April 16, 2009 -- On 25 April 1993, Algeria adopted Legislative Decree No. 93-09, which has been incorporated into the country’s Code of Civil Procedure (CCP). This decree, which revised Algeria’s regime for international arbitration, is a modern piece of legislation incorporating recent principles of law in the field of arbitration.

Algeria’s new Legislative Decree No. 93-09 on arbitration amends and complements Ordinance No. 64-154 of June 8, 1966. In the drafting process, legislators took into account the provisions of the UNCITRAL Model Law of 1985, as well as principles set down in recent international arbitration case law and arbitration laws from various countries such as Switzerland.

Articles 442 to 458 of the CCP set out Algerian’s legal regime with respect to domestic arbitration, while Article 458 bis 1 to 458 bis 28 set out the provisions regarding international arbitration.

How does the Code of Civil Procedure define international arbitration?

Article 458 bis 1 of the CCP defines international arbitration as follows: "Arbitration may be defined as international when it concerns matters of international commerce and where at least one of the parties is resident or has its registered address abroad." Under Article 458 bis 2, an international arbitration agreement must be in writing to be valid under Algerian law.

The following three characteristics of international arbitration proceedings in Algeria are particularly relevant: (1) article 458 bis 4 recognizes the independent character of the arbitration agreement in Algerian arbitration law, which remains unaffected by the invalidity of the main contract; (2) arbitrators may be appointed directly or indirectly under the law. The first paragraph of Article 458 bis 2 provides that "the parties can directly or by reference to a set of arbitration rules appoint the arbitrator(s) or provide for the procedure of their appointment as well as their removal or replacement;" (3) under Article 458 bis 8, from the moment one of the parties initiates the procedure for the establishment of the arbitral tribunal, the national courts no longer have jurisdiction over the case.

Is it possible to set aside any type of arbitration award under this law?

According to Algerian arbitration law, a request to set aside the award is available only in certain cases. Article 458 bis 25 provides that an application to set aside an award may be filed against an arbitral award rendered in Algeria in the context of international arbitration, in the specific situations provided in Article 458 bis 23.

Under what circumstances such international arbitration awards may be set aside?

Under Article 458 bis 23, an award delivered in Algeria in the scope of international arbitration proceedings may be annulled in eight circumstances: (1) if the arbitral tribunal was unqualified or inefficient; (2) if the arbitration agreement is non-existent, void, or expired; (3) if the arbitral panel was improperly formed or if the sole arbitrator was irregularly designated; (4) if the arbitral tribunal rendered its award without conforming itself to its limited assignment; (5) if the arbitral tribunal decided ultra petita; (6) if the proceedings were not adversarial; (7) if the arbitral tribunal did not explain or insufficiently explained its award, or if its explanations are contradictory; or (8) if the recognition or the execution of the award is contrary to international public order.

The CCP provides that the decision refusing enforcement of an award may always be appealed.

What is the effect of an application to set aside an award?

The filing of an application to set aside an arbitral award suspends the enforcement of the award and the time limit granted for its execution.