RECONCILIATION

Reconciliation Rules

Reconciliation Procedure Article 41-43
Article (41) The party that desires reconciliation shall address a request to the Secretary-General of the Centre conveying the details of the reconciliation proposal.
Article (42) The Secretary-General shall inform the other party in the dispute of the request for reconciliation as soon as possible, and a period of 15 days is allowed the other party to accept or refuse reconciliation. If the second party that has been notified of the reconciliation proposal agrees to participate, he must inform the Secretariat of the Arbitration Panel of this agreement within the appointed time. If the second party does not respond within the time or refuses reconciliation, the reconciliation request is considered rejected. The Secretary-General shall then notify the party requesting reconciliation of this rejection, as soon as possible.
Article (43) Upon receipt of acceptance of reconciliation from the other party, the Secretary-General in consultation with the disputing parties shall appoint one or more reconcilers, and the reconcilers shall inform the parties of their appointment and will arrange a time for the parties to present their cases to them.
Reconciliation Procedure Article 44-46
Article (44) The reconcilers shall manage the reconciliation attempt as they see fit, but in accordance with the principles of impartiality, fairness and justice. The reconcilers shall agree with the parties on the venue for reconciliation. They may at any time request either party to provide additional information as they deem necessary.
Article (45) Reconciliation is of a confidential nature that must be preserved by each individual participating in the reconciliation process in any capacity. The Centre shall collect for each conciliation request a non-refundable fee of 1000 US Dollar for registration fees.
Article (46) The reconciliation attempt may result in any of the following, as the case may be:
  1. Signing of an agreement by the parties, which shall be considered binding upon the parties. This agreement shall remain confidential unless it is necessary to publicize it for the purpose of its implementation.
  2. In the event of failure of reconciliation, the reconcilers shall produce a report stating that the reconciliation attempt has failed. The report does not have to include the reasons for the failure.
  3. One or more of the parties in the dispute, at any stage in the attempt, may inform the reconcilers of their decision to discontinue the reconciliation attempt.
Reconciliation Procedure Article 47-50
Article (47) Upon conclusion of the reconciliation attempt the reconcilers shall inform the Secretary-General of the result, whether it is the reconciliation agreement signed by the parties, the report of the failure of the attempt, or the decision of the parties to discontinue the reconciliation attempt.
Article (48) Upon opening the file for a reconciliation attempt, the Secretary General, taking into account the nature of the conflict and its importance, shall specify the financial amount to be paid by the parties in equal shares in order to proceed with the reconciliation.
    The financial amount to be paid shall cover:
  1. Estimated costs for Reconciliation and reconcilator’s honorarium.
  2. The administrative fees determined in accordance with the arbitration administrative fees’ schedule below and limited up to the third of the arbitration required fees as it is stated in the said schedule.

In the event that the Secretary General, during the reconciliation procedures, considers that the payments made originally in accordance to the paragraph (1) above are insufficient to cover all the possible costs for reconciliation, he shall then ask the parties for additional amounts to be paid in equal shares.
Upon completion of reconciliation, the Secretary-General shall determine the final costs and inform the parties in writing. The parties shall be equally liable for these costs, unless otherwise stipulated in the reconciliation agreement. All other expenditures by either party shall remain that party’s responsibility.
Article (49) Unless the disputing parties agree on otherwise, the reconciler may not assume the role of arbitrator, representative, or advisor for the benefit of either party in any litigation or Arbitration proceedings concerning the dispute for which the reconciliation attempt was initiated. The parties should not ask for the reconciler to be called in as witness in any of these proceedings, unless the disputing parties agree on otherwise.
Article (50) The parties are required not to use any documents, opinions, data or testimonies submitted during the reconciliation procedures as supporting evidence in any litigation or Arbitration proceedings.
Final Provisions
Article (51) The Board of Trustees has the right to amend and interpret the provisions of these Procedures.
Article (52) These Procedures shall become effective upon approving them by the Board of Trustees.

