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