NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
ot Hie
•22 SEP 12 P4 «4
SENATE 
S. No. 1308
fttCElVEDBV.
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
AN ACT
PROVIDING FOR THE INTERNATIONAL COMMERCIAL ARBITRATION ACT
OF THE PHILIPPINES
EXPLANATORY NOTE
Article III, Section 16 of the 1987 Philippine Constitution provides that "[a]ll 
persons shall have the right to a speedy disposition of their cases before all judicial, 
quasi-judicial, or administrative bodies." In furtherance thereof, our courts and law 
makers recognized the need for the active promotion of the parties' freedom in 
arranging for the successful and speedy resolution of their disputes. This is seen in 
the provisions of the Revised Rules of Court on mediation and judicial dispute 
resolution and through Republic Act No. 876, otherwise known as the '"Arbitration 
Law" and Republic Act No. 9285, otherwise known as the Alternative Dispute 
Resolution Act of2004" among others. The recognition of party autonomy in dispute 
resolution has proven to be an effective measure in unclogging our court dockets.
At the end of 2021, the lower courts have a total of 662,604 pending cases. 
The overall disposal rate in the same year is not that impressive either with just an 
average of 61.7%, which means that the case input or the influx of cases is greater 
than case output or the disposition of cases.
It is also a known fact that it takes several years before cases are ultimately 
decided and for decisions to reach finality. The long and tedious process of lawsuits 
are costly not only to the parties but also to the judiciary. Through arbitration and


other alternative modes of dispute resolution, disputes can be resolved much faster, 
simpler and less expensive than it would take if the parties resort to the judicial 
process.
Arbitration is not a novel concept In the Philippines. As early as 19 June 1953, 
the Philippine Congress enacted Republic Act No. 876, otherwise known as the 
"Arbitration Law," providing for arbitration procedure in civil controversies. In 1967, 
the Philippines acceded to the 1958 Convention on the Recognition and Enforcement 
of Foreign Arbitral Awards (New York Convention) and became one of its first 
signatories.
On 4 February 1985, Executive Order No. 1008, otherwise known as the 
"Construction Industry Arbitration Law," was issued creating an arbitration machinery 
for the Philippine construction industry. The Construction Industry Arbitration 
Commission (CIAC) was established to promote the expeditious settlement of disputes 
relating to the construction industry.
In April 2004, the Congress enacted Republic Act No. 9285 ("RA No. 9285"), 
otherwise known as the "Alternative Dispute Resolution Act (ADR) of 2004." The said 
act fosters prompt, economical, and amicable resolution of disputes while granting the 
parties the option to resort to alternative dispute resolution such as mediation and 
arbitration.
While RA No. 9285 provides a policy on ADR, it is still important to keep up with 
the advancements of the modern world. Companies from different nations frequently 
enter into business agreements with one another. Although such joint ventures 
provide for exciting opportunities, it can also lead to disagreements. It is critical 
therefore that there is a comprehensive policy for an alternative dispute mechanism 
in resolving these cross border challenges.
Pursuant to Section 19 of R.A. No. 9285, the Philippines adopts the Model Law 
on International Arbitration (Model Law) adopted by the United Nations Commission 
on International Trade Law (UNCITRAL) dated 21 June 1985. To assist States in


reforming and modernizing their domestic arbitral procedure, the Model Law reflects 
worldwide consensus covering all stages of the arbitral process.1
On 7 July 2006, amendments to the Model Law were adopted, including 
amendments to Articles 1(2), 7, and 35(2); a new Chapter IVA to replace Article 17; 
and a new Article 2A. These amendments modernize the 1985 Model Law to reflect 
the current arbitral practices applicable to international contracts.
Thus, this Bill seeks to adopt the UNCITRAL Model Law, as amended. In order 
to update the commercial arbitration practices in the Philippines in conformity with 
international standards. Further, this Bill aims to assist legal practitioners specializing 
in the field of commercial arbitration and keep them abreast of arbitration practices 
governing international contracts.
In view of the foregoing, the immediate passage of this Bill is earnestly sought.
cisXtol" n. tolentino
1 https://uncitral.un.org/en/texts/arbitration/modellaw/commercial arbitration


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
S. No. l308
of tl;c §rst\-mq>
•22 SEP 12 P4-.04
received BY;___
Introduced by Senator FRANCIS N. TOLENTINO
AN ACT
PROVIDING FOR THE INTERNATIONAL COMMERCIAL ARBITRATION ACT
OF THE PHILIPPINES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
ARTICLE I
GENERAL PROVISIONS
Section 1. Short Title. - This Act shall be known as the "International 
Commercial Arbitration Act of the Philippines.
4 
Section 2. Declaration of Policy. - It is hereby declared policy of the State
5 
to actively promote party autonomy in the resolution of disputes or the freedom of
6 
the party to make their own arrangements to resolve their disputes. Towards this end,
7 
the State shall adopt an International Commercial Arbitration Law to provide a
8 
standard in commercial relationships.
9 
Section 3. Scope of Application. -
10 
(a) This Act applies to international commercial arbitration, subject to any
11 
agreement in force between the Republic of the Philippines and any other State or
12 
States.
13 
(b)The provisions of this Act, except Sections 8, 9, 27, 28, 29, 46 and 47,
14 
apply only if the place of arbitration is in the territory of the Republic of the Philippines.
15
(c) An arbitration is international if:


