The Arbitration Act R:E 2020
This Act may be cited as the Arbitration Act.
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About this statute
This Act may be cited as the Arbitration Act. This Act applies to Mainland Tanzania. This section defines key terms used in the Act, including arbitration, arbitrator, arbitration agreement, arbitral award, arbitral tribunal, Centre, confidential information, court, foreign award, international arbitration, Minister, party, person, and record. An arbitration agreement is treated as domestic arbitration if it is tied to Mainland Tanzania and the listed party or place conditions are met. This provision says arbitration should be fair, prompt, consistent, and low-cost, parties may agree how disputes are resolved within public-interest safeguards, and courts should not intervene except where the Act allows.
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Provisions of The Arbitration Act R:E 2020
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- 1
This Act may be cited as the Arbitration Act.
1. This Act may be cited as the Arbitration Act. - 2
This Act applies to Mainland Tanzania.
2. This Act shall apply to Mainland Tanzania. - 3
This section defines key terms used in the Act, including arbitration, arbitrator, arbitration agreement, arbitral award, arbitral tribunal, Centre, confidential information, court, foreign award, international arbitration, Minister, party, person, and record.
3. In this Act, unless the context otherwise requires: “arbitration” means a process by which parties submit a dispute to the decision of a neutral person or persons appointed by mutual consent or in accordance with the provisions of this Act; “arbitrator” means a person who handles arbitration disputes in the manner provided under this Act; “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not; “arbitral award” means a decision of the arbitral tribunal on the substance of a dispute, and includes any interim or interlocutory; “arbitral tribunal” means a sole arbitrator or a panel of arbitrators; “Centre” means the Tanzania Arbitration Centre established under section 82; 7 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ “confidential information- (a) in relation to arbitral proceedings, means information that relates to the arbitral proceedings or to an award made in those proceedings, and includes- (i) the statement of claim, statement of defence, and submissions, statements, or other information supplied to the arbitral tribunal by a party; all other pleadings, (ii) any evidence, whether documentary or otherwise, supplied to the arbitral tribunal; (iii) any notes made by the arbitral tribunal of oral evidence or submissions given before the arbitral tribunal; (iv) any transcript of oral evidence or submissions given before the arbitral tribunal; (v) any rulings of the arbitral tribunal; or (vi) any award of the arbitral tribunal; (b) in relation to confidential information, includes publishing or communicating or otherwise supplying the confidential information; “court” means a court of competent jurisdiction in Mainland Tanzania, Provided that, in the case of international commercial arbitration, it means the High Court in exercise of its ordinary original civil jurisdiction; “foreign award” means an award where the juridical seat of arbitration is in a territory or state other than the United Republic; “international arbitration” means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in the United Republic and where at least one of the parties is- (a) an individual who is a national of, or habitually resident in, any country other than the United Republic; (b) a body corporate which is incorporated in any country other than the United Republic; (c) an association or a body of individuals whose central management and control is exercised the United in any country other than 8 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Republic; or (d) the Government of a foreign country; “Minister” means the Minister responsible for legal affairs; “party” means a party to an arbitration agreement; “person” includes an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, Government, governmental department, agency, public corporation, or any other legal or commercial entity; and “record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and in a perceivable form. is retrievable - 4 Verify source ↗
Short title
An arbitration agreement is treated as domestic arbitration if it is tied to Mainland Tanzania and the listed party or place conditions are met.
4. An arbitration agreement shall be deemed to be a domestic arbitration if it provides expressly or by implication for arbitration in Mainland Tanzania, and at the time when proceedings are commenced or the arbitration is entered into- (a) where the arbitration is between individuals, the United the United the parties are nationals of in Republic or are resident Republic; Domestic arbitration (b) where the arbitration is between bodies corporate, the parties are incorporated in the United Republic or their central management and control are exercised in the United Republic; (c) where the arbitration is between an individual and a body corporate- (i) the party who is an individual is a national of the United Republic or is resident in the United Republic; or (ii) the party that is a body corporate is incorporated in Mainland Tanzania or its central management and control is exercised in Mainland Tanzania; or (d) the place where a substantial part of the obligations of the commercial relationship is to be performed, or the place in which the 9 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ subject matter of the dispute is Mainland Tanzania. [3A] PART II GENERAL PROVISIONS General principles
Part
PART II
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This provision says arbitration should be fair, prompt, consistent, and low-cost, parties may agree how disputes are resolved within public-interest safeguards, and courts should not intervene except where the Act allows.
5. The provisions of this Act are founded on the following principles, and shall be construed accordingly: (a) the object of arbitration is- (i) to obtain the fair resolution of disputes by an impartial arbitral tribunal without undue delay or incurring of unreasonable expense; and (ii) to promote consistency between domestic and international arbitration; (b) the parties shall be free to agree how their disputes are resolved, subject only to such safeguards as are necessary in the public interest; and (c) in matters governed by this Act, the court shall not intervene except as provided by this Act. [4] Meaning of court - 6
This section defines “court” for domestic and international arbitration and says foreign arbitration is handled under the laws governing arbitration.
6.-(1) The term “court”- (a) in relation to domestic arbitration, means the district court, resident magistrate’s court, the High Court exercising its original or appellate jurisdiction or the Court of Appeal; or (b) in relation to international arbitration, means the High Court in the exercise of its ordinary original civil jurisdiction. (2) The manner of recognition and dealing with foreign arbitration in the United Republic shall be as prescribed in the respective laws governing arbitration. Cap. 11 Scope of (3) For (1)(a), jurisdiction of court shall be in accordance with the Magistrate’s Court Act and any other written laws. the purpose of subsection - 7
This section says certain Act provisions still apply even when the arbitration seat is outside Mainland Tanzania or no seat is set, and it gives the court limited supporting powers.
7.-(1) The provisions of this Act shall apply 10 [4A] The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ application of provisions where the seat of the arbitration is in Mainland Tanzania. (2) Notwithstanding the provisions of sections 15 and 73 shall apply even where the seat of the arbitration is outside Mainland Tanzania or no seat has been designated or determined. subsection (1), (3) The powers conferred under sections 51 shall apply even where the seat of the arbitration is outside Mainland Tanzania or no seat has been designated or determined, Provided that, the court may refuse to exercise any such power if, in the opinion of the court, the fact that the seat of the arbitration is outside Mainland Tanzania or that when designated or determined the seat is likely to be outside the United Republic makes it inappropriate to do so. (4) The court may exercise a power conferred by any provision of this Act not mentioned in subsection (2) or (3) for the purpose of supporting the arbitral process where- (a) no seat of the arbitration has been designated or determined; and (b) by reason of a connection with Mainland Tanzania the court is satisfied that it is appropriate to do so. (5) The provisions of sections 12 and 13 shall apply where the law applicable to the arbitration agreement is the law of Mainland Tanzania even where the seat of the arbitration is outside Mainland Tanzania or has not been designated or determined. [5] Meaning of “seat of arbitration” - 8
This provision defines “seat of arbitration” for section 7.
8. For the purpose of section 7, “seat of arbitration” means the juridical seat of arbitration designated- (a) in accordance with the law applicable on matters that are subject of the arbitration; (b) by the parties to the arbitration agreement; or (c) by any arbitral tribunal or other institution or person vested by the parties with powers in that regard. [6] 11 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Mandatory and non-mandatory provisions Agreements to be in writing - 9
Parties may agree their own arrangements for non-mandatory provisions, and those agreed arrangements can use institutional rules or other decision-making methods.
9.-(1) The mandatory provisions of this Act shall be as provided in the Schedule to this Act and have effect notwithstanding any agreement to the contrary. (2) The provisions of this Act other than the mandatory provisions, herein referred to as the “non- mandatory provisions” shall allow the parties to make their own arrangements by agreement but provide rules which shall apply in the absence of such agreement. (3) For the purpose of subsection (2)- (a) the parties may make such arrangements by agreeing to the application of institutional rules or providing any other means by which a matter may be decided; and (b) it is immaterial whether or not the law applicable to the parties’ agreement is the law of Mainland Tanzania. (4) The choice of a law other than the law of Mainland Tanzania as the applicable law in respect of a matter provided for by a non-mandatory provision of this Part is equivalent to an agreement making provision about that matter. (5) For the purpose of subsection (4) an applicable law determined in accordance with the parties’ agreement, or which is objectively determined in the absence of any express or implied choice, shall be treated as chosen by the parties. [7]
Part
Part is equivalent to an agreement making provision
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This section says arbitration agreements, and other agreements relevant to the Act, count only if they are in writing, including some forms of written evidence or recorded communications.
10.-(1) The provisions of this Act shall apply only where the arbitration agreement is in writing, and any other agreement between the parties as to any matter is effective for the purposes of this Act only if it is in writing. (2) For the purpose of subsection (1), the expressions “agreement”, “agree” and “agreed” shall, in its cognate meaning, be construed accordingly. (3) There shall be deemed to be an agreement in writing where- (a) the agreement is in writing, whether or not it is signed by the parties; (b) the agreement is made by exchange of communications in writing; or 12 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (c) the agreement is evidenced in writing. (4) Where parties agree, otherwise than in writing, by reference to terms which are in writing, they are considered to have made an agreement in writing. (5) An agreement shall be evidenced in writing where the agreement made otherwise than in writing is recorded by one of the parties, or by a third party, with the authority of the parties to the agreement. (6) An exchange of written submissions in arbitral tribunal or legal proceedings in which the existence of an agreement otherwise than in writing is alleged by one party against another party and not denied by the other party in his response shall constitute, as between those parties, an agreement in writing to the effect alleged. (7) References in this Act to anything being written or in writing include its being recorded by any means. [8] PART III ARBITRATION AGREEMENT Construction of arbitration agreement
Part
PART III
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A contract reference to a written arbitration clause or a document containing one can count as an arbitration agreement if it is made part of the agreement.
11. The reference in an agreement to a written form of arbitration clause or to a document containing an arbitration clause constitutes an arbitration agreement if the reference is such as to make that clause part of the arbitration agreement. [9] Separability of arbitration agreement - 12
An arbitration agreement that is part of another agreement is treated as separate, and it does not fail just because the other agreement is invalid, never came into existence, or later became ineffective, unless the parties agree otherwise.
12. Unless otherwise agreed by the parties, an arbitration agreement which forms or was intended to form part of another agreement, whether or not in writing, shall not be regarded as invalid, non-existent or ineffective because that other agreement is invalid, did not come into existence or has become ineffective, and the arbitration agreement shall for that purpose, be treated as a distinct agreement. [10] Agreement not discharged by death of party - 13
An arbitration agreement is not ended by a party’s death unless the parties agree otherwise.
