JCC 2246/2019
This case involved when an arbitration agreement and an award would be considered null and void. It looked at areas considered by the appeal court.
Background
According to Article 9 of Jordan Law No. 31/2001 , if someone without the right to dispose of a matter consented to arbitration, the arbitration agreement was absolutely null and void by public policy. This meant that any party could claim the nullity of the arbitration clause due to the lack of capacity of one of the parties, to avoid being forced to undertake procedures that would ultimately be null and void.
If a legal entity entered into an arbitration clause and it was found that its representative did not have the authority to sign the arbitration clause, but the legal entity’s agent appeared before the arbitration panel and dd not raise the issue of nullity, the right to claim nullity was forfeited if the legal entity itself had the authority to enter into the arbitration. This was considered as ratifying the arbitration agreement.