1
2
3
4
5
6
7
8 
9
10
11
12
13
1. the parties to an arbitration agreement have, at the time of the 
conclusion of that agreement, their places of business in different 
States; or
2. 
one of the following places is situated outside the Philippines in which 
the parties have their places of business:
i. 
the place of arbitration if determined in, or pursuant to, the 
arbitration agreement
ii. 
any place where a substantial part of the obligations of the 
commercial relationship is to be performed or the place with 
which the subject-matter of the dispute is most closely 
connected; or
3. the parties have expressly agreed that the subject-matter of the 
arbitration agreement relates to more than one country.
14
15
16
17
18
(d) For the purposes of paragraph (c) of this Section:
1. if a party has more than one place of business, the place of business is 
that which has the closest relationship to the arbitration agreement;
2. if a party does not have a place of business, reference is to be made to 
his habitual residence.
19 
(e) An arbitration is commercial if it arises out of a relationship of a
20 
commercial nature, but not limited to, the following: a trade transaction for the supply
21 
and exchange of goods or services; a distribution agreement; a commercial
22 
representation or agency; an exploitation agreement or concession; a joint venture or
23 
other related form of industrial business cooperation; the carriage of goods or
24 
passengers by air, sea, rail or road; the construction of works; insurance; licensing;
25 
factoring; leasing; consulting; engineering; financing; banking; and investing.
26 
(f) This Act shall not affect other existing laws and regulations by virtue of
27 
which certain disputes may not be submitted to arbitration or may be submitted to
28 
arbitration only according to provisions other than those of this Act.
29
30
31
32
33
34
35
36
37
38
Section 4.
of this Act:
Definitions And Rules of Interpretation - For the purposes
(a) "Arbitration" means any arbitration whether or not administered by a 
permanent arbitral institution;
(b) "Arbitration Agreement" is an agreement by the parties to submit to 
arbitration all or certain disputes which have arisen or which may arise between them 
in respect of a defined legal relationship, whether contractual or not. An arbitration 
agreement may be in the form of an arbitration clause in a contract or in the form of 
a separate agreement;


1 
(c) "Arbitral Tribunal" means a sole arbitrator or a panel of arbitrators;
2 
(d) "Court" means a body or organ of the judicial system of a State;
3 
(e) Where a provision of this Act, except Section 40, leaves the parties free
4 
to determine a certain issue, such freedom includes the right of the parties to authorize
5 
a third party, including an institution, to make that determination;
6 
(f) Where a provision of this Act refers to the fact that the parties have
7 
agreed or that they may agree or in any other way refers to an agreement of the
8 
parties, such agreement includes any arbitration rules referred to in that agreement;
9 
(g) Where a provision of this Act, other than in Section 37(a) and 44(b)(1),
10 
refers to a claim, it also applies to a counter-claim, and where it refers to a defense,
11 
it also applies to a defense to such counter-claim.
12 
(h) International Origin and General Principles -
13 
i. In the interpretation of this Act, regard is to be had to its
14 
international origin and to the need to promote uniformity in its
15 
application and the observance of good faith.
16 
ii. Questions concerning matters governed by this Act which are
17 
not expressly settled In it are to be settled in conformity with the
18 
general principles on which this Act is based.
19 
Section 5. Receipt of Written Communications
20 
(a) Unless otherwise agreed by the parties:
21 
1. any written communication is deemed to have been received if it Is
22 
delivered to the addressee personally or if it is delivered at an
23 
addressee's place of business, habitual residence or mailing address; if
24 
none of these can be found after making a reasonable inquiry, a written
25 
communication is deemed to have been received if it is sent to the
26 
addressee's last- known place of business, habitual residence or mailing
27 
address by registered letter or any other means which provides a record
28 
of the attempt to deliver it;
29 
2. the communication is deemed to have been received on the day it is so
30 
delivered.
31 
(b)The provisions of this Section do not apply to communications in court
32 
proceedings.
33 
Section 6. Waiver of Right To Object - A party who knows that any
34 
provision of this Act from which the parties may derogate or any requirement under
35 
the arbitration agreement has not been complied with and yet proceeds with the
36 
arbitration without stating his objection to such non-compliance without undue delay
37 
or, if a time-limit is provided therefor, within such period of time, shall be deemed to
38 
have waived his right to object.


1 
Section 7. Extent of Court Intervention - In matters governed by this
2 
Act, no court shall intervene except where so provided in this Act.
10
11
12
13
14
15
16
17
18
19
20 
21
22
23
24
25
26
27
28 
29
Section 8. Court or Other Authority for Certain Functions of 
Arbitration Assistance And Supervision - The functions referred to in Section 
13(c), 13(d), 15(c), 16,18(c) and 46(b) shall be performed by the person or institution 
named in the arbitration agreement as the appointing authority; or the regular 
arbitration institution under whose rules the arbitration is agreed to be conducted.
The functions referred to in Sections 18 (c) and 46 (b), shall be performed by 
the appropriate Regional Trial Court.
ARTICLE II
ARBITRATION AGREEMENT 
Section 9. Form of Arbitration Agreement -
(a) The arbitration agreement shall be in writing.
(b) An agreement is in writing if its content is recorded in any form, whether 
or not the arbitration agreement or contract has been concluded orally, by conduct, 
or by other means.
(c) The requirement that an arbitration agreement be in writing is met by 
an electronic communication if the information contained therein is accessible so as 
to be useable for subsequent reference; "electronic communication" means any 
communication that the parties make by means of data messages; "data message" 
means information generated, sent, received or stored by electronic, magnetic, optical 
or similar means, including, but not limited to, electronic data interchange (EDI), 
electronic mail, telegram, telex, or telecopy.
(d) Furthermore, an arbitration agreement is in writing if it is contained in 
an exchange of statements of claim and defense in which the existence of an 
agreement is alleged by one party and not denied by the other.
(e) The reference in a contract to any document containing an arbitration 
clause constitutes an arbitration agreement in writing, provided that the reference is 
such as to make that clause part of the contract.
Court
Section 10. Arbitration Agreement And Substantive Claim Before