13.-(1) Unless otherwise agreed by the parties, an arbitration agreement is not discharged by the death of a 13 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Power to refer parties to arbitration where there is arbitration agreement. Stay of legal proceedings party and may be enforced by or against the personal representative of that party. (2) Subsection (1) shall not affect the operation of any enactment or rule of law by virtue of which a substantive right or obligation is extinguished by death. [11] to - 14
If a party asks in time, the court must send the dispute to arbitration unless there is no prima facie valid arbitration agreement; the request must include the original agreement or a certified copy, or the applicant must ask the court to require production of it.
14.-(1) A court, before which an action is brought in a matter which is the subject of an arbitration the arbitration agreement shall, where a party agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement of claim on the substance of the dispute, and notwithstanding any judgment, decree or order of the superior court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists. (2) The application referred to in subsection (1) shall not be entertained unless it is accompanied by the original arbitration agreement or a duly certified copy thereof: Provided that, where the original arbitration agreement or a certified copy is not available to the party applying for reference to arbitration under subsection (1), and the agreement or certified copy is retained by the other party to that agreement, then, the party so applying shall, in the manner set out under a written law, apply to court to call upon the other party to produce the original arbitration agreement or its duly certified copy before that court. (3) Notwithstanding any application made in terms of subsection (1) and any issue pending thereto, an arbitration may be commenced or continued and an arbitral award made. [12] - 15 Verify source ↗
PART II
A party sued despite an arbitration agreement may ask the court to stay the case, but must notify the other party and have taken a procedural step or answered the claim first.
15.-(1) A party to an arbitration agreement against whom legal proceedings are brought, whether by way of claim or counterclaim in respect of a matter which under the agreement is to be referred to arbitration may, upon notice to the other party to the proceedings, apply to the court in which the proceedings have been 14 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ brought to stay the proceedings so far as they concern that matter. (2) An application under subsection (1) may be made notwithstanding that the matter is to be referred to arbitration after the exhaustion of other dispute resolution procedures. (3) A person shall not make an application under this section unless he has taken appropriate procedural step to acknowledge the legal proceedings against him or he has taken any step in those proceedings to answer the substantive claim. the arbitration agreement (4) The court shall, except where it is satisfied is null and void, that inoperative or incapable of being performed, grant a stay on any application brought before it. (5) Where the court refuses to stay the legal proceedings, any provision in the arbitration agreement to the effect that an award is a condition precedent to the bringing of legal proceedings in respect of any matter shall be of no effect in relation to those proceedings. [13] PART IV COMMENCEMENT OF ARBITRAL PROCEEDINGS Commencement of arbitral proceedings
Part
PART IV
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Arbitral proceedings for a dispute start on the date the other party receives the request for arbitration, unless the parties agree otherwise.
16. Unless the parties otherwise agree, the arbitral proceedings in respect of a particular dispute shall commence on the date on which the request for the dispute to be referred to arbitration is received by the other party. [14] Application of law of Limitation Act Cap. 89 - 17
The Law of Limitation Act applies to arbitral proceedings, and the court may exclude certain arbitration periods when calculating limitation time in specified set-aside cases.
17.-(1) The Law of Limitation Act shall apply to legal it applies to other arbitral proceedings as proceedings. (2) The court may order that in computing the time prescribed by the Law of Limitation Act for the including arbitral commencement of proceedings, proceedings, in respect of a dispute which was the subject matter- (a) of an award which the court orders to be set aside or declares to be of no effect; or 15 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Cap. 89 (b) of the affected part of an award which the court orders to be set aside in part, or declares part of the award to be in part of no effect, the period between the commencement of the arbitration and the date of the order referred to in paragraph (a) or (b) shall be excluded. (3) In determining for the purposes of the Law of Limitation Act when a cause of action accrued, any provision that an award is a condition precedent to the bringing of legal proceedings in respect of a matter to which an arbitration agreement applies shall be disregarded. [15] Extension of time for beginning arbitral proceedings Cap. 89
Part
part of the award to be in part of no effect,
- 18 Verify source ↗
Commencement of arbitral proceedings
If the time to start arbitration or another dispute resolution process has already lapsed because of a limitation in the agreement, an aggrieved party may seek an extension of time.
18. Where the time to commence arbitration proceedings or other dispute resolution procedures has lapsed on the basis of limitation set out in the agreement, a party aggrieved may seek for extension of time in the manner prescribed under the Law of Limitation Act. [16] Arbitral Tribunal PART V ARBITRAL TRIBUNAL
Part
PART V
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The parties may agree how many arbitrators will make up the tribunal and whether there will be a chairman or umpire.
19.-(1) The parties may agree on the number of arbitrators to form the arbitral tribunal and whether there is to be a chairman or umpire. (2) Unless otherwise agreed by the parties, an agreement that the number of arbitrators shall be two or any other even number shall be understood as requiring the appointment of an additional arbitrator as chairman of the arbitral tribunal. (3) Where there is no agreement as to the number of arbitrators, the arbitral tribunal shall consist of a sole arbitrator. [17] Procedure for appointment of arbitrators - 20
The parties may agree how arbitrators are appointed. If they do not, the section sets default appointment deadlines and steps.
20.-(1) The parties may agree on the procedure for appointing the arbitrator or arbitrators, including the procedure for appointing any chairman or umpire. (2) In the event the agreement referred to in subsection (1) does not exist the following shall apply: 16 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (a) if the arbitral tribunal is to consist of a sole arbitrator, the parties shall jointly appoint the arbitrator not later than twenty eight days after service of a written request by either party; (b) if the arbitral tribunal is to consist of two arbitrators, each party shall appoint one arbitrator not later than fourteen days after service of a written request by either party; (c) if the arbitral tribunal is to consist of three arbitrators- (i) each party shall appoint one arbitrator not later than fourteen days after service of a written request by either party; and (ii) the two arbitrators appointed by the parties shall forthwith appoint a third arbitrator who shall be the chairman of the arbitral tribunal; (d) if the arbitral tribunal is to consist of two arbitrators and an umpire- (ii) the (i) each party shall appoint one arbitrator not later than fourteen days after service of a written request by either party; and two appointed arbitrators may appoint an umpire at any time after their appointment, and shall do so before any substantive hearing or forthwith where they cannot agree on a matter relating to the arbitration; and (e) in any other case, if there are more than two parties, section 22 shall apply as in the case of a failure of the agreed appointment procedure. [18] Default to appoint sole arbitrator - 21
If one party fails to appoint an arbitrator on time, the other party can notify them, appoint a sole arbitrator, and the Centre may later set that appointment aside.
21.-(1) Unless the parties otherwise agree, where each of the two parties to an arbitration agreement is to appoint an arbitrator and one party refuses or fails to do so within the time specified, the other party, having duly appointed his arbitrator, may give a written notice to the party in defaults that he proposes to appoint his arbitrator to act as a sole arbitrator. (2) Where the defaulting party does not within 17 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Failure of appointment procedure seven days of the notice- (a) make the required appointment; and (b) notify the other party of the appointment, the other party may appoint his arbitrator as a sole arbitrator whose award shall be binding on both parties as if he had been appointed by the two parties. (3) Where a sole arbitrator has been appointed under subsection (2), the party in default may, upon notice to the appointing party, apply to the Centre which may set aside the appointment. [19] - 22
If an arbitration agreement does not cover how an arbitrator is appointed, the parties may agree on that method; otherwise a party may apply to the Centre, which may direct or make the appointment.
22.-(1) Where an arbitration agreement does not provide for the appointment of arbitrator, parties may agree on the modality of appointment of arbitrator. (2) Where no agreement has been made under subsection (1), a party to the arbitration agreement may, upon notice to the other party, apply to the Centre which may- (a) give directions as to the making of any necessary appointment; (b) direct that the arbitral tribunal shall be constituted by such appointment, or any one or more of them, as has been agreed; or (c) make any necessary appointment. (3) An appointment made by the Centre under this section shall have effect as if it was made by the agreement of the parties. [20] Arbitrator’s qualifications - 23
When the court decides whether or how to use its powers under sections 20 or 22, it must take account of any party agreement on arbitrator qualifications.
23. In deciding whether and how to exercise, any of its powers under section 20 or 22, the court shall have due regard to any agreement of the parties as to the qualifications required of the arbitrators. [21] Chairman - 24
If the parties agree to have a chairman, they may तय? तय functions of the chairman for decisions, orders, and awards; if they do not, the arbitrators (including the chairman) decide by all or majority vote.
24.-(1) Where the parties have agreed that there shall be a chairman, they may agree the functions of the chairman in relation to the making of decisions, orders and awards. (2) In the event the agreement referred to under subsection (1) does not exist, decisions, orders or awards 18 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ shall be made by all or majority of the arbitrators, including the chairman. (3) The view of the chairman shall prevail in respect of subsection (1), where there is no unanimity or majority in relation to any decision, order or award. [22] Umpire - 25
This section lets parties define an umpire’s role in arbitration, and sets default rules if they do not. It also allows court involvement if arbitrators cannot agree, and requires court leave for appeals.
25.-(1) Where the parties have agreed that there shall be an umpire, they may agree on the functions of the umpire and in particular- (a) whether he is to attend the proceedings; and (b) when he may replace the other arbitrators as the arbitral tribunal with power to make decisions, orders and awards. (2) In the event the agreement referred to under subsection (1) does not exist- (a) the umpire shall attend the proceedings and be supplied with the same documents and other materials as are supplied to the other arbitrators; and (b) decisions, orders and awards shall be made by the other arbitrators unless and until they cannot agree on a matter relating to the arbitration. (3) Where arbitrators have failed to reach agreement as referred to in subsection (2)(b) they shall, with immediate effect, give a written notice to the parties and the umpire shall replace them as the arbitral tribunal with power to make decisions, orders and awards as if he were a sole arbitrator. (4) Where the arbitrators fail to agree and to give notice of that fact or any of them fails to join in the giving of notice under subsection (2) (b), any party to the arbitral proceedings may, upon notice to the other parties and to the arbitral tribunal, apply to the court which may order that the umpire replaces the other arbitrators as the arbitral tribunal with power to make decisions, orders and awards as if he were sole arbitrator. (5) The leave of the court shall be required for any appeal arising from a decision made under this section. [23] 19 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Absence of Chairman or umpire Revocation of arbitrator’s appointment - 26
If the parties choose two or more arbitrators with no chairman or umpire, they may agree on how decisions, orders, and awards are made. If they do not agree, all or a majority of the arbitrators must make them.
26.-(1) Where the parties agree that there shall be two or more arbitrators with no chairman or umpire, the parties may agree how the arbitral tribunal shall make decisions, orders and awards. (2) Where there is no agreement in terms of subsection (1), decisions, orders and awards shall be made by all or majority of the arbitrators. [24] - 27
The parties can agree when an arbitrator’s appointment may be revoked; if they do not, revocation may be made by the parties jointly or by an arbitral tribunal or another person or institution given that power, and joint revocation must be in writing.
