SBG 3977/2015

This case involved whether execution of an arbitration ruling was possible.

Background

Two people concluded an arbitration agreement to settle disputes between them over their partnership in a company. The arbitration panel issued a ruling confirming that they were partners in the company with equal shares. Under Article 22 of Saudi Arabia Royal Decree No. M34/1433, the competent authority had the power to request imposing temporary and precautionary measures if one of the parties requested this before starting the arbitration procedures. One of the partners had requested that the bank accounts of the other partner were frozen and to appoint a judicial guardian until the arbitration was completed. The panel accepted the requests and ordered the partner, whose accounts were frozen, to pay the fees.

Decision

The court of appeal said that the ruling issued by the arbitration panel was in agreement with the provisions of Article 39 of Saudi Arabia Royal Decree No. M34/1433. This article stated that the arbitration panel had the power to issue temporary rulings before issuing a final ruling in the dispute unless the two sides agreed to something else.