Participation of Third Parties in Arbitration Proceeding Under Arbitration & Conciliation Working Procedure Proclamation, Proclamation No.1237/2021

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Date

2023-05

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AAU

Abstract

The virtue of Arbitration is consent of contacting parties in arbitration agreement. Moreover, Arbitration has privity nature. At this juncture, modern business transaction is complicated drastically and the park of arbitration requires the participation of diverse parties that didn’t not signed arbitration agreement. This is because; arbitration proceedings emanating from arbitration agreements of signatories may confront and has impact on the legal and financial interest of third parties. This calls to have some exception on the consensual and privity nature of arbitration for the sake of third parties right and interest protection. To this end, nations and international arbitral institutions set way out either by developing theories or making their laws conducive for third parties participation in arbitration proceedings. Ethiopia enacted a new Arbitration and Conciliation Working Procedure Proclamation which superficially accept third party participation in the arbitration proceedings. Nevertheless, the unanimous consent criteria from the contracting and third parties seem a four side wall that impedes participation of third parties in arbitration proceedings. Besides, under the new proclamation the provision on third party Participation failed to set specific procedure which can go with the distinctive nature of arbitral proceeding. Besides, third parties, conditions and circumstances to allow joinder and intervention of third parties aren’t clearly stipulated. This work found out that the new proclamation is inimical for third party participation in arbitration proceeding. Hence, the new proclamation should be welcoming for consented third parties so as to make arbitration effective and competent. Moreover, it should incorporate provisions for third party participation which are accustomed to the unique nature of arbitration.

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Keywords

Commercial Arbitration, Third party participation,Arbitration & Conciliation, Proclamation No.1237/2021

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