27.-(1) The parties may agree the circumstances upon which the appointment of an arbitrator may be revoked. (2) Where the agreement referred to under subsection (1) does not exist, the appointment of an arbitrator may be revoked- (a) by the parties acting jointly; or (b) by the decision of an arbitral tribunal or other institution or person vested by the parties with powers in that regard. (3) Revocation of the appointment of an arbitrator by the parties acting jointly shall be agreed in writing. (4) Nothing in this section shall affect the power of the court to- (a) revoke an appointment under section 22; or (b) remove an arbitrator on the grounds specified in section 28. [25] Power of Centre to remove arbitrator - 28
A party may ask the Centre to remove an arbitrator, after giving notice to the other party and the arbitrator(s).
28.-(1) A party to arbitral proceedings may, upon notice to the other party, to the arbitrator concerned and to any other arbitrator, apply to the Centre to remove an arbitrator on any of the following grounds: (a) that there are circumstances which give rise to justifiable doubts as to his impartiality; (b) that he does not possess the qualifications required by the arbitration agreement; (c) that he is physically or mentally incapable of conducting the proceedings or there are justifiable doubts as to his capacity to do so; or (d) that he has refused or failed to- 20 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (i) properly conduct the proceedings; (ii) use reasonable dispatch all in conducting the proceedings; or (iii) make an award and substantial injustice has been or will be caused to the applicant. (2) Where there is an arbitral tribunal or other institution or person vested by the parties with power to remove an arbitrator, the Centre shall not exercise its power of removal unless satisfied that the applicant has first exhausted any available recourse to that institution or person. (3) The arbitral tribunal may continue the arbitral proceedings and make an award pending an application to the Centre under this section. (4) Where the Centre removes an arbitrator, it may make such directives as it thinks fit with respect to- (a) his entitlement to any fee or expense; or (b) the repayment of any fees or expenses already paid. (5) The arbitrator against whom the application is brought shall be entitled to be heard by the Centre before it makes any order under this section. [26] - 29
The parties can agree with an arbitrator about the consequences of resignation. If there is no agreement, the resigning arbitrator may ask the Centre for relief, directions about fees or expenses, or appointment of another arbitrator.
29.-(1) The parties may agree with an arbitrator as to the consequences of his resignation as regards to- (a) his entitlement to any fees or expenses; and (b) any liability thereby incurred by him. (2) Where the agreement referred to under subsection (1) does not exist, the resigning arbitrator may, upon notice to the parties, apply to the Centre to- (a) grant him relief from any liability thereby incurred by him; (b) issue such directives as it thinks fit with respect to his entitlement to any fees or expenses or the repayment of any fees or expenses already paid; and (c) direct on the appointment of another arbitrator in accordance with section 20 to continue arbitration proceedings. (3) Upon the Centre being satisfied that in the 21 Resignation of arbitrator The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Cessation of arbitrator’s appointment given circumstances, it was reasonable for the arbitrator to resign, it may grant relief referred to under subsection (2) as it deems fit. [27] - 30
An arbitrator’s appointment is personal, and the arbitrator’s service ends on the arbitrator’s death.
30.-(1) The appointment of an arbitrator shall be personal and his service shall cease upon his death. (2) Unless otherwise agreed by the parties, the death of the person by whom an arbitrator was appointed shall not revoke the arbitrator’s appointment. [28] Filling of vacancy - 31
If an arbitrator stops holding office, the parties may decide how to fill the vacancy and what happens to earlier proceedings and prior appointments.
31.-(1) Where an arbitrator ceases to hold office, the parties may agree- (a) whether, and if so, how the vacancy is to be filled; (b) whether, and if so, to what extent the previous proceedings should stand; and (c) what effect if any, his ceasing to hold office shall have on any appointment made by him. (2) Where the agreement referred to in subsection (1) does not exist the following provisions shall apply: (a) the provisions of sections 20 and 22 shall apply in relation to the filling of the vacancy as in relation to an original appointment; (b) the arbitral tribunal, when reconstituted, shall determine whether and if so to what extent the previous proceedings shall stand, except that any right of a party the proceedings on any ground which had arisen before the arbitrator shall not be precluded; and to challenge (c) his ceasing to hold office shall not affect any appointment made by him, alone or jointly, of any another appointment of a chairman or umpire. arbitrator, particular in [29] Joint and several liabilities of parties for fees - 32
The parties must jointly and severally pay the arbitrators’ reasonable fees and expenses, and a dissatisfied party may ask the court to review or adjust them.
32.-(1) The parties shall, jointly and severally, be liable to pay the arbitrators any reasonable fees and expenses as are appropriate in the circumstances. (2) A party who is not satisfied with the 22 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ reasonability of the fees and expenses to be paid to the arbitrator may, upon notice to the other party and arbitrators, apply the court consideration and adjustment of such fees and expenses if- to (a) the fees and expenses charges exceed the amount agreed upon by the parties; (b) the fees and expenses contain items which were not agreed upon by the parties; or there is significant change of circumstances that lead the change of agreed fees and expenses. (c) (3) Where an application is made after any amount has been paid to the arbitrators by way of fees or expenses, the court may order the repayment of the exceeding amount if any, provided that the court shall not make such order unless it is reasonable in the circumstances to order repayment. (4) The provisions of subsections (1), (2) and (3) shall have effect subject to any order of the court under section 28(4) or 29(2)(b). (5) Nothing in this section shall affect any liability of a party to pay all or any of the costs of the arbitration or any contractual right of an arbitrator to payment of his fees and expenses. (6) In this section, references to arbitrators include an arbitrator who has ceased to act and an umpire who has not replaced the other arbitrators. [30] - 33 Verify source ↗
Arbitral Tribunal
An arbitrator is generally not liable for acts or omissions done in carrying out arbitral functions, unless bad faith or professional negligence is proven.
33.-(1) Save as provided for in section 28, an arbitrator shall not be liable for anything done or omitted in the discharge or purported discharge of his functions as arbitrator unless the act or omission is proven to have been done in bad faith or professional negligence. (2) Subsection (1) shall apply to an employee or agent of an arbitrator as it applies to the arbitrator. (3) This section shall not affect any liability incurred by an arbitrator by reason of his resignation. 23 Immunity of arbitrator The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ [31] PART VI JURISDICTION OF ARBITRAL TRIBUNAL Competence to rule on jurisdiction
Part
PART VI
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The arbitral tribunal may decide its own substantive jurisdiction unless the parties agree otherwise.
34.-(1) Unless otherwise agreed by the parties, the arbitral tribunal may rule on its own substantive jurisdiction, as to- (a) whether there is a valid arbitration agreement; (b) whether is properly the arbitral tribunal Objection to substantive jurisdiction constituted; and (c) what matters shall be submitted to arbitration in accordance with the arbitration agreement. (2) The decision under subsection (1) may be challenged by any available arbitral process of appeal or review or in accordance with the provisions of this Act. [32] - 35
A party must raise a jurisdiction objection early, and the arbitral tribunal may decide its own jurisdiction and stay proceedings in some cases.
35.-(1) An objection that the arbitral tribunal lacks substantive jurisdiction at the outset of the proceedings shall be raised by a party not later than the time he takes the first step in the proceedings to contest the merits of any matter in relation to which he challenges the arbitral tribunal’s jurisdiction: Provided that, a party shall not be precluded from raising such an objection by the fact that he has appointed or participated in the appointment of an arbitrator. (2) An objection raised during the course of the arbitral proceedings that the arbitral tribunal exceeds its substantive jurisdiction shall be made as soon as possible after the matter alleged to be beyond its jurisdiction is raised. (3) The arbitral tribunal may admit an objection later than the time specified in subsection (1) or (2) if it considers the delay justifiable. (4) Where an objection relates to arbitral tribunal’s substantive the arbitral tribunal has power to rule on its own jurisdiction, it may- to the matter in an award as jurisdiction and (a) rule on jurisdiction; or (b) deal with the objection in its award on the 24 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ merits: Provided that, where the parties agree which recourse to take, the arbitral tribunal shall proceed accordingly. (5) The arbitral tribunal may, in any case, and shall if the parties so agree stay proceedings pending determination of an application made to the court under section 36. [33] Determination of preliminary point of jurisdiction - 36 Verify source ↗
Competence to rule on jurisdiction
The court may decide questions about an arbitral tribunal’s substantive jurisdiction if a party applies and the other party is notified.
36.-(1) The court may, on the application of a party to arbitral proceedings and upon notice to the other party, determine any question as to the substantive jurisdiction of the arbitral tribunal. (2) An application under this section shall not be considered unless- (a) it is made with the agreement in writing of all the other parties to the proceedings; or (b) it is made with the permission of the arbitral tribunal and the court is satisfied that- (i) the determination of the question is likely to produce substantial savings in costs; (ii) the application was made without delay; and (iii) there is good reason why the matter should be decided by the court. (3) An application under this section shall, unless made with the agreement of all the parties to the proceedings, state the grounds on which the court is vested with power to determine the matter. (4) Unless otherwise agreed by the parties, the arbitral tribunal may continue the arbitral proceedings and make an award pending determination of an application under this section. (5) An appeal shall not lie from a decision of the court whether or not the conditions prescribed in subsection (2) have been met, unless the court gives a leave to that effect. (6) The decision of the court on the question of jurisdiction shall be treated as a judgment of the court for the purposes of an appeal. 25 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (7) A leave of the appellate court shall not be granted unless the court is of the opinion that, the appeal involves a point of law on the basis of want of substantive jurisdiction. [34] PART VII ARBITRAL PROCEEDINGS General duty of arbitral tribunal Procedural and evidential matters
Part
PART VII
- 37
The arbitral tribunal must act fairly and impartially, give each party a reasonable chance to present its case, use suitable procedures, and avoid unnecessary delay or expense.
37.-(1) The arbitral tribunal shall- (a) act fairly and impartially as between the parties, giving each party a reasonable opportunity of putting his case and dealing with that of his opponent; and procedures the circumstances of the particular case, avoiding unnecessary delay or expense, so as to provide a fair means for the resolution of the matters to be determined. (b) adopt suitable to (2) The arbitral tribunal shall comply with the general duty referred in conducting the arbitral proceedings, in making decisions on matters of procedure and evidence, and in the exercise of all other powers conferred on it. to under subsection (1), [35] - 38
The arbitral tribunal decides procedural and evidential matters, unless the parties agree otherwise. It may also set and extend compliance times for its directions.