1 
(a) A court before which an action is brought in a matter which is the subject
2 
of an arbitration agreement shall, if a party so requests not later than when submitting
3 
his first statement on the substance of the dispute, refer the parties to arbitration
4 
unless it finds that the agreement is null and void, inoperative or incapable of being
5 
performed.
6 
(b) Where an action referred to in paragraph (a) of this Section has been
7 
brought, arbitral proceedings may nevertheless be commenced or continued, and an
8 
award may be made, while the issue is pending before the court.
9 
Section 11. Arbitration Agreement And Interim Measures By Court -
10 
It Is not Incompatible with an arbitration agreement for a party to request, before or
11 
during arbitral proceedings, from a court an interim measure of protection and for a
12 
court to grant such measure.
ARTICLE III
COMPOSITION OF ARBITRAL TRIBUNAL
13
Section 12. Number of Arbitrators
14
15
(a) The parties are free to determine the number of arbitrators.
(b) Failing such determination, the number of arbitrators shall be three.
16
Section 13. Appointment of Arbitrators
17 
(a) No person shall be precluded by reason of his nationality from acting as
18 
an arbitrator, unless otherwise agreed by the parties.
19 
(b)The parties are free to agree on a procedure of appointing the arbitrator
20 
or arbitrators, subject to the provisions of paragraphs (d) and (e) of this Section.
21
22
23
24
25
26
27
28
(c) Failing such agreement,
1. in an arbitration with three arbitrators, each party shall appoint one 
arbitrator, and the two arbitrators thus appointed shall appoint the third 
arbitrator; if a party fails to appoint the arbitrator within thirty days of 
receipt of a request to do so from the other party, or if the two 
arbitrators fail to agree on the third arbitrator within thirty days of their 
appointment, the appointment shall be made, upon request of a party, 
by the court or other authority specified in Section 8;


2. in an arbitration with a sole arbitrator, if the parties are unable to agree 
on the arbitrator, he shall be appointed, upon request of a party, by 
the court or other authority specified in Section 8.
4 
(d) Where, under an appointment procedure agreed upon by the parties,
5 
1. a party fails to act as required under such procedure; or
6 
2. the parties, or two arbitrators, are unable to reach an agreement
7 
expected of them under such procedure; or
8 
3. a third party, including an institution, fails to perform any function
9 
entrusted to it under such procedure, any party may request the court
10 
or other authority specified in Section 8 to take the necessary measure,
11 
unless the agreement on the appointment procedure provides other
12 
means for securing the appointment.
13 
(e) A decision on a matter entrusted by paragraph (c) or (d) of this Section
14 
to the court or other authority specified in Section 8 shall be subject to no appeal. The
15 
court or other authority, in appointing an arbitrator, shall have due regard to any
16 
qualifications required of the arbitrator by the agreement of the parties and to such
17 
considerations as are likely to secure the appointment of an independent and impartial
18 
arbitrator and, in the case of a sole or third arbitrator, shall take into account as well
19 
the advisability of appointing an arbitrator of a nationality other than those of the
20 
parties.
21 
Section 14. Grounds For Challenge
22 
(a) When a person is approached in connection with his possible
23 
appointment as an arbitrator, he shall disclose any circumstances likely to give rise to
24 
justifiable doubts as to his impartiality or independence. An arbitrator, from the time
25 
of his appointment and throughout the arbitral proceedings, shall without delay
26 
disclose any such circumstances to the parties unless they have already been informed
27 
ofthembyhim.
28 
(b) An arbitrator may be challenged only if circumstances exist that give rise
29 
to justifiable doubts as to his impartiality or independence, or if he does not possess
30 
qualifications agreed to by the parties. A party may challenge an arbitrator appointed
31 
by him, or in whose appointment he has participated, only for reasons of which he
32 
becomes aware after the appointment has been made.
33
34
35
36
Section 15. Challenge Procedure
(a) The parties are free to agree on a procedure for challenging an 
arbitrator, subject to the provisions of paragraph (c) of this Section.