Reconciliation Procedures

  1. The party desiring reconciliation shall address a request to IICRA conveying the details of reconciliation request.
  2. Within 7 days from the date of receipt, the application shall be examined by the Legal Department of IICRA and it shall be evaluated afterward and a report shall then be submitted to the Executive Director of IICRA.
  3. The Executive Director of IICRA shall inform the other party in the dispute of the request for Reconciliation on certified registered email.
  4. Within a period of maximum 15 days, the other party had to accept or refuse the reconciliation request in order to know his participation in the conciliatory attempt, and the submission of his requests, if any.
  5. Such period shall be extended by a written request submitted by either party or both.
  6. If the other party doesn’t respond within the specified time or refuses reconciliation efforts expressly or implicitly. IICRA shall then notify the party requesting reconciliation in writing of its failure as soon as possible.
  7. If other party accepts the reconciliation attempt, IICRA shall then nominate one or more Reconcilers (depending on the nature of the dispute) and inform the parties about their expertise accordingly.
  8. The Parties have the right to accept or reject the Reconciler/ Reconcilers nominated by IICRA.
  9. If The Parties expressly or implicitly agree to the nomination of the Reconciler/ Reconcilers by IICRA within a period of 7 days from the date of notification by the parties of the nomination of the Reconciler/ Reconcilers (i.e. no objection to the nomination is received by IICRA), the Executive Director shall forward the reconciliation request and documents along with relevant attachments to the Reconciler/ Reconcilers.
  10. Reconciler/ Reconcilers shall manage the reconciliation efforts as he/they see fit (determination of time and venue) methods of persuasion, the convergence of views and proposal of mutual satisfactory solutions for both sides.
  11. Reconcilers will be granted time to complete the reconciliation attempt in a period not exceeding more than 3 months from the date of receipt of the request for Reconciliation, and this deadline shall be renewed by a written agreement from both parties or without it, the efforts of reconciliation shall be considered failed.
  12. The Reconciliation task shall come to an end either by signing a reconciliation agreement by the parties, certifying/documenting the assets of IICRA and then in the competent court, having the strength of the executive bond, or the failure of the reconciliation efforts and formally informing the parties of the completion of the reconciliation efforts between parties.

Reconciliation Features

Specialization
IICRA is a unique and specialized international platform in settling all kinds of banking, financial and commercial disputes through international reconciliation and arbitration with compliance of Sharia Law, by approving rigid proceedings for review and auditing of the procedures and decisions.
Professionalism
IICRA applies the best practices and standards internationally approved for disputes settlement on which the rules of reconciliation and arbitration of IICRA are based. IICRA provides lists of arbitrators, conciliators, and specialized experts in all fields of Islamic financial industry and those who are well aware of Sharia and Legal perspectives of banking, financial and commercial transactions.
Independence
IICRA's organizational structure is composed of the General Assembly, Board of Trustees, Executive Committee and Secretary-General as traditionally recognized in the International organization. IICRA has a privilege to exercise independence compared to other arbitration and reconciliation institutions which are usually affiliated to public or private institutions, such as the chambers of commerce.
Internationality
IICRA as an international institution was established on 5 April 2005 which embodied the efforts of International Conventions concern to support the Islamic financial industry. IICRA services are used by many institutions and corporations around the Muslim world and the other countries interested in the Islamic economy. IICRA seeks the establishment of many branches around the world to be in line with the geographic development of the financial industry.
Efficiency
IICRA focuses on the reduction of the process since the rules of IICRA defined the timeframe of three (3) months for conclusion or result of reconciliation agreement upon the receipt of acceptance of reconciliation. IICRA imposes timeframes for control of the reconciliation procedures and to grant all parties the required timeframes for raising their arguments and pleadings.
Integrity/Binding Award
IICRA provides its services to any individual or corporate bodies, public or private authority or entity interested in the utilization of those services in compliance with Sharia Law. The binding awards rendered by the IICRA are final and may not be challenged by appeal or cassation, and shall be enforced in accordance with the acceptable international proceedings enforceable of law.
Multifuctional
IICRA provides all disputes resolution services in one stop starting with conciliation, arbitration, training, the appointment of experts and specialists, auditing of the decisions and draft awards from Sharia and Legal Aspects.
Confidentiality
The important advantage of arbitration in IICRA guarantees privacy and safeguard of case information disclosed only to those involved.
Non-profitability
IICRA seeks to keep the non-profitability of its service fees which covered only the operational expenses.

Reconciliation Fees Structure

Article (48) Upon opening the file for a reconciliation attempt, the Secretary-General, taking into account the nature of the conflict and its importance, shall specify the financial amount to be paid by the parties in equal shares in order to proceed with the reconciliation. The financial amount to be paid shall cover:
  1. Estimated costs for Reconciliation and reconciliation honorarium.
  2. The administrative fees determined in accordance with the arbitration administrative fees’ schedule below and limited up to the third of the arbitration required fees as it is stated in the said schedule.
In the event that the Secretary-General, during the reconciliation procedures, considers that the payments made originally in accordance to the paragraph (1) above are insufficient to cover all the possible costs for reconciliation, he shall then ask the parties for additional amounts to be paid in equal shares.
Upon completion of reconciliation, the Secretary-General shall determine the final costs and inform the parties in writing. The parties shall be equally liable for these costs unless otherwise stipulated in the reconciliation agreement. All other expenditures by either party shall remain that party’s responsibility.