38.-(1) The arbitral tribunal shall decide all the procedural and evidential matters, subject agreement of the parties thereof. to (2) The procedural and evidential matters shall include- (a) when and where any part of the proceedings is to be held; (b) the language or languages to be used in the proceedings and whether translations of any relevant documents are to be supplied; (c) whether and if so, what form of written statements of claim and defence are to be used, when these should be supplied and the extent to which such statements can be later amended; (d) whether and if so, which documents or 26 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ classes of documents shall be disclosed and produced by the parties and at what stage; (e) whether and if so, what questions should be put to and answered by the respective parties and when and in what form this shall be done; (f) whether to apply strict rules of evidence or any other rules as the admissibility, relevance or weight of any material oral, written or other evidence sought to be tendered on any matter of fact or opinion, and the time, manner and form in which such material shall be exchanged and presented; (g) whether and to what extent the arbitral tribunal shall itself take the initiative in ascertaining the facts and the law; and to (h) whether and to what extent there shall be oral, written evidence or submissions. (3) The arbitral tribunal may fix the time within which any directions given by it shall be complied with and may, if it thinks fit extend the time so fixed, whether or not it has expired. [36] - 39
An arbitral tribunal must hold the proceedings in camera, and the parties and tribunal must not disclose confidential information except in listed circumstances.
39.-(1) An arbitral tribunal shall conduct the arbitral proceedings in camera. (2) Every arbitration agreement shall be deemed to provide that the parties and the arbitral tribunal shall not disclose confidential information. (3) Notwithstanding subsection (2), a party or an arbitral tribunal may disclose confidential information- (a) to a professional or other adviser of any of the parties; or (b) if both of the following matters apply: (i) the disclosure is necessary- (aa) to ensure that a party has a full opportunity to present the party’s case, as required under arbitration rules as may be prescribed in terms of section 95(3); (bb) for the establishment or protection of a party’s legal rights in relation to a third party; or 27 Confidentiality of information The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (ii) (cc) for the making and prosecution of an application to a court under this Act; and the disclosure is no more than what is reasonably required to serve any of the purposes referred to in subparagraph (i); or (c) if the disclosure is in accordance with an order made, or a summons issued, by a court; or (d) if both of the following matters apply: (i) (ii) the disclosure is authorised or required by law; or the party who, or the arbitral tribunal that, makes the disclosure provides to the other party and the arbitral tribunal or, as the case may be, the parties, the disclosure, written details of including an explanation of the reasons for the disclosure; or (e) if the disclosure is in accordance with an order made by- (i) (ii) an arbitral tribunal under section 40; or the court under section 41. [36A] Treatment of confidential information by arbitral tribunal - 40 Verify source ↗
General duty of arbitral tribunal
An arbitral tribunal may allow disclosure of confidential information in specified circumstances.
40.-(1) An arbitral tribunal may allow disclosure following information confidential the in of circumstances- (a) a question arises in any arbitral proceedings as to whether confidential information should be disclosed other than as authorised under section 39(3)(a) and (d); and (b) at least one of the parties agrees to refer that question to the arbitral tribunal concerned. (2) The arbitral tribunal may, after giving each of the parties an opportunity to be heard, make or refuse to make an order allowing all or any of the parties to disclose confidential information. [36B] 28 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Treatment of confidential information by court - 41
A court may allow disclosure of confidential arbitral information in limited circumstances, and the appellate court may also make related orders.
41.-(1) A court may make an order allowing a party to disclose any confidential information- if (a) on the application of that party, which application may be made only the mandate of the arbitral tribunal has been rules terminated prescribed in terms of section 95(3); or (b) on an appeal by that party, after an order under section 40 allowing that party to disclose the confidential information has been refused by an arbitral tribunal: accordance with in Provided that, the court may make such an order if- (a) it is satisfied, in the circumstances of the particular case, that the public interest in preserving the confidentiality of arbitral proceedings is outweighed by other considerations that render it desirable in the public confidential for interest information to be disclosed; the (b) the disclosure is no more than what is reasonably required the other considerations referred to in paragraph (a); and to serve (c) the appellate court may make an order prohibiting the respondent from disclosing confidential information on an appeal against the appellant who unsuccessfully opposed an application for an order under section 40(2) allowing the respondent to disclose confidential information. (2) The appellate court may make an order under this section only if it has given each of the parties an opportunity to be heard. (3) The appellate court may make an order under this section- (a) unconditionally; or (b) subject to any conditions it thinks fit. (4) For avoidance of doubt, the appellate court may, in imposing any conditions under subsection (3)(b), include a condition that the order ceases to have effect at a specified stage of the appeal proceedings. (5) The decision of the appellate court under this 29 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ section is final. [36C] Consolidation of proceedings - 42
The parties may agree to consolidate arbitral proceedings or hold concurrent hearings; otherwise, the arbitral tribunal cannot order them.
42.-(1) The parties may agree that- (a) the arbitral proceedings shall be consolidated with other arbitral proceedings, or (b) concurrent hearings shall be held, on such terms as may be agreed. (2) Unless the parties agree otherwise, the arbitral tribunal shall not have power to order consolidation of proceedings or concurrent hearings. [37] Legal or other representative - 43
A party to arbitral proceedings may be represented by an advocate or another person the party chooses.
43. A party to arbitral proceedings may be represented in the proceedings by an advocate or other person chosen by him. [38] Power to appoint experts - 44
The arbitral tribunal may appoint experts, legal advisers, or technical assessors, let them attend and assist, and arbitrators must bear their payable fees and expenses.
44.-(1) Unless otherwise agreed by the parties- (a) the arbitral tribunal may- (i) appoint experts or legal advisers to report to it and the parties; or appoint assessors technical matters, and may allow any such expert, legal adviser or assessor to attend the proceedings; and to assist it on (ii) (b) the parties shall be given a reasonable opportunity to comment on any information, opinion or advice offered by any such person. (2) The fees and expenses of an expert, legal adviser or assessor appointed by the arbitral tribunal for which the arbitrators are liable shall be expenses borne by the arbitrators for the purposes of this Act. [39] - 45
The parties may agree on the arbitral tribunal’s powers, and otherwise the tribunal has specified powers for the proceedings.
45.-(1) The parties may agree on the powers to be exercisable by the arbitral tribunal for the purposes of and in relation to the proceedings. (2) Unless otherwise agreed by the parties, the arbitral tribunal shall have the following powers: (a) to order a claimant to provide security for costs of the arbitration; 30 General power of arbitral tribunal The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (b) to give directions in relation to any property which is the subject of the proceedings or as to which any question arises the proceedings, and which is owned by or is in the possession of a party to the proceedings- inspection, photographing, for preservation, custody or detention of the property by the arbitral tribunal, an expert or a party; or the (i) in Power to make provisional award (ii) ordering that samples be taken from, or any observation be made of or experiment conducted upon the property; (c) to direct a party or witness to be examined on oath or affirmation as the case may be, and may for that purpose administer an oath or take affirmation; and (d) for the purposes of the proceedings, to give directions to a party to preserve any evidence in his custody or control. (3) The manner of prescribing security for cost shall be as provided in the regulations. [40] - 46
The parties can agree to let the arbitral tribunal make provisional orders, including money, property, or interim cost payments; otherwise, it cannot grant a provisional award.
46.-(1) The parties may agree that the arbitral tribunal shall have powers to order on a provisional basis any relief which it would have powers to grant in a final award. (2) The relief referred to under subsection (1) shall include making- (a) a provisional order for the payment of money or the disposition of property as between the parties; or (b) an order to make an interim payment on account of the costs of the arbitration. (3) The arbitral tribunal’s final award in relation to merits or cost shall take into account the order referred to under subsection (1). (4) Unless the parties agree to confer such powers on the arbitral tribunal, the arbitral tribunal shall not have powers to grant provisional award. [41] 31 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Duty of parties - 47
The parties must do what is needed to keep arbitration moving properly and quickly.
47. The parties shall do all things necessary for the proper and expeditious conduct of the arbitral proceedings, and shall include- to delay (a) compliance without any determination of the arbitral tribunal as to procedural or evidential matters, or with any order or directions of the arbitral tribunal; and (b) where appropriate, taking without delay any necessary steps to obtain a decision of the court on a preliminary question of jurisdiction or law. Power of arbitral tribunal in case of default by party - 48
This section lets the parties agree on arbitral tribunal powers, and otherwise gives the tribunal powers to manage delays, non-attendance, missing submissions, disobedience of orders, security for costs, and other peremptory orders.
48.-(1) The parties may agree on the powers of the arbitral tribunal in case of a party’s failure to take necessary steps for the proper and expeditious conduct of the arbitration. [42] (2) Unless otherwise agreed by the parties, the arbitral tribunal may exercise powers under the following circumstances- (a) where it is satisfied that there has been inordinate and inexcusable delay on the part of the claimant in pursuing his claim and that the delay- (i) gives rise, or is likely to give rise, to a substantial risk that it is not possible to have a fair resolution of the issues in that claim; or has caused, or is likely to cause, serious prejudice to the respondent, the arbitral tribunal may make an award dismissing the claim; (b) if without sufficient cause, a party- (ii) (i) fails to attend or be represented at an oral hearing of which due notice was given; or (ii) where matters are to be dealt with in writing, fails after due notice to submit written evidence or make written submissions, the arbitral the proceedings in the absence of that party or, as tribunal may continue 32 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ the case may be, without any written evidence or submissions on his behalf, and may make an award on the basis of the evidence before it; (c) where without sufficient cause, a party fails to comply with any order or directions of the arbitral tribunal, the arbitral tribunal may make a peremptory order to the same effect, prescribing such time for compliance with it as the arbitral tribunal considers appropriate; (d) where a claimant fails to comply with a peremptory order of the arbitral tribunal to provide security for costs, the arbitral tribunal may make an award dismissing his claim; and (e) where a party fails to comply with any other kind of peremptory order, then, without prejudice to section 49, the arbitral tribunal may do any of the following: (i) (ii) (iii) direct that the party in default shall not be entitled to rely upon any allegation or material which was the subject matter of the order; draw such adverse inferences from the the non-compliance act circumstances justify; proceed to an award on the basis of such materials as have been properly provided to it; or of as (iv) make such order as it deems fit as to the payment of costs of the arbitration incurred in consequence of the non- compliance. [43] Enforcement of peremptory orders - 49
The court may order compliance with an arbitral tribunal’s peremptory order, subject to the parties’ agreement and statutory conditions.
49.-(1) Unless otherwise agreed by the parties, the court may make an order requiring a party to comply with a peremptory order made by the arbitral tribunal. (2) An application for an order under this section may be made- (a) by the arbitral tribunal upon notice to the parties; (b) by a party to the arbitral proceedings with the 33 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ permission of the arbitral tribunal and upon notice to the other parties; or (c) where the parties have agreed that the powers of the court under this section shall be available. (3) The court shall not make an order unless it is satisfied that the applicant has exhausted available arbitral process in respect of failure to comply with the arbitral tribunal’s order. (4) No order shall be made under this section unless the court is satisfied that the person to whom the arbitral tribunal’s order was directed has failed to comply with it within the time prescribed in the order or, if no time was prescribed, within a reasonable time. (5) Leave of the court shall be required for any appeal against a decision made by the court under this section. [44] Attendance of witnesses Court powers - 50
A party in arbitration may, with permission or agreement, use court procedures to secure a witness’s attendance before the tribunal for oral evidence or document production.