1
2 
(b) Failing such agreement, a party who intends to challenge an arbitrator
3 
shall, within fifteen days after becoming aware of the constitution of the arbitral
4 
tribunal or after becoming aware of any circumstance referred to in Section 14(b),
5 
send a written statement of the reasons for the challenge to the arbitral tribunal.
6 
Unless the challenged arbitrator withdraws from his office or the other party agrees
7 
to the challenge, the arbitral tribunal shall decide on the challenge
8 
(c) If a challenge under any procedure agreed upon by the parties or under
9 
the procedure of paragraph (b) of this Section is not successful, the challenging party
10 
may request, within thirty days after having received notice of the decision rejecting
11 
the challenge, the court or other authority specified in Section 8 to decide on the
12 
challenge, which decision shall be subject to no appeal; while such a request is
13 
pending, the arbitral tribunal, including the challenged arbitrator, may continue the
14 
arbitral proceedings and make an award.
15 
Section 16. Failure or Impossibility To Act
16 
(a) If an arbitrator becomes de jure or de facto unable to perform his
17 
functions or for other reasons fails to act without undue delay, his mandate terminates
18 
if he withdraws from his office or if the parties agree on the termination. Otherwise,
19 
if a controversy remains concerning any of these grounds, any party may request the
20 
court or other authority specified in Section 8 to decide on the termination of the
21 
mandate, which decision shall be subject to no appeal
22 
(b) If, under this Section or Section 15(b), an arbitrator withdraws from his
23 
office or a party agrees to the termination of the mandate of an arbitrator, this does
24 
not imply acceptance of the validity of any ground referred to in this Section or Section
25 
14(b).
26 
Section 17. Appointment of Substitute Arbitrator - Where the mandate
27 
of an arbitrator terminates under Section 15 or 16 or because of his withdrawal from
28 
office for any other reason or because of the revocation of his mandate by agreement
29 
of the parties or in any other case of termination of his mandate, a substitute arbitrator
30 
shall be appointed according to the rules that were applicable to the appointment of
31 
the arbitrator being replaced.
ARTICLE IV
JURISDICTION OF ARBITRAL TRIBUNAL
32 
Section 18. Competence of Arbitral Tribunal to Rule on its Jurisdiction


1 
(a) The arbitral tribunal may rule on its own jurisdiction, including any
2 
objections with respect to the existence or validity of the arbitration agreement. For
3 
that purpose, an arbitration clause which forms part of a contract shall be treated as
4 
an agreement independent of the other terms of the contract. A decision by the arbitral
5 
tribunal that the contract is null and void shall not entail ipso jure the invalidity of the
6 
arbitration clause.
7 
(b) A plea that the arbitral tribunal does not have jurisdiction shall be raised
8 
not later than the submission of the statement of defense. A party is not precluded
9 
from raising such a plea by the fact that he has appointed, or participated in the
10 
appointment of, an arbitrator. A plea that the arbitral tribunal is exceeding the scope
11 
of its authority shall be raised as soon as the matter alleged to be beyond the scope
12 
of its authority is raised during the arbitral proceedings. The arbitral tribunal may, in
13 
either case, admit a later plea if it considers the delay justified.
14 
(c) The arbitral tribunal may rule on a plea referred to in paragraph (b) of
15 
this Section either as a preliminary question or in an award on the merits. If the arbitral
16 
tribunal rules as a preliminary question that it has jurisdiction, any party may request,
17 
within thirty days after having received notice of that ruling, the Regional Trial Court
18 
to decide the matter, which decision shall be subject to no appeal; while such a request
19 
is pending, the arbitral tribunal may continue the arbitral proceedings and make an
20 
award.
ARTICLE IV - A
MEASURES AND PRELIMINARY ORDERS
21
Section 19. Power of Arbitral Tribunal to Order Interim Measures
22 
(a) Unless otherwise agreed by the parties, the arbitral tribunal may, at the
23 
request of a party, grant interim measures.
24 
(b)An interim measure is any temporary measure, whether in the form of
25 
an award or in another form, by which, at any time prior to the issuance of the award
26 
by which the dispute is finally decided, the arbitral tribunal orders a party to:
27 
1. Maintain or restore the status quo pending determination of the
28 
dispute;
29 
2. Take action that would prevent, or refrain from taking action that is
30 
likely to cause, current or imminent harm or prejudice to the arbitral
31 
process itself;
32 
3. Provide a means of preserving assets out of which a subsequent award
33 
may be satisfied; or


1 
4. Preserve evidence that may be relevant and material to the resolution
2 
of the dispute.
3 
Section 20. Conditions for Granting Interim Measures
4 
(a) The party requesting an interim measure under Section 19(b)(1), (2)
5 
and (3) shall satisfy the arbitral tribunal that:
6 
1. Harm not adequately reparable by an award of damages is likely to
7 
result if the measure is not ordered, and such harm substantially
8 
outweighs the harm that is likely to result to the party against whom
9 
the measure is directed if the measure is granted; and
10 
2. There is a reasonable possibility that the requesting party will succeed
11 
on the merits of the claim. The determination on this possibility shall
12 
not affect the discretion of the arbitral tribunal in making any
13 
subsequent determination.
14 
(b) With regard to a request for an interim measure under Section 19(b)(4),
15 
the requirements in paragraphs (a)(1) and (2) of this Section shall apply to the extent
16 
the arbitral tribunal considers appropriate.
17
18 
Section 21. Applications for Preliminary Orders and Conditions for
19 
Granting Preliminary Orders
20 
(a) Unless otherwise agreed by the parties, a party may, without notice to
21 
any other party, make a request for an interim measure together with an application
22 
for a preliminary order directing a party not to frustrate the purpose of the interim
23 
measure requested.
24 
(b)The arbitral tribunal may grant a preliminary order provided it considers
25 
that prior disclosure of the request for the interim measure to the party against whom
26 
it is directed risks frustrating the purpose of the measure.
27 
(c) The conditions defined under Section 20 apply to any preliminary order,
28 
provided that the harm to be assessed under Section 20(a)(1), is the harm likely to
29 
result from the order being granted or not.
30 
Section 22. Specific Regime for Preliminary Orders
31 
(a) Immediately after the arbitral tribunal has made a determination in
32 
respect of an application for a preliminary order, the arbitral tribunal shall give notice
33 
to all parties of the request for the interim measure, the application for the preliminary
34 
order, if any, and all other communications, including by indicating the content of any
35 
oral communication, between any party and the arbitral tribunal in relation thereto.


