

(3) When the Resolution Committee has not been duly composed, the termination of the proceedings shall be made by the Chairman of the Court of Arbitration.

Keeping of files and decisions

Art. 44. The Secretariat of the Court shall keep the files of terminated cases for a period of 10 years from the date when the decisions and rulings were rendered. After this term, the files shall be destroyed with the exception of the decisions and the reasons thereof as well as the agreements, which all shall be kept indefinitely.

VII. FEES, COSTS AND INDEX

Arbitration fees and costs

Art. 45. (1) The calculation and distribution of the arbitration charges and fees as well as covering the expenses of the Court of Arbitration shall be made in accordance with the Tariff of Arbitration Charges and Expenses, considered by the Court of Arbitration.

(2) The Secretary of the Court of Arbitration or the Resolution College may oblige the party, requesting the collecting of evidence, to deposit the sum necessary for these proceedings.

(3) Proceedings for which no deposit has been made shall not be carried out.

(4) The Resolution College shall determine the fees of the interpreters, shorthand secretary, experts and witnesses as well as their daily and travel expenses.

Card-index

Art. 46. (1) According to the Chairman of the Court, the secretaries of the Court shall keep a card-index of the awards, in which excerpts of the reasons for the awards representing a matter of principle shall be registered.

(2) The card-index shall be available to everyone interested. Copies may be obtained by everyone against payment of a charge.

Transitional Provisions

§ 1. The arbitration agreements signed before these Regulations and their amendments come into force, are considered to refer to them, unless one of the parties disagrees.

§ 2. These Rules were adopted on the 25.07.2002 at a session of the Administrative Council of the National Business and Law Association and confirmed by the President of the National Business and Law Association, in force from the date of its passing and amended by a resolution of the Administrative Council of the National Business and Law Association on 14.03.2003, confirmed by the President of the National Business and Law Association, which amendments came in force on 15.03.2002.