50.-(1) A party to arbitral proceedings may, with the permission of the arbitral tribunal or by agreement with the other party, and by using the same court procedures available legal proceedings, secure the attendance of a witness before the arbitral tribunal to give oral testimony or to produce documents or other material evidence. to other relation in (2) The court procedures may be used where- (a) the witness is within Mainland Tanzania; and (b) the arbitral proceedings are conducted within Mainland Tanzania. (3) A person shall not be compelled by virtue of this section to produce any document or other material evidence which he could not be compelled to produce in other legal proceedings. [45] - 51
The court may make orders in arbitral proceedings on evidence, property, goods, interim injunctions, receivers, and related urgent or limited cases.
51.-(1) Unless otherwise agreed by the parties, the court shall, for the purposes of and in relation to arbitral proceedings, have the same power to make orders on matters provided for under subsection (2). (2) The matters referred to under subsection (1) shall include- 34 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (a) the taking of the evidence of witnesses; (b) the preservation of evidence; (c) making orders relating to property which is the subject of the proceedings or as to which any question arises in the proceedings- (i) (ii) the inspection, photographing, for preservation, custody or detention of the property; or ordering that samples be taken from, or any observation be made of or experiment the property, conducted upon and for that purpose, the court may authorise any person to enter any premises in the possession or control of a party to the arbitration; (d) the sale of any goods which are the subject of the proceedings; or (e) the granting of an interim injunction or the appointment of a receiver. (3) Where the case is one of urgency, the court may, on the application of a party or proposed party to the arbitral proceedings, make such orders as it thinks necessary for the purpose of preserving evidence or assets. (4) Where the case is not one of urgency, the court shall act only on the application of a party to the arbitral proceedings and upon notice to the other parties and to the arbitral tribunal, made with the permission of the arbitral tribunal or the agreement in writing of the other parties. (5) In any other case, the court shall act only if or to the extent that the arbitral tribunal, and any arbitral or other institution or person vested by the parties with power in that regard, has no power or is unable for the time being to act effectively. (6) An order made by the court under this section shall cease to have effect in whole or in part on any order of the arbitral tribunal or other institution or person having power to act in relation to the subject matter of the order. [46] 35 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Determination of preliminary point of law - 52
The court may decide a legal question in an arbitration case if a party applies, the other party is notified, and the matter substantially affects the parties’ rights.
52.-(1) Unless otherwise agreed by the parties, the court may, on the application of a party to arbitral proceedings and upon notice the other party, determine any question of law arising in the course of the proceedings which the court is satisfied that the matter substantially affects the rights of one or more of the parties. to (2) An agreement between the parties to dispense with reasons for the arbitral tribunal’s award shall be considered an agreement the court’s jurisdiction under subsection (1). to exclude (3) An application under this section shall not be considered unless where- (a) it is made with the agreement of the other party to the proceedings; or (b) it is made with the permission of the arbitral tribunal and the court is satisfied that- (i) (ii) the determination of the question is likely to produce substantial savings of costs; and the application was made without delay. (4) The application shall identify the question of law to be determined and, unless made with the agreement of the other party to the proceedings, shall state the grounds on which it is said that the question should be decided by the court. (5) Unless otherwise agreed by the party, the arbitral tribunal may continue the arbitral proceedings and make an award pending an application to the court under this section. (6) Unless the court gives leave, no appeal shall lis from a decision of the court whether the conditions specified in subsection (2) are met. (7) The decision of the court on the question of law shall be treated as a judgment of the court for the purposes of an appeal. (8) Leave of the appellate court shall not be granted unless the court is of the opinion that, the appeal involves a point of law of general importance or for other reasons, it is proper to be determined by the appellate 36 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ court. [47] Rules applicable to substance of dispute Awards on different issues Remedies - 53
The arbitral tribunal must decide the dispute using the parties’ chosen substantive law, or—if there is no choice or agreement—the law picked by applicable conflict-of-laws rules.
53.-(1) The arbitral tribunal shall decide the dispute- (a) in accordance with the law chosen by the parties as applicable to the substance of the dispute; or (b) if the parties so agree, in accordance with such other considerations as are agreed by them or determined by the arbitral tribunal. (2) For the purpose of this section, the choice of the laws of a country shall refer to the substantive laws of that country and not its conflict of laws rules. (3) Where there is no such choice or agreement, the arbitral tribunal shall apply the law determined by rules of the conflict of laws which are applicable. [48] - 54
The arbitral tribunal may issue more than one award, but if it does so on a specific issue or part of a claim, it must identify that issue or claim part in the award.
54.-(1) Unless otherwise agreed by the parties, the arbitral tribunal may make more than one award at different times on different aspects of the matters to be determined. (2) The arbitral tribunal may, in particular, make an award relating to- (a) an issue affecting the whole claim; or (b) a part of the claims or cross-claims submitted to it for decision. (3) Where the arbitral tribunal makes an award on a certain issue or a part of a claim under this section, it shall specify in its award the issue, or the claim or part of a claim, which is the subject matter of the award. [49] - 55
The parties may agree on tribunal powers, and the arbitral tribunal has powers to grant certain remedies, including declarations, money orders, specific performance, and orders about documents.
55.-(1) The parties may agree on the powers to tribunal as regards the arbitral exercisable by remedies. (2) Unless otherwise agreed by the parties, the arbitral tribunal shall have powers to- (a) make a declaration as to any matter to be determined in the proceedings; or (b) order the payment of a sum of money, in any 37 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Interest currency. (3) The arbitral tribunal shall have the same powers as the court to order- (a) a party to do or refrain from doing anything; (b) specific performance of a contract, other than a contract relating to land; or (c) the rectification, setting aside or cancellation of a deed or other document. [50] - 56
The parties may agree on interest-award powers, and the arbitral tribunal may award simple or compound interest in specified situations.
56.-(1) The parties may agree on the powers of the arbitral tribunal as regards the award of interest. (2) Subject to the rules made pursuant to section 95(3), the arbitral tribunal may, unless agreed otherwise by the parties, award simple or compound interest from such dates, at such rates and with such rates as it considers to be just- (a) on the whole or part of any amount awarded by the arbitral tribunal; or (b) on the whole or part of any amount claimed in the arbitration and outstanding at the commencement of the arbitral proceedings but paid before the award was made. (3) The arbitral tribunal may award simple or compound interest from the date of the award or any later date, until payment, at such rates and with such rates as it considers just on the outstanding amount of any award, including any award of interest as provided under subsection (2) and any award as to costs. (4) References in this section to an amount awarded by the arbitral tribunal shall include an amount payable in consequence of a declaratory award by the arbitral tribunal. (5) The provisions of this section do not affect any other power of the arbitral tribunal to award interest. [51] Extension of time for making award - 57
The court may extend the time for making an arbitration award in limited cases.
57.-(1) Unless otherwise agreed by the parties, where the time for making an award is limited by or in pursuance of the arbitration agreement the court may extend that time for making an award. (2) An application for an order under this section 38 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ may be made by- (a) the arbitral tribunal, upon notice to the parties; or (b) any party to the proceedings, upon notice to the arbitral tribunal and the other parties, after exhausting any available arbitral process for obtaining an extension of time. (3) The court shall make an order on an application under this section if it is satisfied that a substantial injustice would otherwise be done. (4) The court may extend the time for such period and on such terms as it considers fit, and may do so whether or not the time previously fixed, by or under the agreement or by a previous order, has expired. (5) Leave of the court shall be required for any appeal arising from a decision of the court under this section. [52] Settlement Form of award - 58
If parties settle an arbitration dispute, the tribunal must end the proceedings and, if asked, record the settlement as an agreed award.
58.-(1) Where the parties to arbitral proceedings have settled their dispute, unless stated otherwise by the parties, the substantive proceedings and where requested by the parties, record the settlement in the form of an agreed award. tribunal shall the arbitral terminate (2) An agreed award shall state that it is an award of the arbitral tribunal and shall have the same status and effect as any other award on the merits of the case. (3) The provisions of section 59 to 65 applies also to an agreed award. (4) Where the parties have settled their dispute in terms of subsection (1) without agreement on payment of costs of the arbitration, the provisions of this Act relating to costs shall continue to apply. [53] - 59
The parties may agree on the form of an award. If they do not, the award must be written and signed, give reasons unless exempted, and state the seat of arbitration and the date made.
59.-(1) The parties may agree on the form of an award. (2) Where there is no such agreement the award (a) be in writing signed by all the arbitrators or all those assenting to the award; shall- 39 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (b) contain the reasons for the award unless it is an agreed award or the parties have agreed to dispense with the reasons; and (c) state the seat of the arbitration and the date when the award is made. [54] Place where award treated as made - 60
If the arbitration seat is in Mainland Tanzania, the award is treated as made there unless the parties agree otherwise.
60. Where the seat of the arbitration is in Mainland Tanzania, unless otherwise agreed by the parties, any award in the proceedings shall be treated as made in Mainland Tanzania, regardless of where it was signed, dispatched or delivered to any of the parties. [55] Date of award Notification of award Power to withhold award in case of non- payment - 61
An arbitral tribunal may decide the date an award was made, unless the parties agree otherwise.
61.-(1) An arbitral tribunal may, unless otherwise agreed by the parties, decide what is to be considered as the date on which the award was made. (2) In the absence of a decision of the arbitral tribunal, the date of the award shall be considered to be the date on which the award was signed by the arbitrator or, where more than one arbitrator signs the award, the date signed by the last arbitrator. [56] - 62
The parties may agree how notice of the award will be given; if they do not agree, the arbitral tribunal must notify the parties by serving copies of the award within 30 days of the award being made.
62.-(1) The parties may agree on the requirements as to notification of the award to the parties. (2) Where there is no agreement by the parties, the arbitral tribunal shall notify the parties by service of copies of the award to them, which shall be done not later than thirty days from the date the award was made. [57] - 63
An arbitral tribunal may refuse to deliver an award if the parties have not fully paid the arbitrators’ fees and expenses.