1 
(b)At the same time, the arbitral tribunal shall be given an opportunity to
2 
any party against whom a preliminary order is directed to present its case at the
3 
earliest practicable time.
4 
(c)The arbitral tribunal shall decide promptly on any objection to the
5 
preliminary order.
6 
(d) A preliminary order shall expire after twenty (20) days from the date on
7 
which it was issued by the arbitral tribunal. However, the arbitral tribunal may issue
8 
an interim measure adopting or modifying the preliminary order, after the party
9 
against whom the preliminary order is directed has been given notice and an
10 
opportunity to present its case.
11 
(e)A preliminary order shall be binding on the parties but shall not be
12 
subject to enforcement by a court. Such a preliminary order does not constitute an
13 
award.
14 
Section 23. Modification, Suspension, Termination of Interim
15 
Measure or Preliminary Order - The arbitral tribunal may modify, suspend or
16 
terminate an interim measure or a preliminary order it has granted, upon application
17 
of any party or, in exceptional circumstances and upon prior notice to the parties, on
18 
the arbitral tribunal's own initiative
19 
Section 24. Provision of Security
20
21 
(a) The arbitral tribunal may require the party requesting an interim
22 
measure to provide appropriate security in connection with the measure.
23 
(b)The arbitral tribunal shall require the party applying for a preliminary
24 
order to provide security in connection with the order unless the arbitral tribunal
25 
considers it inappropriate or unnecessary to do so.
26 
Section 25. Disclosure
27 
(a) The arbitral tribunal may require any party promptly to disclose any
28 
material change in the circumstances on the basis of which the measure was
29 
requested or granted.
30 
(b)The party applying for a preliminary order shall disclose to the arbitral
31 
tribunal all circumstances that are likely to be relevant to the arbitral tribunal's
32 
determination whether to grant or maintain the order, and such obligation shall
10


1 
continue until the party against whom the order has been requested has had an
2 
opportunity to present its case. Thereafter, paragraph (a) of this Section shall apply.
3 
Section 26. Cost and Damages - The party requesting an interim measure
4 
or applying for a preliminary order shall be liable for any costs and damages caused
5 
by the measure or the order to any party if the arbitral tribunal later determines that,
6 
in the circumstances, the measure or the order should not have been granted. The
7 
arbitral tribunal may award such costs and damages at any point during the
8 
proceedings.
9 
Section 27. Recognition and Enforcement of Interim Measure
10 
(a) An interim measure issued by an arbitral tribunal shall be recognized as
11 
binding and, unless otherwise provided by the arbitral tribunal, enforced upon
12 
application to the competent court. Irrespective of the country In which it was issued,
13 
subject to the provisions of Section 28.
14 
(b)The party who is seeking or has obtained recognition or enforcement of
15 
an interim measure shall promptly inform the court of any termination, suspension or
16 
modification of that interim measure.
17 
(c) The court of the State where recognition or enforcement Is sought may,
18 
if it considers it proper, order the requesting party to provide appropriate security if
19 
the arbitral tribunal has not already made a determination with respect to security or
20 
where such a decision is necessary to protect the rights of third parties.
21 
Section 28. Grounds for Refusing Recognition or Enforcement of an
22 
Interim Measure
23
24
25
26
27
28
29
30
31
32
33
34
(a) Recognition or enforcement of an interim measure may be refused only:
1. At the request of the party against whom it Is invoked If the court is 
satisfied that:
i. 
Such refusal is warranted on the grounds set forth In Section 
48(a)(1) (i), (ii), (iii) or (iv); or
ii. 
The arbitral tribunal's decision with respect to the provision of 
security in connection with the interim measure issued by the 
tribunal has not been complied with; or
iii. 
The interim measure has been terminated or suspended by the 
arbitral tribunal, or where so empowered, by the court of the 
State in which the arbitration takes place or under the law of 
which that interim measure was granted; or
11


2. If the court finds that:
i. 
The interim measure is incompatible with the powers conferred 
upon the court unless the court decides to reformulate the 
interim measure to the extent necessary to adapt it to its own 
powers and procedures for the purposes of enforcing that 
interim measure and without modifying its substance; or
ii. 
Any of the grounds set forth in Section 48(a)(2) (i) or (ii), or 
apply to the recognition and enforcement of the interim 
measure.
10 
(b) Any determination of the court on the ground in paragraph (a) of this
11 
Section shall be effective only for the purposes of the application to recognize and
12 
enforce the interim measure. The court where the recognition or enforcement is
13 
sought shall not, in making that determination, undertake a review of the substance
14 
of the interim measure.
15
16
17
18
19
20 
21
Section 29. Court-Ordered Interim Measures - A court shall have the 
same power of issuing an interim measure in relation to arbitration proceedings, 
irrespective of whether their place is in the territory of the Philippines, as it has In 
relation to proceedings in courts. The court shall exercise such power in accordance 
with its own procedures in consideration of the specific features of international 
arbitration.
ARTICLE V
CONDUCT OF ARBITRAL PROCEEDINGS
22 
Section 30. Equal treatment of Parties - The parties shall be treated with
23 
equality and each party shall be given a full opportunity of presenting his case.
24
Section 31. Determination of Rules of Procedure
25 
(a) Subject to the provisions of this Law, the parties are free to agree on
26 
the procedure to be followed by the arbitral tribunal in conducting the proceedings.
27 
(b) Failing such agreement, the arbitral tribunal may, subject to the
28 
provisions of this Act, conduct the arbitration in such manner as it considers
29 
appropriate. The power conferred upon the arbitral tribunal includes the power to
30 
determine the admissibility, relevance, materiality and weight of any evidence.
31
Section 32. Place of Arbitration
12


