Arbitration will be applicable only where one of the parties is a BMR Member.
To put up an Arbitration Claim to the Arbitration Committee, any one of the parties should be a BMR Member. The Arbitration Committee will consider only the Claims of minimum justifiable value of US$ 25, 000.00 against a single contract.
In case both parties want the case to be decided by the Arbitration Committee, then both parties have to pay a deposit of 25% each of the claimed value to the BMR Arbitration Committee, who will study the case in detail, have a personal one on one hearing with both parties & give their Final Decision.
If the Committee is not able to take a decision on one sitting, then the Committee will give date, time & venue for further hearings.
The decision of the Arbitration Committee shall be final and binding on both the parties.
When the Arbitration Committee will give their Verdict, The defaulted party will have to pay for all direct costs, travel expenses of the favored party if he is not residing in UAE and has come only for attending the hearing, along with the settled claim amount to the BMR, who shall reimburse the amount to the favored party after deducting 3% of the settled claim amount or US$ 1,000.00, whichever is higher. In case the defaulted party fails to pay the settled claim amount along with the direct costs and travel expenses of the favored party to the BMR within the 15 days from the date of Verdict or refuse to accept the Verdict of the Arbitration Committee, then such defaulted party’s name will be published as “Unreliable Party (Supplier/Buyer)” and the 25% of the claim amount deposited by him to the BMR shall be forfeited and the said amount will be paid to the favored party after deducting 3% of the settled claim amount or US$ 1,000.00, whichever is higher. Also in both the cases, 25% deposit of the favored party shall be returned back to him.
If any BMR member’s name has been published as “Unreliable Party (Supplier/Buyer)”, then such Unreliable Party’s name will be eliminated from the BMR List and the same will be circulated amongst all the BMR members.
If a Non-BMR member has been published as “Unreliable Party (Supplier/Buyer)”, the same will be circulated amongst all the BMR members and henceforth, any BMR member cannot put up any claim before the Arbitration Committee against such Unreliable Party or vice versa.
All are advised not to deal with such Unreliable Supplier/Buyer and in case anyone still continue to deal with such Unreliable Party, he will be doing so on his own free will and he cannot put up any disputes before the Arbitration Committee against such Unreliable Parties.