63.-(1) An arbitral tribunal may refuse to deliver an award to the parties where parties fail to make full payment of the fees and expenses of the arbitrators. (2) Where the arbitral tribunal refuses to deliver an award on the grounds referred to under subsection (1), a party to the arbitral proceedings may, upon notice to the other party and the arbitral tribunal, apply to the Centre, and the Centre may issue directives- (a) the arbitral tribunal to deliver the award on the payment into court by the applicant of the 40 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ fees and expenses demanded, or such lesser amount as the court may specify; (b) that the amount of the fees and expenses properly payable shall be determined by such means and upon such terms as the court may direct; and (c) that out of the money paid into court, there shall be paid out such fees and expenses as may be found to be properly payable, and the balance of the money, if any, be paid out to the applicant. (3) For the purpose of subsection (2), the amount of fees and expenses to be properly payable is the amount the applicant is liable to pay under section 32 or any agreement relating to the payment of the arbitrators. (4) An applicant shall, before making an application under subsection (2), exhaust any available arbitral process for appeal or review of the amount of the fees or expenses demanded. (5) References in this section to arbitrators shall include an arbitrator who has ceased to act and an umpire who has not replaced the other arbitrators. (6) The provisions of this section shall apply in relation to any arbitral institution or other institution or person vested by the parties with powers in relation to the delivery of the arbitral tribunal’s award. (7) For the purpose of subsection (6), the references to the fees and expenses of the arbitrators shall be construed to include the fees and expenses of an arbitral institution or other institution or person vested by the parties with powers in relation to the delivery of the tribunal’s award. (8) Nothing in this section shall be construed as excluding an application under section 32 where payment has been made to the arbitrators in order to obtain the award. [58] Correction of award or additional award - 64
The parties may agree on the arbitral tribunal’s power to correct or add to an award. If they do not agree, the tribunal may correct an award or make an additional award, but must first let the other parties make representations.
64.-(1) The parties may agree on the powers of the arbitral tribunal to correct an award or make an additional award. (2) Where parties fail to agree in terms of 41 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ subsection (1), the arbitral tribunal may, on its own initiative or on the application of a party- (a) correct an award so as to remove any clerical mistake or error arising from an accidental slip or omission or clarify or remove any ambiguity in the award; or (b) make an additional award in respect of any claim, including a claim for interest or costs, which was presented to the arbitral tribunal but was not dealt with in the award: Provided that, the arbitral tribunal shall first afford the other parties a reasonable opportunity to make representations to it. (3) An application for the exercise of powers under this section shall be made within twenty eight days from the date of the award or such longer period as the parties may agree. (4) Any correction of an award shall be made - (a) in the case of an application of a party, within the the arbitral twenty-eight days application was received by tribunal; the date from (b) where the correction is made by the arbitral tribunal on its own initiative, within twenty eight days from the date of the award; or (c) in either case, such longer period as the parties may agree. (5) Any additional award shall be made within fifty six days from the date of the original award or such longer period as the parties may agree. (6) Any correction of an award shall form part of the award. [59] - 65 Verify source ↗
Treatment of confidential information by court
An arbitral award is final and binding on the parties and related persons unless the parties agree otherwise, but a person still has a right to challenge it through available appeal or review processes or under the Act.
65.-(1) An award made by the arbitral tribunal pursuant to an arbitration agreement shall, unless otherwise agreed by the parties, be final and binding to both parties and to any person claiming through or under them. (2) The provisions of subsection (1) shall not affect the right of a person to challenge the award by any available arbitral process of appeal or review or in 42 Effect of award The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ accordance with the provisions of this Act. Costs of arbitration PART VIII COSTS OF ARBITRATION
Part
PART VIII
- 66
This section defines what counts as the costs of arbitration.
66.-(1) In this Act, references to the costs of the arbitration shall be to- (a) the arbitrators’ fees and expenses; (b) the fees and expenses of any arbitral institution concerned; and (c) the legal or other costs of the parties. (2) Any reference referred to under subsection (1) shall include the costs of or incidental to any proceedings to determine the amount of the recoverable costs of the arbitration. [61] Agreement to pay costs in any event - 67
An agreement making one party pay arbitration costs in any event is only valid if it is made after the dispute has already arisen.
67. An agreement which has the effect that a party is to pay the whole or part of the costs of the arbitration in any event is only valid where the agreement is made after the dispute in question has arisen. [62] Award of costs Effect of agreement or award about costs Recoverable costs of - 68
The arbitral tribunal may allocate arbitration costs between the parties, and generally must award costs so they follow the event unless the parties agree otherwise or that would be inappropriate.
68.-(1) Subject to any agreement by the parties, the arbitral tribunal may make an award allocating the costs of the arbitration as between the parties. (2) The arbitral tribunal shall, unless the parties otherwise agree, award costs on the general principle that costs shall follow the event, except where it appears to the arbitral tribunal that in the circumstances it is not appropriate in relation to the whole or part of the costs. - 69
The provision says that, unless the parties agree otherwise, any cost-allocation obligation for arbitration costs only covers recoverable costs.
69. Unless the parties otherwise agree, any obligation under an agreement between the parties as to how the costs of the arbitration shall be borne, or under an award allocating the costs of the arbitration, extends only to such costs as are recoverable. [64] - 70
This section lets parties agree on arbitration costs, and if they do not, the arbitral tribunal or the court can तयermine them.
70.-(1) Parties may agree on the recoverable costs of arbitration. 43 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ arbitration (2) The arbitral tribunal may, where there is no agreement between the parties as on the recoverable costs of arbitration, determine by award the recoverable cost on such basis as it considers fit, and it shall in doing so, specify- (a) the basis on which it has acted; and (b) the items of recoverable costs and the amount recoverable to each party. (3) Where the arbitral tribunal does not determine the recoverable costs of the arbitration, any party to the arbitral proceedings may, upon notice to the other party apply to court, and the court may- (a) determine the recoverable costs of the (b) order that arbitration on such basis as it deems fit; or the recoverable costs of the arbitration shall be determined by such means and upon such terms as it may specify. (4) Unless the arbitral tribunal or the court determines otherwise- (a) the recoverable costs of the arbitration shall be determined on the basis that there shall be allowed a reasonable amount in respect of all costs reasonably incurred; and (b) any doubt as to whether costs were reasonably incurred or were reasonable in amount shall be resolved in favour of the paying party. (5) Nothing in this section shall affect any right of an arbitrator, expert, legal adviser or assessor appointed by tribunal or any arbitral institution to the payment of their fees and expenses. the arbitral [65] - 71
The court may decide what arbitrators’ fees and expenses are reasonable, or order how that issue should be decided, if a party applies and gives notice to the other party.
71.-(1) Unless otherwise agreed by the parties, the recoverable costs of the arbitration shall, in respect of the fees and expenses of the arbitrators, include such reasonable fees and expenses as are appropriate in the circumstances. (2) For the purposes of determining the question as to what reasonable fees and expenses are appropriate in the circumstances, and where a matter is not already before the court on an application under section 70(4), 44 Recoverable fees and expenses of arbitrators The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Power to limit recoverable costs Enforcement of award the court may, on application by a party and upon notice to the other party- (a) determine the matter; or (b) order that the matter be determined by such means and upon such terms as the court may specify. (3) Subsection (1) shall have effect to any order of the court under section 28(4) or 29(2)(b). (4) Nothing in this section shall affect the right of the arbitrator to payment of his fees and expenses. [66] - 72 Verify source ↗
Costs of arbitration
The arbitral tribunal may limit recoverable arbitration costs to a specified amount, unless the parties agree otherwise.
72.-(1) Unless otherwise agreed by the parties, the arbitral tribunal may direct that the recoverable costs of the arbitration, or of any part of the arbitral proceedings, shall be limited to a specified amount. (2) An arbitral tribunal may at any stage, vary its directive under subsection (1): Provided that, such variation is done sufficiently in advance prior to- (a) the incurring of costs to which variation of the directive relates; or (b) the taking of any steps in the proceedings which may be affected by variation of the directive, for the limit to be taken into account. [67] PART IX POWERS OF COURT IN RELATION TO AWARDS
Part
PART IX
- 73
A court may allow an arbitral award to be enforced like a court judgment, but must not grant leave if the person resisting enforcement shows the tribunal lacked substantive jurisdiction.
73.-(1) An award made by the arbitral tribunal pursuant to an arbitration agreement may, by leave of the court, be enforced in the same manner as a judgment or order of the court. (2) Where leave of the court is given, judgment may be entered in terms of an award. (3) Save as otherwise provided, leave to enforce an award shall not be given where, or to the extent that, the person against whom it is sought to be enforced shows that the arbitral tribunal lacked substantive jurisdiction to make the award. 45 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ [68] Challenging award on substantive jurisdiction - 74
A party to arbitral proceedings may apply to court to challenge jurisdiction-related awards, and the tribunal or court may act on the application.
74.-(1) A party to arbitral proceedings may, upon notice to the other parties and to the arbitral tribunal, apply to court- (a) challenging any award of the arbitral tribunal as to its substantive jurisdiction; or (b) for an order declaring an award made by the arbitral tribunal on the merits to be of no effect, in whole or in part, on grounds that the arbitral tribunal did not have substantive jurisdiction. (2) An arbitral tribunal may continue the arbitral proceedings and make a further award pending an application to the court under this section in relation to an award as to jurisdiction. (3) The court may, on determination of an application under this section, make any of the following orders- (a) confirm the award; (b) vary the award; or (c) set aside the award in whole or in part. (4) Leave of the court shall be required for any appeal against a decision of the court made under this section. [69] - 75
A party to arbitral proceedings may apply to court to challenge an award for serious irregularity, and any appeal from the court’s decision needs leave of court.
75.-(1) A party to arbitral proceedings may, upon notice to the other parties and to the arbitral tribunal, in apply the the court challenging an award to irregularity proceedings on affecting the arbitral tribunal, the proceedings or the award. the ground of serious (2) For the purpose of this section, “serious irregularity” means an irregularity of one or more of the following kinds which the court considers has caused or is likely to cause substantial injustice to the applicant: (a) failure by the arbitral tribunal to comply with section 37; (b) the arbitral tribunal has exceeded its powers otherwise than by exceeding its substantive jurisdiction; 46 Challenging award on serious irregularity The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (c) failure by the arbitral tribunal to conduct the proceedings in accordance with the procedure agreed by the parties; (d) failure by the arbitral tribunal to deal with all the issues that were raised before it; (e) any arbitral institution or other institution or person vested by the parties with powers in relation to the proceedings or the award exceeding its powers; (f) uncertainty or ambiguity as to the effect of the award; (g) the award being obtained by fraud or procured in a manner that is contrary to public policy; (h) failure to comply with the requirements as to (i) any the form of the award; or irregularity in the conduct of the proceedings or in the award which is admitted by the arbitral tribunal or by any arbitral or other institution or person vested by the parties with powers the proceedings or the award. in relation to (3)The court may, where it determines that there is a serious irregularity affecting the arbitral tribunal, the proceedings or the award- (a) remit the award to the arbitral tribunal, in whole or in part, for reconsideration; (b) set aside the award in whole or in part; or (c) declare the award to be of no effect, in whole or in part: Provided that, the court shall not exercise its power to set aside or to declare an award to be of no effect, in whole or in part, unless it is satisfied that it will be inappropriate to remit the matters in question to the arbitral tribunal for reconsideration. (4) The leave of the court shall be required for any appeal against a decision of the court made under this section. [70] Power to state case - 76
A party to arbitral proceedings may ask the court to state a special case on a question of law arising from an award, if notice is given to the other party and the arbitral tribunal and the parties have not agreed otherwise.