1 
(a) The parties are free to agree on the place of arbitration. Failing such
2 
agreement, the place of arbitration shall be determined by the arbitral tribunal having
3 
regard to the circumstances of the case, including the convenience of the parties.
4 
(b) Notwithstanding the provisions of paragraph (a) of this Section, the
5 
arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it
6 
considers appropriate for consultation among its members, for hearing witnesses,
7 
experts or the parties, or for inspection of goods, other property or documents.
8 
Section 33. Commencement of Arbitral Proceedings - Unless otherwise
9 
agreed by the parties, the arbitral proceedings in respect of a particular dispute
10 
commence on the date on which a request for that dispute to be referred to arbitration
11 
is received by the respondent.
12
Section 34. Language
13 
(a) The parties are free to agree on the language or languages to be used
14 
in the arbitral proceedings. Failing such agreement, the arbitral tribunal shall
15 
determine the language or languages to be used in the proceedings. This agreement
16 
or determination, unless otherwise specified therein, shall apply to any written
17 
statement by a party, any hearing and any award, decision or other communication
18 
by the arbitral tribunal.
19 
(b)The arbitral tribunal may order that any documentary evidence shall be
20 
accompanied by a translation into the language or languages agreed upon by the
21 
parties or determined by the arbitral tribunal.
22
Section 35. Statements of Claim and Defense
23 
(a) Within the period of time agreed by the parties or determined by the
24 
arbitral tribunal, the claimant shall state the facts supporting his claim, the points at
25 
issue and the relief or remedy sought, and the respondent shall state his defense in
26 
respect of these particulars, unless the parties have otherwise agreed as to the
27 
required elements of such statements. The parties may submit with their statements
28 
all documents they consider to be relevant or may add a reference to the documents
29 
or other evidence they will submit.
30 
(b) Unless otherwise agreed by the parties, either party may amend or
31 
supplement his claim or defense during the course of the arbitral proceedings, unless
32 
the arbitral tribunal considers it inappropriate to allow such amendment having regard
33 
to the delay in making it.
13


1 
Section 36. Hearings and Written Proceedings
2 
(a) Subject to any contrary agreement by the parties, the arbitral tribunal
3 
shall decide whether to hold oral hearings for the presentation of evidence or for oral
4 
argument, or whether the proceedings shall be conducted on the basis of documents
5 
and other materials. However, unless the parties have agreed that no hearings shall
6 
be held, the arbitral tribunal shall hold such hearings at an appropriate stage of the
7 
proceedings, if so requested by a party.
8 
(b)The parties shall be given sufficient advance notice of any hearing and
9 
of any meeting of the arbitral tribunal for the purposes of Inspection of goods, other
10 
property or documents.
11 
(c) All statements, documents or other information supplied to the arbitral
12 
tribunal by one party shall be communicated to the other party. Also any expert report
13 
or evidentiary document on which the arbitral tribunal may rely in making its decision
14 
shall be communicated to the parties.
15
Section 37. Default of a Party
16
Unless otherwise agreed by the parties, if, without showing sufficient cause.
17 
(a) the claimant fails to communicate his statement of claim in accordance
18 
with Section 35(a), the arbitral tribunal shall terminate the proceedings;
19 
(b)the respondent fails to communicate his statement of defense in
20 
accordance with Section 35(a), the arbitral tribunal shall continue the proceedings
21 
without treating such failure in itself as an admission of the claimant's allegations;
22 
(c) any party fails to appear at a hearing or to produce documentary
23 
evidence, the arbitral tribunal may continue the proceedings and make the award on
24 
the evidence before it.
25
Section 38. Expert Appointed by Arbitral Tribunal
26
27
28
(a) Unless otherwise agreed by the parties, the arbitral tribunal:
1. may appoint one or more experts to report to it on specific issues to be 
determined by the arbitral tribunal;
2. may require a party to give the expert any relevant information or to
produce, or to provide access to, any relevant documents, goods or 
other 
property 
for 
his 
inspection.
14


1 
(b) Unless otherwise agreed by the parties, if a party so requests or if the
2 
arbitral tribunal considers it necessary, the expert shall, after delivery of his written or
3 
oral report, participate in a hearing where the parties have the opportunity to put
4 
questions to him and to present expert witnesses in order to testify on the points at
5 
issue.
6 
Section 39. Court Assistance in Taking Evidence - The arbitral tribunal
7 
or a party with the approval of the arbitral tribunal may request from a competent
8 
court of the Philippines assistance in taking evidence. The court may execute the
9 
request within its competence and according to its rules on taking evidence.
ARTICLE VI
MAKING OF AWARD AND TERMINATION OF PROCEEDINGS
10
Section 40. Rules Applicable to Substance of Dispute
11 
(a) The arbitral tribunal shall decide the dispute in accordance with such
12 
rules of law as are chosen by the parties as applicable to the substance of the dispute.
13 
Any designation of the law or legal system of a given State shall be construed, unless
14 
otherwise expressed, as directly referring to the substantive law of that State and not
15 
to its conflict of laws rules.
16 
(b) Failing any designation by the parties, the arbitral tribunal shall apply
17 
the law determined by the conflict of laws rules which it considers applicable.
18 
(c) The arbitral tribunal shall decide ex aequo et bono or as amiable
19 
compositeur on\y if the parties have expressly authorized it to do so.
20 
(d)In all cases, the arbitral tribunal shall decide in accordance with the
21 
terms of the contract and shall take into account the usages of the trade applicable to
22 
the transaction.
23 
Section 41. Decision Making by Panel of Arbitrators - In arbitral
24 
proceedings with more than one arbitrator, any decision of the arbitral tribunal shall
25 
be made, unless otherwise agreed by the parties, by a majority of all its members.
26 
However, questions of procedure may be decided by a presiding arbitrator, if so
27 
authorized by the parties or all members of the arbitral tribunal.
28
Section 42. Settlement
29 
(a) If, during arbitral proceedings, the parties settle the dispute, the arbitral
30 
tribunal shall terminate the proceedings and, if requested by the parties and not
15