76.-(1) Unless otherwise agreed by the parties, a party to arbitral proceedings may, upon notice to the 47 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ other party and to the arbitral tribunal, state in a form of special case to the court on a question of law arising out of an award made in the proceedings. (2) An agreement between the parties to dispense with reasons the arbitral tribunal’s award shall be the court’s considered an agreement jurisdiction under section (1). to exclude (3) Special case shall not be brought under this section except by agreement with the other party to the proceedings. (4) Where the agreement has been filed, the parties to it shall be subject to the jurisdiction of the court and shall be bound by the statement contained in the agreement. (5) The case shall be set down for hearing as a suit instituted in an ordinary manner and where the case has been entertained, the court may, by order- (a) confirm the award; (b) vary the award; (c) remit the award to the arbitral tribunal, in whole or in part, for reconsideration in the light of the court’s determination; (d) set aside the award in whole or in part; or (e) declare the award to be of no effect in whole or in part: Provided that, the court shall not exercise its power to set aside an award, in whole or in part, unless it is satisfied that it would be inappropriate to remit the matters for reconsideration. in question the arbitral tribunal to (6) The decision of the court under this section shall be treated as a judgment of the court for the purposes of further appeal. [71] Challenge or appeal on supplementary provisions - 77
This section limits when an application or appeal can be filed, requires prior exhaustion of available arbitral review steps and section 64 recourse, and gives the court several case-management powers.
77.-(1) The provisions of this section shall apply to an application or appeal under sections 74 or 76 respectively. (2) An application or appeal shall not be brought where the applicant or appellant has not exhausted- (a) any available arbitral process of appeal or review; and 48 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (b) any available recourse under section 64. (3) Any application or appeal shall be brought within twenty eight days from the date of the award or, where there has been any arbitral process of appeal or review, from the date when the applicant or appellant was notified of the result of that process. (4) On any application or appeal, where it appears to the court that the award does not - (a) contain the arbitral tribunal’s reasons; or (b) set out the arbitral tribunal’s reasons in sufficient detail to enable the court properly to consider the application or appeal, the court may order the arbitral tribunal to state the reasons for its award in sufficient detail for that purpose. (5) Where the court makes an order under subsection (4), it may make such further order as it considers fit with respect to any additional costs of the arbitration resulting from its order. (6) The court may order the applicant or appellant to provide security for the costs of the application or appeal, and may direct that the application or appeal be dismissed where the order is not complied with. (7) The manner of prescribing security for cost the this section shall be as prescribed in under regulations. (8)The court may order that any money payable under the award shall be brought into court or otherwise secured pending the determination of the application or appeal, and may direct that the application or appeal be dismissed where the order is not complied with. (9) The court may grant leave to appeal subject to conditions under subsections (6), (7) and (8). (10) Subsection (8) shall not affect the general discretion of the court to grant leave subject to conditions as it may deem appropriate. [72] Challenge or appeal on effect of order of court - 78
If a court remits an award for reconsideration, the arbitral tribunal must issue a fresh award within three months unless the court sets a different period. If an award is set aside or has no effect, the court may also make an order about any condition-precedent clause for legal proceedings.
78.-(1) The following provisions shall have effect where the court makes an order under section 74, 75 or 76 with respect to an award. (2) Where the award is varied, the variation shall have effect as part of the arbitral tribunal’s award. 49 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (3) Where the award is remitted to the arbitral tribunal, in whole or in part, for reconsideration, the arbitral tribunal shall make a fresh award in respect of the matters remitted within three months from the date of the order for remission or such longer or shorter period as the court may direct. (4) Where the award is set aside or declared to be of no effect, in whole or in part, the court may order that any provision, that an award is a condition precedent to the bringing of legal proceedings in respect of a matter to which the arbitration agreement applies, is of no effect as regards to the subject matter of the award or, as the case may be, the relevant part of the award. [73] Saving for rights of person who takes no part in proceedings Cap. 89 - 79
An interested party who did not take part in arbitral proceedings may apply to court on certain questions and for relief.
79.-(1) Subject to the Law of Limitation Act, a person who is an interested party to arbitral proceedings but who took no part in the proceedings may apply to court- (a) on questions that- (i) whether there is a valid arbitration agreement; (ii) whether the arbitral tribunal is properly constituted; (iii)what matters shall be submitted to arbitration in accordance with the arbitration agreement; or (iv) whether there is a contravention of laws and norms; and (b) for a declaration or injunction or other appropriate relief. (2) The applicant under subsection (1) shall have the same right as a party to the arbitral proceedings to challenge an award by an application under - (a) section 74 on the ground of lack of substantive jurisdiction in relation to him; or (b) section 75 on the ground of serious that the meaning of irregularity, within section, affecting him, and section 77(2) shall not apply in his case. [74] 50 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Loss of right to object Cap. 89 Immunity of arbitral institutions - 80
A party who participates in arbitration without timely objecting may lose the right to raise that objection later.
80.-(1) Where a party to arbitral proceedings takes part, or continues to take part, in the proceedings without making, either forthwith or within such time as is allowed by the arbitration agreement or the arbitral tribunal or by any provision of this Act or the Law of Limitation Act, any objection that- tribunal substantive (a) the lacks arbitral jurisdiction; (b) the proceedings have been improperly conducted; (c) there has been a failure to comply with the arbitration agreement or with any provision of this Act; or (d) there has been any other irregularity affecting the arbitral tribunal or the proceedings, he may not raise that objection, before the arbitral tribunal or the court, unless he shows that, at the time he took part or continued to take part in the proceedings, he did not know and could not with reasonable diligence have discovered the grounds for the objection. (2) Where the arbitral tribunal rules that it has substantive jurisdiction, a party to arbitral proceedings who could have questioned that ruling- (a) by any available arbitral process of appeal or review; (b) by challenging the award, does not do so or does not do so within the time allowed by the arbitration agreement or any provision of this Act, he may not object to the arbitral tribunal’s substantive jurisdiction on any ground which was the subject of that ruling. [75] - 81 Verify source ↗
Enforcement of award
People or institutions appointed or asked to appoint an arbitrator are generally not liable for acts or omissions done in that role, unless bad faith is proven.
81.-(1) An arbitral or other institution or person designated or requested by the parties to appoint or nominate an arbitrator shall not be liable for anything done or omitted in the discharge or purported discharge of that function unless the act or omission is proven to have been done in bad faith. (2) An arbitral or other institution or person by whom an arbitrator is appointed or nominated shall not 51 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ be liable, by reason of having appointed or nominated him, for anything done or omitted to be done by the arbitrator or his employees or agents, in the discharge or purported discharge of his functions as arbitrator. (3) This section shall apply to an employee or agent of an arbitral or other institution or person as they apply to the institution or person himself. [76] PART X ARBITRATION CENTRE Establishment and operation of Centre
Part
PART X
- 82 Verify source ↗
Establishment and operation of Centre
The Tanzania Arbitration Centre must carry out listed arbitration-related functions and may establish branches when needed.
82.-(1) There shall be a centre to be known as the Tanzania Arbitration Centre. (2) The Centre shall be a body corporate with perpetual succession and a common seal and shall, in its corporate name, be capable of- (a) suing and being sued; (b) acquiring, holding, investing and alienating movable or immovable property; (c) exercising the powers and performing the functions conferred upon it under this Act; and (d) entering into any contract or other transaction, and doing or suffering to do all such other acts and things which a body corporate may lawfully perform, do or suffer to be done. (3) The functions of the Centre shall be- (a) conduct and management of arbitration; (b) registration and maintenance of list of accredited arbitrators; (c) enforcement of the code of conduct and practice for arbitrators; (d) to perform the functions as provided under sections 21, 22, 28, 29 and 63; (e) to advise the government on matters related to arbitration; (f) to promote opportunities for educating the the various media on through public arbitration; (g) to publish or assist in the publication of proceedings of the Centre, of books and 52 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ papers on arbitration; (h) to sponsor study and research in arbitration and provide fellowships, grants to deserving applications; (i) to provide facilities and assistance for the international conduct of domestic and arbitration; (j) to maintain adequate, accurate and timely records of proceedings made in arbitration and to keep such records in safe and secure custody; (k) management and provision of continuing education for arbitrators; and (l) to perform any other functions as the Minister may direct. (4) There shall be a governing body of the Centre tenure of office, whose membership, qualification, disciplinary procedure of members, conduct of meetings and other matters related thereto shall be as prescribed in the regulations. (5) The Centre may affiliate and accreditation from other regional and bodies. seek international (6) In the performance of its functions the Centre shall be guided by the provisions of this Act and any other written laws. (7) The Centre may establish branches as may be necessary for the proper and effective performance of its functions. [77] PART XI RECOGNITION AND ENFORCEMENT OF ARBITRAL AWARDS Recognition and enforcement of arbitral awards
Part
PART XI
- 83
A party may ask the court in writing to recognise and enforce a domestic or foreign arbitral award, but the court can refuse in listed circumstances.
83.-(1) Upon application in writing to the court, a domestic arbitral award or foreign arbitral award shall be recognised as binding and enforceable. (2) Notwithstanding subsection (1), a domestic arbitral award or foreign arbitral award shall be refused if- 53 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (a) at the request of the party against whom it is invoked, that party furnishes to court proof that- (i) parties to the arbitration agreement, pursuant to the law applicable- (aa) lacked capacity to enter into the agreement; or (bb) were not properly represented; (ii) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication of that law, under the law of the state where the arbitral award was made; (iii) the party against whom the arbitral award is invoked was not given proper the appointment of an notice of arbitrator or of the arbitral proceedings or was otherwise unable to present his case; the scope of (iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the reference to arbitration, or it contains decisions on matters beyond the reference to arbitration, provided that, if the decisions on matters referred to arbitration can be separated from those not so referred, that part of the arbitral award which contains decisions on matters referred to arbitration may be recognised and enforced; (v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties or, failing any agreement by the parties, was not in accordance with the law of the state where the arbitration took place; or 54 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (vi) the arbitral award has not yet become binding on the parties or has been set aside or suspended by a court of the state in which, or under the law of which, that arbitral award was made; (a) the making of the arbitral award was induced or affected by fraud, bribery, corruption or undue influence; or (b) if the court finds that- (i) (ii) the subject matter of the dispute is not capable of settlement by arbitration under any written laws; or the recognition or enforcement of the arbitral award would be contrary to any written laws or norms. (3) If an application for the setting aside or suspension of an arbitral award has been made to a court referred to in subsection (2)(a)(vi), the court may, if it considers it proper, adjourn its decision and may also, on the application of the party, claiming recognition or enforcement of the arbitral award, order the other party to provide appropriate security. (4) Enforcement of a foreign award may be refused at the request of the party against whom it is invoked, only if that party furnishes to the court proof that- (a) the parties to the agreement referred to in section 88 were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; (b) the party against whom the award is invoked the was not given proper notice of appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; (c) the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the 55 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ scope of the submission to arbitration, except that where the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be enforced; (d) the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or (e) the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made. (5) Enforcement of an arbitral award may also be refused if the Court finds that- (a) the subject-matter of the difference is not capable of settlement by arbitration under the laws of Mainland Tanzania; or (b) the enforcement of the award would be contrary to the public policy of Mainland Tanzania. (6) Where an application for the setting aside or suspension of the award has been made to a competent authority referred to in subsection (4)(e) the Court may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to give suitable security. [78] Deemed decrees - 84
If the court is satisfied that an award is enforceable under this Part, the award is treated as a decree of that court.
84. Where the court is satisfied that the award is enforceable under this Part, the award shall be deemed to be a decree of that court. [79] Appealable orders - 85 Verify source ↗
Recognition and enforcement of arbitral awards
An appeal may be taken from an order refusing to refer parties to arbitration or to enforce an arbitral award, to the court that is legally authorised to hear such appeals.
85. Notwithstanding anything contained in any other law for the time being in force, an appeal shall lie from the order refusing to- 56 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (a) refer the parties to arbitration under section 14; or (b) enforce an arbitral award under section 83, to the court authorised by law to hear appeals from such order. Service of notices PART XII MISCELLANEOUS PROVISIONS
Part
PART XII
- 86
The parties may agree how notices or other documents are served for arbitration, and if they do not agree, service may be made by any effective means.
86.-(1) The parties may agree on the manner of service of any notice or other document required or authorised to be given or served in pursuance of the arbitration agreement or for the purposes of the arbitral proceedings. (2) Where there is no agreement of the parties in terms of subsection (1), a notice or other document may be served on the party and the arbitral tribunal by any effective means. (3) A notice or other document shall be treated as effectively served if it is addressed, pre-paid and delivered by post- (a) to the addressee’s last known principal residence or, if he is or has been carrying on a trade, profession or business, his last known principal business address; or (b) where the addressee is a body corporate, to the body’s registered or principal office. (4) This section shall not apply to the service of documents for the purposes of legal proceedings, for which provision is made by rules of court. (5) References in this Act to a notice or other document including any form of communication in writing and references to giving or serving a notice or other document shall be construed accordingly. [81] Powers of court in relation to service of documents - 87
If agreed or section 81 service is not reasonably practicable, the court may order another method of service or dispense with service; any party to the arbitration agreement may apply after exhausting arbitral processes, and appeals need leave of court.
87.-(1) This section shall apply where service of a document on a person in the manner agreed by the parties, or in accordance with provisions of section 81 having effect in default of agreement, is not reasonably practicable. (2) Unless otherwise agreed by the parties, the 57 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ court may make such order as it considers fit- (a) for service in such manner as the court may direct; or (b) dispensing with service of the document. (3) Any party to the arbitration agreement may apply for an order after exhausting any available arbitral process for resolving the matter. (4) The leave of the court shall be required for any appeal against a decision of the court made under this section. Reckoning periods of time - 88
The parties may agree on how to calculate time periods; if they do not, the Act’s default computation rules apply.
88.-(1) The parties may agree on the method of reckoning periods of time for the purposes of any provision agreed by them or any provision of this Act having effect in default of such agreement. Cap.1 (2) Where there is no agreement of the parties in the terms of subsection Interpretation of Laws Act relating to computation of time and reckoning of months shall have effect to the reckoning of period under this Act. the provisions of (1), Power of court to extend time limits relating to arbitral proceedings - 89
The court may extend agreed time limits for arbitration matters, but only in limited circumstances and not where section 16 applies.
89.-(1) Unless the parties otherwise agree, the court may by order extend any time limit agreed by the parties in relation to any matter relating to the arbitral proceedings or specified in any provision of this Act having effect in default of such agreement. [83] (2) An application for an order may be made by- (a) any party to the arbitral proceedings upon notice to the other party and to the arbitral tribunal; or (b) the arbitral tribunal upon notice to the party. (3) The court shall not exercise its power to extend a time limit unless it is satisfied that- (a) any available recourse to the arbitral tribunal, or to any arbitral or other institution or person vested by the parties with power in that regard, has first been exhausted; and (b) a substantial injustice would otherwise be done. (4) The court’s power under this section may be exercised whether or not the time has already expired. 58 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Notice and other requirements in connection with legal proceedings (5) An order under this section may be made on such terms as the court may deem fit. (6) Leave of the court shall be required for any appeal against a decision of the court made under this section. (7) This section shall not apply to a time limit to which section 16 applies. [84] - 90
This section sets how notice must be given for applications, appeals, and other steps in arbitral or court proceedings, and it lets rules made by the Chief Justice govern notice and timing.
90.-(1) References in this Part to an application, appeal or other step in relation to legal proceedings being taken “upon notice” to the other parties to the arbitral proceedings, or to the arbitral tribunal, shall be to such notice of the originating process as is required by rules prescribed by the Chief Justice. (2) The rules prescribed under subsection (1) shall be made- (a) requiring such notice to be given as indicated by any provision of this Act; and (b) as to the manner, form and content of any such notice. (3) Without prejudice to the rules prescribed under subsection (1), a requirement to give notice to the arbitral tribunal of legal proceedings shall be construed- (a) if there is more than one arbitrator, as a requirement to give notice to each of them; and (b) if the arbitral tribunal is not fully constituted, as a requirement to give notice to any arbitrator who has been appointed. in this Act (4) References to making an application or appeal to the court within a specified period shall be to the issue within that period of the appropriate originating process in accordance with rules prescribed under subsection (1). (5) Where any provision of this Act requires an application or appeal to be made to the court within a specified time, the rules prescribed under subsection (1) relating to the reckoning of periods, the extending or abridging of periods, and the consequences of not taking a step within the period prescribed by the rules, shall apply in relation to that requirement. 59 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ (6) The rules made under subsection (1) may provide for- (a) matters with respect to the time within which any application or appeal to the court shall be made; (b) any matter line with arbitral to be in proceedings as provided for in this Act; or (c) any matter of legal proceeding, as provided for in this Act, to be in line with court legal proceedings. Application and construction Electronic signatures Cap. 6 - 91
An arbitrator must consider decisions by other arbitrators and courts in similar matters, and explain any decision to depart from them.
91. In applying and construing this Act, an arbitrator shall have regard to positions taken by other arbitrators in similar subject matter as well as positions taken by courts of law in such matters, and justify his decision in the event he decides to differ with the position of other arbitrators or courts. [86] - 92
Rules on the legal effect, validity, and enforceability of electronic records, electronic signatures, and related contracts apply to proceedings under this Act.
92. The provisions governing the legal effect, validity, and enforceability of electronic records or electronic signatures, and of contracts performed with the use of such records or signatures made by the Evidence Act or practice direction by the Chief Justice or other laws in force shall apply to proceedings under this Act. [87] Accreditation Cap. 33 - 93
An arbitrator who wants to practice for a fee must register under the applicable system.
93. An arbitrator who decides to practice at a fee shall be required to register in accordance with the system put in place pursuant to section 64 of the Civil Procedure Code or any other law for the time being in force. [88] Reciprocal enforcement - 94
A party that wants to enforce a final award must do so under this Act.
94. A party who intends to enforce a final award shall do so in accordance to the provisions of this Act. [89] Regulations, rules and practice directions - 95
The Minister may make regulations for this Act, and the Chief Justice may make rules or practice directions for court-related matters, in consultation with the Minister.
95.-(1) The Minister may make regulations for the better carrying out of the provisions of this Act. (2) Without prejudice in subsection (1), the Minister may make regulations on the the generality to 60 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ Repeal of R.L. Cap. 15, savings and transitional arrangements following matters: (a) the scale of fees to be applied in arbitration matters; (b) forms to be used in arbitration matters; (c) accreditation of arbitrators; (d) the general management and operations of the Centre; (e) prescribe fee thresholds to be charged by arbitrators; and (f) prescribe anything which is by this Act required or permitted to be prescribed or otherwise provided for. (3) The Chief Justice in consultation with the Minister may make rules or issue practice directions as may be necessary with regards to matters that the court may be involved in accordance with this Act. [90] - 96 Verify source ↗
Service of notices
This section repeals the Arbitration Act, Ord No. 26 of 1931, and sets out how earlier arbitration matters are to be treated under this Act.
96.-(1) Repeals the Arbitration Act, Ord No. 26 of 1931. (2) Anything done or concluded and the repealed Act or regulations shall be deemed to have been done or concluded under this Act. (3) Any arbitration arrangement concluded before the coming into effect of this Act which has not yet materialized shall be renegotiated and brought in line with this Act. (4) Any proceedings pending shall be proceeded in the light of this Act. (5) Any Award which has been granted shall be deemed to have been granted under this Act. PART XIII CONSEQUENTIAL AMENDMENTS [OMITTED] ________ SCHEDULE _________ (Made under section 9(1) ___________ 61 The Arbitration Act [CAP. 15 R.E. 2020] ___________________________________________________________________ MANDATORY PROVISIONS OF PART I (a) sections15 (relating to stay of legal proceedings); (b) section16 (relating to power of court to extend agreed time limits); (c) section17 (relating to application of the Law of Limitation Acts); (d) section 28 (relating to power of court to remove arbitrator); (e) section 30(1) relating to (effect of death of arbitrator); (f) section 32 (relating to liability of parties for fees and expenses of arbitrators); (g) section 33 (relating to immunity of arbitrator); (h) section 35 (relating to objection to substantive jurisdiction of the arbitral tribunal); (i) section 36 (relating to determination of preliminary point of jurisdiction); (j) section 37 (relating to general duty of the arbitral tribunal); (k) section 44(2) (relating to items to be treated as expenses of arbitrators); (l) section 47 (relating to general duty of parties); (m) section 50 (relating to securing the attendance of witnesses); (n) section 63 (relating to power to withhold award in case of non-payment); (o) section 69 (relating to effectiveness of agreement for payment of costs in any event); (p) section 73 (relating to enforcement of award); (q) sections 74 and 75 ( relating to challenging the award: substantive jurisdiction and serious irregularity); (r) sections 77 and 78 (relating to supplementary provisions and effect of order of court) (s) section 79 (relating to saving for rights of person who takes no part in proceedings; (t) section 80 (relating to loss of right to object); (u) section 81 (relating to immunity of arbitral institutions); and (v) section 82 (relating to the establishment and operations of the Centre). ___________________________ 62
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The Arbitration Act R:E 2020
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