1 
objected to by the arbitral tribunal, record the settlement in the form of an arbitral
2 
award on agreed terms.
3 
(b)An award on agreed terms shall be made in accordance with the
4 
provisions of Section 43 and shall state that it is an award. Such an award has the
5 
same status and effect as any other award on the merits of the case.
6 
Section 43. Form and Contents of Award
7 
(a) The award shall be made in writing and shall be signed by the arbitrator
8 
or arbitrators. In arbitral proceedings with more than one arbitrator, the signatures of
9 
the majority of all members of the arbitral tribunal shall suffice, provided that the
10 
reason for any omitted signature is stated.
11 
(b)The award shall state the reasons upon which it is based, unless the
12 
parties have agreed that no reasons are to be given or the award is an award on
13 
agreed terms under Section 43.
14 
(c) The award shall state its date and the place of arbitration as determined
15 
in accordance with Section 32(a). The award shall be deemed to have been made at
16 
that place.
17 
(d) After the award is made, a copy signed by the arbitrators in accordance
18 
with paragraph (a) of this Section shall be delivered to each party.
19 
Section 44. Termination of Proceedings
20 
(a) The arbitral proceedings are terminated by the final award or by an order
21 
of the arbitral tribunal in accordance with paragraph (b) of this Section.
22 
(b)The arbitral tribunal shall issue an order for the termination of the
23 
arbitral proceedings when:
24 
1. the claimant withdraws his claim, unless the respondent objects thereto
25 
and the arbitral tribunal recognizes a legitimate interest on his part in
26 
obtaining a final settlement of the dispute;
27 
2. the parties agree on the termination of the proceedings;
28 
3. the arbitral tribunal finds that the continuation of the proceedings has
29 
for any other reason become unnecessary or impossible.
30 
(c) The mandate of the arbitral tribunal terminates with the termination of
31 
the arbitral proceedings, subject to the provisions of Sections 45 and 46(d).
16


1 
Section 45. Correction and Interpretation of Award; Additional
2 
Award
3 
(a) Within thirty days of receipt of the award, unless another period of time
4 
has been agreed upon by the parties:
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21
22
23
24
25
26
27
28
29
30
31
1. a party, with notice to the other party, may request the arbitral tribunal 
to correct in the award any errors in computation, any clerical or 
typographical errors or any errors of similar nature;
2. if so agreed by the parties, a party, with notice to the other party, may 
request the arbitral tribunal to give an interpretation of a specific point 
or part of the award.
3. If the arbitral tribunal considers the request to be justified, it shall make 
the correction or give the interpretation within thirty days of receipt of 
the request. The interpretation shall form part of the award.
(b) The arbitral tribunal may correct any error of the type referred to In 
paragraph (a)(1) of this Section on its own initiative within thirty days of the date of 
the award.
(c) Unless otherwise agreed by the parties, a party, with notice to the other 
party, may request, within thirty days of receipt of the award, the arbitral tribunal to 
make an additional award as to claims presented in the arbitral proceedings but 
omitted from the award. If the arbitral tribunal considers the request to be justified, 
it shall make the additional award within sixty days.
(d) The arbitral tribunal may extend, if necessary, the period of time within 
which it shall make a correction, interpretation or an additional award under paragraph 
(a) or (c) of this Section.
(e) The provisions of Section 41 shall apply to a correction or interpretation 
of the award or to an additional award.
ARTICLE VII
RECOURSE AGAINST AWARD
Section 46. Application for Setting Aside as Exclusive 
Against Arbitral Award
Recourse
(a) Recourse to a court against an arbitral award may be made only by an 
application for setting aside in accordance with paragraphs (b) and (c) of this Section.
17


1 
(b)An arbitral award may be set aside by the court specified in Section 8
2 
only if:
3 
1. the party making the application furnishes proof that:
4 
a party to the arbitration agreement referred to in Section 4(b) was
5 
under some incapacity; or the said agreement is not valid under the
6 
law to which the parties have subjected it or, failing any indication
7 
thereon, under the law of this State; or
8 
i. the party making the application was not given proper notice of
9 
the appointment of an arbitrator or of the arbitral proceedings
10 
or was otherwise unable to present his case; or
11 
ii. the award deals with a dispute not contemplated by or not falling
12 
within the terms of the submission to arbitration, or contains
13 
decisions on matters beyond the scope of the submission to
14 
arbitration, provided that, if the decisions on matters submitted
15 
to arbitration can be separated from those not so submitted,
16 
only that part of the award which contains decisions on matters
17 
not submitted to arbitration may be set aside; or
18 
iii. the composition of the arbitral tribunal or the arbitral procedure
19 
was not in accordance with the agreement of the parties,
20 
unless such agreement was in conflict with a provision of this
21 
Act from which the parties cannot derogate, or, failing such
22 
agreement, was not in accordance with this Act; or
23
24 
2. the court finds that:
25 
i. 
the subject-matter of the dispute is not capable of settlement by
26 
arbitration under existing laws; or
27 
ii. 
the award is in conflict with public policy.
28
29 
(c) An application for setting aside may not be made after three months
30 
have elapsed from the date on which the party making that application had received
31 
the award or, if a request had been made under Section 45, from the date on which
32 
that request had been disposed of by the arbitral tribunal.
33 
(d)The court, when asked to set aside an award, may, where appropriate
34 
and so requested by a party, suspend the setting aside proceedings for a period of
35 
time determined by it in order to give the arbitral tribunal an opportunity to resume
36 
the arbitral proceedings or to take such other action as in the arbitral tribunal's opinion
37 
will eliminate the grounds for setting aside.
ARTICLE VIII
RECOGNITION AND ENFORCEMENT OF AWARDS
18


1 
Section 47. Recognition and Enforcement of Arbitral Award
2 
(a) An arbitral award, irrespective of the country in which it was made, shall
3 
be recognized as binding and, upon application in writing to the competent court, shall
4 
be enforced subject to the provisions of this Section and of Section 48.
5 
(b)The party relying on an award or applying for its enforcement shall
6 
supply the duly authenticated original award or a duly certified copy thereof. If the
7 
award is not made in an official language of this State, the court may request the
8 
party to supply a translation thereof into such language.
9 
Section 48. Grounds for Refusing Recognition or Enforcement of 
10 Arbitral Award
11 
(a) Recognition or enforcement of an arbitral award, irrespective of the
12 
country in which it was made, may be refused only:
13 
1. at the request of the party against whom it is invoked, if that party
14 
furnishes to the competent court where recognition or enforcement is
15 
sought proof that:
16 
i. a party to the arbitration agreement referred to in Section 8 was
17 
under some incapacity; or the said agreement is not valid under
18 
the law to which the parties have subjected it or, failing any
19 
indication thereon, under the law of the country where the
20 
award was made; or
21 
ii. the party against whom the award is invoked was not given
22 
proper notice of the appointment of an arbitrator or of the
23 
arbitral proceedings or was otherwise unable to present his case;
24 
or
25 
iii. the award deals with a dispute not contemplated by or not falling
26 
within the terms of the submission to arbitration, or it contains
27 
decisions on matters beyond the scope of the submission to
28 
arbitration, provided that, if the decisions on matters submitted
29 
to arbitration can be separated from those not so submitted, that
30 
part of the award which contains decisions on matters submitted
31 
to arbitration may be recognized and enforced; or
32 
iv. the composition of the arbitral tribunal or the arbitral procedure
33 
was not in accordance with the agreement of the parties or,
34 
failing such agreement, was not in accordance 
with the law of
35 
the country where the arbitration took 
place; or
19


V. the award has not yet become binding on the parties or has been 
set aside or suspended by a court of the country in which, or 
under the law of which, that award was made; or
2. if the court finds that:
i. 
the subject-matter of the dispute is not capable of settlement by 
arbitration under existing laws of the Philippines; or
ii. 
the recognition or enforcement of the award would be contrary 
to the public policy of the Philippines.
9 
(b) If an application for setting aside or suspension of an award has been
10 
made to a court referred to in paragraph (a)(l)(v) of this Section, the court where
11 
recognition or enforcement is sought may, if it considers it proper, adjourn its decision
12 
and may also, on the application of the party claiming recognition or enforcement of
13 
the award, order the other party to provide appropriate security.
ARTICLE IX 
GENERAL PROVISIONS
14
Section 49. General Provisions
15 
(a) Unless otherwise agreed by the parties, all hearings and meetings in
16 
arbitral proceedings must be held in private.
17 
(b) Unless otherwise agreed by the parties, the parties and the arbitral
18 
tribunal must not disclose any of the following:
19 
1. proceedings, evidence, documents and information in connection with
20 
the arbitration that are not otherwise in the public domain;
21 
2. an arbitral award
22
23
24
25
26 
27
(c) Paragraph (b) does not apply if disclosure is
1. required by law,
2. required to protect or pursue a legal right, including for the purposes 
of preparing and presenting a claim or defense in the arbitral 
proceedings or enforcing or challenging an arbitral award, or
3. authorized by a competent court.
28 
Section 50. Appropriations - The amount necessary to carry out the
29 
provisions of this Act shall be included in the General Appropriations Act of the year
30 
following its enactment into law and thereafter.
20


1 
Section 51. Immunity - an arbitrator is not liable for anything done or
2 
omitted in connection with an arbitration unless the act or omission is in bad faith or
3 
the arbitration is engaged in intentional wrongdoing.
4 
Section 52. Separability Clause. - If any provision of this Act shall be held
5 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in
6 
full force and effect.
7 
Section 53. Repealing Clause. - All laws, decrees, executive orders,
8 
proclamations, and other executive issuances which are inconsistent with or contrary
9 
to the provisions of this Act are hereby amended or repealed accordingly.
10 
Section 54. Effectivity Clause. - This Act shall take effect fifteen (15) days
11 
following its complete publication in the Official Gazette or in a newspaper of general
12 
circulation.
Approved,
21